Please note that only a summary of each bill is provided.
|HB 2418||Duty Disability Bill – Passed
Provides that all LEOFF 2 members who separate from service as a result of service-related disability would be entitled to withdraw 150% of their accumulated contributions. This benefit would be entirely nontaxable. If the member chooses this benefit, they would not be eligible for a disability pension.
The bill would also provide that all LEOFF 2 members who separate from service as a result of service-related disability would be entitled to receive a minimum disability pension equivalent to ten percent of their average final salary. The minimum benefit would not be actuarially reduced based on the member’s age. This minimum benefit would be nontaxable. The member may receive additional pension benefits for each year of service beyond five years. These additional benefits would be subject to actuarial reduction and would be taxable in the same manner as current disability pension benefits.
The bill includes a cap on the additional disability benefits so that the combined minimum benefit and additional benefits could not exceed the disability pension amount provided in current law.
STATUS: HB 2418 passed and was signed by the Governor on March 11, effective June 10, 2004, Chapter 4, Laws of 2004.
|HB 2419||Duty Survivor Benefit Bill – Passed
Eliminates the â€œearly retirementâ€ actuarial reduction from the survivor benefit paid from a LEOFF Plan 2 member’s earned retirement benefit if the member is killed in the course of employment.
STATUS: HB 2419 passed and was signed by the Governor on March 11, effective June 10, 2004, Chapter 5, Laws of 2004.
|SB 6249||Actuarial Smoothing Market Corridor – Passed
Adds a market value corridor to the existing asset smoothing method used to determine contribution rates for the state retirement systems. The current asset smoothing method has no restrictions on the amount that the â€œsmoothedâ€ or actuarial value of assets may derive from the underlying market value of assets. The bill would institute a 30% market corridor, which will prevent future extreme fluctuations of contribution rates. This bill was also recommended by the Select Committee on Pension Policy and the Office of the State Actuary.
STATUS: SB 6249 passed and was signed by the Governor on March 22, effective June 10, 2004, Chapter 93, Laws of 2004.