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2025

The 2025 Legislative Session will commence on Monday, January 13th and is expected to conclude on Sunday, April 27th.

Information regarding Legislation having an impact on LEOFF Plan 2 is posted to this web page as it becomes available.

For general legislative information, bills not listed on this site, please visit the Washington State Legislature.

 

Board Endorsed Bill

Concerning the purchase of pension service credit for authorized leaves of absence. (HB 1349 | SB 5306)

HB 1349 | SB 5306  Allows members of LEOFF 2 to purchase Authorized Leave of Absence Purchase Service Credit when they retire instead of returning to work after the authorized leave of absence.

 

Status HB 1349 - Did not pass.

Status SB 5306 - Apr 22 - Governor signed. Chapter 112, 2025 Laws. (View Session Law) Effective date 7/27/2025.

Board Supported Bill

Paying state retirement benefits until the end of the month in which the retiree or beneficiary dies. (HB 1312 | SB 5114)

HB 1312 | SB 5114 

In the month a retiree passes away, the benefit payment is prorated based on the number of days the person was alive in the month. If the retiree had already received their pension, the Department of Retirement Systems must collect the partial overpayment from the retiree’s beneficiary or estate. This bill provides a retiree’s beneficiary or estate a full month’s benefit for the month a retiree or survivor passes away.

By Request: Select Committee on Pension Policy

Status HB 1312 - Did not pass.

Status SB 5114  - Did not pass.

 Other Bills of Interest

LEOFF 1 Termination and Restatement - HB 2034

HB 2034 – Concerning termination and restatement of LEOFF Plan 1 of the Law Enforcement Officers' and Firefighters' retirement system.

 This bill terminates LEOFF Plan 1 effective June 30, 2029. Additionally, this bill does the following:

·      120% of the funding required to fully fund LEOFF 1 is transferred to the restated law enforcement officers’ and firefighters’ retirement     system to continue to pay for LEOFF 1 benefits.

·       After this transfer, the remaining assets of LEOFF 1 are reverted back to the plan sponsor, the State.

·       Does not take away any existing benefits for LEOFF 1 members and beneficiaries.  

·       Provides a retirement incentive to the four-remaining active LEOFF 1 members, as of February 1, 2025.

·       Creates a two-year statute of limitations for claims challenging the bill.

·       Requires DRS to seek IRS approval of the termination.

Status HB 2034 - Did not pass.

LEOFF 1/LEOFF 2 Merger

OFM has shared the proposed LEOFF 1/LEOFF 2 merger (Z-0174.4) and has given permission for it to be posted on the LEOFF 2 website. The bill has not been given a bill number at this time. Our website will be updated with that bill number as soon as it is available.

Here is a high-level summary of what the bill does: 

  • The bill creates a LEOFF 1 Annuity that matches existing LEOFF 1 benefits and provides that the new annuity will be used to pay LEOFF 1 members beginning in June 2026.
  • 125% of the assets that are projected to be necessary to pay for the LEOFF 1 Annuity are transferred from LEOFF 1 to a new LEOFF Benefit Reserve Account which is a subaccount in the LEOFF 2 Retirement Fund. In the event that the assets are insufficient the state will guarantee the payments.
  • The assets in the LEOFF Benefit Reserve Account will not affect the funded ratio or contribution rates for LEOFF 2.
  •  After the transfer, LEOFF PLAN 1 is terminated and $1 billion of the remaining surplus assets is transferred to the State General Fund.
  •  Any remaining surplus assets are transferred to the LEOFF Benefit Reserve Account.
  • The bill does not provide any new benefits for LEOFF 1 or LEOFF 2 and does not provide any assets for LEOFF employers.
  • If the IRS rules that the merger and/or termination is improper the state is required to take whatever remedial measures are necessary so that LEOFF 1 and LEOFF 2 remain qualified plans.

Concerning automatic deferred compensation enrollment for county, municipal, and other political subdivision employees. (HB 1270)

HB 1270 Authorizes local governments operating deferred compensation programs to automatically enroll new employees, unless the employee opts out. By Request: Department of Retirement Systems

Status HB 1270 - Apr 24 - Governor signed. Chapter 154, 2025 Laws. Effective date 7/27/2025. 

Closed Retirement Plans (SB 5085)

Merges the assets, liabilities, and membership of LEOFF 1, PERS 1, and TRS Plan 1 retirement systems into the new Legacy Retirement System. Creates an annual cost of living adjustment to the retirement benefits of retirees in the PERS 1 and TRS 1, of up to 3 percent.

Status SB 5085 - Did not pass.

2025-2027 Operating Budget (HB 1198 | SB 5167)

Making 2025-2027 fiscal biennium operating appropriations.

This bill fully funds LEOFF Plan 2 contribution rates. Appropriations reflect pension rates adopted by the Board.

Status HB 1198 - Did not pass.

Status SB 5167:  Apr 28 - Delivered to Governor. (View Bill as Passed Legislature)

Removing qualifiers related to the presumption of occupational disease for heart problems.(HB 1571)

This bill removes the requirement, for presumptive occupational disease in firefighters, that a heart problem occurs within 72 hours of certain exposures or 24 hours of strenuous firefighting activities.  

Status HB 1571 - Did not pass.