Legislation 2022

The 2022 Legislative Session is scheduled to run Monday, January 10 through Thursday, March 10 (60 days). Information regarding Legislation having an impact on LEOFF Plan 2 is posted as it becomes available.

For general legislative information, bills not listed on this site, or information about accessing the Legislature’s COVID-19 Session Plan, please visit the Washington State Legislature.

Board Endorsed Bills

Benefit Improvements to LEOFF 2 Retirement (SHB 1701 | SSB 5652)

For questions about what benefit you would qualify for under the Benefit Improvement bill please click here.

SHB 1701 | SSB 5652

This bill purchases the following LEOFF 2 benefit improvements using the LEOFF 2 Benefit Improvement Account:

  • Members retired as of February 1, 2021, receive a one-time lump sum payment of $100 per month of service credit
    • Provides a minimum lump sum benefit of $20,000 to duty-death beneficiaries, and duty disability retirees
  • Members new to LEOFF 2 after February 1, 2021, receive an increased multiplier for their years of service after 15 and up to 25 years
  • Members active in LEOFF 2 as of February 1, 2021, have the option between the lump sum payment payable at retirement or the increased multiplier

This bill also allows retirees to purchase an annuity with their lump sum payment, with a required minimum payment of $20,000. Benefit improvements under this bill will begin January 16, 2023.
 
In addition to the benefit improvements, this bill also:

  • Freezes LEOFF 2 contribution rates through the 2025 fiscal year
  • Transfers funds from the LEOFF 2 Trust Fund to the Benefit Improvement Account to allow for the purchase of the benefit improvements using the Benefit Improvement Account
  • Puts the current LEOFF 2 minimum rate funding policy into statute
    • Creates an offset to ensure that the cost of the benefit improvements does not result in an increase to the plan’s contribution rates

Amendments to SHB 1701 and SSB 5652 :

  • Changes the date of the actuarial valuation from annually by June 30th to only in even-numbered years to align with rate setting. 
  • Provides that if the plan’s funded status is greater than or equal to 110 percent the minimum rate is equal to 80 percent of the normal cost as calculated under the entry age normal cost method. 
  • Corrects the date that the LEOFF 2 board adopted the current rates from 2021 to 2020. 
  • Changes the date of transfer of funds into and out of the BIA.
  • Provides that the Office of the State Actuary must calculate rate reductions rather than the State Actuary. 
  • Clarifies that minimum employer contribution rates, including those that might be adjusted by the Pension Funding Council, are subject to revision by the Legislature.

SHB 1701 Status: Mar 24 - Governor signed. Chapter 125, 2022 Laws. (View Session Law) Effective date 6/9/2022.

SSB 5652 Status: Did not pass.

No-Cost Interruptive Military Service Credit Eligibility (HB 1804 | SB 5726)

HB 1804 | SB 5726

Expands no-cost interruptive military service credit to include service where a member earns an expeditionary medal. Currently, no-cost interruptive military service credit is limited to interruptive service where the member earns a campaign badge or medal. 

HB 1804 Status: Did not pass.

SB 5726 Status: Did not pass.

Roth 457 Option (EHB 1752)

EHB 1752

Creates a Roth 457 Option for participants of the State’s 457 Deferred Compensation Program. A Roth option allows for post-tax contributions to be made by participants. Roth contributions to a 457 Plan, along with investment returns on those contributions, are not taxed when a member withdraws them from the plan. For a LEOFF 2 member to participate in the State’s Deferred Compensation Program their employer must opt-in to the Deferred Compensation Program.

Amendments:

Changes the date that the bill must be funded by the legislature to June 30, 2022, instead of June 30, 2023. Also, changes the date that the bill must be implemented by the Department of Retirement Systems to December 1, 2023, instead of January 1, 2024.

EHB 1752 Status: Mar 17 - Governor signed. Chapter 72, 2022 Laws. (View Session Law) Effective date 6/9/2022.

 

Bills Impacting LEOFF 2

2022 Governor's Proposed Supplemental Budget (SHB 1816 | ESSB 5693)

SHB 1816 | ESSB 5693

  • Both the Senate and House budgets fully fund LEOFF plan 2. Appropriations reflect pension rates adopted by the Board.
  • The House budget fully funds all of the bills endorsed by the Board.
  • The Senate Budget fully funds all of the bills endorsed by the Board, except for the deferred compensation Roth option bill (EHB 1752). However, the Senate budget does still fund a deferred compensation Roth option for LEOFF 2 members.
     

SHB 1816 Status: Did not pass

ESSB 5693 Status: Mar 31 - Governor partially vetoed. (View Veto Message) Chapter 297, 2022 Laws PV. (View Session Law) Effective date 3/31/2022.

 

Benefit Improvements to LEOFF 1 (SSB 5791)

SSB 5791

Provides a one-time lump sum payment of $100 per month of service credit lump sum benefit to LEOFF 1 members. Amendment removed connection to LEOFF 2 bills SHB 1701 and SSB 5652.

SSB 5791 Status:  Mar 24 - Governor signed. Chapter 168, 2022 Laws. (View Session Law) Effective date 6/9/2022.