Benefit Improvement Account Information Center

The purpose of the Benefit Improvement Account Information Center is to provide LEOFF Plan 2 members and stakeholders quick and easy access to information about the Benefit Improvement Account. The Benefit Improvement Account was created with the purpose of providing an additional means of funding benefit improvements in LEOFF Plan 2.

The information in the table below was prepared to assist the LEOFF 2 Board in evaluating the potential cost of benefit improvements during the 2017 and 2018 interims. Assumptions and methods used to estimate the cost of the various proposals may be different under updated analysis. This analysis is now outdated and is provided for informational purposes only.

Benefit Improvement Account Balance of of June 30, 2020 is $341,630,964.

Issue Summary of Benefit Improvement Pricing Total Contribution Rate Increase1

Estimated cost to pay for benefit improvement through a contribution rate increase only.

Present Value of Future Benefit

Estimated cost to pay for benefit improvement without any contribution rate increase. (rounded to the nearest $100,000)

Report Date2

Date the LEOFF Board last received/reviewed current pricing information.

Multiplier
  • Increase benefit multiplier to 2.5% - All past and future service of active members on valuation date
12.34% $2,343,000,000 11/15/20173
  • Increase benefit multiplier to 2.5% - Future earned service of active members on valuation date
4.88% $926,000,000
  • Increase benefit multiplier from 2.0% to 3.0% for service over 16 years - All past and future service of active members on valuation date
    • 2.00% multiplier applied to years 1-15
    • 3.00% multiplier applied to years 16 and over
11.06% $2,098,000,000
  • Increase benefit multiplier from 2.0% to 3.0% for service over 16 years - Future earned service of active members on valuation date
    • 2.00% multiplier applied to years 1-15
    • 3.00% multiplier applied to years 16 and over
7.31% $1,389,000,000
Final Average Salary
  • Change Final Average Salary period from 5 years to 2 years - Future retirements of active members on valuation date
4.84% $1,000,000,000 12/19/20184
Survivor Benefits
  • No cost Joint and 100% survivor benefit - Current and future retirees on valuation date
6.56% $1,270,000,000 11/28/20185
  • No cost Joint and 100% survivor benefit - Future retirees on valuation date
5.18% $1,002,000,000

 

Total contribution rate is split 50% (member). 30% (employer), 20% State

In addition to the improved benefit provision, all other assumptions, methods, and data used to estimate costs relied on the noted actuarial valuations. Estimated costs will change when estimated on a more recent valuation.

3 Cost estimates included in this report based on data in the 2015 Actuarial Valuation Report

4 Cost estimates included in this report based on data in the 2017 Actuarial Valuation Report

5 Cost estimates included in this report based on data in the 2016 Actuarial Valuation Report