Governor Jay Inslee has released his 2025-27 budget proposal. His proposal included a merger of LEOFF 1 with LEOFF 2.

Details of the proposal have not been released yet. However, the Governor’s office has provided the following summary:

The Law Enforcement Officers’ and Fire Fighters’ (LEOFF) pension system provides a retirement benefit to our first responders who put their lives on the line to protect us. Governor Inslee’s proposal builds on our state’s 20-year history of prudent management. Due to the state’s successful investment practices, LEOFF Plan 1 has an approximate $2 billion surplus and LEOFF Plan 2 is fully funded. Under the proposal, LEOFF Plan 1 and LEOFF Plan 2 will remain separate, but their funding is combined into a single, stable pool dedicated to paying benefits. The proposal leaves a $1 billion buffer in the LEOFF system while also allowing for $1 billion previously contributed by the state to the LEOFF Plan 1 system to be returned for general state purposes. This approach ensures fairness for all retirees, maintains safeguards that prevent sudden cost spikes, and responsibly manages these plans. The existing LEOFF 2 Board will transition to the LEOFF Board and will include representation for LEOFF 1 members. The state will request an Internal Revenue Service (IRS) review to confirm that all measures meet federal standards, while local disability boards retain their full authority over medical benefits.

When more information is made available the LEOFF 2 Board will provide an update on our website. The Board will track any bills during the upcoming legislative session on our website.