WashingtonWashington would terminate and restate the LEOFF Plan 1 pension system
Washington would end LEOFF Plan 1 in 2029, move its assets into a restated system, and continue existing benefits during the transition.
What it does
LEOFF Plan 1 would end on June 30, 2029, and a restated system would take its place. Existing retirement benefits would continue during the transition.
On June 30, 2029, the treasurer would move enough money to cover projected Plan 1 benefits plus 10 percent, while remaining assets would go into a state surplus account.
A restated system would serve former Plan 1 members and generally use the same retirement and survivor rules, while applying the act's stated vesting and administration provisions.
Argument forKeeping benefits uninterrupted while moving 110 percent of projected liabilities may help protect retirees and survivors during the pension system transition.
Argument againstMoving billions of dollars into new funds and allowing remaining assets to revert to the state could make oversight and long-term fund management more important.
More detail
The state would terminate LEOFF Plan 1 and operate a restated retirement system for its members and beneficiaries. The restated system would cover people who belonged to LEOFF Plan 1 before the new system takes effect. Benefits that existed before termination would continue without interruption during the transition. The restatement and termination must follow federal tax rules and protect members' contract rights. The Department of Retirement Systems must seek federal guidance and report any needed changes. Termination and restatement would take effect June 30, 2029, with benefits continuing during the transition.
The state treasurer would transfer money into the restated pension fund and place remaining Plan 1 assets in a pension surplus holding account. The transfer would cover the actuarial value of all projected Plan 1 benefits as of June 30, 2029, plus an additional 10 percent. The state actuary must calculate projected benefits by December 31, 2028. The pension funding council may arrange an independent actuarial audit. Money in the surplus account could be spent only after legislative approval and only for implementing this act. The state could receive surplus assets only after enough money has been transferred to pay all Plan 1 liabilities. The main transfers would occur on June 30, 2029, after the required actuarial calculation; remaining assets would stay invested until the law directs otherwise.
The restated system would generally carry forward Plan 1 retirement, disability, survivor, medical, and cost-of-living provisions. Coverage would be limited to people who were Plan 1 members before the restated system begins, including eligible retirees and survivors. The text says the restated system would not provide different or additional benefits, except for the vesting provision described for members with fewer than five years of service. Members with fewer than five years of service would receive a service allowance under the stated formula beginning four months after the applicable section takes effect. Disability and survivor benefits would remain subject to medical findings, board decisions, director approval, service requirements, and other listed limits. The Department of Retirement Systems would administer the system, and the state investment board would invest its funds. Most provisions would take effect June 30, 2029; the vesting provision would begin four months after its section takes effect.
Where do you stand?
Choose your position
Tell your reps
Take a position to see your representatives and ways to contact them.
Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Apr 1Effective date 6/30/2029*.Latest
- Apr 1Chapter 261, 2026 Laws.Major
- Apr 1Governor Bob Ferguson signed.Became Law
- Mar 12Delivered to Governor.To Governor
- Vote recorded Final Passage as Amended by the Senate (#3). Result: pass.Lower
- Mar 12President signed.Major
- Mar 12Speaker signed.Passed Senate
- Mar 12Passed final passage; yeas, 50; nays, 46; absent, 0; excused, 2.Passed House
- Mar 12House concurred in Senate amendments.
- Mar 6Third reading, passed; yeas, 25; nays, 22; absent, 1; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage as Amended by the Senate (#40). Result: pass.Upper
- Mar 6Rules suspended. Placed on Third Reading.Minor
- Mar 6Committee amendment(s) adopted as amended.
- Mar 5Placed on second reading by Rules Committee.Minor
- Mar 2Passed to Rules Committee for second reading.
- Mar 2Minority; without recommendation.Minor
- Mar 2Minority; do not pass.Minor
- Mar 2WM - Majority; do pass with amendment(s).Minor
- Mar 2Executive action taken in the Senate Committee on Ways & Means at 10:30 AM.
- Feb 26Public hearing in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 17First reading, referred to Ways & Means.Minor
- Feb 13Third reading, passed; yeas, 55; nays, 39; absent, 0; excused, 4.Minor
- Vote recorded 1706 Fitzgibbon Pg 166 Ln 12 (#22). Result: pass.Lower
- Vote recorded 1775 Burnett Pg 19 Ln 14 (#21). Result: fail.Lower
- Vote recorded 3rd Reading & Final Passage (#23). Result: pass.Lower
- Vote recorded 1774 Griffey Pg 4 Ln 34 (#20). Result: fail.Lower
- Vote recorded 1770 Jacobsen Pg 4 Ln 33 (#16). Result: fail.Lower
- Vote recorded 1773 Barkis Pg 4 Ln 34 (#19). Result: fail.Lower
- Vote recorded 1771 Keaton Pg 4 Ln 34 (#17). Result: fail.Lower
- Vote recorded 1772 Schmick Pg 4 Ln 34 (#18). Result: fail.Lower
- Vote recorded 1769 Dye Pg 4 Ln 33 (#15). Result: fail.Lower
- Feb 13Rules suspended. Placed on Third Reading.Minor
- Feb 13Floor amendment(s) adopted.
- Feb 132nd substitute bill substituted (APP 26).Major
- Feb 11Rules Committee relieved of further consideration. Placed on second reading.Minor
- Feb 9Referred to Rules 2 Review.Minor
- Feb 7Minority; do not pass.Minor
- Feb 7APP - Majority; 2nd substitute bill be substituted, do pass.Major
- Feb 7Executive action taken in the House Committee on Appropriations at 9:00 AM.
- Jan 12Referred to Appropriations.Minor
- Jan 12Rules Committee relieved of further consideration.
- Jan 12By resolution, reintroduced and retained in present status.
- 2025
- Apr 8Referred to Rules 2 Review.Minor
- Apr 3Minority; without recommendation.Minor
- Apr 3Minority; do not pass.Minor
- Apr 3APP - Majority; 1st substitute bill be substituted, do pass.Major
- Apr 3Executive action taken in the House Committee on Appropriations at 1:30 PM.
- Mar 13Public hearing in the House Committee on Appropriations at 4:00 PM.
- Mar 7First reading, referred to Appropriations.Introduced
Government & EthicsTaxes & BudgetPublic Safety