Washington would end LEOFF Plan 1 in 2029, move its assets into a restated system, and continue existing benefits during the transition.
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.
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.
No hearings or votes scheduled.