Sustaining law enforcement and firefighter pensions
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.
