Washington Legislature enacts new rules for LEOFF Plan 1 retirement system

On April 8, 2025, Washington lawmakers introduced House Bill 2034, a significant legislative measure aimed at addressing the future of the Law Enforcement Officers' and Firefighters' Retirement System (LEOFF) Plan 1. This bill comes at a critical juncture, as the plan has been closed to new members for nearly 25 years and is now predominantly composed of retirees and their beneficiaries.

The primary purpose of House Bill 2034 is to clarify the management and future of LEOFF Plan 1, which currently boasts a surplus exceeding $3.3 billion. With only four active members remaining compared to approximately 6,000 annuitants, the bill seeks to ensure that the retirement benefits for active and retired law enforcement officers and firefighters remain secure while also addressing the surplus assets of the plan.

Key provisions of the bill include the state's recognition of its role as the ultimate guarantor of the retirement benefits, as established by the Washington Supreme Court in the 1972 case Weaver v. Evans. The legislation asserts that while members have a constitutionally protected right to their pension benefits, they do not have a claim to any surplus assets once all liabilities are met. This provision has sparked considerable debate among stakeholders, particularly regarding the implications for future funding and the potential reversion of surplus assets to the state.

Opposition to the bill has emerged from some advocacy groups who argue that the surplus should be utilized to enhance benefits for current retirees and beneficiaries rather than reverting to the state. Proponents, however, argue that the bill is necessary to maintain the financial health of the retirement system and to ensure that benefits remain secure for those who have served in public safety roles.

The economic implications of House Bill 2034 are noteworthy, as the management of the surplus could influence future funding for public safety programs and other state initiatives. Experts suggest that a clear framework for handling the surplus could lead to more sustainable financial practices within the retirement system, ultimately benefiting both current and future retirees.

As the bill moves through the legislative process, its outcomes could set a precedent for how similar retirement systems are managed in Washington and beyond. The discussions surrounding House Bill 2034 highlight the delicate balance between ensuring secure retirement benefits for public safety personnel and managing state resources effectively. The next steps will involve further debates and potential amendments as lawmakers seek to address the concerns of all stakeholders involved.