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Bill would let LEOFF Plan 2 members retiring after an authorized leave buy two years of service credit
Summary
Senate Bill 5306 would allow LEOFF Plan 2 members who retire after an authorized leave of absence to purchase up to two years of service credit (the same option previously limited to members who return to work); the retirement board said the change affects only a small number of members annually and is not expected to affect contribution rates.
Senate Bill 5306, presented to the Senate Ways & Means Committee at the request of the LEOFF Plan 2 Retirement Board, would allow a LEOFF Plan 2 member who retires instead of returning to work after an authorized leave of absence to purchase up to two years of service credit under the same terms members currently use when they return to work.
Amanda Cecil summarized the bill and the Department of Retirement Systems’ fiscal note: DRS reported one‑time administrative costs of about $20,000. The actuarial fiscal note indicated no expected change to rounded LEOFF 2 contribution rates for employers, but staff noted there is an indeterminate, small cost to the system because purchased service credit increases the lifetime benefit for the purchasing member.
Steve Nelson, executive director of the LEOFF Plan 2 Retirement Board, testified in support and said the change affects roughly 40 people per year and can be significant to those individuals who cannot return to work but wish to buy the credit.
Ending: The bill recorded a brief public hearing in support and no opposition; staff and the retirement board said the fiscal effect on rates is expected to be negligible.
