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Bill would let certain LEOff 2 members buy service credit without returning to work
Summary
House Bill 1349 would remove the requirement that a member on an employer-authorized unpaid leave of absence must return to work to be eligible to purchase up to two years of service credit. The change responds to a member confusion case and carries a small one-time systems cost, committee staff said.
House Bill 1349 was presented to the Appropriations Committee by David Pringle, staff to the committee. The bill, requested by the LEOff 2 board, would remove the requirement that a member on an employer-authorized unpaid leave of absence return to work in order to purchase up to two years of service credit for that leave.
Under current rules described at the hearing, a member on an employer-authorized unpaid leave could purchase up to two years of service credit by paying the member, employer and state contribution rates to the Department of Retirement Systems within five years of returning to service; if the member did not return, the purchase was not available except in retirement scenarios. The bill would allow purchase of the service credit even if the member does not return to work.
Committee materials included a fiscal note received the afternoon of the hearing that indicated a one-time cost of about $20,000 at the Department of Retirement Systems to update systems and train staff. Jacob White, staff to the LEOff 2 board, said the change came after a member on a non-duty injury leave who was unable to return to work and later retired thought they would be eligible for the benefit and was not; the board worked with DRS to propose this correction.
The committee held the public hearing and took no formal action at that time; committee staff said HB 1349 is scheduled for executive session on Monday with other bills.
