LEOFF 2 State Pension Contributions
Senate Releases 2017-2019 Omnibus Operating Budget (PSSB 5048)
The Senate released their 2017-2019 Omnibus Operating Budget (PSSB 5048) this morning.
Issues Impacting LEOFF Plan 2:
Contribution Rates (Sections 939 & 940)
Except for fire protection districts, the State contribution to LEOFF Plan 2 is eliminated making the contribution rate funding ratio 50% member and 50% employer. The state saves $109 million in 2017-19 ($111 million in 2019-21).
Merger (not included in budget proposal)
A merger of LEOFF Plan 1 with either TRS Plan 1 or LEOFF Plan 2 is NOT included in this Senate budget proposal.
Alternate Revenue (Section 941)
The $25 million alternate revenue payment scheduled for September 30, 2017 is canceled. Intent language is added that any distribution to the Benefits Improvement Account in 2019 may include a transfer from the LEOFF Plan 2 trust fund.