2004 Legislative Session
The 2004 session of the Washington State Legislature began on
January 12, 2004 and ended March 11, 2004. The LEOFF Plan 2
Retirement Board recommended the following legislation:
Bill
Number
HB 2418 - Duty Disability Bill ~PASSED
The bill would provide that all LEOFF 2 members who separate from service
as a result of service-related disability would be entitled to withdraw 150% of
their accumulated contributions. This benefit would be entirely nontaxable.
If the member chooses this benefit, they would not be eligible for a disability pension.
The bill would also provide that all LEOFF 2 members who separate from
service as a result of service-related disability would be entitled to receive
a minimum disability pension equivalent to ten percent of their average final
salary. The minimum benefit would not be actuarially reduced based on the
member's age. This minimum benefit would be nontaxable. The member may
receive additional pension benefits for each year of service beyond five years.
These additional benefits would be subject to actuarial reduction and would be
taxable in the same manner as current disability pension benefits.
The bill includes a cap on the additional disability benefits so that the combined
minimum benefit and additional benefits could not exceed the disability pension
amount provided in current law.
HB 2418 was signed by the Governor on March 11, 2004. Chapter 4, Laws of 2004.
Effective date June 10, 2004
HB 2419 Duty Survivor Benefit Bill ~ PASSED
The bill eliminates the “early retirement” actuarial reduction from the survivor
benefit paid from a LEOFF Plan 2 member's earned retirement benefit if the
member is killed in the course of employment.
HB 2419 was signed by the Governor on March 11, 2004. Chapter 5, Laws of 2004.
Effective date June 10, 2004
SB 6249 - Actuarial Smoothing Market Corridor Bill ~ PASSED
The bill adds a market value corridor to the existing asset smoothing method
used to determine contribution rates for the state retirement systems. The current
asset smoothing method has no restrictions on the amount that the “smoothed”
or actuarial value of assets may derive from the underlying market value of assets.
The bill would institute a 30% market corridor, which will prevent future extreme
fluctuations of contribution rates. This bill was also recommended by the
Select Committee on Pension Policy and the Office of the State Actuary.
SB 6249 was signed by the Governor on March 22, 2004. Chapter 93, Laws of 2004.
Effective June 10, 2004.