2006 Legislative Session
The 2006 Legislative Session convened on Monday, January 9, 2006 and ended one
day early on Wednesday, March 8, 2006.
The LEOFF Plan 2 Retirement Board recommended four bills to the 2006 Legislature.
The Legislature passed three of the four bills recommended by the Board. Information
about the recommended bills is shown below.
To see a summary of a bill, you can click on the Bill Title . To link to the Legislature's Bill
Information page where you can find additional details about a bill, you can also click on
the Bill Number.
Bills Recommended by the LEOFF Plan 2 Retirement Board:
Bill
Number
Bill Title
- LEOFF Plan 2 Retirement Board Bill Summaries -
Catastrophic Disability Benefit (HB 2932)
LEOFF Plan 2 members sometimes suffer catastrophically disabling job-related
injuries that leave them unable to perform any substantial employment for the rest
of their lives. For members with little LEOFF service, a catastrophic disability may
leave them with insufficient income even if they qualify for other state or federal
disability benefits.
Currently, disabled members are entitled to receive a minimum retirement allowance
equal to 10% of such member's final average salary from LEOFF Plan 2. Disabled
LEOFF Plan 2 members may also receive benefits from state Worker's Compensation
Insurance and some could be eligible for federal Social Security disability benefits.
This bill impacts LEOFF Plan 2 by providing that a member who is severely disabled
in the line-of-duty such that they are incapable of substantial gainful employment in
any capacity in the future would be guaranteed to receive 70% of their salary tax-free
for life from LEOFF Plan 2 or up to 100% of salary when combined with Worker's
Compensation and/or federal Social Security disability benefits for the same injury.
Substantial gainful activity is defined as average earnings of no more than $860
per month in 2006, which shall be adjusted annually for inflation.
The Office of the State Actuary estimates this proposal will increase the LEOFF Plan 2
contribution rate by 0.02% for members, 0.01% for local government employers and
0.01% for the State.
STATUS:
The Governor signed House Bill 2932 on March 14, 2006.
Chapter 39, Laws of 2006. The bill was effective March 14, 2006.
Survivor Health Care Insurance (SB 6723)
The families of LEOFF Plan 2 members who are killed in the line of duty
are sometimes left without health insurance from their local government
employers. The surviving spouses of LEOFF Plan 2 members who were
killed in the line of duty since January 1998 have the option to purchase health
insurance for themselves and any dependent children from the State. The
surviving spouse pays the full cost of the insurance. The cost of insurance
may be more than the surviving spouse's LEOFF Plan 2 benefit.
Surviving spouses of LEOFF Plan 2 members who are killed in the line of duty
are entitled to receive a refund of the member's contributions plus interest. If the
member had at least ten years of service at the time of their death, the member's
surviving spouse may choose to receive a refund of 150% of the member's
contributions plus interest or a retirement benefit from LEOFF Plan 2 based on
the member's service and final average salary with an actuarial reduction based
on the difference in age between the member and their spouse.
This bill impacts LEOFF Plan 2 by extending the option to purchase health insurance
from the State to the surviving spouses of members who were killed in the line of
duty prior to 1998. The LEOFF Plan 2 retirement fund will reimburse the survivors
of all LEOFF Plan 2 line of duty deaths for the cost of purchasing health insurance
from the State.
The Office of the State Actuary estimates this proposal will increase the LEOFF Plan 2
contribution rate by 0.03% for members, 0.02% for local government employers and
0.01% for the State.
STATUS:
The Governor signed Senate Bill 6723 on March 30, 2006.
Chapter 345, Laws of 2006. The bill was effective June 7, 2006.
$150,000 Death Benefit (SHB 2933)
LEOFF Plan 2 members who die from a duty-related illness do not qualify for
the $150,000 death benefit that is provided to members who die from duty-related
injuries. The $150,000 death benefit has not increased since it was created in 1996.
This bill impacts LEOFF Plan 2 by extending coverage for the $150,000 death
benefit to members who die from a duty-related illness such as an infectious
disease or cancer which results from a job-related exposure.
The bill as originally introduced provided that the amount of the benefit would have included
future annual increases to take into account inflation. However, the bill was amended in the
House Appropriations Committee to remove the annual inflation increase.
The Office of the State Actuary estimates this proposal will increase the
LEOFF Plan 2 contribution rate by 0.01% for members and 0.01% for local
government employers. There will be no increase to the State contribution rate.
STATUS:
The Governor signed Substitute House Bill 2933 on March 30, 2006.
Chapter 351, Laws of 2006. The bill was effective June 7, 2006.
Fish & Wildlife Service Credit Transfer (HB 2890 - SB 6585)
Enforcement Officers with the State Department of Fish & Wildlife became
members of LEOFF Plan 2 in 2003. Enforcement Officers were previously
members of the Public Employees' Retirement System (PERS). Enforcement
Officers were not provided with an option in 2003 to transfer any past PERS
service to LEOFF Plan 2. All other groups of employees whose membership
was changed from PERS to LEOFF Plan 2 in the past such as port police and
firefighters, higher education police and firefighters, and emergency medical
technicians were provided with an option to transfer their past service from
PERS to LEOFF Plan 2.
This bill would impact LEOFF Plan 2 by providing Enforcement Officers at the
State Department of Fish & Wildlife with the opportunity to transfer their past
service as enforcement officers from PERS Plan 2 to LEOFF Plan 2. The
member would pay the difference between the contribution rate that they paid
in PERS Plan 2 and the contribution rate that they would have paid in
LEOFF Plan 2 plus interest.
STATUS:
HB 2890 was not passed out of the House Appropriations Committee
prior to the February 7 Fiscal Committee Cutoff.
SB 6585 was not passed out of the Senate Ways & Means Committee
prior to the February 7 Fiscal Committee Cutoff.