Update on HB 2034 and LEOFF 1

During the evening of Friday, February 13, the Washington State House of Representatives passed HB 2034 on a 55–39 vote. The legislation authorizes the transfer of approximately $2.5 billion from the LEOFF 1 fund, reducing its funded status from roughly 160% to approximately 110%.

Because of the magnitude of this action, it is important to provide context and clarity.

Historical Perspective

The Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System was created in 1969 to provide a defined-benefit pension and medical coverage for police officers and firefighters across Washington. In 1977, the system was divided into two tiers:

• LEOFF Plan 1 (members hired before October 1, 1977) 
• LEOFF Plan 2 (members hired on or after October 1, 1977)

Over the decades, LEOFF 1 has become one of the most well-funded public pension systems in the country. Through disciplined funding, strong investment performance, and responsible oversight, the plan reached a funded status of approximately 160%, meaning it holds significantly more assets than actuarially required to pay all projected benefits.

It is precisely because of that overfunded status that legislative interest in accessing the surplus has surfaced periodically in Olympia. This conversation is not new. What is new is the Legislature’s decision to move forward with a transfer of this scale.

WSCFF Advocacy Over the Past 13 Months

For more than a year, the Washington State Council of Fire Fighters (WSCFF) has consistently opposed structural changes or fund transfers from LEOFF 1. Our position has been clear:

LEOFF 1 exists to provide retirement security and medical benefits to the firefighters and law enforcement officers who earned them. It should not be treated as a general revenue source.

As this session progressed, it became evident that the Legislature was intent on advancing some version of a fund transfer. At that point, we adjusted our strategy. Rather than standing on principle alone while language advanced without our input, we engaged directly to mitigate risk and strengthen protections for LEOFF 1 members.

Amendments Secured

Through sustained advocacy and negotiations, we successfully amended HB 2034 to transfer LEOFF 1 governance to the LEOFF Plan 2 Retirement Board (LEOFF Board).

This change is significant.

The LEOFF Board includes representation from labor and employers and has historically provided focused oversight of pension and disability matters. Moving governance to the Board strengthens member protections and places long-term stewardship in a structure designed specifically for this system.

We have not yet secured a second benefit enhancement for LEOFF 1 members. That remains a priority as the bill continues through the legislative process.

What HB 2034 Does Not Do

It is equally important to address concerns directly:

• HB 2034 does not reduce benefits. 
• HB 2034 does not change eligibility. 
• HB 2034 does not alter pension formulas or COLAs. 
• HB 2034 does not eliminate medical benefits.
• HB 2034 does not impact LEOFF Plan 2
  
  

LEOFF 1 retirees and beneficiaries will continue to receive the pension and benefits they earned through decades of service to their communities.

The transfer reduces the plan’s funded ratio from approximately 160% to about 110%, which still leaves the system actuarially overfunded – above 100%. While we opposed the transfer itself, the remaining funded status is projected to fully cover promised benefits under current actuarial assumptions.

Next Steps

HB 2034 now moves forward in the legislative process. The WSCFF will continue to:

• Monitor the bill closely 
• Advocate for additional member protections 
• Pursue benefit enhancements where possible 
• Ensure that no action undermines the retirement security of LEOFF 1 members 
  
  

We recognize that LEOFF 1 members built this fund through a lifetime of service and sacrifice. Our responsibility is to protect that legacy and the financial security it represents.

We will continue to provide updates as the process unfolds.

In solidarity, 

Washington State Council of Fire Fighters

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