OLYMPIA — A bill to merge three of Washington’s closed retirement plans passed the Senate Monday.
Senate Bill 5085, sponsored by Sen. June Robinson (D-Everett), creates the Legacy Retirement System by combining the Law Enforcement Officers’ and Firefighters’ Retirement System Plan 1 (LEOFF 1), the Public Employees’ Retirement System Plan 1 (PERS 1), and the Teachers’ Retirement System Plan 1 (TRS 1). The bill also provides ongoing cost-of-living adjustments (COLA) for PERS 1 and TRS 1 retirees to help them keep up with rising expenses.
“Every public employee should be able to retire with confidence,” Robinson said. “This bill strengthens our retirement system and upholds the commitments made to those who have spent their careers serving our communities.”
LEOFF 1, PERS 1, and TRS 1 have been closed to new members since 1977. While LEOFF 1 is well-funded, PERS 1 and TRS 1 have required ongoing financial support to meet obligations. Merging the plans into a single system aims to address these funding challenges while keeping LEOFF 1 members’ benefits unchanged.
The bill protects LEOFF 1 benefits, including disability and medical coverage, and ensures LEOFF 1 and 2 employers and employees won’t be responsible for funding any shortfalls in the new system. It also requires the Department of Retirement Systems to seek IRS approval to confirm the merger won’t affect members’ tax status.
The bill now moves to the House for consideration. Follow its progress here.
