GOOD NEWS!
SINCE SSB 5791 PASSED THE LEGISLATURE, WAS SIGNED BY THE SPEAKER OF THE HOUSE AND THE PRESIDENT OF THE SENATE ON MARCH 8TH, WAS DELIVERED TO THE GOVERNOR ON MARCH 9TH, AND IS TO BE SIGNED BY THE GOVERNOR ON MARCH 24, 2022 IT WILL IMMEDIATELY BECOME THE LAW
For this reason, the Washington State Department of Retirement Systems (“DRS”) has put up on its website a notice over how it intends to proceed. Accordingly, The DRS published the following statement:
“Providing a lump sum benefit to LEOFF 1 retirees. A lump sum benefit of $100 per service credit month for LEOFF 1 members and their beneficiaries, will be payable by January 31, 2023. DRS will contact affected members later this summer regarding distribution options. If a LEOFF 1 member dies after this bill is effective but before the distribution of the lump sum benefit takes place, the distribution will be made to the member’s designated beneficiary. Members and beneficiaries of members who retire with a line-of-duty disability will receive the greater of a one-time lump sum benefit equal to $100 per service credit month or $20,000.”
Here is the link to the DRS website from which this notice came:
https://www.drs.wa.gov/sitemap/legislation/#ssb-5791:-providing-a-lump-sum-benefit-to-leoff-1-retirees
HOW SS 5791 WORKS
SSB 5791 provides a defined benefit for LEOFF I members or their beneficiaries. The RFFOW is responsible for having the bill introduced on behalf of LEOFF 1 members and thanks to all of your hard work and diligence in lobbying your legislators we got it passed. Thanks is also warranted for so many legislators and other LEOFF 1 organizations for standing together to get it passed
Under LEOFF 1 the defined benefit is a minimum payment of $20,000.00 for duty related disability retirees or their beneficiaries, or a payment of $100.00 for each month of service credit, whichever is greater. Service retirees or their beneficiaries are entitled to a payment of $100.00 for each month of service credit. For example — $100 per month of service credit, X 12 months, X years of service credit equals:
- Twenty years of service = $24,000.00
- Twenty-five years of service = $30,000.00
- Thirty years of service = #36,000.00
- $100.00 per month for each month of service thereafter.
The distribution is scheduled to occur before January 31st 2023.
LEOFF 2 Tiered multiplier or lump sum
Beginning January 2023, this bill provides additional pension benefits in Plan 2 of the Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System. The additional benefits include a lump sum benefit of $100 per service credit month for members or beneficiaries of members who were retired as of Feb. 1, 2021. For those who retire after Feb. 1, 2021, they will have an option of the lump sum or an increase to their benefit multiplier to 2.5% for the 10 years of service from years 16 through 25.
Members and beneficiaries of members who retire with a line-of-duty disability will receive the greater of a one-time lump sum benefit equal to $100 per service credit month or $20,000. Retirees or their beneficiaries receiving a one-time lump sum payment may use the funds to purchase an optional actuarially equivalent life annuity benefit.
DRS will contact affected retirees later this summer regarding their payment options, and will update benefit estimate tools and retirement applications to reflect these changes.
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