Findings—Declaration.

The legislature finds that plan 1 of the Washington law enforcement officers' and firefighters' retirement system (LEOFF plan 1) has been closed to new members for nearly a quarter of a century and is now comprised almost entirely of retirees and survivor beneficiaries. Similarly, employers and employees have made no contributions to the plan for nearly a quarter of a century, and over the life of the plan, over 80 percent of all funds contributed have been from the state through general fund—state appropriations.As of January 2026, only six active members remain in the plan, as compared to 6,000 annuitants. LEOFF plan 1 has far exceeded full funding and has assets which exceed all projected future liabilities, has a surplus of more than $3,300,000,000 today, and no significant amount of additional benefits can be earned in the plan. By the date most of chapter 261, Laws of 2026 is effective, June 30, 2029, LEOFF plan 1 is projected to reach more than 200 percent of full funding.The supreme court of the state of Washington, in the 1972 decision Weaver v. Evans, established that the firefighters and police officers, active and retired, have a constitutionally protected contractual right to a secure retirement benefit, funded on a systematic basis. The legislature recognizes that the state of Washington is the ultimate guarantor of the LEOFF plan 1 retirement benefits. While members have a constitutionally protected right to the pension benefits that are provided as part of their contract of employment, individual members and beneficiaries do not have a right to assets beyond the amount needed to completely satisfy all liabilities under the plan.As the plan sponsor, the state retains the inherent power to terminate a retirement plan and is entitled, upon the satisfaction of all liabilities under the plan, to a reversion of the surplus assets. The restatement of LEOFF plan 1 shall include the transfer of actuarially sufficient resources to ensure the satisfaction of all liabilities under LEOFF plan 1.The legislature has determined that, in order to accomplish the foregoing goals and objectives, it is in the best interest of the members and beneficiaries of LEOFF plan 1 that the plan be terminated and that a restated retirement plan be created. The legislature recognizes that assets in the LEOFF [plan] 1 trust account, including all assets attributable to members and employers, as well as assets attributable to the state that are needed to fully satisfy all liabilities of LEOFF plan 1, are intended for the exclusive benefit of the plan's members and beneficiaries. Thus, only after actuarially sufficient assets have been transferred to the restated law enforcement officers' and firefighters' retirement system shall there be a reversion of any surplus assets to the state in the interest of the health, safety, and welfare of the citizens of the state.It is the intent of the legislature that the LEOFF plan 1 restatement and termination be performed in accordance with the provisions of the federal internal revenue code that apply to state government pension plans and in recognition of the contract rights of the members and beneficiaries of the plan to an actuarially sound retirement program. Between the enactment of this law and the restatement and termination of LEOFF plan 1, the legislature intends to make any changes necessary to conform with federal requirements following receipt of formal guidance from the federal internal revenue service.[ 2026 c 261 s 101.]Notes:Nonseverability—2026 c 261 ss 101-108: See note following RCW 41.26A.505.Effective date—2026 c 261: See note following RCW 41.26A.505.