7 Things Washington Law Enforcement Leaders Must Know About HB 2034 and Their LEOFF Pension in 2026
Washington State's HB 2034 is the biggest change to the LEOFF pension system in decades. Most officers are hearing about it from coworkers, union reps, or not at all. Here are the seven facts every sheriff, chief, and senior officer needs to understand before making any retirement decisions.
01
HB 2034 Terminates LEOFF Plan 1 — Here's What That Actually Means
LEOFF Plan 1, the retirement system for officers hired before October 1, 1977, will be terminated and restated under a new legal framework by June 30, 2029. The plan's assets will be restructured. The bill passed the Washington State House on February 14, 2026 on a 55–39 vote and is currently moving through the Senate.
Source: Washington State Legislature, app.leg.wa.gov
02
There Is a $4 Billion Surplus — And It's Not Yours to Keep
By the end of the 2027–29 fiscal biennium, LEOFF 1 is projected to be funded at approximately 225%, creating a surplus of roughly $4 billion. HB 2034 directs that surplus to be transferred — $569 million to the Climate Commitment Account, the remainder to the Pension Funding Stabilization Account. The pension fund is being deliberately reduced to approximately 110% funded.
Source: E2SHB 2034 House Bill Report, Washington State Legislature
03
Your Benefits Are Not Being Cut — But Your Planning Window Is Closing
HB 2034 does not reduce pension benefits, change eligibility, alter pension formulas, or eliminate medical benefits. LEOFF 1 retirees will continue receiving the pensions they earned. What IS changing is the structure of the fund itself — and the window to model and plan around that change closes at the member notification deadline of June 10, 2026.
04
The DRS Estimator Cannot Show You What This Means For Your Situation
The Washington State Department of Retirement Systems (DRS) provides a benefit estimator through your online account. It calculates your baseline pension using years of service and final average salary. What it cannot do is model scenarios — survivor option vs. pension maximization, COLA impact over 20 years, or the effect of private protection on your family's outcome. No public tool does this. That's the gap this site addresses.
05
The Survivor Option Is Not the Safe Choice Most Officers Think It Is
When you retire, your LEOFF 2 packet will ask you to choose between the maximum pension (which stops when you die) and a reduced survivor option (which gives your spouse continuing income but permanently reduces your monthly check). For a pension of $5,000/month, a 100% survivor election typically reduces that to $4,000/month — permanently. Over 25 years, that $1,000/month reduction equals $300,000 in lost income. If your spouse dies first, the reduction continues. Nothing is refunded.
06
There Is a Fourth Option — And It's Not on Your Form
The Pension Shield Option™ is a strategy developed by Jim Lusk, CFP®, CLU®, ChFC®, CLF®, M.Ed. — creator of the Private Protection Plan® — that allows qualifying officers to take the maximum pension and use a portion of the additional income to fund private protection for their spouse. If it works for your situation, the result is higher net income while you're alive, tax-free protection for your spouse, and a benefit that passes to your heirs instead of reverting to the pension fund. It either works for your numbers — or it doesn't. The only way to know is to run the analysis.
07
The Cost of Waiting Goes Up Every Year You Wait
Insurance underwriting is the hinge point of the Pension Shield Option™. The younger and healthier you are when you apply, the lower your premiums and the stronger your coverage. An officer who locks in coverage at 52 will pay significantly less than one who waits until 58 and develops a health condition. Two officers with identical pensions can end up with dramatically different outcomes based solely on when they acted.
The analysis is free. The conversation is no obligation. The pension election is permanent.
This content is provided for educational and informational purposes only. It does not constitute financial, legal, or investment advice and should not be relied upon as such. No advisor-client relationship is created by accessing this content. Consult a qualified financial advisor before making any pension decisions.