Washington House Dems vote to raid $4 BILLION from police, firefighter pensions

House Republican Budget Leader Rep. Travis Couture, R-Allyn, blasted majority Democrats during floor debate, characterizing the proposal as a “$4 billion cash grab” from pension funds promised to retired police officers and firefighters. Couture argued that the move represents a betrayal of public servants who were guaranteed retirement security after careers spent protecting their communities. He criticized Democrats for diverting hundreds of millions of dollars to what he described as non-essential programs while retirees struggle with rising costs of gas, groceries, and other necessities. In his remarks, Couture challenged the majority party to refocus spending on the state’s paramount duties rather than, in his words, “spreading the peanut butter so thin” across the budget.

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The Law Enforcement Officers’ and Fire Fighters’ (LEOFF) Retirement System was created in 1969 to provide defined-benefit pensions and medical coverage to police officers and firefighters throughout Washington. In 1977, the system was divided into two tiers. LEOFF Plan 1 covers members hired before October 1, 1977, while LEOFF Plan 2 applies to those hired on or after that date. Although Plan 2 remains active today, Plan 1 closed to new entrants decades ago.

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As of June 2025, LEOFF 1 includes more than 4,400 retirees and just four active members who are still contributing to the system. Over the decades, disciplined funding policies, consistent employer and employee contributions, and strong investment performance have made LEOFF 1 one of the most well-funded public pension systems in the country. The plan is currently estimated to be approximately 150–160 percent funded, meaning it holds significantly more assets than are actuarially required to pay projected benefits. The Office of the State Actuary projects that by 2029, the plan could reach 200 percent funded status, creating a surplus of roughly $3.3 billion as liabilities continue to decline and investment returns accumulate.

House Bill 2034, sponsored by House Appropriations Committee Chair Rep. Timm Ormsby (D-Spokane), would repeal LEOFF 1 effective June 30, 2029, and replace it with what the bill calls a “Restated LEOFF” retirement system. Under the proposal, current LEOFF 1 retirees and remaining members would transition into the new plan while retaining the same pension benefits they are currently entitled to receive. To fund the restated system, lawmakers would transfer enough money from the existing LEOFF 1 account to ensure the new plan maintains a funded status of 110 percent. The remaining surplus funds would then be redirected to other state accounts.

In the legislative findings section of the bill, lawmakers assert that while LEOFF 1 members have a constitutionally protected right to the pension benefits promised under their employment contracts, they do not have a protected right to surplus assets beyond what is necessary to maintain the plan’s actuarial soundness. Of the projected $3.3 billion surplus, approximately $569 million would be deposited into the state’s Climate Commitment Account. The remainder would be transferred into the Pension Funding Stabilization Account, which the state uses to help fund employer contributions for other public retirement systems, including the Public Employees’ Retirement System (PERS), the Public Safety Employees’ Retirement System (PSERS), and the Teachers’ Retirement System (TRS).

The Association of Washington Cities (AWC) has argued that city governments and their employees contributed significantly to building the surplus and that those contributions should be acknowledged if funds are redirected for other purposes. For more than a year, the Washington State Council of Fire Fighters (WSCFF) has opposed structural changes or transfers from LEOFF 1, maintaining that the system exists solely to provide retirement and medical security for the firefighters and law enforcement officers who earned those benefits.

Opponents of HB 2034 state that tapping pension surpluses to address budget shortfalls sets a troubling precedent and undermines trust in the long-term integrity of public retirement systems.