This bill terminates and restates LEOFF Plan 1 effective June 30, 2029, and creates a restated Law Enforcement Officers' and Firefighters’ defined benefit retirement fund in the custody of the state treasurer. On June 30, 2029 the treasurer must transfer into the restated fund an amount equal to 110% of the actuarial present value of fully projected Plan 1 benefits as determined by the state actuary (who must make that projection no later than December 31, 2028); remaining assets of the existing Plan 1 fund are to be transferred to a newly referenced pension surplus holding account and remain invested by the State Investment Board until law provides otherwise. The bill provides that all benefits as they existed prior to termination will continue without interruption during the transition, authorizes only the director of the Department of Retirement Systems (or designee) to authorize expenditures from the restated fund without further appropriation, and directs the department to mail notice to all last‑known addresses of Plan 1 active members, retirees, and spousal survivors. Claims challenging specified sections (sections 101–108) must be filed by December 31, 2027 or are forever barred, and such challenges are subject to direct review by the Washington Supreme Court. The act makes many substantive statutory changes and additions: it establishes the restated LEOFF system (and separately codifies LEOFF Plan 2), revises definitions and service‑credit rules, authorizes disability and survivor benefit structures and procedures (including city and county disability boards, director review and appeal procedures, a six‑month disability leave prior to allowance, and a specified disability allowance formula with child increments capped at 60% of final average salary), requires employers to pay certain medical services for members, and provides a one‑time Plan 1 lump‑sum payment and an optional annuity purchase mechanism with a minimum purchase amount. It directs the Department of Retirement Systems to seek IRS guidance for federal compliance and requires reversion of any improperly reverted funds with interest as determined by the director, tasks the Select Committee on Pension Policy with two studies and reports due December 31, 2028, and creates the pension surplus holding account with limited appropriation and transfer rules (including a transfer to the General Fund allowed during the 2027–2029 biennium). The bill also includes a penalty provision making false statements or falsification of retirement records to defraud the system a class B felony under chapter 9A.20 RCW. Legally, the act both creates new law (a restated LEOFF plan and related new accounts and boards), amends and repeals numerous existing RCW provisions across retirement chapters, sets funding, transfer, and procedural rules, and changes procedures and some penalties (notably the specified criminal penalty for falsification). Important details are not present in the extracted text: the full text of section 318 (the vesting rule referenced), statutory language establishing and defining the pension surplus holding account, the full set of RCW amendments and repeals listed in the bill title, and several sections that were cut off in the provided extracts. The summary above is limited to the provisions and deadlines explicitly included in the extracted facts.

If enacted, the bill would move LEOFF plan 1 into a newly “restated” retirement fund on June 30, 2029, with the state treasurer required to transfer an amount equal to 110% of the actuarial present value of plan 1’s benefits into that restated fund and any remaining assets placed into a new pension surplus holding account. Retirees’ and other benefits continue without interruption during the transition, the State Investment Board will manage investments, and the director of the Department of Retirement Systems can authorize spending from the restated fund without a separate appropriation. The Department must get IRS guidance and could have to make further changes or revert funds with interest if federal rules require it; a legislative committee will study who should run and make policy for the restated system and must report by the end of 2028. Those most affected are the roughly 6,000 current plan 1 annuitants and the very small number of active plan 1 members (six as of January 2026), the Department of Retirement Systems, the state treasurer, and the State Investment Board, who will take on new custody, investment, and administrative duties. Cities and counties also face new duties to establish disability boards and handle local pension levy and medical payment responsibilities described in the act, which may mean upfront administrative and compliance costs. The state gains a potential one-time fiscal option because money in the pension surplus holding account may be transferred to the General Fund during the 2027–2029 biennium, but the proposal leaves important details unclear—notably the final governance arrangement, the exact legal structure and allowable uses of the surplus account, and the provisions in section 318 about vesting for nonvested members—so implementation costs, federal compliance work, or court challenges could change the net fiscal effect.