House Bill 2561 reenacts and amends RCW 41.26.030, changing multiple statutory definitions used in the Washington law enforcement officers' and firefighters' retirement system. The most significant changes disclosed in the extracted text modify the plan 2 definition of "basic salary" to include overtime, deferred compensation under Internal Revenue Code sections 403(b), 414(h), and 457, and compensation for being in "standby status," and the bill adds a definition of "standby status" (being required by an employer to be prepared to report immediately for work without pay for time actually worked). The plan 2 "basic salary" definition is made to explicitly exclude lump-sum payments for deferred annual sick leave, unused accumulated vacation or annual leave, and any form of severance pay. The bill also lets a member who serves in the legislature elect the greater of two basic salary calculations, with any additional retirement contributions resulting from that election required to be paid by the member for both the member and employer portions. Legally, this is a statutory amendment and reenactment of existing law (not a new crime or penalty). The changes are primarily definitional and procedural for retirement benefit calculations and contribution obligations—affecting how basic salary and service credit are determined for LEOFF plans, how final average salary is calculated, and related membership and benefit definitions. The text also restates many existing definitions (for example, beneficiary, child, employer, service credit month/year thresholds, medical services for plan 1, and related terms) and references inclusion of certain forgone compensation for specified fiscal biennia if certified by the employer. Affected entities identified include the LEOFF Plan 2 Retirement Board, the Department of Retirement Systems, cities, counties, districts, fire authorities, certain higher education and state employers, labor guilds and associations, and LEOFF plan members. The provided extracts are incomplete. The firefighter definition is cut off and several subsections and referenced provisions (including the full content of subsection (15)(c)(iii), potential effective date language, fiscal notes, and any other sections outside RCW 41.26.030) are not included, so the full scope and any additional changes in the bill cannot be determined from these excerpts alone.

If enacted, the bill makes overtime, certain deferred compensation (under 403(b), 414(h), and 457 plans), and pay received for required standby periods count as "basic salary" for LEOFF plan 2 members, while explicitly preventing lump‑sum payouts for deferred sick leave, unused vacation/annual leave, or severance from being pensionable. In real terms, that will raise the pensionable wages used to calculate many active plan 2 officers’ and firefighters’ future retirement benefits and the contributions based on payroll; members who serve in the legislature can opt for a higher salary calculation but must personally pay any extra retirement contributions for both the member and employer shares. The bill also clarifies how service credit months are assigned when members work for multiple employers and says scheduled furloughs or reduced hours do not reduce service credit. The people and organizations most affected are active LEOFF plan 2 members, their public employers (cities, counties, districts, qualifying colleges and certain state agencies), the LEOFF plan 2 retirement board, and the Department of Retirement Systems; members will likely see larger future benefits and some members will face immediate out‑of‑pocket costs if they choose the higher legislative salary option, and employers may face higher payroll‑based retirement obligations. The provided text does not include effective dates, fiscal notes, or the rest of the section, so the exact timing and size of budgetary impacts or changes in employer contribution responsibilities are unclear.