A provision in HB2034 creates an ongoing obligation for any employer that has ever hired a LEOFF Plan 1 member to pay their medical expenses.
Most Washington transportation and trucking business owners have never heard of LEOFF Plan 1, and fewer still realize that HB2034—a bill about retirement system restructuring—contains a provision that could create a direct, ongoing financial obligation for their company.
Here's what's buried in the bill: any employer that currently employs or has previously employed a LEOFF Plan 1 member must pay for that member's medical benefits after retirement. This isn't optional, and it doesn't expire.
LEOFF Plan 1 covers law enforcement officers and firefighters who were hired before specific dates in the 1980s. If your company has ever employed someone in these roles—whether full-time, part-time, or as a contract employee—you may fall under this requirement. This is particularly relevant for transportation companies that operate in smaller Washington cities and towns, or those with security or law enforcement divisions.
The obligation applies to employers of all sizes, including small cities, towns, counties, and special districts. There's no exemption for small businesses.
The requirement covers medical services including hospital care, physician services, nursing care, and other medical costs. The employer's obligation is reduced only by amounts the retired member receives from workers' compensation, Social Security, or other insurance. In other words, the employer covers the gap.
This is an unfunded mandate—there's no state fund or pool to help employers manage the cost. Each employer pays directly for the medical expenses of its former LEOFF 1 employees.
The provision becomes effective June 30, 2029. That gives employers roughly four years to identify affected former employees, understand their potential medical costs, and plan for this ongoing liability. Once effective, the obligation continues indefinitely—there is no sunset date.
Transportation and trucking companies should audit their employment records to identify any current or former LEOFF Plan 1 members. This includes reviewing hiring records from the 1980s and earlier, since Plan 1 covered officers hired before specific cutoff dates.
If you identify affected employees, consult with your HR and accounting teams to estimate potential medical costs and explore how to structure this obligation in your budget. Some employers may want to work with their industry associations or legal counsel to understand compliance requirements and any available options.
The provision is found in Section 327 of HB2034, pages 47-48.
For a detailed, business-specific guide to this provision and how it applies to your company's situation, contact your industry association or legal advisor.