WA HB2034: Hidden Cost for Employers with LEOFF Members

Most Washington business owners don't realize that if they employ—or have ever employed—a member of the Law Enforcement Officers' and Firefighters' Retirement System (LEOFF) Plan 1, they may carry an ongoing obligation to pay for that person's medical services, even after retirement. That obligation is embedded in HB2034, a bill primarily about restructuring the LEOFF pension system.

What the Provision Does

Section 327 of HB2034 (pages 47–48) establishes that any employer who employs or previously employed a LEOFF Plan 1 member remains responsible for paying medical services costs for those members—whether they are still active employees or already retired. This is not a one-time payment. It is an open-ended, ongoing liability that attaches to the employer's budget for as long as the obligation exists.

For small employers—including small cities, towns, fire districts, and private businesses that may have hired or retained LEOFF-eligible personnel—this can represent a significant and unpredictable financial commitment. Unlike a defined pension contribution, medical cost obligations can fluctuate based on actual usage and healthcare inflation.

Who This Affects

Any Washington employer with current or former LEOFF Plan 1 members on payroll is affected. This includes:

• Small municipalities and fire districts
• Private security or transportation firms that employ or employed sworn law enforcement
• Any business that has hired personnel eligible for LEOFF Plan 1 coverage

If you've hired someone in a LEOFF-eligible role and they later retired, you remain liable under this provision.

When It Takes Effect

The provision becomes effective June 30, 2029. This gives employers time to review their payroll records and understand their exposure, but it does not eliminate the obligation—it establishes it in law.

What This Means for Your Business

If you operate in Washington and have any connection to LEOFF Plan 1 members, you should:

• Audit your payroll history. Identify any current or former employees who were or are LEOFF Plan 1 members.
• Understand your liability. Contact your HR or finance team to clarify what medical services costs you may owe and for whom.
• Budget accordingly. This is a real cost that will appear on your balance sheet starting in 2029.
• Consult your legal or HR advisor. The scope and calculation of these obligations may vary by employer type and employment history.

Unlike pension contributions, which are often clearly defined and set aside, medical cost obligations can be harder to predict and manage. The earlier you identify your exposure, the better you can plan.

For a detailed, business-specific breakdown of how HB2034 affects your operations, a free resource guide is available through the Washington Trucking Association and local chambers of commerce.