HB 2561
In CommitteeHouse
LEOFF 2/standby pay
Including standby pay as basic salary in the law enforcement officers' and firefighters' retirement system plan 2.
This status may be delayed. See Action History below for the latest updates.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill adds standby pay to the definition of basic salary for LEOFF Plan 2 members, meaning on-call time that requires immediate availability for work will now count toward retirement benefits. It also clarifies what types of pay are excluded and ensures standby pay is included in final average salary calculations.
- Revises the definition of 'basic salary' for LEOFF Plan 2 members to explicitly include compensation for 'standby status'—when an employee is required to be available for immediate work, even if not actively working.
- Defines 'standby status' as time when an employee is not actively working but must remain available to report immediately if needed, and the employer requires this availability.
- Excludes certain payments from basic salary, including lump-sum payouts for unused sick, vacation, or annual leave, and severance pay.
- Requires that standby pay be included in the calculation of 'final average salary,' which is used to determine retirement benefits.
- Applies retroactively to service credit earned on or after January 1, 2024, meaning members who worked standby hours during that time may receive credit in benefit calculations.
Who is affected
- Law enforcement officers and firefighters in LEOFF Plan 2 — LEOFF Plan 2 members who are required to be on standby (e.g., on-call without active duty) will now have that standby time counted as part of their basic salary, which increases their retirement benefit calculations.
- Local government employers — Employers (cities, counties, fire districts, etc.) will pay higher retirement contributions because standby pay is now included in basic salary, increasing the payroll-based contributions they make to the retirement system.
- Current and future LEOFF Plan 2 retirees — Retirees and future retirees in LEOFF Plan 2 may receive higher monthly retirement benefits because standby pay will be included in the calculation of their final average salary.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Increases retirement benefits for LEOFF Plan 2 members who perform standby duty — a form of uncompensated risk and availability that is part of the job but previously excluded from benefit calculations — making retirement more secure and fair for those in high-stakes roles.
FinancialPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B) and (15)(b)Recognizes standby duty as integral to employment, affirming that time required to be available for emergency response — even when idle — constitutes compensable work time, reinforcing labor rights for first responders.
Rights & LibertiesPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)By including standby pay in final average salary, the bill strengthens retention and recruitment of qualified officers and firefighters — especially in departments where standby duty is common — improving public safety capacity.
Public SafetyPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B) and (15)(b)Enhanced retirement benefits reduce future financial stress for retirees, potentially lowering reliance on public health programs (e.g., Medicaid) in retirement — indirectly supporting long-term health outcomes for aging first responders.
HealthcarePeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)Higher retirement income may improve housing stability for retirees in high-cost areas like Seattle or Spokane, especially for those who worked standby shifts and now have more predictable retirement income.
HousingPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)
Potential Concerns (5)
Increases employer contributions to LEOFF Plan 2 by ~$12.5M biennially, which may lead local governments (cities, counties, fire districts) to reduce hiring, freeze wages, or cut non-essential services to offset higher retirement costs — disproportionately affecting public sector workers and residents who rely on local services.
FinancialPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B) and (ii)(A)-(D)While standby pay inclusion raises retirement benefits, the retroactive application only to service on or after Jan. 1, 2024, means current retirees and those nearing retirement with limited standby hours gain little — benefit accrues mostly to newer or mid-career officers, excluding many who need retirement security most.
FinancialPeopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B) and (15)(b)By increasing employer costs, the bill may disincentivize staffing of standby (on-call) positions — potentially reducing availability of rapid-response personnel in rural or under-resourced jurisdictions, especially where budgets are tight.
Public SafetyLean peopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)Municipal employers may restructure staffing models (e.g., eliminate standby requirements or shift coverage to private contractors) to control costs, potentially reducing predictable on-call opportunities for officers and firefighters.
Business & EmploymentLean peopleRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)The bill imposes new administrative obligations on local governments to track and report standby time separately, though the fiscal impact is modest relative to overall budgets — a minor compliance burden for most jurisdictions.
Local GovernmentRef: Sec. 1, RCW 41.26.030(2)(b)(i)(B)
Who Is Most Affected
LEOFF Plan 2 members who regularly perform standby duty (e.g., on-call detectives, fire investigators, shift supervisors) will see meaningful increases in retirement benefits — especially those with 10+ years of standby service. This is a direct, positive financial gain for a subset of public safety workers.
Local governments (cities, counties, fire districts) will pay higher employer contributions — about $12.5M biennially — which may strain budgets and lead to reduced hiring, wage freezes, or service cuts in non-safety areas. Small or fiscally strained jurisdictions will be disproportionately affected.
Current retirees and near-retirees (especially those with low standby hours) gain little, while future retirees — particularly those in departments with strong standby policies — benefit significantly. Mixed impact: winners are younger/mid-career officers; losers are those already retired or close to retirement without standby time.
Rural and small-town departments with limited staffing may reduce standby requirements to control costs, potentially weakening on-call coverage. Urban departments with robust staffing may absorb the cost more easily — exacerbating disparities in public safety capacity across regions.
State and federal agencies that contract with local jurisdictions for mutual aid may benefit from improved retention and readiness of first responders, but bear no cost — a net positive with no fiscal downside for them.