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Published on Friday, July 21, 2017

Budget includes new LEOFF 2 state/employer contribution shift under special circumstances

The state’s newly-passed operating budget includes a new item of interest to LEOFF 2 employers. Section 963 of the budget bill states that “when an employer charges a fee or recovers costs for work performed by a plan member where: (a) the member receives compensation that is includable as basic salary… and (b) the service is provided, whether directly or indirectly, to an entity that is not an "employer”…; the employer shall contribute both the employer and state shares of the cost of the retirement system contributions for that compensation. Nothing… prevents an employer from recovering the cost of the contribution from the entity receiving services from the member.”

The agency that administers the LEOFF 2 system, the Department of Retirement Systems (DRS), is working to interpret and implement this budget provision. AWC is working with DRS to ensure that all AWC members are duly informed of the changes. If you have questions or concerns, please contact Candice Bock or Logan Bahr.

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