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Published on Friday, September 8, 2017

New LEOFF 2 contribution change for third party contracts, timeline update from DRS

As we have previously reported, the state’s newly-passed operating budget included a shift in pension contributions when the employer contracts with a non-LEOFF 2 employer for services. In these cases the employer will be responsible for both the employer and state LEOFF 2 contributions.

The Department of Retirement Services (DRS) recently provided us with some updated information on their timeline for providing guidance on implementing the new requirement.

  • DRS will be submitting a follow-up communication with employers in mid-September on the specific reporting changes coming for this, as well as scheduled training opportunities for employers on the changes. We want to make sure employers have a chance to preview the changes before they are expected to start reporting with them.
  • DRS is currently scheduled to implement the reporting changes in early October.  When the reporting changes are implemented, LEOFF 2 employers will be able to catch up reporting retroactive to the July 1, 2017 effective date of the provisions, as well as continue reporting the required compensation information prospectively forward.
  • See the previous employer notice sendout on the topic.
Categories: Personnel
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