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Published on Monday, November 13, 2017

DRS releases updated guidance on the new LEOFF 2 "third party contract rule"

The state’s 2017-19 operating budget included language when a LEOFF 2 employer charges a fee or recovers costs, which shifted the responsibility for who pays the state’s 20 percent pension contribution. Cities must now pay the 20 percent state share for the hours worked by a LEOFF 2 member (police and fire personnel) providing services to a non-LEOFF 2 entity (private companies, school districts, etc.) but only when the city charges a fee or recovers costs.

The Department of Retirement Systems (DRS) recently issued final guidance on how and when this rule applies to LEOFF 2 employers via a PowerPoint presentation. If you have any more questions on when this new policy applies or how to implement this change, please contact DRS at employersupport@drs.wa.gov or AWC’s Logan Bahr at LoganB@awcnet.org.

Categories: Personnel
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