Retirement
Law Enforcement Officers' & Fire Fighters' System (LEOFF 2)

UNDERSTAND

Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF 2) is a defined benefit retirement plan that provides a secure formula-driven income for retirement.

Participation in the LEOFF 2 retirement plan starts on your first day of employment in an eligible position. In this 401(a) defined benefit plan, you and the University contribute money that funds your retirement income. Once you retire, you will receive your retirement benefit based on a formula which includes your years of service credit and average final compensation. Here is how it works:

You contribute 8.83% of your gross salary effective July 1, 2008 and your contributions are tax-deferred. Both employee and employer rates are determined by the state.
The UW contributes 8.99% of your gross salary effective July 1, 2008. UW contributions are invested in the Retirement Trust Fund by the State Investment Board. These monies are not credited to your account and cannot be withdrawn.
The amount you and the University of Washington contribute is not a factor in computing your retirement benefit.

Eligibility

Full-time commissioned UW police officers are eligible to participate in LEOFF 2.

Your LEOFF 2 Retirement Benefits

Your average final compensation is the monthly average of your 60 consecutive highest-paid service credit months. Monthly retirement income = service credit months ÷ 12 x 2% x final average salary.

For example: suppose you retire at age 55 with 30 years and 2 months (362 months) of service. Your final average salary is $3,000. Your monthly retirement benefit will be $1,809.
362 months ÷ 12 x 2% x $3,000 = $1,809

This calculation results in the standard benefit. It will be lower if you choose to continue benefits to a survivor upon your death.

In addition:

There is no percentage limitation on the amount of service credit that will count towards the size of your benefit.
If you are a member of more than one State of Washington retirement plan, you may be able to combine service credit from all the plans to qualify for retirement.
You are eligible for annual cost-of-living adjustments of up to three percent.
Disability retirement and survivor benefits are available if you meet the requirements.

ACT

Contact Benefits & Work/Life for enrollment information.

All UW employees participate in their applicable retirement plan from the beginning of employment. Retirement plan participation is a condition of employment.

Leaving Before Retiring

You can withdraw or transfer your employee contributions plus interest only if you end your employment as a law enforcement officer in the State of Washington. You are not eligible for a withdrawal if you enter into eligible employment with an employer covered by the same system before receiving the withdrawn money.

If you have 10 or more years of service credit in LEOFF, you may withdraw 150% of your accumulated contributions.

If you withdraw your contributions prior to retirement, you lose your right to future benefits. You can restore your contributions and reestablish your benefits under certain circumstances.

Processing a withdrawal may require 60 to 90 days. Your choices are:

Withdraw your money plus interest. The IRS subjects withdrawals to a 20% withholding tax and may also require that you pay a 10% penalty.
Transfer 100% or a designated amount of your money to a qualified retirement account. no withholding tax is required on funds that are directly transferred, nor does the 10% penalty apply.
Leave your money in the retirement fund. When you have a minimum of five years of service credit, you have a vested right to a retirement benefit when you meet LEOFF 2 age requirements. Vesting means you have earned the right to a future benefit even if your covered employment ends. Your funds will continue to accrue interest. Your service credit will be preserved for you in the event you return to State of Washington employment.

For more information see the "Can I Withdraw My Retirement Money?" brochure and the "Withdrawal of Retirement Contributions" form, available from UW Benefits & Work/Life.

Retiring from the UW

See Retiring from the UW Under LEOFF 2 Rules.

LEARN MORE

Contact the Social Security Office periodically to review your file's accuracy.

Refer to the LEOFF Member Handbook.

See the Department of Retirement Systems -- 2005 Summary Annual Financial Report.

DRS announces rate increase. Employee contribution rates for PERS 2 and LEOFF 2 plans will increase on July 1, 2008. Find out more at the DRS website.

Save even more for retirement with the Voluntary Investment Program (VIP).

Retirement Law Enforcement Officers' & Fire Fighters' System (LEOFF 2)