Pension credit for leave

AN ACT Relating to the purchase of pension service credit for 1
authorized leaves of absence; and amending RCW 41.26.520.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 41.26.520 and 2016 c 115 s 2 are each amended to 4
read as follows: 5
(1) A member who is on a paid leave of absence authorized by a 6
member's employer shall continue to receive service credit as 7
provided for under the provisions of RCW 41.26.410 through 41.26.550.8
(2) A member who receives compensation from an employer while on 9
an authorized leave of absence to serve as an elected official of a 10
labor organization, and whose employer is reimbursed by the labor 11
organization for the compensation paid to the member during the 12
period of absence, may also be considered to be on a paid leave of 13
absence. This subsection shall only apply if the member's leave of 14
absence is authorized by a collective bargaining agreement that 15
provides that the member retains seniority rights with the employer 16
during the period of leave. The basic salary reported for a member 17
who establishes service credit under this subsection may not be 18
greater than the salary paid to the highest paid job class covered by 19
the collective bargaining agreement. 20
Z-0275.2
SENATE BILL 5306
State of Washington 69th Legislature 2025 Regular Session
By Senators Holy, Riccelli, Bateman, Conway, Krishnadasan, and
Nobles; by request of LEOFF Plan 2 Retirement Board
Read first time 01/16/25. Referred to Committee on Ways & Means.
p. 1 SB 5306
(3) Except as specified in subsection (7) of this section, a 1
member shall be eligible to receive a maximum of two years service 2
credit during a member's entire working career for those periods when 3
a member is on an unpaid leave of absence authorized by an employer. 4
If the member retires instead of returning to work, the member is 5
eligible for this credit. Such credit may be obtained only if the 6
member makes the employer, member, and state contributions plus 7
interest as determined by the department for the period of the 8
authorized leave of absence within five years of resumption of 9
service or prior to retirement whichever comes sooner.10
(4) A law enforcement member may be authorized by an employer to 11
work part time and to go on a part-time leave of absence. During a 12
part-time leave of absence a member is prohibited from any other 13
employment with their employer. A member is eligible to receive 14
credit for any portion of service credit not earned during a month of 15
part-time leave of absence if the member makes the employer, member, 16
and state contributions, plus interest, as determined by the 17
department for the period of the authorized leave within five years 18
of resumption of full-time service or prior to retirement whichever 19
comes sooner. Any service credit purchased for a part-time leave of 20
absence is included in the two-year maximum provided in subsection 21
(3) of this section. 22
(5) If a member fails to meet the time limitations of subsection 23
(3) or (4) of this section, the member may receive a maximum of two 24
years of service credit during a member's working career for those 25
periods when a member is on unpaid leave of absence authorized by an 26
employer. This may be done by paying the amount required under RCW 27
41.50.165(2) prior to retirement. 28
(6) For the purpose of subsection (3) or (4) of this section, the 29
contribution shall not include the contribution for the unfunded 30
supplemental present value as required by RCW 41.45.060, 41.45.061, 31
and 41.45.067. The contributions required shall be based on the 32
average of the member's basic salary at both the time the authorized 33
leave of absence was granted and the time the member resumed 34
employment. If the member retires instead of returning to work, the 35
contributions required shall be based on the member's basic salary at 36
the time the authorized leave of absence was granted adjusted for any 37
cost-of-living or other pay increases provided to similar jobs or job 38
classes during the leave period.39
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(7) A member who leaves the employ of an employer to enter the 1
uniformed services of the United States shall be entitled to 2
retirement system service credit for up to five years of military 3
service. This subsection shall be administered in a manner consistent 4
with the requirements of the federal uniformed services employment 5
and reemployment rights act. 6
(a) The member qualifies for service credit under this subsection 7
if: 8
(i) Within ninety days of the member's honorable discharge from 9
the uniformed services of the United States, the member applies for 10
reemployment with the employer who employed the member immediately 11
prior to the member entering the uniformed services; and12
(ii) The member makes the employee contributions required under 13
RCW 41.45.060, 41.45.061, and 41.45.067 within five years of 14
resumption of service or prior to retirement, whichever comes sooner; 15
or 16
(iii) Prior to retirement and not within ninety days of the 17
member's honorable discharge or five years of resumption of service 18
the member pays the amount required under RCW 41.50.165(2); or19
(iv) Prior to retirement the member provides to the director 20
proof that the member's interruptive military service was during a 21
period of war as defined in RCW 41.04.005. Any member who made 22
payments for service credit for interruptive military service during 23
a period of war as defined in RCW 41.04.005 may, prior to retirement 24
and on a form provided by the department, request a refund of the 25
funds standing to his or her credit for up to five years of such 26
service, and this amount shall be paid to him or her. Members with 27
one or more periods of interruptive military service credit during a 28
period of war may receive no more than five years of free retirement 29
system service credit under this subsection. 30
(b) Upon receipt of member contributions under (a)(ii), (d)(iii), 31
or (e)(iii) of this subsection, or adequate proof under (a)(iv), 32
(d)(iv), or (e)(iv) of this subsection, the department shall 33
establish the member's service credit and shall bill the employer and 34
the state for their respective contributions required under RCW 35
41.26.450 for the period of military service, plus interest as 36
determined by the department. 37
(c) The contributions required under (a)(ii), (d)(iii), or 38
(e)(iii) of this subsection shall be based on the compensation the 39
member would have earned if not on leave, or if that cannot be 40
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estimated with reasonable certainty, the compensation reported for 1
the member in the year prior to when the member went on military 2
leave. 3
(d) The surviving spouse, domestic partner, or eligible child or 4
children of a member who left the employ of an employer to enter the 5
uniformed services of the United States and died while serving in the 6
uniformed services may, on behalf of the deceased member, apply for 7
retirement system service credit under this subsection up to the date 8
of the member's death in the uniformed services. The department shall 9
establish the deceased member's service credit if the surviving 10
spouse or eligible child or children: 11
(i) Provides to the director proof of the member's death while 12
serving in the uniformed services; 13
(ii) Provides to the director proof of the member's honorable 14
service in the uniformed services prior to the date of death; and15
(iii) Pays the employee contributions required under chapter 16
41.45 RCW within five years of the date of death or prior to the 17
distribution of any benefit, whichever comes first; or18
(iv) Prior to the distribution of any benefit, provides to the 19
director proof that the member's interruptive military service was 20
during a period of war as defined in RCW 41.04.005. If the deceased 21
member made payments for service credit for interruptive military 22
service during a period of war as defined in RCW 41.04.005, the 23
surviving spouse or eligible child or children may, prior to the 24
distribution of any benefit and on a form provided by the department, 25
request a refund of the funds standing to the deceased member's 26
credit for up to five years of such service, and this amount shall be 27
paid to the surviving spouse or children. Members with one or more 28
periods of interruptive military service during a period of war may 29
receive no more than five years of free retirement system service 30
credit under this subsection. 31
(e) A member who leaves the employ of an employer to enter the 32
uniformed services of the United States and becomes totally 33
incapacitated for continued employment by an employer while serving 34
in the uniformed services is entitled to retirement system service 35
credit under this subsection up to the date of discharge from the 36
uniformed services if: 37
(i) The member obtains a determination from the director that he 38
or she is totally incapacitated for continued employment due to 39
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conditions or events that occurred while serving in the uniformed 1
services; 2
(ii) The member provides to the director proof of honorable 3
discharge from the uniformed services; and 4
(iii) The member pays the employee contributions required under 5
chapter 41.45 RCW within five years of the director's determination 6
of total disability or prior to the distribution of any benefit, 7
whichever comes first; or 8
(iv) Prior to retirement the member provides to the director 9
proof that the member's interruptive military service was during a 10
period of war as defined in RCW 41.04.005. Any member who made 11
payments for service credit for interruptive military service during 12
a period of war as defined in RCW 41.04.005 may, prior to retirement 13
and on a form provided by the department, request a refund of the 14
funds standing to his or her credit for up to five years of such 15
service, and this amount shall be paid to him or her. Members with 16
one or more periods of interruptive military service credit during a 17
period of war may receive no more than five years of free retirement 18
system service credit under this subsection. 19
(f) The surviving spouse, domestic partner, or eligible child or 20
children of a member who left the employ of an employer to enter the 21
uniformed services of the United States, federal emergency management 22
agency, or national disaster medical system of the United States 23
department of health and human services and died while performing 24
service in response to a disaster, major emergency, special event, 25
federal exercise, or official training on or after March 22, 2014, 26
may, on behalf of the deceased member, apply for retirement system 27
service credit under this subsection up to the date of the member's 28
death in such service. The department shall establish the deceased 29
member's service credit if the surviving spouse or eligible child or 30
children provides to the director proof of the member's death while 31
in such service. 32
(g) A member who leaves the employ of an employer to enter the 33
uniformed services of the United States, federal emergency management 34
agency, or national disaster medical system of the United States 35
department of health and human services and becomes totally 36
incapacitated for continued employment by an employer while providing 37
such service is entitled to retirement system service credit under 38
this subsection up to the date of separation from such service if the 39
member obtains a determination from the director that he or she is 40
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totally incapacitated for continued employment due to conditions or 1
events that occurred while performing such service.2
(8) A member receiving benefits under Title 51 RCW who is not 3
receiving benefits under this chapter shall be deemed to be on 4
unpaid, authorized leave of absence. 5
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