The lawsuit says a new Washington law would move billions from a fund reserved for retired police and firefighters.
SEATTLE — A group of retired Washington law enforcement officers, firefighters and a beneficiary is suing the state, alleging a new law unlawfully moves about $3.3 billion or more from a retirement fund reserved for LEOFF Plan 1 members.
The class action complaint was filed Thursday in U.S. District Court for the Western District of Washington at Seattle.
Plaintiffs include former King County Sheriff Dave Reichert, president of the Retired Seattle Police Officer’s Association John Nordlund, and president of the Retired Firefighters of Washington Michael Duchemin.
The office of Washington State Attorney General Nick Brown said they were still reviewing the lawsuit.
The lawsuit centers on Engrossed Second Substitute House Bill 2034. According to the final bill report, the bill, which was signed by Gov. Ferguson in April, says LEOFF Plan 1 will end on June 30, 2029 and be replaced with the “Restated Law Enforcement Officers’ and Firefighters’ Retirement System.”
LEOFF Plan 1 was created for law enforcement officers and firefighters hired before Oct. 1, 1977.
According to the complaint, about 5,850 members were receiving benefits as of June 30, 2025, and six members were not retired.
The plaintiffs say money in the LEOFF 1 fund must be used only for the benefit of members and beneficiaries. They argue the new law violates contract protections in the U.S. and Washington constitutions by directing excess money away from the fund after enough is set aside to cover 110% of projected benefits.
According to the bill, the plan has a surplus of more than $3,300,000,000. Under the law, the state treasurer would move money into a new LEOFF defined benefit retirement fund on June 30, 2029.
The remaining assets would go into a pension surplus holding account, where money could be transferred to the general fund during the 2027-2029 budget cycle.
The plaintiffs say the transfer is tied to the state’s budget shortfall and would take money that should remain in the retirement fund.
The complaint also points to a state actuarial analysis that plaintiffs say found the law would increase the chance of future unfunded liabilities.
According to the lawsuit, the analysis found the share of economic scenarios where an unfunded liability appears by fiscal year 2045 would rise from 5% to 40%.
The lawsuit says the law offers little new benefit to most LEOFF 1 members. The complaint says a vesting change would apply to only a small number of nonvested members and that the overwhelming majority of LEOFF 1 members would receive no additional benefit.
The plaintiffs are asking the court to certify the case as a class action, declare the law unconstitutional and block the state from moving money out of the fund.
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