Updated October 8, 2026. Quick answer: A Washington LEOFF Plan 2 pension pays 2% of final average salary per year of service. Members who started after Feb. 1, 2021 get a tiered multiplier; members active on or before that date with over 15 years make an irrevocable choice between the 2% multiplier with a $100 per service credit month lump sum and the tiered multiplier. Retirement is at age 53 with 5 years, or from age 50 with 20 years at a reduced benefit. Withdrawing contributions (150% at 10 or more years) forfeits the pension.
What this page covers and what it does not
This page covers one membership group: the Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plan 2, run by the Washington State Department of Retirement Systems (DRS). DRS says it “is a 401(a) lifetime retirement pension plan available to law enforcement officers and firefighters in Washington”. LEOFF Plan 1 is a separate plan and was not read. The Public Employees’, Teachers’ and School Employees’ plans are on Washington DRS retirement decisions.
Sources: DRS’s LEOFF Plan 2, Leaving Employment and cost-of-living pages, its Plan 1 or Plan 2 contribution withdrawal form (edition 10/2026), and RCW 41.26.420, 41.26.460, 41.26.530 and 41.26.540, read on October 8, 2026. Any figure below is a DRS or statute figure, or is labeled as a computed example from assumed inputs.
The benefit formula and the first big choice
DRS gives the base formula as “2% x service credit years x Final Average Salary = monthly benefit”. Its worked case reads “2% x 23 years x $5,400 = $2,484” a month. Plan 2 also has a tiered multiplier: DRS says the members who get it “will have a 2% multiplier applied to their entire years of service and an additional .5% multiplier applied at 15 years and one month through 25 service credit years”. The statute puts the middle band as “Two and one-half percent of such member’s final average salary for the 10 years of service after 15 years and up to 25 years”. DRS’s 23 year example reads “2% x 23 years x $5,400 +.5% x 8 years x $5,400 = $2,700”, a computed $216 a month above the flat 2% result on the same inputs.
| Who | What the benefit is | Is there a choice |
|---|---|---|
| Retired on or before Feb. 1, 2021 | 2% multiplier plus a one-time lump sum of $100 per service credit month, payable by Jan. 31, 2023 | No choice described |
| In LEOFF on or before Feb. 1, 2021, 15 years or less of service credit | 2% multiplier with a one-time $100 per service credit lump sum | No choice described |
| In LEOFF on or before Feb. 1, 2021, over 15 years of service credit | Either the 2% multiplier with the $100 lump sum, or the tiered multiplier | Irrevocable choice at retirement |
| Started in LEOFF after Feb. 1, 2021 | Tiered multiplier: 2% on all years plus .5% for years 15 and one month through 25 | No lump sum choice described |
The statute says who must choose: “Members active in the retirement system on or before February 1, 2021, at retirement must make an irrevocable choice between the lump sum defined benefit in RCW 41.26.555 or a tiered multiplier retirement allowance” Whoever takes the tiered path is out of the other one: “Any member who receives the tiered multiplier benefit in this section is not eligible for the lump sum defined benefit in RCW 41.26.555”.
The tiered multiplier against the $100 lump sum
DRS shows the lump sum arithmetic as “Example: 180 x $100 = $18,000” for 180 service credit months. A computed example from assumed figures, not a DRS figure: an assumed 20 years of service credit and an assumed final average salary of $6,000 a month. The flat 2% formula gives 2% x 20 x $6,000, a computed $2,400 a month. The tiered formula adds .5% x 5 years above 15 x $6,000, a computed $150 a month, for a computed $2,550. The lump sum is $100 x 240 service credit months (20 years x 12), a computed $24,000.
On those assumed numbers the extra $150 a month needs about 160 months to equal the lump sum. That ignores cost-of-living adjustments, tax, life expectancy and survivor options, so it shows the shape of the trade, not an answer. Because the choice is irrevocable, confirm the lump sum amount, timing and tax with DRS first. See pension lump sum vs monthly annuity break-even.
When retirement can start, and what early retirement costs
DRS says “You’re eligible to retire at age 53 if you have at least five years of service credit”. For earlier exits: “If you have at least 20 years of service credit and you are at least age 50, you can choose to retire early”, and “If you retire early, your benefit will be reduced to reflect that you will be receiving it over a longer period of time”.
| Age at retirement | % of Option 1 benefit (DRS heading) |
|---|---|
| 50 | 91% |
| 51 | 94% |
| 52 | 97% |
| 53 | 100% |
Early retirement also has a tax side effect: a public safety officer might exclude “up to $3,000 of your qualified health, accident and long-term care insurance premiums from your gross taxable income each year”, but “If you retire early, you don’t qualify unless you receive a disability retirement”.
Survivor options and spousal consent
At retirement the statute has the member elect among options “calculated so as to be actuarially equivalent to each other”. The standard allowance pays for life, and if the retiree dies early, “then the balance shall be paid to the member’s estate”. The reduced options continue a portion of the allowance “throughout the life of and paid to a designated person”. The statute adds that “The options adopted by the department shall include, but are not limited to, a joint and one hundred percent survivor option and a joint and fifty percent survivor option”. DRS says the benefit goes to the survivor “at the rate you chose (100%, 50% or 67%)”.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Standard allowance | Monthly for the member’s life | No monthly payment; unreturned contributions go to the estate or a nominated person |
| Joint and 100% survivor | A reduced monthly allowance | 100% of the reduced allowance |
| Joint and 50% survivor | A reduced monthly allowance | 50% of the reduced allowance |
| Other options | DRS names a 67% rate; the statute says options are not limited to the 100% and 50% options | 67% per DRS’s wording |
The pages read publish no reduction factor for any survivor option. A computed example from an assumed $2,300 reduced monthly allowance, not a DRS figure: a 100% survivor option continues 100% of $2,300, a computed $2,300 a month, and a 50% option continues a computed $1,150. See single life vs joint and survivor pension.
For a married member or domestic partner, “A member, if married or a domestic partner, must provide the written consent of his or her spouse or domestic partner to the option selected under this section, except as provided in (b) and (c) of this subsection”. Where neither gives consent, “the department will pay the member a joint and fifty percent survivor benefit and record the member’s spouse or domestic partner as the beneficiary”. Consent is not needed if the member picks a joint and survivor option naming the spouse, or if a copy of a dissolution order designating a survivor beneficiary under RCW 41.50.790 was filed with the department at least thirty days before retirement. See spousal consent to waive a joint and survivor annuity.
What is irrevocable and what can still change
The lump sum versus tiered choice is called irrevocable by DRS and the statute. For the survivor, DRS says “You can only name one survivor, and this choice is usually permanent”. It also says “If your survivor beneficiary dies before you do, your benefit increases as if you hadn’t chosen a survivor option”. The statute leaves two conditional openings. First, “retirees have up to ninety calendar days after the receipt of their first retirement allowance to change their survivor election”, but only “Beginning on the date that the state receives a determination from the federal internal revenue service that this subsection (6) conforms with federal law”; the pages read do not show whether that has happened. Second, the statute directs DRS to adopt rules letting a retiree with no survivor name a spouse from a postretirement marriage. The rules were not read. Confirm both with DRS.
Beneficiary versus survivor, and death before retirement
DRS defines a beneficiary as “A person or organization you designate to receive a one-time, lump-sum payment of any remaining account balance after your death”, and a survivor as “A person (usually a spouse or partner) you can name at retirement to receive lifetime monthly benefit payments after your death”. With both, “If you have both, the survivor receives payments first”. With no beneficiary named, “any benefits due will be paid to your surviving spouse or minor child”. If a member dies before leaving service, “If you pass before separating from your Washington public service position, your contribution balance plus interest will be paid out to your beneficiaries”, though “your surviving spouse or partner could have the option to inherit your account as pension payments” (“This option is available if you worked at least ten years in Plan 1 or Plan 2”).
Leaving before retirement: leave it, defer, or withdraw
DRS lists the paths: “If you separate from LEOFF employment, you can either withdraw your funds, retire if you meet eligibility requirements or leave your funds in the plan if you are vested for a future retirement.” “You need 5 or more years of service to qualify for a retirement with LEOFF Plan 2.” Also, “The service credit you earn toward vesting is cumulative”. “If you’re vested and leave your money in your retirement account, you’re entitled to a monthly pension benefit for the rest of your life once you qualify.”
Long service earns a bonus for waiting. DRS lists benefit indexing tests: “Have at least 20 service credit years before you stop working”; “Separate before reaching normal retirement and delay receiving your pension benefit”. Then “For every month you delay collecting your pension, your benefit amount will be increased by 0.25% (or 3% annually)”. The statute says the allowance “shall be increased by twenty-five one-hundredths of one percent, compounded for each month from the date of separation to the date the retirement allowance commences”. A computed example from an assumed $3,000 monthly benefit at separation and 24 months of delay: 0.25% compounded monthly for 24 months gives a computed $3,185 a month, up a computed $185. DRS calculates the actual figure.
Taking a refund: what it pays and what it ends
“If you have 10 or more years of LEOFF service credit, you can withdraw 150% of your accumulated contributions.” The statute says the same and adds “Any accumulated contributions attributable to restorations made under RCW 41.50.165 (2) shall be refunded at one hundred percent”. With fewer than ten years the refund is the member’s accumulated contributions, with no 150% multiplier in the statute read. The cost: “Withdrawing your contributions will reduce your service credit to zero and forfeit your right to a pension benefit.” “Employer and state contributions are not eligible for withdrawal. These funds remain in the pension trust fund.” The statute says “The refund of accumulated contributions shall terminate all rights to benefits”.
DRS also flags: “If you ended employment due to illness or disability, contact DRS before withdrawing.” More on the choice is on pension refund vs leaving it.
How a refund is paid, timed, taxed and rolled over
The form requires “You are separated from service” and notarization. “Withdrawals can take up to 90 days from the date your employment ends.” Payment choices are a direct payment, a rollover of all or part of the tax-deferred amount, or a partial rollover where “Any amount not rolled over will be paid directly to you”. “If you receive a direct payment of tax-deferred funds, 20% federal income tax is required.” “you may also owe an additional 10% early withdrawal penalty when you file your taxes” “Taxes are not withheld on qualified rollovers.” A cash withdrawal already taken has a rollover clock: “If you make a cash withdrawal, you’ll have 60 days from the date you receive payment to deposit the funds into a traditional IRA or another eligible plan that accepts rollovers”.
A computed example from assumed accumulated contributions of $40,000 for a member with ten or more years, not a DRS figure: 150% of $40,000 is a computed $60,000. Paid directly and all taxable, 20% withholding is a computed $12,000, leaving a computed $48,000 before any 10% additional tax and the final tax bill. Whether the 150% applies to contributions alone or with interest is not spelled out. See 20% withholding on a pension lump sum.
A withdrawal might be reversible if the member returns to LEOFF covered work, within limits: “you must repay the total amount of the contributions you withdrew plus interest within five years of returning to work or before you retire, whichever comes first”
Buying more benefit at retirement
Two annuity purchases exist, both only at retirement. “You can purchase between one and 60 months of service credit in whole months.” “you cannot use the additional credit to qualify for retirement” The plan annuity has a minimum of “$25,000; There is no maximum” and “Your payment must come from an eligible governmental plan, like your pretax DCP savings”. “Your survivor must be the same survivor and survivor option you chose for your retirement benefit.”
Cost-of-living adjustments, work and tax
DRS lists LEOFF Plan 2 on its main COLA table. “You need to have been retired for at least one year by July 1.” “The maximum annual COLA you can receive for most DRS plans is 3%.” Its July 1, 2026 table lists 0.00%, 2.55% or 3.00% depending on the retirement date, with 3.00% for retirements before January 1, 2025.
“If you return to work in another WSPRS or LEOFF position, your benefit will stop and you will re-enter membership.”
“Most, if not all, of your benefit will be subject to federal income tax.” State questions are on Washington retirement taxes and does Washington tax pensions.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of LEOFF Plan 2’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. DRS’s withdrawal form describes the same 20% withholding on a direct payment and no withholding on a qualified rollover. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
What this page could not settle
- The pages read give no figure for the reduction for any survivor option or the early retirement factors beyond the four ages in the DRS table; DRS says the factors are subject to change.
- The DRS survivor options section loads dynamically and was not captured, so the options come from RCW 41.26.460 and a DRS passage naming 100%, 50% and 67%.
- RCW 41.26.555, the lump sum defined benefit that RCW 41.26.420 cites, was not read, so the pages read do not state when the $100 lump sum is paid to a member who chooses it at retirement or whether it can be rolled over.
- The DRS early retirement table is headed percent of Option 1 benefit, and the text read does not define Option 1.
- The pages read do not say whether the 150% refund applies to contributions alone or to contributions with interest, or what interest rate is credited.
- The pages read do not describe a deferred retirement option plan (DROP) for LEOFF Plan 2.
- LEOFF Plan 1, disability amounts, line of duty death benefits, retiree health coverage and restoration cost schedules were not worked through.
Common mistakes
- Treating the tiered multiplier versus $100 lump sum choice as changeable; both DRS and the statute call it irrevocable.
- Withdrawing contributions as a way to get cash at 150% without weighing that it sets service credit to zero and forfeits the pension.
- Retiring before 53 without pricing the reduction, and without knowing the public safety premium exclusion does not apply to an early retirement.
- Leaving the beneficiary form stale after a marriage, divorce or birth; DRS says those events can invalidate it.
Related on this site: Washington retirement taxes, does Washington tax pensions, Washington DRS retirement decisions, pension refund vs leaving it, single life vs joint and survivor pension and public pension retirement decisions by system.
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Answer againSources
- Washington State Department of Retirement Systems, LEOFF Plan 2 (member web page, read October 8, 2026): https://www.drs.wa.gov/plan/leoff2/
- Washington State Department of Retirement Systems, Leaving Employment (member web page, read October 8, 2026): https://www.drs.wa.gov/life/separation/
- Washington State Department of Retirement Systems, Cost of Living Adjustments (COLA) (member web page, read October 8, 2026): https://www.drs.wa.gov/life/retired/cola/
- Washington State Department of Retirement Systems, Plan 1 or Plan 2 Contribution Withdrawal (form DRS MS 287, edition 10/2026): https://www.drs.wa.gov/wp-content/uploads/2021/07/drsms287.pdf
- Washington State Legislature, Revised Code of Washington 41.26.420, Plan 2 retirement allowance (read October 8, 2026): https://app.leg.wa.gov/RCW/default.aspx?cite=41.26.420
- Washington State Legislature, Revised Code of Washington 41.26.460, Plan 2 payment options and survivor benefits (read October 8, 2026): https://app.leg.wa.gov/RCW/default.aspx?cite=41.26.460
- Washington State Legislature, Revised Code of Washington 41.26.540, Plan 2 refund of accumulated contributions (read October 8, 2026): https://app.leg.wa.gov/RCW/default.aspx?cite=41.26.540
- Washington State Legislature, Revised Code of Washington 41.26.530, Plan 2 vested member remaining in the system (read October 8, 2026): https://app.leg.wa.gov/RCW/default.aspx?cite=41.26.530
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 8, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.