DRS Notice 24-030, LEOFF Plan 2 employers will be invoiced for pension overpayments

Applies to: LEOFF Plan 2 employers
Subject: DRS Notice 24-030, LEOFF Plan 2 employers will be invoiced for pension overpayments

A new law will change how LEOFF Plan 2 employers are affected when a pension benefit overpayment is made to a LEOFF Plan 2 retiree. Beginning Jan. 1, 2025, employers will be responsible for those overpayments if the overpayment was caused by incorrect reporting of member information by the employer.

What is changing?

The 2024 legislature passed Substitute Senate Bill 6197, requiring DRS to invoice LEOFF Plan 2 employers for up to one year of overpaid LEOFF Plan 2 pension benefits made to their retirees (in some cases). This new law covers overpayments directly related to reporting errors by the employer. Re-payment of all other types of overpayments will remain the responsibility of the retiree (RCW 41.50.130).

How does it impact me as a LEOFF Plan 2 employer?

If a LEOFF Plan 2 retiree’s pension benefit is overpaid due to errors in the earnings information you reported, you will be responsible for paying back those overpaid benefits (RCW 41.26.570). DRS will invoice you for up to one year of the overpaid benefits from the date of discovery.

What will change for the LEOFF Plan 2 retiree?

If the cause of the overpaid LEOFF Plan 2 benefits was directly related to employer reporting errors, the retired employee will NOT be responsible for paying back those benefits. DRS will notify them about the reduction to their ongoing benefits.

How will I receive the invoice?

The invoice will be mailed to you and will display in ERA, as all employer invoices do.

Can I pay this invoice through the electronic payment option in ERA?

Yes. Payment of this invoice can be handled same as any other invoice.

Who do I call if I have questions?

Employer Accounts Receivable, at 360-664-7864 or 800-547-6657.