Your future benefits are funded by contributions made by you, your employer and the state during your period of membership and the investment earnings from those contributions. These contributions are held in trust and invested by the State Investment Board.
Your plan is a 401 (a) defined benefit plan. This means that at retirement you will receive a benefit based on your service credit and final average salary. The amount of your contributions will not be a factor in calculating your retirement benefit.
You may be required to contribute a percentage of your “basic salary” to LEOFF. A payment is basic salary if it is part of the monthly rate of salary or wages attached to your position. Longevity pay may be included in basic salary. Other special salary and wages are not part of the basic monthly rate, and do not qualify as basic salary.
If you are required to contribute, your contribution is deducted from your paycheck each pay period and forwarded to LEOFF. Some employers, at the option of the employer, deduct your contributions before calculating federal income taxes. This defers payment of the taxes until you or your beneficiary receives the money as either a benefit or a refund.
Your “accumulated contributions” are the member contributions you make to LEOFF plus the interest added to your account by DRS.
The member contribution rate is set by law and may be changed by legislative amendment. For information, see withdrawing your contributions.
Because the plan is designed to provide retirement income and disability benefits, you may not borrow from or against your contributions. For more information about attachments and assignment of benefits.