Background: A member of the Law Enforcement Officers' and Fire Fighters' Retirement System (LEOFF) Plan 2 who is totally disabled in the line of duty is entitled to a disability allowance equal to 70 percent of that member's final average salary. The total disability benefit is reduced to the extent that in combination with certain workers' compensation payments and Social Security disability benefits, the disabled member would receive more than 100 percent of their final average salary.

Legislation enacted in 2010 provides that the disability allowance of a LEOFF Plan 2 member that is totally disabled in the line of duty includes reimbursement for any payments made for employer-provided medical insurance. This includes medical insurance offered under the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) and Medicare Parts A and B.

The COBRA health benefit provisions were enacted in 1981 to provide continuation of group health coverage that otherwise might be terminated, including for involuntary terminations such as those due to disablement. COBRA allows individuals to continue their health insurance benefits for up to 18 months. During the time that an individual is covered by COBRA, they are responsible for paying 102 percent of the total health insurance premium, including any portion of the premium that may have been paid by the employer. If an individual has a Social Security-approved disability that started within 60 days of when COBRA benefits were elected, the individual is then eligible to continue health insurance benefits for an additional 11 months, for a total of 29 months.

Medicare is available to most workers upon reaching age 65, and is also available to most workers who become permanently and completely disabled, preventing them from further gainful employment, and who have been receiving Social Security disability benefits for 24 months. This is the same standard of disability as LEOFF Plan 2's provision on total disability in the line of duty.

Prior to April 1986, some Washington government employers opted out of Social Security and Medicare for some or all of their employees. However, starting on April 1, 1986, all employers were required to participate in Medicare for those employees hired after that date. The employees not covered by Medicare prior to April 1986 and who worked continuously since are still not covered by Medicare and could only qualify for Medicare benefits through: (1) working for another employer for 40 quarters – 10 years; or (2) if a referendum authorized by their employer approved coverage. No data is currently available about how many members exist in the 1986 no-coverage group.