When a member of the Law Enforcement Officer and Firefighter Retirement System Plan 2 (LEOFF plan 2) returns from an Authorized Leave of Absence (ALOA) they may be eligible to purchase up to two years of service credit. If they purchase the credit within five years of returning to work they must pay both the member and employer contributions plus interest for that period. After five years the member can still purchase service credit by paying the present value of the service credit.

If the member retires instead of returning to work after an ALOA they are ineligible to purchase credit under the ALOA purchase program but may purchase an annuity for that time when they retire by paying for the cost of the present value of the service credit. Service credit purchased as an annuity does not count towards qualifying for early retirement or benefit enhancements.

To illustrate the difference in cost between the options, the Office of the State Actuary provided the following example of the potential cost difference between paying contributions plus interest versus paying the present value of the service credit for the same six month period of time.  

*Assumed 7 percent annual interest charged on contributions for purchased service amount.  Source: LEOFF 2 Board Authorized Leave of Absence Service Credit—Comprehensive Report December 18, 2024.

A LEOFF plan 2 member who retires after an ALOA instead of returning to work is eligible to purchase up to two years of ALOA purchase service credit. In this case the contributions required shall be calculated based on the member's basic salary at the time the ALOA was granted and adjusted for any cost-of-living or other pay increases provided to similar jobs or job classes during the leave period.