Applies to: LEOFF Employers
Subject: DRS Notice 26-010, Reporting of Non-LEOFF Employer Contributions (NLEC)
Employer pickup of state contributions on LEOFF Plan 2 non-employer services
Does your agency ever charge a fee or recover costs for services rendered by a LEOFF Plan 2 member to a non-LEOFF employer? If yes, then your agency must cover the state‘s share of the contributions due for the LEOFF Plan 2 basic salary earned for those services. See RCW 41.26.450. The rate is currently 0.0341.
The 2025-2027 state operating budget extended this provision for LEOFF Plan 2 employers. The provision holds employers responsible for funding both the employer and state contributions owed on LEOFF Plan 2 basic salary earned for services rendered by members whose services were provided directly, or indirectly, to a non-LEOFF employer.
Please continue to report Non-LEOFF Employer Contributions (NLEC) through the NLEC process in the Employer Reporting Application (ERA).
For more information on reporting and paying NLEC, please review Chapter 5: Special Conditions in the DRS Employer Handbook.
If you have any questions regarding this DRS Notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.
