The bill amends the Washington law enforcement officers' and firefighters' retirement system plan 2 by including standby pay as part of the basic salary for its members. It defines "basic salary" to encompass not only regular wages earned during a payroll period but also compensation for standby status, where members must be ready to work without active pay. This inclusion aims to enhance the financial security of law enforcement officers and firefighters by ensuring that standby pay is considered in their retirement benefits. The bill also clarifies that basic salary will include deferred wages under specific provisions of the Internal Revenue Code while explicitly excluding certain forms of compensation, such as lump sum payments for unused leave and severance pay.

Furthermore, the bill revises definitions and provisions related to medical services, fees, and service credit for retirement system members. It specifies the types of medical services covered, including those provided by licensed healthcare professionals, and defines key terms like "member," "service," "retiree," and "retirement fund" for clarity. The bill outlines criteria for service credit accumulation for both Plan 1 and Plan 2 members, ensuring that they do not lose service credit due to furloughs or similar situations. It also addresses dual employment scenarios and how service credit is calculated based on hours worked, ultimately aiming to improve the clarity and fairness of the retirement system for law enforcement officers and firefighters in Washington.