This bill amends the Washington law enforcement officers' and firefighters' retirement system plan 2 by incorporating standby pay into the definition of "basic salary" for plan 2 members. Standby pay refers to compensation received while being prepared to work without being actively engaged in work. The bill also clarifies that "basic salary" will include deferred wages and salaries as outlined in certain provisions of the Internal Revenue Code. Additionally, it specifies exclusions from basic salary, detailing which forms of compensation will not be included, thereby providing a clearer framework for calculating retirement benefits.

Moreover, the bill updates and clarifies existing definitions within RCW 41.26.030, including terms such as "basic salary," "final average salary," and the roles of law enforcement officers and firefighters. It also addresses medical services and fees covered under the retirement system, defining essential terms like "member," "plan 1," "plan 2," "service," and "retiree." The bill outlines criteria for calculating service credit for both plan 1 and plan 2 members, ensuring that members do not lose service credit due to furloughs or similar circumstances. Overall, these amendments aim to enhance clarity, fairness, and financial security for those serving in public safety roles.