First let me apologize on behalf of DRS and myself for the issue where we inadvertently withheld taxes that should not have been withheld from the lump sum benefit paid to LEOFF 1 disability retirees.
RS estimates that approximately 2300 members were affected by this error and had taxes withheld that should not have been withheld.
DRS will correct this error and I can assure you and our members that we will pay each member what they are entitled to, tax free, by January 31, 2023. No member will have any adverse tax implications as a result of our error and therefor will not need or be sent a 1099.
Our plan is to email members we have email addresses for. Members of this group for whom we do not have an email address will be contacted by telephone in the very near future.
Once again I apologize for this unfortunate error and assure you we will do everything to make sure members are paid everything they are entitled to.
Director Legislative and Community Relations
Department of Retirement Systems
6835 Capitol Boulevard
Tumwater, Washington 98501
If you have any questions, please contact Joyce Willms at LEOFF1 Coalition at