Board delays action on proposal to exempt police chiefs from LEHI 2 eligibility

Staff returned to the board with a follow-up on a legislative referral about whether police chief positions should be ineligible for LEHI 2 membership or allowed an opt-in choice similar to some PERS executive positions. Jacob White, staff to the board, summarized the legal and operational issues, including potential effects on duty-death and disability coverage, separation-from-service IRS constraints, and recruitment for smaller jurisdictions.

White outlined two options: (1) make police-chief positions ineligible for LEHI 2 and PERS, or (2) make police-chief positions ineligible for LEHI 2 but allow those chiefs to opt into PERS (mirroring existing PERS exceptions). He listed pros (reducing pension-incentive distortions that might deter in-state candidates) and cons (potentially complicating internal promotions, reducing out-of-state candidates, and creating benefit gaps for death/disability). White also noted an ongoing appeal by a sheriff about eligibility.

Board member Jason moved that the board take no further action at this time, arguing the issue would be best advanced through stakeholder engagement. The motion was seconded and carried by voice vote. Jason said, "I'd like to make a motion for number 2. No action at this time." Several trustees said more targeted study and stakeholder outreach (cities, counties, WACOPS and unions) would be useful before proposing statutory changes.

The board's decision preserves the status quo while signaling staff should continue fact-finding and outreach if requested. White said staff would return with additional analysis if the board asked for a bill-drafting briefing in the future.