Schools/postretirement

AN ACT Relating to extending the expiration of certain school 1
employee postretirement employment restrictions; amending RCW 2
41.32.570, 41.32.802, 41.32.862, 41.35.060, and 41.40.037; and 3
declaring an emergency. 4
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:5
Sec. 1. RCW 41.32.570 and 2022 c 110 s 1 are each amended to 6
read as follows: 7
(1)(a) If a retiree enters employment with an employer sooner 8
than one calendar month after his or her accrual date, the retiree's 9
monthly retirement allowance will be reduced by five and one-half 10
percent for every seven hours worked during that month. This 11
reduction will be applied each month until the retiree remains absent 12
from employment with an employer for one full calendar month.13
(b) The benefit reduction provided in (a) of this subsection will 14
accrue for a maximum of one hundred forty hours per month. Any 15
monthly benefit reduction over one hundred percent will be applied to 16
the benefit the retiree is eligible to receive in subsequent months.17
(2) Any retired teacher or retired administrator who enters 18
service in any public educational institution in Washington state at 19
least one calendar month after his or her accrual date shall cease to 20
receive pension payments while engaged in such service, after the 21
H-1271.1
HOUSE BILL 1936
State of Washington 69th Legislature 2025 Regular Session
By Representatives Chase, Leavitt, and Pollet
Read first time 02/11/25. Referred to Committee on Appropriations.
p. 1 HB 1936
retiree has rendered service for more than eight hundred sixty-seven 1
hours in a school year. 2
(3)(a) Between March 23, 2022, and July 1, ((2025)) 2027, a 3
retiree who reenters employment more than one calendar month after 4
his or her accrual date, and who enters service in a school district 5
in a nonadministrative position shall continue to receive pension 6
payments while engaged in such service, until the retiree has 7
rendered service for more than 1,040 hours in a school year.8
(b) Between March 23, 2022, and July 1, ((2025)) 2027, a retiree 9
that retired before January 1, 2022, and who enters service in a 10
second-class school district, as defined in RCW 28A.300.065, as 11
either a district superintendent or an in-school administrator shall 12
continue to receive pension payments while engaged in such service, 13
until the retiree has rendered service for more than 1,040 hours in a 14
school year. 15
(4) The department shall collect and provide the state actuary 16
with information relevant to the use of this section for the select 17
committee on pension policy. 18
(5) The legislature reserves the right to amend or repeal this 19
section in the future and no member or beneficiary has a contractual 20
right to be employed for more than five hundred twenty-five hours per 21
year without a reduction of his or her pension. 22
Sec. 2. RCW 41.32.802 and 2023 c 410 s 3 are each amended to 23
read as follows: 24
(1)(a) If a retiree enters employment with an employer sooner 25
than one calendar month after his or her accrual date, the retiree's 26
monthly retirement allowance will be reduced by five and one-half 27
percent for every seven hours worked during that month. This 28
reduction will be applied each month until the retiree remains absent 29
from employment with an employer for one full calendar month.30
(b) The benefit reduction provided in (a) of this subsection will 31
accrue for a maximum of one hundred forty hours per month. Any 32
benefit reduction over one hundred percent will be applied to the 33
benefit the retiree is eligible to receive in subsequent months.34
(2)(a) A retiree who has satisfied the break in employment 35
requirement of subsection (1) of this section, may work up to eight 36
hundred sixty-seven hours per calendar year in an eligible position, 37
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 38
as a firefighter or law enforcement officer, as defined in RCW 39
p. 2 HB 1936
41.26.030, or in a position covered by annuity and retirement income 1
plans offered by institutions of higher education pursuant to RCW 2
28B.10.400, without suspension of his or her benefit.3
(b)(i) Between March 23, 2022, and July 1, ((2025)) 2027, a 4
retiree who reenters employment more than one month after his or her 5
accrual date, and who enters service in a school district in a 6
nonadministrative position shall continue to receive pension payments 7
while engaged in such service, until the retiree has rendered service 8
for more than 1,040 hours in a calendar year. 9
(ii) Between March 23, 2022, and July 1, ((2025)) 2027, a retiree 10
that retired before January 1, 2022, and who enters service in a 11
second-class school district, as defined in RCW 28A.300.065, as 12
either a district superintendent or an in-school administrator shall 13
continue to receive pension payments while engaged in such service, 14
until the retiree has rendered service for more than 1,040 hours in a 15
calendar year. 16
(iii) The legislature reserves the right to amend or repeal this 17
subsection (2)(b) in the future and no member or beneficiary has a 18
contractual right to be employed for more than 867 hours in a 19
calendar year without a reduction of his or her pension.20
(3) If the retiree opts to reestablish membership under RCW 21
41.32.044, he or she terminates his or her retirement status and 22
immediately becomes a member. Retirement benefits shall not accrue 23
during the period of membership and the individual shall make 24
contributions and receive membership credit. Such a member shall have 25
the right to again retire if eligible. 26
Sec. 3. RCW 41.32.862 and 2023 c 410 s 4 are each amended to 27
read as follows: 28
(1)(a) If a retiree enters employment with an employer sooner 29
than one calendar month after his or her accrual date, the retiree's 30
monthly retirement allowance will be reduced by five and one-half 31
percent for every seven hours worked during that month. This 32
reduction will be applied each month until the retiree remains absent 33
from employment with an employer for one full calendar month.34
(b) The benefit reduction provided in (a) of this subsection will 35
accrue for a maximum of one hundred forty hours per month. Any 36
benefit reduction over one hundred percent will be applied to the 37
benefit the retiree is eligible to receive in subsequent months.38
p. 3 HB 1936
(2)(a) A retiree who has satisfied the break in employment 1
requirement of subsection (1) of this section, may work up to eight 2
hundred sixty-seven hours per calendar year in an eligible position, 3
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 4
as a firefighter or law enforcement officer, as defined in RCW 5
41.26.030, or in a position covered by annuity and retirement income 6
plans offered by institutions of higher education pursuant to RCW 7
28B.10.400, without suspension of his or her benefit.8
(b)(i) Between March 23, 2022, and July 1, ((2025)) 2027, a 9
retired teacher or retired administrator who reenters employment more 10
than one month after his or her accrual date, and who enters service 11
in a school district in a nonadministrative position shall continue 12
to receive pension payments while engaged in such service, until the 13
retiree has rendered service for more than 1,040 hours in a calendar 14
year. 15
(ii) Between March 23, 2022, and July 1, ((2025)) 2027, a retiree 16
that retired before January 1, 2022, and who enters service in a 17
second-class school district, as defined in RCW 28A.300.065, as 18
either a district superintendent or an in-school administrator shall 19
continue to receive pension payments while engaged in such service, 20
until the retiree has rendered service for more than 1,040 hours in a 21
calendar year. 22
(iii) The legislature reserves the right to amend or repeal this 23
subsection (2)(b) in the future and no member or beneficiary has a 24
contractual right to be employed for more than 867 hours in a 25
calendar year without a reduction of his or her pension.26
(3) If the retiree opts to reestablish membership under RCW 27
41.32.044, he or she terminates his or her retirement status and 28
immediately becomes a member. Retirement benefits shall not accrue 29
during the period of membership and the individual shall make 30
contributions and receive membership credit. Such a member shall have 31
the right to again retire if eligible. 32
Sec. 4. RCW 41.35.060 and 2023 c 410 s 6 are each amended to 33
read as follows: 34
(1)(a) If a retiree enters employment with an employer sooner 35
than one calendar month after his or her accrual date, the retiree's 36
monthly retirement allowance will be reduced by five and one-half 37
percent for every eight hours worked during that month. This 38
p. 4 HB 1936
reduction will be applied each month until the retiree remains absent 1
from employment with an employer for one full calendar month.2
(b) The benefit reduction provided in (a) of this subsection will 3
accrue for a maximum of one hundred sixty hours per month. Any 4
benefit reduction over one hundred percent will be applied to the 5
benefit the retiree is eligible to receive in subsequent months.6
(2)(a) A retiree who has satisfied the break in employment 7
requirement of subsection (1) of this section may work up to eight 8
hundred sixty-seven hours per calendar year in an eligible position, 9
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 10
as a firefighter or law enforcement officer, as defined in RCW 11
41.26.030, or in a position covered by annuity and retirement income 12
plans offered by institutions of higher education pursuant to RCW 13
28B.10.400, without suspension of his or her benefit.14
(b) Between March 23, 2022, and July 1, ((2025)) 2027, a retiree, 15
including a retiree who has retired under the alternate early 16
retirement provisions of RCW 41.35.420(3)(b) or 41.35.680(3)(b), who 17
reenters employment more than one month after his or her accrual 18
date, and who enters service in a school district in a 19
nonadministrative position shall continue to receive pension payments 20
while engaged in such service, until the retiree has rendered service 21
for more than 1,040 hours in a calendar year. The legislature 22
reserves the right to amend or repeal this subsection (2)(b) in the 23
future and no member or beneficiary has a contractual right to be 24
employed for more than 867 hours in a calendar year without a 25
reduction of his or her pension. 26
(3) If the retiree opts to reestablish membership under RCW 27
41.35.030, he or she terminates his or her retirement status and 28
becomes a member. Retirement benefits shall not accrue during the 29
period of membership and the individual shall make contributions and 30
receive membership credit. Such a member shall have the right to 31
again retire if eligible in accordance with RCW 41.35.420 or 32
41.35.680. However, if the right to retire is exercised to become 33
effective before the member has rendered two uninterrupted years of 34
service, the retirement formula and survivor options the member had 35
at the time of the member's previous retirement shall be reinstated.36
Sec. 5. RCW 41.40.037 and 2023 c 99 s 2 are each amended to read 37
as follows: 38
p. 5 HB 1936
(1)(a) If a retiree enters employment with an employer sooner 1
than one calendar month after his or her accrual date, the retiree's 2
monthly retirement allowance will be reduced by five and one-half 3
percent for every eight hours worked during that month. This 4
reduction will be applied each month until the retiree remains absent 5
from employment with an employer for one full calendar month.6
(b) The benefit reduction provided in (a) of this subsection will 7
accrue for a maximum of one hundred sixty hours per month. Any 8
benefit reduction over one hundred percent will be applied to the 9
benefit the retiree is eligible to receive in subsequent months.10
(2)(a) A retiree from plan 1, plan 2, or plan 3 who has satisfied 11
the break in employment requirement of subsection (1) of this section 12
may work up to eight hundred sixty-seven hours per calendar year in 13
an eligible position, as defined in RCW 41.32.010, 41.35.010, 14
41.37.010, or 41.40.010, or as a firefighter or law enforcement 15
officer, as defined in RCW 41.26.030, or in a position covered by 16
annuity and retirement income plans offered by institutions of higher 17
education pursuant to RCW 28B.10.400, without suspension of his or 18
her benefit. 19
(b) Between March 23, 2022, and July 1, ((2025)) 2027, a retiree, 20
including a retiree who has retired under the alternate early 21
retirement provisions of RCW 41.40.630(3)(b) or 41.40.820(3)(b), who 22
reenters employment more than 100 days after his or her accrual date, 23
and who enters service in a school district in a nonadministrative 24
position shall continue to receive pension payments while engaged in 25
such service, until the retiree has rendered service for more than 26
1,040 hours in a calendar year. 27
(c) Between April 14, 2023, and July 1, 2026, a retiree, 28
including a retiree who has retired under the alternate early 29
retirement provisions of RCW 41.40.630(3)(b) or 41.40.820(3)(b), and 30
who enters service in a nonadministrative position as a licensed 31
nurse for a state agency, shall continue to receive pension payments 32
while engaged in such service, until the retiree has rendered service 33
for more than 1,040 hours in a calendar year. 34
(3) If the retiree opts to reestablish membership under RCW 35
41.40.023(12), he or she terminates his or her retirement status and 36
becomes a member. Retirement benefits shall not accrue during the 37
period of membership and the individual shall make contributions and 38
receive membership credit. Such a member shall have the right to 39
again retire if eligible in accordance with RCW 41.40.180. However, 40
p. 6 HB 1936
if the right to retire is exercised to become effective before the 1
member has rendered two uninterrupted years of service, the 2
retirement formula and survivor options the member had at the time of 3
the member's previous retirement shall be reinstated.4
(4) The department shall collect and provide the state actuary 5
with information relevant to the use of this section for the select 6
committee on pension policy. 7
(5) The legislature reserves the right to amend or repeal this 8
section in the future and no member or beneficiary has a contractual 9
right to be employed for more than five months in a calendar year 10
without a reduction of his or her pension. 11
NEW SECTION. Sec. 6. This act is necessary for the immediate 12
preservation of the public peace, health, or safety, or support of 13
the state government and its existing public institutions, and takes 14
effect immediately.15
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p. 7 HB 1936