Retired employees/work

AN ACT Relating to permitting individuals retired from the public 1
employees' retirement system, the teachers' retirement system, and 2
the school employees' retirement system additional opportunities to 3
work for up to 1,040 hours per year while in receipt of pension 4
benefits; amending RCW 41.32.570, 41.32.802, 41.32.862, 41.35.060, 5
and 41.40.037; and declaring an emergency. 6
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:7
Sec. 1. RCW 41.32.570 and 2022 c 110 s 1 are each amended to 8
read as follows: 9
(1)(a) If a retiree enters employment with an employer sooner 10
than one calendar month after his or her accrual date, the retiree's 11
monthly retirement allowance will be reduced by five and one-half 12
percent for every seven hours worked during that month. This 13
reduction will be applied each month until the retiree remains absent 14
from employment with an employer for one full calendar month.15
(b) The benefit reduction provided in (a) of this subsection will 16
accrue for a maximum of one hundred forty hours per month. Any 17
monthly benefit reduction over one hundred percent will be applied to 18
the benefit the retiree is eligible to receive in subsequent months.19
(2) Any retired teacher or retired administrator who enters 20
service in any public educational institution in Washington state at 21
S-1298.1
SENATE BILL 5738
State of Washington 69th Legislature 2025 Regular Session
By Senators Wellman, Short, Cortes, Warnick, Cleveland, Liias,
Stanford, Valdez, and C. Wilson
Read first time 02/12/25. Referred to Committee on Ways & Means.
p. 1 SB 5738
least one calendar month after his or her accrual date shall cease to 1
receive pension payments while engaged in such service, after the 2
retiree has rendered service for more than eight hundred sixty-seven 3
hours in a school year. 4
(3)(a) Between March 23, 2022, and July 1, ((2025)) 2029, a 5
retiree who reenters employment more than one calendar month after 6
his or her accrual date, and who enters service in a school district 7
in a nonadministrative position shall continue to receive pension 8
payments while engaged in such service, until the retiree has 9
rendered service for more than 1,040 hours in a school year.10
(b) Between March 23, 2022, and July 1, ((2025)) 2029, a retiree 11
that retired before January 1, 2022, and who enters service in a 12
second-class school district, as defined in RCW 28A.300.065, as 13
either a district superintendent or an in-school administrator shall 14
continue to receive pension payments while engaged in such service, 15
until the retiree has rendered service for more than 1,040 hours in a 16
school year. 17
(4) The department shall collect and provide the state actuary 18
with information relevant to the use of this section for the select 19
committee on pension policy. 20
(5) The legislature reserves the right to amend or repeal this 21
section in the future and no member or beneficiary has a contractual 22
right to be employed for more than five hundred twenty-five hours per 23
year without a reduction of his or her pension. 24
Sec. 2. RCW 41.32.802 and 2023 c 410 s 3 are each amended to 25
read as follows: 26
(1)(a) If a retiree enters employment with an employer sooner 27
than one calendar month after his or her accrual date, the retiree's 28
monthly retirement allowance will be reduced by five and one-half 29
percent for every seven hours worked during that month. This 30
reduction will be applied each month until the retiree remains absent 31
from employment with an employer for one full calendar month.32
(b) The benefit reduction provided in (a) of this subsection will 33
accrue for a maximum of one hundred forty hours per month. Any 34
benefit reduction over one hundred percent will be applied to the 35
benefit the retiree is eligible to receive in subsequent months.36
(2)(a) A retiree who has satisfied the break in employment 37
requirement of subsection (1) of this section, may work up to eight 38
hundred sixty-seven hours per calendar year in an eligible position, 39
p. 2 SB 5738
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 1
as a firefighter or law enforcement officer, as defined in RCW 2
41.26.030, or in a position covered by annuity and retirement income 3
plans offered by institutions of higher education pursuant to RCW 4
28B.10.400, without suspension of his or her benefit.5
(b)(i) Between March 23, 2022, and July 1, ((2025)) 2029, a 6
retiree who reenters employment more than one month after his or her 7
accrual date, and who enters service in a school district in a 8
nonadministrative position shall continue to receive pension payments 9
while engaged in such service, until the retiree has rendered service 10
for more than 1,040 hours in a calendar year. 11
(ii) Between March 23, 2022, and July 1, ((2025)) 2029, a retiree 12
that retired before January 1, 2022, and who enters service in a 13
second-class school district, as defined in RCW 28A.300.065, as 14
either a district superintendent or an in-school administrator shall 15
continue to receive pension payments while engaged in such service, 16
until the retiree has rendered service for more than 1,040 hours in a 17
calendar year. 18
(iii) The legislature reserves the right to amend or repeal this 19
subsection (2)(b) in the future and no member or beneficiary has a 20
contractual right to be employed for more than 867 hours in a 21
calendar year without a reduction of his or her pension.22
(3) If the retiree opts to reestablish membership under RCW 23
41.32.044, he or she terminates his or her retirement status and 24
immediately becomes a member. Retirement benefits shall not accrue 25
during the period of membership and the individual shall make 26
contributions and receive membership credit. Such a member shall have 27
the right to again retire if eligible. 28
Sec. 3. RCW 41.32.862 and 2023 c 410 s 4 are each amended to 29
read as follows: 30
(1)(a) If a retiree enters employment with an employer sooner 31
than one calendar month after his or her accrual date, the retiree's 32
monthly retirement allowance will be reduced by five and one-half 33
percent for every seven hours worked during that month. This 34
reduction will be applied each month until the retiree remains absent 35
from employment with an employer for one full calendar month.36
(b) The benefit reduction provided in (a) of this subsection will 37
accrue for a maximum of one hundred forty hours per month. Any 38
p. 3 SB 5738
benefit reduction over one hundred percent will be applied to the 1
benefit the retiree is eligible to receive in subsequent months.2
(2)(a) A retiree who has satisfied the break in employment 3
requirement of subsection (1) of this section, may work up to eight 4
hundred sixty-seven hours per calendar year in an eligible position, 5
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 6
as a firefighter or law enforcement officer, as defined in RCW 7
41.26.030, or in a position covered by annuity and retirement income 8
plans offered by institutions of higher education pursuant to RCW 9
28B.10.400, without suspension of his or her benefit.10
(b)(i) Between March 23, 2022, and July 1, ((2025)) 2029, a 11
retired teacher or retired administrator who reenters employment more 12
than one month after his or her accrual date, and who enters service 13
in a school district in a nonadministrative position shall continue 14
to receive pension payments while engaged in such service, until the 15
retiree has rendered service for more than 1,040 hours in a calendar 16
year. 17
(ii) Between March 23, 2022, and July 1, ((2025)) 2029, a retiree 18
that retired before January 1, 2022, and who enters service in a 19
second-class school district, as defined in RCW 28A.300.065, as 20
either a district superintendent or an in-school administrator shall 21
continue to receive pension payments while engaged in such service, 22
until the retiree has rendered service for more than 1,040 hours in a 23
calendar year. 24
(iii) The legislature reserves the right to amend or repeal this 25
subsection (2)(b) in the future and no member or beneficiary has a 26
contractual right to be employed for more than 867 hours in a 27
calendar year without a reduction of his or her pension.28
(3) If the retiree opts to reestablish membership under RCW 29
41.32.044, he or she terminates his or her retirement status and 30
immediately becomes a member. Retirement benefits shall not accrue 31
during the period of membership and the individual shall make 32
contributions and receive membership credit. Such a member shall have 33
the right to again retire if eligible. 34
Sec. 4. RCW 41.35.060 and 2023 c 410 s 6 are each amended to 35
read as follows: 36
(1)(a) If a retiree enters employment with an employer sooner 37
than one calendar month after his or her accrual date, the retiree's 38
monthly retirement allowance will be reduced by five and one-half 39
p. 4 SB 5738
percent for every eight hours worked during that month. This 1
reduction will be applied each month until the retiree remains absent 2
from employment with an employer for one full calendar month.3
(b) The benefit reduction provided in (a) of this subsection will 4
accrue for a maximum of one hundred sixty hours per month. Any 5
benefit reduction over one hundred percent will be applied to the 6
benefit the retiree is eligible to receive in subsequent months.7
(2)(a) A retiree who has satisfied the break in employment 8
requirement of subsection (1) of this section may work up to eight 9
hundred sixty-seven hours per calendar year in an eligible position, 10
as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or 11
as a firefighter or law enforcement officer, as defined in RCW 12
41.26.030, or in a position covered by annuity and retirement income 13
plans offered by institutions of higher education pursuant to RCW 14
28B.10.400, without suspension of his or her benefit.15
(b) Between March 23, 2022, and July 1, ((2025)) 2029, a retiree, 16
including a retiree who has retired under the alternate early 17
retirement provisions of RCW 41.35.420(3)(b) or 41.35.680(3)(b), who 18
reenters employment more than one month after his or her accrual 19
date, and who enters service in a school district in a 20
nonadministrative position shall continue to receive pension payments 21
while engaged in such service, until the retiree has rendered service 22
for more than 1,040 hours in a calendar year. The legislature 23
reserves the right to amend or repeal this subsection (2)(b) in the 24
future and no member or beneficiary has a contractual right to be 25
employed for more than 867 hours in a calendar year without a 26
reduction of his or her pension. 27
(3) If the retiree opts to reestablish membership under RCW 28
41.35.030, he or she terminates his or her retirement status and 29
becomes a member. Retirement benefits shall not accrue during the 30
period of membership and the individual shall make contributions and 31
receive membership credit. Such a member shall have the right to 32
again retire if eligible in accordance with RCW 41.35.420 or 33
41.35.680. However, if the right to retire is exercised to become 34
effective before the member has rendered two uninterrupted years of 35
service, the retirement formula and survivor options the member had 36
at the time of the member's previous retirement shall be reinstated.37
Sec. 5. RCW 41.40.037 and 2023 c 99 s 2 are each amended to read 38
as follows: 39
p. 5 SB 5738
(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)) 2029, 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)) 2030, 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 SB 5738
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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