Retirement funds/expenses

AN ACT Relating to payment of expenses from the earnings of 1
retirement system trust funds; and amending RCW 41.50.255.2
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:3
Sec. 1. RCW 41.50.255 and 2025 c 424 s 943 are each amended to 4
read as follows: 5
The director is authorized to pay from the interest earnings of 6
the trust funds of the public employees' retirement system, the 7
teachers' retirement system, the Washington state patrol retirement 8
system, the Washington judicial retirement system, the judges' 9
retirement system, the school employees' retirement system, the 10
public safety employees' retirement system, or the law enforcement 11
officers' and firefighters' retirement system lawful obligations of 12
the appropriate system for legal, medical, and ((, during the 13
2025-2027 fiscal biennium, )) administrative expenses, which expenses 14
are primarily incurred for the purpose of protecting or preventing 15
losses from the appropriate trust fund or are incurred in compliance 16
with statutes governing such funds. 17
The term "legal expense" includes, but is not limited to, legal 18
services provided through the legal services revolving fund, fees for 19
expert witnesses, travel expenses, fees for court reporters, cost of 20
transcript preparation, and reproduction of documents.21
Z-0523.1
SENATE BILL 5834
State of Washington 69th Legislature 2026 Regular Session
By Senators Conway and Nobles; by request of Department of Retirement
Systems
Prefiled 12/05/25. Read first time 01/12/26. Referred to Committee
on Ways & Means.
p. 1 SB 5834
The term "medical expense" includes, but is not limited to, 1
expenses for the medical examination or reexamination of members or 2
retirees, the costs of preparation of medical reports, and fees 3
charged by medical professionals for attendance at discovery 4
proceedings or hearings. 5
The term "administrative expenses" includes, but is not limited 6
to, expenses incurred to prevent losses to the trust funds such as 7
audits, cybersecurity, petition decisions, departmental liaison work 8
with the attorney general's office, and other similar expenses 9
incurred by the department to ensure that trust funds are protected 10
against risks that might lead to losses from the trust funds.11
The director may also pay from the interest earnings of the trust 12
funds specified in this section costs incurred in investigating fraud 13
and collecting overpayments, including expenses incurred to review 14
and investigate cases of possible fraud against the trust funds and 15
collection agency fees and other costs incurred in recovering 16
overpayments. Recovered funds must be returned to the appropriate 17
trust funds. 18
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p. 2 SB 5834