Bill > SB5835

This bill modifies several existing laws related to retirement allowances by changing the threshold for when a member can receive a lump sum payment instead of monthly retirement benefits. Currently, members could receive a lump sum if their monthly benefit was less than fifty dollars; the bill raises this threshold to $250 and mandates that the director of the retirement system increase this threshold annually. The bill affects five different retirement system statutes (covering public employees, teachers, school employees, law enforcement officers, and firefighters), ensuring a consistent approach across these systems. Under the new provisions, if a member's initial monthly retirement benefit would be less than $250, they can receive a lump sum payment equal to either the actuarial equivalent of their monthly benefits or their accumulated contributions plus accrued interest. The bill also preserves existing provisions that allow members who receive a lump sum to potentially reinstate their previous service by repaying the lump sum with interest if they return to member status within two years. The legislative intent remains that any member receiving such a settlement is considered retired from the system.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=5835&Year=2025&Initiative=false