Bill > HB2124

This bill increases the threshold for paying a lump sum retirement allowance from $50 to $250 across multiple retirement systems (including Public Employees' Retirement System, Teachers' Retirement System, School Employees' Retirement System, Public Safety Employees' Retirement System, and Law Enforcement Officers' and Fire Fighters' Retirement System). The new $250 threshold will be automatically increased annually as determined by the director. Under the new provisions, if a member's initial monthly retirement benefit would be less than $250, they can receive a lump sum payment instead of monthly benefits. This payment will be the greater of either the actuarial equivalent of the monthly benefits or the individual's accumulated contributions plus accrued interest. Members who receive such a lump sum payment can potentially reinstate their previous service by depositing the lump sum payment with interest within two years of returning to service or before re-retiring. The bill maintains existing provisions that allow beneficiaries receiving very low monthly benefits to request conversion to a lump sum payment, with the payment calculated based on the beneficiary's age and reduced to reflect any payments already received.

Budget and Finance

https://app.leg.wa.gov/billsummary?BillNumber=2124&Year=2025&Initiative=false