Revised Code of Washington
Chapter 41.40 - Washington Public Employees' Retirement System.
41.40.037 - Service by retirees—Break in employment requirement—Reduction of retirement allowance upon reemployment—Reestablishment of membership.

RCW 41.40.037
Service by retirees—Break in employment requirement—Reduction of retirement allowance upon reemployment—Reestablishment of membership.

(1)(a) If a retiree enters employment with an employer sooner than one calendar month after his or her accrual date, the retiree's monthly retirement allowance will be reduced by five and one-half percent for every eight hours worked during that month. This reduction will be applied each month until the retiree remains absent from employment with an employer for one full calendar month.
(b) The benefit reduction provided in (a) of this subsection will accrue for a maximum of one hundred sixty hours per month. Any benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.
(2)(a) A retiree from plan 1, plan 2, or plan 3 who has satisfied the break in employment requirement of subsection (1) of this section may work up to eight hundred sixty-seven hours per calendar year in an eligible position, as defined in RCW 41.32.010, 41.35.010, 41.37.010, or 41.40.010, or as a firefighter or law enforcement officer, as defined in RCW 41.26.030, or in a position covered by annuity and retirement income plans offered by institutions of higher education pursuant to RCW 28B.10.400, without suspension of his or her benefit.
(b) Between March 23, 2022, and July 1, 2025, a retiree, including a retiree who has retired under the alternate early retirement provisions of RCW 41.40.630(3)(b) or 41.40.820(3)(b), who reenters employment more than 100 days after his or her accrual date, and who enters service in a school district in a nonadministrative position shall continue to receive pension payments while engaged in such service, until the retiree has rendered service for more than 1,040 hours in a calendar year.
(3) If the retiree opts to reestablish membership under RCW 41.40.023(12), he or she terminates his or her retirement status and becomes a member. Retirement benefits shall not accrue during the period of membership and the individual shall make contributions and receive membership credit. Such a member shall have the right to again retire if eligible in accordance with RCW 41.40.180. However, if the right to retire is exercised to become effective before the member has rendered two uninterrupted years of service, the retirement formula and survivor options the member had at the time of the member's previous retirement shall be reinstated.
(4) The department shall collect and provide the state actuary with information relevant to the use of this section for the select committee on pension policy.
(5) The legislature reserves the right to amend or repeal this section in the future and no member or beneficiary has a contractual right to be employed for more than five months in a calendar year without a reduction of his or her pension.

[ 2022 c 110 § 5; 2015 c 75 § 1; 2011 1st sp.s. c 47 § 19; 2007 c 50 § 5; 2005 c 319 § 103; 2004 c 242 § 63. Prior: 2003 c 412 § 5; 2003 c 295 § 7; 2001 2nd sp.s. c 10 § 4; (2001 2nd sp.s. c 10 § 12 repealed by 2002 c 26 § 9); 1997 c 254 § 14.]
NOTES:

Effective date—2022 c 110: See note following RCW 41.32.570.


Intent—Effective dates—2011 1st sp.s. c 47: See notes following RCW 28B.10.400.


Findings—Intent—Part headings—Effective dates—2005 c 319: See notes following RCW 43.17.020.


Effective date—2004 c 242: See RCW 41.37.901.


Effective dates—2001 2nd sp.s. c 10: "Except for section 12 of this act which takes effect December 31, 2004, this act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2001." [ 2001 2nd sp.s. c 10 § 14.]


Intent—Construction—Application—1997 c 254: See notes following RCW 41.26.490.

Structure Revised Code of Washington

Revised Code of Washington

Title 41 - Public Employment, Civil Service, and Pensions

Chapter 41.40 - Washington Public Employees' Retirement System.

41.40.005 - Provisions applicable to "plan 1," "plan 2," and "plan 3."

41.40.010 - Definitions.

41.40.015 - Construction—Chapter applicable to state registered domestic partnerships—2009 c 521.

41.40.020 - System created—Administration.

41.40.023 - Membership.

41.40.025 - Membership in system—Charter school employers and employees.

41.40.028 - Nonelective position employees employed for at least nine months—Deemed in eligible position, when.

41.40.034 - Purchase of additional service credit—Costs—Rules.

41.40.035 - Service credit prohibited for certain members of committees, boards, and commissions and for certain appointive and elective officials.

41.40.037 - Service by retirees—Break in employment requirement—Reduction of retirement allowance upon reemployment—Reestablishment of membership.

41.40.038 - Duty disability retirement recipients—Continued service credit.

41.40.042 - Members agree to deductions.

41.40.048 - Employer's contribution—Computation—Billing.

41.40.052 - Exemption from taxation and judicial process—Exceptions—Assignability—Deductions authorized.

41.40.054 - Disability retirement—Criminal conduct.

41.40.055 - Penalty for false statements.

41.40.056 - Establishment of service credit—Former employees—Employers admitted before July 23, 1995.

41.40.057 - Establishment of service credit—Current and former employees—Employers admitted after July 23, 1995.

41.40.058 - Transfer of service credit from statewide city employees' retirement system.

41.40.059 - Credit for service in Seattle's police relief and pension fund system.

41.40.061 - Credit for service in Seattle's police relief and pension fund system—Terms and conditions.

41.40.062 - Optional entry of system by political subdivisions or associations of political subdivisions—Procedure—School districts declared employers and eligible employees members of system—Exception.

41.40.068 - Hearing prior to appeal—Required—Notice.

41.40.073 - Hearing prior to appeal—Conduct of hearing.

41.40.078 - Judicial review in accordance with administrative procedure act.

41.40.082 - Appeal—No bond required.

41.40.088 - Education employment—Service credit—Computation.

41.40.092 - Transfer of cadet service credit to Washington state patrol retirement system.

41.40.0931 - Death benefit—Course of employment as a police officer—Occupational disease or infection.

41.40.0932 - Death benefit—Course of employment—Occupational disease or infection.

41.40.095 - Transfer of membership from judicial retirement system.

41.40.096 - Law enforcement officers—Dual membership—Plan 1 exception.

41.40.098 - Transfer of former service from judicial retirement system.

41.40.102 - Effect of certain accumulated vacation leave on retirement benefits.

41.40.103 - Benefit calculation—Limitation.

41.40.104 - Establishing, restoring service credit.

41.40.1041 - Prior service for plan 2 or 3 members—One-half service credit.

41.40.105 - Chapter not applicable to officers and employees of state convention and trade center.

41.40.108 - Higher education classified employees—Membership in the public employees' retirement system.

41.40.109 - Retirement system employer—Termination of status.

41.40.111 - Retirement system employer—Unit of government.

41.40.113 - Public safety employees' retirement system—Election—Membership.

41.40.124 - Discontinuing judicial retirement account plan contributions—Additional benefit—One-time irrevocable election—Justices and judges.

41.40.127 - Additional benefit for district or municipal court judges—One-time irrevocable election.

41.40.129 - Emergency medical services employee of a consortium of local governments—Credit for service prior to July 27, 2003.

41.40.131 - Purchase of life annuity benefit.

41.40.145 - Provisions applicable to plan 1.

41.40.150 - Termination of membership—Restoration of service credit.

41.40.160 - Creditable service.

41.40.163 - Purchase of service credit—Service at Washington State University.

41.40.170 - Credit for military service.

41.40.175 - Service credit for paid leave of absence—Application to elected officials of labor organizations.

41.40.180 - Retirement—Length of service.

41.40.183 - Annual increase amount—Legislature's rights reserved—No additional increases after June 30, 2011.

41.40.185 - Retirement allowances—Members retiring after February 25, 1972.

41.40.188 - Retirement allowance—Options—Retirement allowance adjustment—Court-approved property settlement.

41.40.189 - Retirement allowance—Adjustment eligibility.

41.40.190 - Retirement allowance—In lieu of allowance provided in RCW 41.40.185.

41.40.191 - Retirement allowance—Members with thirty years of service—Irrevocable election.

41.40.193 - Dates upon which retirement allowances accrue.

41.40.197 - Retirement allowance—Annual increases restricted after July 1, 2010—Eligibility.

41.40.1971 - Definition—"Beneficiary."

41.40.1984 - Minimum retirement allowance—Annual adjustment—Persons who become beneficiaries after June 30, 1995.

41.40.1985 - Permanent retirement allowance adjustment.

41.40.1986 - Permanent increase for specified beneficiaries age seventy or over.

41.40.1987 - Monthly benefit increase.

41.40.200 - Retirement for disability in line of duty—Applicability to certain judges.

41.40.210 - Duty disability retirement allowance for disability after age sixty.

41.40.220 - Allowance on retirement for duty disability—Before sixty.

41.40.230 - Nonduty disability—Applicability to certain judges.

41.40.235 - Nonduty disability retirement allowance—Amount—Maximum—Death benefit.

41.40.250 - Allowance on retirement for nonduty disability—Election.

41.40.260 - Withdrawal from system—Refund of contributions—Waiver of allowance, when.

41.40.262 - Elected officials—Restoration of withdrawn contributions.

41.40.270 - Death before retirement or within sixty days following application for disability retirement—Military service—Payment of contributions to nominee, surviving spouse, or legal representative—Waiver of payment, effect—Benefits.

41.40.280 - Department may withhold refunds of contributions.

41.40.300 - Benefits offset by workers' compensation or similar benefits.

41.40.310 - Periodical examination of disability beneficiaries—Benefits upon resumption of gainful employment.

41.40.320 - Disability beneficiary—Restoration to service.

41.40.330 - Contributions.

41.40.363 - Employer's contributions—Labor guild, association or organization.

41.40.404 - Justices or judges retirement allowance—In lieu of RCW 41.40.185.

41.40.408 - District or municipal court judges retirement allowances—In lieu of RCW 41.40.185.

41.40.610 - Provisions applicable to plan 2.

41.40.620 - Computation of the retirement allowance.

41.40.625 - Lump sum retirement allowance—Reentry—Conditions for reinstatement of service.

41.40.630 - Retirement for service.

41.40.633 - Member with terminal illness—Removal from system.

41.40.640 - Post-retirement cost-of-living.

41.40.660 - Options for payment of retirement allowances—Retirement allowance adjustment—Court-approved property settlement.

41.40.670 - Earned disability allowance—Applicability to certain judges—Disposition upon death of recipient.

41.40.680 - Application for and effective date of retirement allowances.

41.40.690 - Suspension of retirement allowance upon reemployment—Exceptions—Reinstatement.

41.40.700 - Death benefits.

41.40.710 - Service credit for paid leave of absence, officers of labor organizations, unpaid leave of absence, military service.

41.40.720 - Vested membership.

41.40.730 - Refund of contributions.

41.40.740 - Reentry.

41.40.748 - Commercial vehicle enforcement officers—Limited optional transfer to Washington state patrol retirement system.

41.40.749 - Certain commissioned officers—Limited optional transfer to Washington state patrol retirement system.

41.40.750 - Transfer of membership and service credit—Restoration of contributions and service credit.

41.40.760 - End of participation in judicial retirement account plan—Newly elected or appointed judges or justices.

41.40.763 - End of participation in chapter 41.28 RCW—Newly elected or appointed judges.

41.40.767 - Justices or judges retirement allowance—In lieu of RCW 41.40.620.

41.40.770 - District or municipal court judges retirement allowance—In lieu of RCW 41.40.620.

41.40.780 - Provisions applicable to plan 3—Plan 3 elements.

41.40.785 - Membership in plan 2 or plan 3—Irrevocable choice—Default.

41.40.787 - Right to waive benefit—Irrevocable choice.

41.40.790 - Computation of retirement allowance.

41.40.795 - Transfer period and basis—Additional transfer payment.

41.40.798 - Higher education employees—Option to transfer to plan 3—Limitation on supplemental benefits under RCW 28B.10.400.

41.40.801 - Application for and effective date of retirement allowances.

41.40.805 - Leaves of absence—Military service.

41.40.811 - Purchased service credit—Allocation.

41.40.815 - Lump sum payments—Reentry.

41.40.820 - Retirement eligibility.

41.40.823 - Member with terminal illness—Removal from system.

41.40.825 - Disability allowance—Death of recipient.

41.40.830 - Restored, purchased service credit under plan 2—Transfer to plan 3.

41.40.835 - Death benefits.

41.40.840 - Postretirement cost-of-living.

41.40.845 - Options for payment of retirement allowances—Court-approved property settlement.

41.40.850 - Suspension of retirement allowance upon reemployment—Exception—Reinstatement.

41.40.870 - Discontinuing judicial retirement account plan contributions—Additional benefit—One-time irrevocable election—Justices and judges.

41.40.873 - Additional benefit for district or municipal court judges—One-time irrevocable election.

41.40.877 - Justices or judges retirement allowance—In lieu of RCW 41.40.790.

41.40.880 - District or municipal court judges retirement allowance—In lieu of RCW 41.40.790.

41.40.920 - Effective date—1977 ex.s. c 295.

41.40.930 - Benefits not contractual right until March 1, 2002.

41.40.931 - Effective dates—2000 c 247.

41.40.932 - Subchapter headings not law—2000 c 247.