This bill amends several sections of the Revised Code of Washington (RCW) to establish a new threshold for the payment of a lump sum retirement allowance in lieu of a monthly benefit. Specifically, it raises the threshold from fifty dollars to two hundred fifty dollars for members eligible to receive a retirement allowance or their beneficiaries. The bill also stipulates that this $250 threshold will be increased annually as determined by the director. The lump sum payment will be the greater of the actuarial equivalent of the monthly benefits or the individual's accumulated contributions plus accrued interest.

Additionally, the bill outlines the process for beneficiaries receiving a monthly benefit of less than fifty dollars to request a conversion to a lump sum payment. It includes provisions for reinstating previous service upon returning to member status, as well as the conditions under which members may qualify for participation in these benefits. The intent of the legislature is also clarified, stating that any member who receives a settlement under this section shall be deemed retired from the system.

Statutes affected:
Original bill: 41.40.625, 41.32.762, 41.35.410, 41.37.200, 41.26.425