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, allowing members eligible for retirement or their beneficiaries to receive a lump sum payment if their initial monthly benefit is below this amount. Additionally, the bill 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.

The bill also outlines the process for beneficiaries receiving a monthly benefit of less than fifty dollars to request a conversion to a lump sum payment, and it details the conditions under which members can reinstate previous service upon returning to member status. It clarifies that only individuals entitled to or receiving a service retirement allowance or an earned disability allowance qualify for participation under these provisions. The intent of the legislature is to ensure that any member who receives a settlement under this section is deemed retired from the system.

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