The 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. This threshold will be adjusted 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 allows retirees or beneficiaries receiving a monthly benefit of less than fifty dollars to request a conversion to a lump sum payment. It outlines the process for reinstating previous service upon returning to member status and specifies 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 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
Bill as passed Legislature: 41.40.625, 41.32.762, 41.35.410, 41.37.200, 41.26.425
Session law: 41.40.625, 41.32.762, 41.35.410, 41.37.200, 41.26.425