April 24, 2025941April 16, 2025472

I, Bernard Dean, Chief Clerk of the House of Representatives of the State of Washington, do hereby certify that the attached is HOUSE BILL 1936 as passed by the House of Representatives and the Senate on the dates hereon set forth.

Chief Clerk

Secretary of State

State of Washington

HB 1936.PLHOUSE BILL 1936SENATEPassed Legislature2025 Regular Session69th Legislature2025 Regular SessionRepresentatives Chase, Leavitt, and PolletRead first time 02/11/25.Referred to Committee on Appropriations.Extending the expiration of certain school employee postretirement employment restrictions. AN ACT Relating to extending the expiration of certain school employee postretirement employment restrictions; amending RCW 41.32.570, 41.32.802, 41.32.862, 41.35.060, and 41.40.037; and declaring an emergency. Sec. 1. RCW 41.32.570 and 2022 c 110 s 1 are each amended to read as follows:Postretirement employment—Reduction or suspension of pension payments.

(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 seven 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 forty hours per month. Any monthly benefit reduction over one hundred percent will be applied to the benefit the retiree is eligible to receive in subsequent months.

(2) Any retired teacher or retired administrator who enters service in any public educational institution in Washington state at least one calendar month after his or her accrual date shall cease to receive pension payments while engaged in such service, after the retiree has rendered service for more than eight hundred sixty-seven hours in a school year.

(3)(a) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retiree who reenters employment more than one calendar month 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 school year.

(b) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retiree that retired before January 1, 2022, and who enters service in a second-class school district, as defined in RCW 28A.300.065, as either a district superintendent or an in-school administrator 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 school year.

(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 hundred twenty-five hours per year without a reduction of his or her pension.

2022 c 110 s 1; 2011 1st sp.s. c 47 s 10; 2007 c 50 s 3; 2003 c 295 s 6. Prior: 2001 2nd sp.s. c 10 s 3; (2001 c 317 s 1 repealed by 2003 c 412 s 3); 1999 c 387 s 1; 1997 c 254 s 5; 1995 c 264 s 1; 1994 c 69 s 2; 1989 c 273 s 29; 1986 c 237 s 1; 1967 c 151 s 5; 1959 c 37 s 3; 1955 c 274 s 30; 1947 c 80 s 57; Rem. Supp. 1947 s 4995-76. Effective date—2022 c 110: "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 immediately [March 23, 2022]." [2022 c 110 s 7.] Intent—Effective dates—2011 1st sp.s. c 47: See notes following RCW 28B.10.400. Effective dates—2001 2nd sp.s. c 10: See note following RCW 41.40.037. Intent—Construction—Application—1997 c 254: See notes following RCW 41.26.490. Effective date—1995 c 264: "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 shall take effect immediately [May 5, 1995]." [1995 c 264 s 2.] Findings—1994 c 69: "The legislature finds that there is a shortage of certificated substitute teachers in many regions of the state, and that this shortage will likely increase in the coming years. The legislature further finds that one method of reducing this shortage of substitute teachers is to encourage retired teachers to serve as substitutes by increasing the number of days they can work without affecting their retirement payments." [1994 c 69 s 1.] Effective date—Severability—1967 c 151: See notes following RCW 41.32.480. Contract rights of retirees hired for postretirement employment: RCW 28A.405.900. Sec. 2. RCW 41.32.802 and 2023 c 410 s 3 are each amended to read as follows:Reduction of retirement allowance upon reemployment or if covered by a plan under RCW 28B.10.400—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 seven 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 forty 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 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)(i) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retiree who reenters employment more than one month 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.

(ii) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retiree that retired before January 1, 2022, and who enters service in a second-class school district, as defined in RCW 28A.300.065, as either a district superintendent or an in-school administrator 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.

(iii) The legislature reserves the right to amend or repeal this subsection (2)(b) in the future and no member or beneficiary has a contractual right to be employed for more than 867 hours in a calendar year without a reduction of his or her pension.

(3) If the retiree opts to reestablish membership under RCW 41.32.044, he or she terminates his or her retirement status and immediately 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.

2023 c 410 s 3; 2022 c 110 s 2; 2011 1st sp.s. c 47 s 12; 2004 c 242 s 61; 2001 2nd sp.s. c 10 s 8; 1997 c 254 s 8. Intent—Effective date—2023 c 410: See notes following RCW 41.32.765. 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. Effective date—2004 c 242: See RCW 41.37.901. Effective dates—2001 2nd sp.s. c 10: See note following RCW 41.40.037. Intent—Construction—Application—1997 c 254: See notes following RCW 41.26.490. Sec. 3. RCW 41.32.862 and 2023 c 410 s 4 are each amended to read as follows:Reduction of retirement allowance upon reemployment or if covered by a plan under RCW 28B.10.400—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 seven 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 forty 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 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)(i) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retired teacher or retired administrator who reenters employment more than one month 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.

(ii) Between March 23, 2022, and July 1, 2025 January 1, 2030, a retiree that retired before January 1, 2022, and who enters service in a second-class school district, as defined in RCW 28A.300.065, as either a district superintendent or an in-school administrator 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.

(iii) The legislature reserves the right to amend or repeal this subsection (2)(b) in the future and no member or beneficiary has a contractual right to be employed for more than 867 hours in a calendar year without a reduction of his or her pension.

(3) If the retiree opts to reestablish membership under RCW 41.32.044, he or she terminates his or her retirement status and immediately 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.

2023 c 410 s 4; 2022 c 110 s 3; 2011 1st sp.s. c 47 s 14; 2004 c 242 s 62; 2001 2nd sp.s. c 10 s 10; 1997 c 254 s 9. Intent—Effective date—2023 c 410: See notes following RCW 41.32.765. 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. Effective date—2004 c 242: See RCW 41.37.901. Effective dates—2001 2nd sp.s. c 10: See note following RCW 41.40.037. Intent—Construction—Application—1997 c 254: See notes following RCW 41.26.490. Sec. 4. RCW 41.35.060 and 2023 c 410 s 6 are each amended to read as follows:Reduction of retirement allowance upon reemployment or if covered by a plan under RCW 28B.10.400—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 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 January 1, 2030, a retiree, including a retiree who has retired under the alternate early retirement provisions of RCW 41.35.420(3)(b) or 41.35.680(3)(b), who reenters employment more than one month 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. The legislature reserves the right to amend or repeal this subsection (2)(b) in the future and no member or beneficiary has a contractual right to be employed for more than 867 hours in a calendar year without a reduction of his or her pension.

(3) If the retiree opts to reestablish membership under RCW 41.35.030, 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 41.35.420 or 41.35.680. 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.

2023 c 410 s 6; 2022 c 110 s 4; 2011 1st sp.s. c 47 s 15; 2004 c 242 s 64; 2001 2nd sp.s. c 10 s 11; 1998 c 341 s 7. Intent—Effective date—2023 c 410: See notes following RCW 41.32.765. 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. Effective date—2004 c 242: See RCW 41.37.901. Effective dates—2001 2nd sp.s. c 10: See note following RCW 41.40.037. Sec. 5. RCW 41.40.037 and 2023 c 99 s 2 are each amended to read as follows: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 January 1, 2030, 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.

(c) Between April 14, 2023, and July 1, 2026, 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), and who enters service in a nonadministrative position as a licensed nurse for a state agency, 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.

2023 c 99 s 2; 2022 c 110 s 5; 2015 c 75 s 1; 2011 1st sp.s. c 47 s 19; 2007 c 50 s 5; 2005 c 319 s 103; 2004 c 242 s 63. Prior: 2003 c 412 s 5; 2003 c 295 s 7; 2001 2nd sp.s. c 10 s 4; (2001 2nd sp.s. c 10 s 12 repealed by 2002 c 26 s 9); 1997 c 254 s 14. Effective date—2023 c 99: See note following RCW 41.37.050. 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 s 14.] Intent—Construction—Application—1997 c 254: See notes following RCW 41.26.490. Sec. 6.

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 immediately.