(1) If you are holding an elective position and accruing PERS service credit for your service in that position, you may retire from PERS and continue to work in your elective position provided:

(a) You are eligible to retire under RCW 41.40.180, 41.40.630, or 41.40.820;

(b) You submit a written statement to the department, waiving the right to earn PERS service credit for any future period of service in an elective position; and

(c) Your compensation in the elective position is fifteen thousand dollars or less per year, adjusted annually for inflation by the director. See subsection (2) of this section.

(2) The compensation threshold in subsection (1)(c) of this section is adjusted on April 1 of each year, based on the average consumer price index for Seattle for the previous calendar year. Effective April 2006, the threshold is $21,551. You may contact the department for the threshold in effect for previous or subsequent years.