(1) Except under subsection (3) of this section, a retiree under the provisions of plan 2 shall not be eligible to receive such retiree's monthly retirement allowance if he or she is employed in an eligible position as defined in RCW
41.40.010,
41.32.010,
41.37.010, or
41.35.010, or as a law enforcement officer or firefighter as defined in RCW
41.26.030. If a retiree's benefits have been suspended under this section, his or her benefits shall be reinstated when the retiree terminates the employment that caused his or her benefits to be suspended. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.
(2) The department shall adopt rules implementing this section.
(3) A member or retiree who becomes employed in an eligible position as defined in RCW
41.40.010,
41.32.010,
41.35.010, or
41.37.010 shall have the option to enter into membership in the corresponding retirement system for that position notwithstanding any provision of RCW
41.04.270. A retiree who elects to enter into plan membership shall have his or her benefits suspended as provided in subsection (1) of this section. A retiree who does not elect to enter into plan membership shall continue to receive his or her benefits without interruption.