(1) Except under RCW
41.32.862, no retiree shall 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,
41.35.010, or
41.37.010, or as a law enforcement officer or firefighter 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.
(2) 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 the suspension of benefits. Upon reinstatement, the retiree's benefits shall be actuarially recomputed pursuant to the rules adopted by the department.