WashingtonWashington retirement funds can use interest earnings to prevent fraud
Washington’s retirement system director can pay for audits, cybersecurity, and collection of excess payments from retirement funds’ interest earnings, while returning recovered money to those funds.
What it does
The retirement system director can use retirement funds’ interest earnings to prevent fraud and recover money paid out above what was owed. Recovered money must return to the correct fund.
The director can also use these earnings to pay legal and medical expenses when the costs mainly protect a covered retirement fund or meet laws governing it.
Argument forPaying for audits and cybersecurity could help protect public workers’ retirement savings from fraud and other losses.
Argument againstPaying these expenses from retirement funds’ interest earnings could leave less income in the funds, even when prevention efforts succeed.
More detail
The retirement system director may use retirement funds’ interest earnings to prevent and investigate fraud and recover money paid out above what was owed. This covers the listed Washington public worker retirement systems. Allowed costs include audits, cybersecurity, and fees paid to collection agencies. Recovered money must return to the retirement fund it belongs to.
The retirement system director may pay the covered systems’ legal and medical expenses from their funds’ interest earnings. This covers the listed Washington public worker retirement systems. Medical costs include exams and reports for workers and retirees covered by those systems. The expenses must mainly protect the appropriate retirement fund or meet requirements of laws governing it.
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Where it stands
- Introduced
- Passed Senate
- Passed House
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 16Effective date 6/11/2026.Latest
- Mar 16Chapter 68, 2026 Laws.Major
- Mar 16Governor Bob Ferguson signed.Became Law
- Mar 9Delivered to Governor.To Governor
- Mar 5Speaker signed.Passed House
- Mar 5President signed.Passed Senate
- Mar 4Third reading, passed; yeas, 97; nays, 0; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage (#2). Result: pass.Lower
- Mar 4Rules suspended. Placed on Third Reading.Minor
- Mar 3Rules Committee relieved of further consideration. Placed on second reading.Minor
- Mar 2Referred to Rules 2 Review.Minor
- Feb 27APP - Majority; do pass.Minor
- Feb 27Executive action taken in the House Committee on Appropriations at 10:30 AM.
- Feb 18Public hearing in the House Committee on Appropriations at 4:00 PM.
- Feb 14First reading, referred to Appropriations.Minor
- Feb 11Third reading, passed; yeas, 49; nays, 0; absent, 0; excused, 0.Minor
- Vote recorded 3rd Reading & Final Passage (#16). Result: pass.Upper
- Feb 11Rules suspended. Placed on Third Reading.Minor
- Feb 111st substitute bill substituted (WM 26).Major
- Feb 6Placed on second reading by Rules Committee.Minor
- Feb 4Passed to Rules Committee for second reading.
- Feb 3Minority; without recommendation.Minor
- Feb 3WM - Majority; 1st substitute bill be substituted, do pass.Major
- Feb 3Executive action taken in the Senate Committee on Ways & Means at 4:00 PM.
- Jan 20Public hearing in the Senate Committee on Ways & Means at 4:00 PM.
- Jan 12First reading, referred to Ways & Means.Minor
- 2025
- Dec 5Prefiled for introduction.Introduced
Government & EthicsTaxes & Budget