WashingtonWashington systems may pay lump sums for small retirement benefits
Washington law allows retirement system directors to pay eligible people a lump sum when their calculated starting monthly benefit is below $250.
What it does
For eligible members or beneficiaries whose calculated starting benefit is below $250, a system director may pay a lump sum instead of monthly checks. The threshold rises each year as the director determines.
Retirees or beneficiaries receiving less than $50 a month may ask in writing to convert their monthly benefit to a lump sum, subject to the director's approval.
Argument forA lump sum may give eligible people one payment when their calculated monthly benefit would be very small.
Argument againstA lump sum could leave people without the regular monthly checks they might rely on for ongoing expenses.
More detail
A retirement system director may pay a lump sum instead of monthly checks when the calculated starting benefit is below $250. This applies to eligible members or beneficiaries in five Washington public retirement systems. The lump sum must be at least the value of the estimated monthly benefits or the person's contributions plus interest, whichever is greater. Only people eligible for a service retirement or earned disability benefit qualify. The director determines the annual increase to the $250 threshold. The text says this authority applies on or after June 10, 1982. The law took effect June 11, 2026.
A retirement system director may approve a written request to convert a small monthly benefit into a lump sum. This applies to retirees or beneficiaries who are receiving a regular monthly benefit of less than $50 in the systems described in the text. The director must approve the request. The lump sum is calculated using the beneficiary's age when the benefit first accrued and is reduced by payments received on or after that date.
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Where it stands
- Introduced
- Passed House
- Passed Senate
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Mar 23Effective date 6/11/2026.Latest
- Mar 23Chapter 132, 2026 Laws.Major
- Mar 23Governor Bob Ferguson signed.Became Law
- Mar 10Delivered to Governor.To Governor
- Mar 9President signed.Passed Senate
- Mar 6Speaker signed.Passed House
- Mar 5Third reading, passed; yeas, 48; nays, 0; absent, 0; excused, 1.Minor
- Vote recorded 3rd Reading & Final Passage (#27). Result: pass.Upper
- Mar 5Rules suspended. Placed on Third Reading.Minor
- Mar 3Placed on second reading by Rules Committee.Minor
- Feb 27Passed to Rules Committee for second reading.
- Feb 26WM - Majority; do pass.Minor
- Feb 26Executive action taken in the Senate Committee on Ways & Means at 1:30 PM.
- Feb 18First reading, referred to Ways & Means.Minor
- Feb 16Third reading, passed; yeas, 96; nays, 0; absent, 0; excused, 2.Minor
- Vote recorded 3rd Reading & Final Passage (#22). Result: pass.Lower
- Feb 16Rules suspended. Placed on Third Reading.Minor
- Feb 6Rules Committee relieved of further consideration. Placed on second reading.Minor
- Jan 27Referred to Rules 2 Review.Minor
- Jan 22APP - Majority; do pass.Minor
- Jan 22Executive action taken in the House Committee on Appropriations at 4:00 PM.
- Jan 15Public hearing in the House Committee on Appropriations at 4:00 PM.
- Jan 12First reading, referred to Appropriations.Minor
- 2025
- Dec 10Prefiled for introduction.Introduced
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