Concerning the threshold for payment of a lump sum retirement allowance in lieu of a monthly benefit.

 Z-0520.1

HOUSE BILL 2124

State of Washington

69th Legislature

2026 Regular Session

By Representatives Couture, Fitzgibbon, Chase, Zahn, Wylie, Thomas, Gregerson, Ormsby, Griffey, Graham, and Bernbaum; by request of Department of Retirement Systems

Prefiled 12/10/25. Read first time 01/12/26. Referred to Committee on Appropriations.

AN ACT Relating to the threshold for payment of a lump sum retirement allowance in lieu of a monthly benefit; and amending RCW 41.40.625 , 41.32.762 , 41.35.410 , 41.37.200 , and 41.26.425 .

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1. RCW 41.40.625 and 1994 c 197 s 27 are each amended to read as follows:

(1) On or after June 10, 1982, the director may pay a member eligible to receive a retirement allowance or the member's beneficiary, subject to the provisions of subsection (5) of this section, a lump sum payment in lieu of a monthly benefit if the initial monthly benefit computed in accordance with RCW 41.40.620 would be less than (( fifty dollars )) $250 . This $250 threshold shall be increased annually as determined by the director. The lump sum payment shall be the greater of the actuarial equivalent of the monthly benefits or an amount equal to the individual's accumulated contributions plus accrued interest.