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

SB 5835 raises the threshold for receiving a lump sum retirement payment (instead of monthly benefits) from $50 to $250 annually adjusted. It applies to Washington state public employees and beneficiaries whose calculated monthly retirement benefit would be below this new threshold. The bill requires the lump sum to be the greater of the actuarial equivalent of future monthly payments or the member's accumulated contributions plus interest. It also includes specific rules for converting from monthly to lump sum payments and for reinstating retirement service if a member returns to work. This change affects retirees and beneficiaries under Washington's public retirement systems (41.40, 41.32, 41.35, and 41.37).