HB 1936
SignedHouse
Schools/postretirement
Extending the expiration of certain school employee postretirement employment restrictions.
How does a bill become law?
- Introduced: The bill is filed and assigned a number.
- Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
- Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
- Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
- Governor: The Governor reviews the bill and decides whether to sign or veto it.
- Signed: The bill has been signed into law.
AI Analysis
This bill extends temporary rules allowing certain retired public employees — especially school staff, firefighters, law enforcement officers, and state nurses — to work more hours per year without losing their pensions. It updates work-hour limits and pension reduction rules for reemployed retirees, and makes these exceptions last until July 1, 2027 instead of July 1, 2025.
- Extends temporary exceptions (through July 1, 2027) that allow certain retirees to work up to 1,040 hours per year in school or state jobs without losing pension benefits — previously set to expire July 1, 2025.
- Allows retirees who return to work more than one calendar month after retirement to keep receiving pensions if they work under 1,040 hours/year in nonadministrative school positions or certain state jobs.
- Maintains existing rules that reduce pensions by 5.5% for every 7–8 hours worked (depending on plan) if a retiree returns to work within one month of retiring.
- Permits retirees to work up to 867 hours/year in eligible positions without pension suspension, as long as they wait at least one full calendar month after retiring.
- Includes special provisions for retirees who retired before January 1, 2022, allowing them to work as district superintendents or administrators in second-class school districts under the same 1,040-hour limit.
- Clarifies that retirees who choose to rejoin the retirement system (to earn more benefits) must stop receiving pensions while contributing and working — and if they retire again within two years, their original benefit formula is reinstated.
Who is affected
- Retired school employees — Retired teachers, administrators, and other school employees who return to work in public schools after retirement — this bill changes how many hours they can work before their pension is reduced or suspended.
- Retired public safety and healthcare workers — Retired firefighters, law enforcement officers, and state agency nurses who return to work in eligible positions — this bill adjusts their work-hour limits and pension rules during reemployment.
- Public employers (school districts, state agencies) — School districts and state agencies that hire retirees — this bill affects how many hours retirees can work before the employer must stop paying them or reduce pension benefits.
- State retirement systems — State retirement systems (PERS, SERS, LEOFF, PSERS) — this bill requires data reporting and affects benefit calculations for reemployed retirees.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
Extending the 1,040-hour limit helps address workforce shortages in schools and state agencies by allowing experienced retirees to fill critical roles (e.g., substitute teaching, nursing, fire response) without triggering pension suspensions—this improves service continuity, especially in rural or underserved districts.
Public SafetyPeopleRef: Sec. 1(3), Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)Allowing retirees to work up to 867 hours/year (before suspension) and up to 1,040 under the extended exception supports retention of experienced healthcare professionals—particularly nurses and state agency clinicians—helping stabilize care access in rural and high-need areas.
HealthcarePeopleRef: Sec. 1(2), Sec. 2(2)(a), Sec. 3(2)(a), Sec. 4(2)(a), Sec. 5(2)(a)The 1,040-hour exception for nonadministrative school roles (e.g., teachers, paraprofessionals) helps school districts retain experienced staff during ongoing teacher shortages—especially beneficial in districts with aging workforces and limited recruitment pipelines.
EducationPeopleRef: Sec. 1(3), Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)The option to rejoin the retirement system (and later retire again) provides flexibility for retirees who want to test reemployment without permanently forfeiting their original benefit formula—this supports voluntary, part-time reengagement without locking them into long-term commitments.
Business & EmploymentPeopleRef: Sec. 2(3), Sec. 3(3), Sec. 4(3), Sec. 5(3)Retirees who return to work (e.g., teachers, nurses, first responders) can supplement retirement income up to 1,040 hours/year without losing pension benefits—this helps mitigate inflation’s impact on fixed incomes, especially for those who retired before significant market corrections.
FinancialPeopleRef: Sec. 1(3), Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)
Potential Concerns (5)
Extending higher work-hour limits for retirees in public safety and healthcare roles (e.g., firefighters, law enforcement, nurses) may increase strain on emergency response and healthcare systems if retirees work near full-time hours while receiving full pensions, potentially reducing incentives for agencies to hire and train new staff—though this is speculative without data on actual uptake.
Public SafetyPeopleRef: Sec. 1(2), Sec. 2(2)(a), Sec. 3(2)(a), Sec. 4(2)(a), Sec. 5(2)(a)The bill explicitly reserves legislative authority to later amend or repeal these expanded limits, undermining long-term predictability for retirees and employers—this creates uncertainty but does not itself impose a current cost.
FinancialPeopleRef: Sec. 1(5), Sec. 2(2)(b)(iii), Sec. 3(2)(b)(iii), Sec. 4(2)(b), Sec. 5(5)The bill may increase state retirement system costs in the short term by allowing more retirees to work longer without pension reductions; while the fiscal impact is uncertain, the structure favors retirees who already have full pensions—most of whom are higher-income—over future retirees or current workers who fund the system through contributions.
FinancialPeopleRef: Fiscal Impact Summary and Sec. 1–5 (repeated pension continuation provisions)The special provision allowing retirees who retired before Jan. 1, 2022 to work up to 1,040 hours/year as district superintendents or administrators in second-class school districts disproportionately benefits a narrow subset of retirees (mostly older, higher-earning, and likely wealthier) who already had prior administrative compensation history.
EducationPeopleRef: Sec. 1(3)(b), Sec. 2(2)(b)(ii), Sec. 3(2)(b)(ii), Sec. 4(2)(b), Sec. 5(2)(c)By allowing retirees to work up to 1,040 hours/year (≈20 hrs/week) without pension reduction, the bill may enable retirees to supplement retirement income—but since most retirees already earn above median income and many own homes, the net housing stability benefit is modest and concentrated among those with existing equity.
HousingPeopleRef: Sec. 1(3), Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)
Who Is Most Affected
Retired school employees—especially those in high-demand subject areas or rural districts—benefit significantly: they can work part-time to supplement retirement income without penalty, improving financial security and helping fill staffing gaps. However, those who retired after Jan. 1, 2022, and do not qualify for the 1,040-hour exception may see less benefit.
Retired public safety and healthcare workers (firefighters, law enforcement, nurses) gain flexibility to continue working in critical roles—especially valuable during workforce shortages—but those who retired less than one month prior to reemployment still face the 5.5% per 7–8 hours reduction, limiting near-term flexibility.
School districts and state agencies benefit from access to experienced workers without triggering full pension suspension, but they may face increased payroll costs if retirees work near the 1,040-hour cap—though this is partially offset by avoiding full-time hiring costs.
State retirement systems face potential short-term cost increases due to extended pension payments during reemployment, but the fiscal impact is likely modest given the temporary nature of the extension and the requirement for break-in-service periods for most roles.
Current state workers who have not yet retired may face higher future contributions or reduced benefits if the state must increase funding to cover extended reemployment allowances—though this is speculative and not directly mandated by the bill.