SB 5114
In CommitteeSenate
Retirement benefits/death
Paying state retirement benefits until the end of the month in which the retiree or beneficiary dies.
This status may be delayed. See Action History below for the latest updates.
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 changes how state retirement benefits are paid when a retiree or beneficiary dies: instead of stopping benefits on the day of death, benefits will be paid through the end of that month. It also clarifies that any payments made after the month of death must be repaid, and the change applies only to deaths occurring on or after January 1, 2026.
- Benefits will now be paid through the end of the month in which a retiree or beneficiary dies, instead of being prorated to the exact date of death.
- Survivor benefits (if applicable) will begin on the first day of the following month.
- The Department of Retirement Systems must continue requiring repayment for benefits issued after the month of death.
- The rule applies to all state retirement plans (including PERS, SERS, LEOFF, etc.) and optional annuities.
- The change applies only to deaths on or after January 1, 2026 — no refunds will be given for repayments made before that date.
Who is affected
- State retirees and their survivors — Retirees and their families may no longer be required to repay benefits for the month of death, reducing financial burden on estates during a difficult time.
- Survivors and beneficiaries — Survivors who were receiving benefits after a retiree’s death may see smoother transitions to survivor benefits without overlapping payment issues.
- Department of Retirement Systems — The agency will adjust its payment processing to align with month-end death dates, potentially reducing administrative complexity around repayment requests.
Pro/Con Analysis
Stronger case for benefits
Potential Benefits (5)
By paying benefits through month-end rather than prorating to the day of death, the bill prevents abrupt repayment demands on estates—particularly beneficial for families who rely on those benefits for basic living expenses and may not have cash reserves to cover short-term overpayments.
FinancialPeopleRef: Sec. 2(1)The bill improves administrative fairness and reduces stress on survivors during bereavement by eliminating disputes over precise death dates and associated repayment demands, which can disproportionately affect vulnerable populations including elderly widows and disabled dependents.
Public SafetyPeopleRef: Sec. 2(2)The requirement to repay overpayments *after* the month of death remains intact, preserving fiscal integrity of the retirement systems while avoiding punitive clawbacks for the month of death—balancing accountability with compassion.
FinancialPeopleRef: Sec. 2(3)The prospective-only application avoids complex retroactive reconciliation, reducing administrative burden on local government agencies that assist estates in navigating repayment claims, though this benefit is modest since most local involvement is minimal.
Local GovernmentLean peopleRef: Sec. 2(4)By reducing financial stress during bereavement, the bill may indirectly support health outcomes—especially for survivors managing chronic conditions or mental health challenges—though this is speculative and not directly funded or measured.
HealthcareLean peopleRef: Sec. 2(1)
Potential Concerns (1)
The change eliminates the requirement for estates to repay benefits prorated to the date of death, reducing out-of-pocket costs for families during a time of grief and financial vulnerability—especially for low- and moderate-income households without liquid assets to cover unexpected repayment demands.
FinancialPeopleRef: Sec. 2(1)
Who Is Most Affected
Low- and moderate-income retirees and their survivors benefit significantly: they are less able to absorb unexpected repayment demands and rely on predictable monthly income. The change reduces financial shock during bereavement, especially for those without emergency savings or life insurance.
Wealthier retirees and estates benefit minimally—most can absorb prorated repayment demands without hardship. However, the bill still reduces administrative friction and legal risk for high-net-worth estates, though the economic benefit is small relative to their overall resources.
The Department of Retirement Systems gains administrative simplicity: processing is standardized to month-end, reducing disputes and repayment requests. However, the agency incurs a small incremental cost for one extra month of payments per death, though fiscal impact is negligible per the summary.
Survivors of law enforcement, fire, and corrections officers (LEOFF plan) may benefit disproportionately, as these jobs often have younger retirees and higher survivorship obligations—smooth transitions to survivor benefits reduce gaps in coverage for dependents.
State employers (agencies, universities, local governments that contribute to PERS/SERS) see no direct cost impact, as the bill does not alter employer contribution rates—only timing of benefit disbursement. No meaningful fiscal effect on public budgets.