Skip to main content
Evergreen Ledger

SSB 5738

In Committee

Senate

Retired employees/work

Permitting individuals retired from the public employees' retirement system, the teachers' retirement system, the school employees' retirement system, and the public safety employees' retirement system additional opportunities to work for up to 1,040 hours per year while in receipt of pension benefits.

This status may be delayed. See Action History below for the latest updates.

How does a bill become law?
  1. Introduced: The bill is filed and assigned a number.
  2. Committee: A subject-matter committee holds hearings, takes public testimony, and decides whether to advance the bill.
  3. Floor Vote: The full chamber (House or Senate) debates and votes on the bill.
  4. Opposite Chamber: The bill repeats the committee and floor vote process in the other chamber.
  5. Governor: The Governor reviews the bill and decides whether to sign or veto it.
  6. Signed: The bill has been signed into law.
Introduced: February 26, 2025
Last Action: January 12, 2026
Status: S Rules X
View Bill Text (HTML) (opens in new tab)View Bill Text (PDF) (opens in new tab)

AI Analysis

This analysis was generated by AI and may contain errors. It is not legal advice. Always refer to the official bill text for authoritative information.
People & CommunitiesBalancedCorporate & Wealthy Interests

This bill increases the number of hours retired public employees can work in eligible jobs—especially in schools and state agencies—without losing their pension benefits. It raises the annual work limit from 867 hours to 1,040 hours for certain roles and time periods, while preserving existing rules for those who return to work too soon after retiring.

  • Allows most retirees (PERS, TRS, SERS, LEOFF, PSERS) to work up to 1,040 hours per year in eligible jobs—including school districts and state agencies—without suspending pension benefits, if they wait at least one calendar month after retirement to begin work.
  • Maintains existing rules for retirees who return to work within one calendar month of retirement: their pension is reduced by 5.5% for every 7 or 8 hours worked (depending on plan), up to a monthly cap of 140–160 hours.
  • Permits retirees who retired before January 1, 2022, to work up to 1,040 hours/year as district superintendents or in-school administrators in second-class school districts without losing benefits (2022–2029).
  • Allows retired nurses working for state agencies to work up to 1,040 hours/year in licensed nurse roles without losing benefits (2023–2030).
  • Retirees who exceed the new 1,040-hour limit in a year lose pension eligibility for the remainder of the year (or face benefit reductions if they return too soon after).
  • Clarifies that retirees who choose to rejoin their retirement plan (reestablish membership) must stop receiving pensions and begin making contributions again, but can retire again later if eligible.

Who is affected

  • Retired public employees (PERS, TRS, SERS, LEOFF, PSERS) — Retirees from PERS, TRS, SERS, LEOFF, and PSERS may work more hours per year (up to 1,040) in certain school or state agency jobs without losing pension benefits, if they meet timing and role requirements.
  • Public employers (school districts, state agencies) — School districts and state agencies (e.g., Department of Health, Corrections) may more easily hire retired educators or nurses to fill short-term staffing needs without triggering pension suspensions.
  • Retired school administrators in second-class districts — Retired teachers and administrators in second-class school districts may work as district superintendents or in-school administrators up to 1,040 hours/year without losing pension benefits during the specified window.
  • Retired licensed nurses working for state agencies — Retired nurses working for state agencies may work up to 1,040 hours/year in licensed nurse roles without losing pension benefits during the specified window.
Effective: March 10, 2025Fiscal impact: The bill may increase state pension costs over time, as more retirees work longer without pension reductions; however, the fiscal impact is uncertain due to variable participation and the temporary nature of the expanded allowances.Sunset: July 1, 2030
Model: Intel/Qwen3-Coder-Next-int4-AutoRoundGenerated: Mar 19, 2026 at 9:15 PM

Pro/Con Analysis

Stronger case for benefits

Potential Benefits (5)

  • By allowing retired educators and administrators to work up to 1,040 hours/year in schools, the bill helps address chronic staffing shortages—especially in rural and under-resourced districts—improving continuity of instruction and student support.

    Public SafetyPeopleRef: Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)

  • The expanded hour limit for retired nurses working in state agencies (e.g., corrections, state hospitals) helps retain experienced clinical staff during workforce shortages, supporting continuity of care in state-run facilities serving vulnerable populations.

    HealthcarePeopleRef: Sec. 5(2)(c)

  • Retired teachers and administrators can now contribute more hours without losing pension benefits, enabling districts to retain experienced educators for tutoring, mentoring, or part-time teaching—particularly beneficial for students in high-need areas.

    EducationPeopleRef: Sec. 2(2)(b)(i), Sec. 3(2)(b)(i), Sec. 4(2)(b), Sec. 5(2)(b)

  • Second-class school districts—often smaller, rural, or fiscally constrained—gain flexibility to hire experienced retired administrators for leadership roles without triggering pension suspensions, helping stabilize district operations.

    Local GovernmentPeopleRef: Sec. 2(2)(b)(ii), Sec. 3(2)(b)(ii)

  • Retirees who wait one full calendar month before returning to work retain full pension benefits while earning wages—providing a meaningful income boost to retirees who rely on part-time work to supplement fixed pensions, especially those without additional savings.

    FinancialPeopleRef: Sec. 2(1), Sec. 3(1), Sec. 4(1), Sec. 5(1)
Potential Concerns (5)

  • The bill increases state pension costs over time by allowing more retirees to work longer without triggering benefit suspensions, potentially straining the pension system’s long-term solvency and increasing taxpayer-funded subsidies to pension funds.

    FinancialIndustryRef: Sec. 2(2)(a), Sec. 3(2)(a), Sec. 4(2)(a), Sec. 5(2)(a)

  • The expanded hour limits disproportionately benefit retirees who already have substantial pensions—particularly those in higher-earning plans (e.g., LEOFF, PERS Tier 2) and those in administrative roles—since they are more likely to reach the 1,040-hour threshold and thus capture the full value of the increased limit.

    FinancialIndustryRef: Sec. 2(2)(b)(i)-(ii), Sec. 3(2)(b)(i)-(ii), Sec. 4(2)(b), Sec. 5(2)(b)-(c)

  • While intended to support staffing in second-class school districts, the provision allowing retired administrators to work up to 1,040 hours/year as district superintendents may reduce incentives for hiring new, fully credentialed leadership, potentially weakening oversight and accountability in under-resourced districts.

    Public SafetyIndustryRef: Sec. 2(2)(b)(ii), Sec. 3(2)(b)(ii)

  • The temporary (2023–2030) expansion for retired nurses in state agencies, while addressing short-term staffing gaps, creates a recurring fiscal liability without a dedicated funding source—potentially diverting future budget flexibility and increasing actuarial unfunded liabilities.

    FinancialIndustryRef: Sec. 5(2)(c), Sec. 5(5)

  • The explicit legislative reservation of the right to amend or repeal these expanded hour limits in the future undermines the reasonable expectation of stable retirement benefits for retirees who plan their post-retirement work around the current 867-hour cap.

    Rights & LibertiesLean industryRef: Sec. 2(2)(b)(iii), Sec. 3(2)(b)(iii), Sec. 4(2)(b)(iii), Sec. 5(2)(b)(iii)

Who Is Most Affected

Retired public employees (PERS, TRS, SERS, LEOFF, PSERS)Positive Impact

Retirees who rely on part-time work to supplement modest pensions—especially those in lower-paid roles (e.g., K–12 teachers, support staff)—gain significant financial flexibility and job security. However, those in higher-paid plans (e.g., LEOFF, PERS Tier 2) benefit more in absolute dollars.

Public employers (school districts, state agencies)Mixed Impact

School districts, especially in rural or high-need areas, gain access to experienced educators and administrators without triggering pension suspensions—helping mitigate staffing crises. However, this may reduce incentives to invest in new teacher recruitment or training pipelines.

Retired school administrators in second-class districtsPositive Impact

Retired administrators in second-class districts (typically smaller, rural districts) gain expanded opportunities to serve in leadership roles—helping stabilize administration—but may displace opportunities for newer, credentialed candidates.

Retired licensed nurses working for state agenciesPositive Impact

Retired nurses in state agencies (e.g., DOC, DSHS) can fill critical clinical gaps during workforce shortages, improving service continuity—but this may delay structural hiring reforms or wage increases needed to attract new nurses.

State pension funds (PERS, TRS, SERS, LEOFF, PSERS)Negative Impact

State pension funds face increased long-term liabilities due to extended work periods without benefit reductions, potentially worsening funding shortfalls—though the impact is mitigated by the temporary nature of most provisions and the relatively small number of beneficiaries.