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Bill

SB 5738

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

2025-2026 Regular Session Introduced by Annette Cleveland and 7 co-sponsors

Washington permits public system retirees to work 1,040 annual hours while collecting full pension benefits, expanding post-retirement employment and income opportunities.

By resolution, returned to Senate Rules Committee for third reading.
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WeVote Research Nonpartisan
Bill Summary · SB 5738

Legislative bill overview

SB 5738 allows retirees from Washington's public employee pension systems (PERS, TRS, and SERS) to work up to 1,040 hours annually while continuing to receive their full pension benefits. Currently, stricter hour limitations may reduce or eliminate pension payments for retirees who work beyond certain thresholds. This change expands work opportunities for retired public employees.

Why is this important

As Washington faces workforce shortages in education and public services, this bill incentivizes experienced retirees to return to work without financial penalties. For retirees, it provides additional income flexibility and opportunity to remain engaged professionally. The policy acknowledges demographic realities where pension systems need sustained tax bases while retirees increasingly need supplemental income.

Potential points of contention

  • Pension system costs: Allowing more work hours while maintaining full benefits could increase long-term pension liabilities if retirees work longer than actuarially anticipated
  • Fairness to active workers: Some may argue retirees receive dual compensation (pension + wages) while active employees do not, potentially creating equity concerns
  • Workforce displacement: Critics may contend that retirees filling positions reduces hiring opportunities and advancement for younger workers entering public service

Compiled from official sources — confirm details with the bill’s official record.

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