wa-law.org > bill > 2025-26 > HB 1642 > Original Bill
Any plan 3 member who joined plan 3 between July 1, 1996, and June 30, 2007, and as a result was never offered the opportunity to choose between plan 2 and plan 3, may make an irrevocable choice to transfer to plan 2 during any January after the effective date of this section for purposes of future service, provided that the member earns service credit for that month.
The legislature reserves the right to modify or discontinue the right to transfer under this section.
Any person previously retired from plan 3 is prohibited from transferring to plan 2.
All teachers who become employed by an employer in an eligible position shall have a period of ninety days to make an irrevocable choice for the duration of the employment relationship to become a member of plan 2 or plan 3. At the end of ninety days, if the member has not made a choice to become a member of plan 2, he or she becomes a member of plan 3 or plan 2 as follows:
a.
Becomes a member of plan 2 ; or
b. Resumes membership in either plan 2 or plan 3 if membership in either plan was previously established.
For administrative efficiency, until a member elects to become a member of plan 3, or becomes a member of plan 3 by default under subsection (1) of this section, the member shall be reported to the department in plan 2, with member and employer contributions. Upon becoming a member of plan 3 by election or by default, all service credit shall be transferred to the member's plan 3 defined benefit, and all employee accumulated contributions shall be transferred to the member's plan 3 defined contribution account.
If a teacher is concurrently employed by two or more employers and has chosen membership in a plan, a teacher remains an active member of plan 2 or plan 3.
Any plan 3 member who joined plan 3 between September 1, 2000, and June 30, 2007, and as a result was never offered the opportunity to choose between plan 2 and plan 3, may make an irrevocable choice during any January after the effective date of this section to transfer to plan 3 for purposes of future service.
The legislature reserves the right to modify or discontinue the right to transfer under this section.
Any person previously retired from plan 3 is prohibited from transferring to plan 2.
All classified employees who become employed by an employer in an eligible position shall have a period of ninety days to make an irrevocable choice for the duration of the employment relationship to become a member of plan 2 or plan 3. At the end of ninety days, if the member has not made a choice to become a member of plan 2, he or she becomes a member of plan 3 or plan 2 as follows:
a.
Becomes a member of plan 2 ; or
b. Resumes membership in either plan 2 or plan 3 if membership in either plan was previously established.
For administrative efficiency, until a member elects to become a member of plan 3, or becomes a member of plan 3 by default under subsection (1) of this section, the member shall be reported to the department in plan 2, with member and employer contributions. Upon becoming a member of plan 3 by election or by default, all service credit shall be transferred to the member's plan 3 defined benefit, and all employee accumulated contributions shall be transferred to the member's plan 3 defined contribution account.
If a classified employee is concurrently employed by two or more employers and has chosen membership in a plan, an employee remains an active member of plan 2 or plan 3.
All employees who become employed by an employer in an eligible position on or after January 1, 2026, shall have a period of ninety days to make an irrevocable choice for the duration of the employment relationship to become a member of plan 2 or plan 3. At the end of ninety days, if the member has not made a choice he or she becomes a member of plan 3 or plan 2 as follows:
a.
Becomes a member of plan 2 ; or
b. Resumes membership in either plan 2 or plan 3 if membership in either plan was previously established.
For administrative efficiency, until a member elects to become a member of plan 3, or becomes a member of plan 3 by default pursuant to subsection (1) of this section, the member shall be reported to the department in plan 2, with member and employer contributions. Upon becoming a member of plan 3 by election or by default, all service credit shall be transferred to the member's plan 3 defined benefit, and all employee accumulated contributions shall be transferred to the member's plan 3 defined contribution account.
If an employee is concurrently employed by two or more employers and has chosen membership in a plan, the employee remains an active member of plan 2 or plan 3.
In the event that the state receives a determination letter or other formal guidance from the federal internal revenue service that the provisions of this act conflict with federal law, those provisions are suspended until subsequent federal internal revenue service guidance is received that any conflict with federal law has been resolved.