Revised Code of Washington

Wash. Rev. Code § 41.32.8401 (2025)

Additional payment

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(1) Anyone who requests to transfer under RCW 41.32.817 before January 1, 1998, and establishes service credit for January 1998, shall have their member account increased by forty percent of:
(a) Plan 2 accumulated contributions as of January 1, 1996, less fifty percent of any payments made pursuant to RCW 41.50.165(2); or
(b) All amounts withdrawn after January 1, 1996, which are completely restored before January 1, 1998.
(2) A further additional payment of twenty-five percent, for a total of sixty-five percent, shall be paid subject to the conditions contained in subsection (1) of this section on July 1, 1998.
(3) Substitute teachers shall receive the additional payment provided in subsection (1) of this section if they:
(a) Establish service credit for January 1998; and
(b) Establish any service credit from July 1996 through December 1997; and
(c) Elect to transfer on or before March 1, 1999.
(4) If a member who requests to transfer dies before January 1, 1998, the additional payment provided by this section shall be paid to the member's estate, or the person or persons, trust, or organization the member nominated by written designation duly executed and filed with the department.
(5) The legislature reserves the right to modify or discontinue the right to an incentive payment under this section for any plan 2 members who have not previously transferred to plan 3.
[ 1998 c 341 s 701; 1997 c 10 s 1; 1996 c 39 s 8.]

Notes:

Effective date—1998 c 341: See note following RCW 41.34.060.
Effective dates—1996 c 39: See note following RCW 41.32.010.
Notes of Decisions
Cited in 2 cases (2 in the last 5 years), 2021–2025 · leading case: Fowler v. Leathers, No. 3:15-cv-05367 (W.D. Wash. Sept. 23, 2025).
Fowler v. Guerin, No. 3:15-cv-05367 (W.D. Wash. July 23, 2021). “Second, 6 RCW 41.32.8401(5) characterizes the transfer payment as an “incentive payment,” 7 suggesting legislative intent to incentivize transfers from Plan 2 to Plan 3 but lending no 8 textual support to DRS’s contention that transferees were allocated all available funds.”
Fowler v. Leathers, No. 3:15-cv-05367 (W.D. Wash. Sept. 23, 2025). “He proposes adding the following elements: (1) daily 7 interest on the teachers’ accounts omitted when they transferred to TRS Plan 3 and the 8 quarterly compounding of that omitted interest; (2) the increased transfer incentive 9 payment under RCW 41.32.8401 based on the…”
Wash. Rev. Code § 41.32.8401(5): 1 case
Fowler v. Guerin, No. 3:15-cv-05367 (W.D. Wash. July 23, 2021). “Second, 6 RCW 41.32.8401(5) characterizes the transfer payment as an “incentive payment,” 7 suggesting legislative intent to incentivize transfers from Plan 2 to Plan 3 but lending no 8 textual support to DRS’s contention that transferees were allocated all available funds.”
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