OLYMPIA – Gov. Jay Inslee signed Sen. Annette Cleveland’s (D-Vancouver) to remove penalties for retired nurses who return to patient care in the face of workforce shortages.  

Currently, retirees of the Public Employees’ Retirement System and the Public Safety Employees’ Retirement System can work up to 867 hours per year in a position covered by any of the state’s pension systems while continuing to receive their retirement benefits. Those benefits cease for retirees who work more than 867 hours.  

Senate Bill 5538 encourages retired nurses to return to patient care by doing away with that penalty through June 2026. During this time, retired state nursing employees will be able to work up to 1,040 hours in state agencies – like the UW Health System, Western State Hospital, and Eastern State Hospital – without losing retirement benefits. 

“We are facing a critical healthcare workforce shortage and there are retired nurses who want to help. We should not be penalizing them for stepping up to ensure patients are receiving care,” Sen. Cleveland said.  

SB 5538 has an emergency clause and takes effect immediately.