Wash. Senate Approves Early Retirement Penalties

April 11, 2012 (PLANSPONSOR.com) – The Washington state senate approved a measure establishing new penalties for state workers who take early retirement.

State workers who retire before the age of 62 are already penalized with lower pension benefits. Under the new bill, those penalties will increase to as high as a 50% reduction for workers retiring at the age of 55, The Seattle Times reports.  

The changes only apply to workers hired starting in May 2013. Senators say the plan would save the state an estimated $1.3 billion over 25 years, according to the news report.  

Lawmakers also agreed to reduce the assumed rate of return in the pension system to 7.7% from 8%.