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Council to consider SMC updates to retirement rehiring rules and administrative cleanup

5957544 · October 6, 2025
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Summary

An ordinance would update Spokane Municipal Code provisions for the Spokane Employees Retirement System, remove outdated options, codify an MOU limiting re-hired retirees to 480 hours annually, and extend the IRS-required separation period to six months.

Staff presented an ordinance to update Spokane Municipal Code provisions for the Spokane Employees Retirement System. Christine Schisler said the ordinance removes two legacy options that staff said are covered under other provisions and reduces manual calculations that previously created administrative burden.

The ordinance also codifies a memorandum of understanding with the local union (Local 270) limiting rehired retirees who return as temporary seasonals to 480 hours per year. In addition, staff said IRS guidance requires a "true separation of service" before rehired retirees return to work, and the ordinance extends the separation waiting period from two weeks to six months to comply with federal rules.

Council members had no substantive objections in the briefing; staff said the changes do not negatively impact eligible employees and are intended to streamline administration while meeting IRS requirements.