State Rep. Travis Couture, R-Allyn, scored a victory for retirees with small monthly pensions Monday as the House passed his bill allowing them to access that money sooner.
Under House Bill 2124, more retirees would be able to access their pension funds in a lump sum rather than receiving small monthly checks, Couture announced in a news release.
The bill raises the threshold that allows the Department of Retirement Systems to convert small monthly pension payments into a one-time lump sum. That means more retirees will be able to receive their full earned benefit immediately, according to the release.
“For someone getting a tiny monthly check, waiting years to collect that full amount just doesn’t make sense,” Couture said. “This bill gives retirees faster access to money they’ve already earned so they can use it in a way that actually improves their lives today.”
Under current law, only pensions of $50 or less per month qualify for a lump-sum payout. HB 2124 raises that amount to $250, reflecting how much costs have changed over time.
“In today’s affordability crisis, a few hundred dollars at a time doesn’t go very far,” Couture said. “But receiving that money all at once could help someone pay down a bill, fix a car, cover medical costs, or handle another real-life expense. It gives people more flexibility and more control.”
The bill does not reduce benefits or change eligibility rules, the release stated. It simply modernizes outdated thresholds and gives retirees an option that may better meet their needs.
HB 2124 now moves to the Senate for consideration.
