WAC 415-106-235. Is a retirement bonus or incentive reportable compensation?

A payment made as a bonus or incentive to retire is not a payment for services provided, and is not reportable compensation. Example: A collective bargaining agreement authorizes a city to pay employees a higher salary during the last two years of employment if the employee gives written notice of intent to retire or terminate. Because the payment is in exchange for the agreement to retire or terminate and not for services, the payment is not reportable compensation.