Title 415 WAC — Retirement Systems, Department of

Chapter 415-02 General provisions.

Wash. Admin. Code § 415-02-010 Identification.

The department of retirement systems is a department of state government created by chapter 105, Laws of 1975-'76 2nd ex. sess.

(1) The chief executive officer of the department of retirement systems is the director of retirement systems.

(2) Members of the public may obtain information, make submittals or requests, or obtain copies of agency decisions by addressing their requests or submittals to the director of the Department of Retirement Systems at P.O. Box 48380, Olympia, Washington, 98504. Upon receipt of such a request or submittal, the director shall forward the same to the proper officer or employee of the department of retirement systems for an appropriate response.

(3) Members of the public who wish to inspect and/or copy public records maintained by the agency pursuant to chapter 42.56 RCW shall do so in accordance with the methods and procedures established in chapter 415-06 WAC.

History

Statutory Authority: RCW 41.50.050(5). WSR 08-20-068, § 415-02-010, filed 9/25/08, effective 10/26/08. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-010, filed 4/21/00, effective 5/22/00
Order 4, § 415-02-010, filed 7/27/77.

Wash. Admin. Code § 415-02-020 Authority.

(1) The department has the authority, in accordance with RCW 41.50.030, as now or hereafter amended, to administer the:

(a) Washington public employees' retirement system created by chapter 41.40 RCW;

(b) Washington public safety employees' retirement system created by chapter 41.37 RCW;

(d) Washington school employees' retirement system created by chapter 41.35 RCW;

(e) Washington law enforcement officers' and firefighters' retirement system created by chapter 41.26 RCW;

(f) Washington state patrol retirement system created by chapter 43.43 RCW;

(g) Washington judicial retirement system created by chapter 2.10 RCW; and

(h) Judges retirement fund created by chapter 2.12 RCW.

(2) The director is authorized to adopt rules pursuant to RCW 41.50.050.

History

Statutory Authority: RCW 41.50.050(5). WSR 06-18-009, § 415-02-020, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-020, filed 4/21/00, effective 5/22/00
Order 4, § 415-02-020, filed 7/27/77.

Wash. Admin. Code § 415-02-030 Definitions.

WAC 415-02-030

This section contains definitions of words and phrases commonly used in the department of retirement systems' rules. It also serves as a directory for finding definitions within the RCW and WAC.

(1) Accumulated contributions means the sum of all contributions paid into a member's defined benefit account, including interest.

(2) Administrative factors means the actuarial factors, calculated by the office of the state actuary and adopted by the department, as described in WAC 415-02-300. Administrative factors include, but may not be limited to, annuity and service credit purchase factors, early retirement factors, establishing or restoring service credit factors, joint and survivor options factors, monthly benefit per $1.00 of accumulation factors, public employees retirement Plan 1 and teachers' retirement system Plan 1 cost of living adjustment factors, total allocation portfolio (TAP) annuity factors, 415(b) factors, teachers' retirement system Plan 1 option 1 factors, and Washington state patrol retirement system Plan 1 optional survivor factors.

(3) Appeal means the proceeding through which a party obtains review of a department action in an adjudicative proceeding conducted under chapter 34.05 RCW (the Administrative Procedure Act) and chapter 415-08 WAC (the department's appeal rules).

(4) Average final compensation is defined in RCW 41.32.010 (TRS); RCW 41.35.010 (SERS); RCW 41.40.010 (PERS); and RCW 41.37.010 (PSERS).

(5) Average final salary for WSPRS is defined in RCW 43.43.120.

(6) Cafeteria plan means a "qualified" employee benefit program under IRC section 125, such as certain health and welfare plans.

(7) Calendar month.

(a) Refers to one of the 12 named months of the year, extending from the first day of the named month through the last day. For example: January 1st through January 31st is a calendar month. February 1st through February 29th is a calendar month in a leap year. March 13th through April 12th is not a calendar month.

(b) Exception: For the purpose of administering the break in employment required by RCW 41.32.570, 41.32.802, 41.32.862, 41.35.060, 41.37.050 and 41.40.037 for retirees returning to work, one calendar month means 30 consecutive calendar days. For example: Kim's retirement date is August 1st. August 31st would be the earliest Kim could return to work and meet the requirement for a one calendar month break in employment.

(8) Compensation earnable or earnable compensation definitions can be found in RCW 41.32.010 and 41.32.345 (TRS); RCW 41.35.010 (SERS); RCW 41.37.010 (PSERS); and RCW 41.40.010 (PERS).

(9) Contribution rate is:

(a) For employees: The fraction (percent) of compensation a member contributes to a retirement system each month.

(b) For employers: The fraction (percent) of payroll a member's employer contributes to a retirement system each month. Contribution rates vary for the different systems and plans.

(10) Deferred compensation refers to the amount of the participant's compensation, which the participant voluntarily defers from earnings before taxes to a deferred compensation program.

(11) Defined benefit plan is a pension plan in which a lifetime retirement allowance is available, based on the member's service credit and compensation.

(12) Defined contribution plan is a plan in which part of members' or participants' earnings are deferred into investment accounts in which tax is deferred until funds are withdrawn. The benefit is based on the contributions and the amount of return from the investment of the contributions. Members or participants receive the full market rate of return minus expenses. There is no guaranteed rate of return and the value of an account will increase or decrease based upon market fluctuations.

(13) Department means the department of retirement systems.

(14) Director means the director of the department of retirement systems.

(15) Employee means a worker who performs labor or services for a retirement systems employer under the control and direction of the employer as determined under WAC 415-02-110(2). An employee may be eligible to participate as a member of one of the state-administered retirement systems according to eligibility requirements specified under the applicable retirement system.

(16) Employer is defined in RCW 41.26.030 (LEOFF), 41.32.010 (TRS), 41.34.020 (Plan 3), 41.35.010 (SERS), 41.37.010 (PSERS) and 41.40.010 (PERS).

(17) Ex-spouse refers to a person who is a party to a "dissolution order" as defined in RCW 41.50.500.

(18) Final average salary for LEOFF is defined in RCW 41.26.030.

(19) First employed by an eligible employer in an eligible position means, for purposes of plan default, first employment with an employer, in an eligible position, with which a member has fully exhausted their plan choice rights.

(20) HERPs mean higher education retirement plans described in chapter 28B.10 RCW, which are non-DRS retirement plans offered by institutions of higher education, such as, but not limited to, University of Washington retirement plan (UWRP) and Western Washington University retirement plan (WWURP).

(21) Independent contractor means a contract worker who is not under the direction or control of the employer as determined under WAC 415-02-110 (2) and (3).

(22) IRC means the Federal Internal Revenue Code of 1986, as subsequently amended.

(23) Indexed retirement allowance means a defined benefit retirement allowance from an indexed retirement plan, payable to a member who separates after having completed at least 20 service credit years, that is increased by 0.0025 percent, compounded for each month from the date of separation to the date that the retirement allowance commences.

(24) Indexed retirement plan means one of the following retirement plans, which are administered by the department of retirement systems and provide an indexed retirement allowance: Law Enforcement Officers' and Firefighters Retirement System Plan 2 (RCW 41.26.530), Public Employees' Retirement System Plan 3 (RCW 41.40.790), School Employees' Retirement System Plan 3 (RCW 41.35.620), and Teachers' Retirement System Plan 3 (RCW 41.32.840).

(25) JRF means the judges' retirement fund created by chapter 2.12 RCW.

(26) JRS means the Washington judicial retirement system created by chapter 2.10 RCW.

(27) LEOFF means the Washington law enforcement officers' and firefighters' retirement system created by chapter 41.26 RCW.

(28) Member means a person who is included in the membership of one of the retirement systems created by chapters 2.10, 2.12, 41.26, 41.32, 41.34, 41.35, 41.37, 41.40, or 43.43 RCW.

(29) Nonadministrative position or nonadministrative capacity refers to retirees returning to work:

(a) In a position at a school district, charter school, educational service district, state school for the deaf, state school for the blind, or tribal school which:

(i) Does not require an administrative certification, as defined by the office of the superintendent of public instruction, (currently positions requiring the certification include: Principal, vice principal, program administrator, conditional administrator, superintendent or program administrator certifications); or

(ii) Does not evaluate staff.

(b) In a position at a state agency or a public institution of higher education as a nonadministrative licensed nurse whose primary responsibility is to provide nursing care as described under WAC 415-106-010(7).

(30) Normal retirement means qualifying for retirement based on the standard age and service credit requirements as specified in RCW 2.10.100 (JRS), 2.12.020 (JRF), 41.26.090 (LEOFF Plan 1), 41.26.430(1) (LEOFF Plan 2), 41.32.470 (TRS Plan 1), 41.32.765(1) (TRS Plan 2), 41.32.875(1) (TRS Plan 3), 41.35.420(1) (SERS Plan 2), 41.35.680(1) (SERS Plan 3), 41.37.210(1) (PSERS), 41.40.180 (PERS Plan 1), 41.40.630(1) (PERS Plan 2), 41.40.820(1) (PERS Plan 3), or 43.43.250 (WSPRS).

(31) Participant means an eligible employee who participates in a deferred compensation plan.

(32) Participation agreement means an agreement that an eligible employee signs to become a participant in a deferred compensation plan.

(33) Pension plan is a plan that provides a lifelong post retirement payment of benefits to employees.

(34) PERS means the Washington public employees' retirement system created by chapter 41.40 RCW.

(35) Petition means the method by which a party requests a review of an administrative determination prior to an appeal to the director. The department's petitions examiner performs the review under chapter 415-04 WAC.

(36) Plan 1 means the retirement plans in existence prior to the enactment of chapters 293, 294 and 295, Laws of 1977 ex. sess.

(37) Plan 2 means the retirement plans established by chapters 293, 294 and 295, Laws of 1977 ex. sess., chapter 341, Laws of 1998, and chapter 329, Laws of 2001.

(38) Plan 3 means the retirement plans established by chapter 239, Laws of 1995, chapter 341, Laws of 1998, and chapter 247, Laws of 2000.

(39) Plan choice rights refers to a member's right, within a 90-day period, to make an irrevocable choice to become a member of Plan 2 or Plan 3 or be defaulted into a plan after the full 90-day period has expired.

(a) A member will be reported in Plan 2 until plan choice rights have been exercised.

(b) A member must make a choice within 90 calendar days (computed as described in RCW 1.12.040) from the first day of employment in an eligible position.

(c) A member will be defaulted into a plan if they continue employment in an eligible position past the 90-day plan choice period without making a choice.

(d) A member may exercise plan choice rights only once per system.

(e) Once a member makes a plan choice, that choice cannot be changed, even if the member is still within 90 days of hire.

(40) Plan year is the 12-month period that begins on January 1st and ends on December 31st of the same calendar year.

(41) Portability is the ability to use membership in more than one Washington state retirement system in order to qualify for retirement benefits. See chapters 41.54 RCW and 415-113 WAC.

(42) PSERS means the Washington public safety employees' retirement system created by chapter 41.37 RCW.

(43) Public record is defined in RCW 42.56.010.

(44) Restoration is the process of restoring a member's service credit for prior periods.

(45) Retirement system employer - See "employer."

(46) Rollover means a distribution that is paid to or from an eligible retirement plan within the statutory time limit allowed.

(47) Separation date is the date a member ends employment in a position eligible for retirement.

(48) SERS means the Washington school employees' retirement system created by chapter 41.35 RCW.

(49) Split account is the account the department establishes for a member or retiree's ex-spouse.

(50) Surviving spouse refers to a person who was married to the member at the time of the member's death and who is receiving or is eligible to receive a survivor benefit.

(51) Survivor beneficiary means a person designated by the member to receive a monthly benefit allowance after the member dies.

(52) Survivor benefit is a feature of a retirement plan that provides continuing payments to a designee after the death of a member or retiree.

(53) TRS means the Washington state teachers' retirement system created by chapter 41.32 RCW.

(54) The Uniform Services Employment and Reemployment Rights Act of 1994 (USERRA) is the federal law that requires employers to reemploy and preserve job security, pension and welfare benefits for qualified employees who engage in military service.

(55) WSPRS means the Washington state patrol retirement system created by chapter 43.43 RCW.

History

Statutory Authority: RCW 41.50.050 and 41.45.030. WSR 26-17-040, s 415-02-030, filed 8/12/26, effective 9/12/26. Statutory Authority: RCW 41.50.050, 2022 c 110, 2023 c 99, and 2023 c 410. WSR 23-24-091, § 415-02-030, filed 12/5/23, effective 12/7/23. Statutory Authority: RCW 41.50.050. WSR 22-13-053, § 415-02-030, filed 6/8/22, effective 7/9/22
WSR 21-16-020, § 415-02-030, filed 7/23/21, effective 8/23/21
WSR 20-13-064, § 415-02-030, filed 6/15/20, effective 7/16/20
WSR 20-01-079, § 415-02-030, filed 12/11/19, effective 1/11/20. Statutory Authority: RCW 41.50.050(5). WSR 16-17-047, § 415-02-030, filed 8/11/16, effective 9/11/16
WSR 16-08-008, § 415-02-030, filed 3/24/16, effective 4/24/16
WSR 10-24-099, § 415-02-030, filed 12/1/10, effective 1/1/11. Statutory Authority: RCW 41.50.050(5) and 41.04.640. WSR 09-01-021, § 415-02-030, filed 12/8/08, effective 1/8/09. Statutory Authority: RCW 41.50.050(5). WSR 06-18-009, § 415-02-030, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.40.010(42), 41.40.037. WSR 04-04-037, § 415-02-030, filed 1/29/04, effective 3/1/04. Statutory Authority: RCW 41.50.050(5). WSR 02-23-037, § 415-02-030, filed 11/13/02, effective 1/1/03
WSR 02-01-120, § 415-02-030, filed 12/19/01, effective 1/19/02. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-030, filed 4/21/00, effective 5/22/00
WSR 94-09-039, § 415-02-030, filed 4/19/94, effective 5/20/94
Order 4, § 415-02-030, filed 7/27/77.

Wash. Admin. Code § 415-02-050 State Environmental Policy Act—Interface.

The actions and activities of the department of retirement systems are not major actions significantly affecting the quality of the environment as described in chapter 43.21C RCW. All of the activities of the department are exempted from the threshold determination and environmental impact statement requirements of the State Environmental Policy Act (SEPA) by WAC 197-11-875.

The responsible official of the agency for the purposes of SEPA is the director.

History

Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-050, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-02-050, filed 2/15/78.

Wash. Admin. Code § 415-02-060 What happens if I do not cash a warrant or check?

(1) Warrant for defined benefit retirement allowance. A warrant for your monthly retirement allowance will be canceled if it is not cashed within the time frame set by RCW 43.08.062. If the warrant is canceled, the department will attempt to contact you for instructions. You will not earn regular interest on the warrant amount pending reissue of your payment.

(2) Warrant for defined benefit withdrawal. When you request a withdrawal of some or all of your defined benefit accumulated contributions:

(a) Once the department issues the warrant you will stop receiving regular interest.

(b) Whether payable to you or to a qualified investment account, the warrant will be canceled if it is not cashed within the time frame set by RCW 43.08.062.

(c) After the department receives notice that the warrant has been canceled, the department will attempt to contact you and ask for further instructions.

(3) Check for defined contribution distribution. When you request a withdrawal of some or all of your defined contribution fund:

(a) The requested amount will be liquidated.

(b) You will not receive interest, earnings, or losses after the third-party recordkeeper processes your request.

(c) Whether you request that the refund check be sent directly to you or to a qualified investment account, the check will be canceled if it is not cashed within 180 days from the date on the check.

(d) If the check is canceled:

(i) The funds will continue to receive no interest, earnings, or losses while the recordkeeper waits to receive instructions from you; and

(ii) The department or the third-party recordkeeper will attempt to contact you and ask for further instructions.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-052, § 415-02-060, filed 6/8/22, effective 7/9/22. Statutory Authority: RCW 41.50.050(5), 43.08.062, 41.50.055(5), 41.50.260. WSR 01-08-043, § 415-02-060, filed 3/30/01, effective 4/30/01. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-060, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-02-060, filed 2/15/78.

Wash. Admin. Code § 415-02-075 Is my retirement account subject to correction after retirement or separation from service?

(1) When can the department correct a member's record? The department can correct your retirement account at any time when an error has been discovered.

(2) What will happen if I have been underpaid?

(a) If the underpayment is related to an on-going monthly benefit, the department will correct all future payments and compute the additional amount due from prior payments and pay you in a lump sum.

Example 1:

Chris retired September 1st and Chris' monthly retirement benefit was initially determined to be $2,500. In November, Chris' former employer reported additional earnings. The department used that additional reporting to recalculate Chris' benefit, which is now set at $2,525 per month. Chris will receive the new amount for the November and future monthly benefits. Chris will also receive a payment of $50 to cover the additional $25 amount for September and October.

(b) If the underpayment is related to a one-time payment, the additional amount will be paid once identified.

Example 2:

When separating from employment, Sandy chose to withdraw all retirement contributions instead of receiving an on-going benefit at retirement age. After the withdrawal, Sandy's employer submitted $130 of additional retirement contributions that had been deducted from Sandy's paycheck. The department will pay that $130 to Sandy.

(3) What will happen if I have been overpaid?

(a) If the overpayment is related to an on-going monthly benefit, the department will correct the payment amount for all future months. Except for overpayments caused by incorrect employer reporting in LEOFF Plan 2, an invoice will be created for the amount of the overpayment and you will normally have at least 90 days to return the amount of the overpayment to the department. If you cannot make payment in full within those 90 days, you can contact the department to discuss a payment plan which would allow deductions from your monthly benefit. Or you may choose to have your benefit permanently, actuarially reduced to pay the overpayment. Repayment options will be provided on the invoice you receive. If you do not establish a payment plan (which will include interest) or make payment in full by the invoice due date, the department will apply the actuarial reduction and permanently reduce your monthly benefit.

If you or the department identify that your full monthly benefit payment was in error (for example you were not eligible to retire), the department may ask your bank to reverse the payment (depending on the timing and banking rules) and return the funds to pay your invoice.

Example 3:

Pat retired July 1st, with a calculated retirement benefit of $3,000 per month. However, Pat used vacation leave until August 15th, and so, Pat was not separated from employment and eligible to retire until September 1st. Once Pat's employer provided the department with their final reporting on Pat, the department invoiced Pat for $6,000 representing the July and August pension payments (2 x $3,000).

(b) If the overpayment is not related to an on-going monthly benefit payment, the department will invoice you and expect payment in full within 90 days and will apply interest to any balance outstanding after those 90 days have elapsed.

(c) In the event of a LEOFF Plan 2 overpayment caused by an employer's incorrect reporting, the employer will be liable for the overpayment.

(4) What will happen if an overpayment is received by someone other than a member or beneficiary? The overpayment will be a debt from the person or entity to the department and the department will invoice accordingly, unless the overpayment was caused by incorrect reporting by an employer in LEOFF Plan 2, in which case the employer will be invoiced.

Example 4:

J. Smith passed on June 3rd, but with no knowledge of the death, the department deposited the on-going benefit into J. Smith's bank account on the last business day of June. When notified of the death during July, the department requested J. Smith's bank return the June deposit. Banking rules require the department request the deposit amount in full regardless of how much may be ultimately due to an estate.

The department will invoice J. Smith's estate for the June payment and any deductions taken from that payment (such as medical payments) but will apply any amounts received back from the bank or deduction vendors against that invoice. The department will calculate the amount owed to the estate for the month of death and pay J. Smith's estate for those days (three days of 30 for the month of June). Since J. Smith's June payment was $5,000, the estate will be entitled to $500 after all other amounts have been collected back by the department. Any amounts the department cannot collect will be a debt of the estate.

(5) Is there any limit on how much of an overpayment the department may collect?

(a) The department will calculate the total overpayment amount but may only collect three years back from the point of discovery of an error, unless the overpayment was caused by incorrect reporting from an employer in LEOFF Plan 2, which reduces the collection period to one year prior to discovery.

(b) In cases of fraud, the department may collect the entire overpayment amount.

Example 5:

Jordan retired April 1, 2018. In October 2021, the department discovered their former employer removed erroneous earnings from Jordan's account, causing the department to recalculate Jordan's monthly benefit. After adjusting Jordan's benefit to the correct amount, the monthly overpayment amount was determined to be $57 per month for 42 months for a total of $2,394. The department will only invoice Jordan for three years back from the date of discovery in October 2021 for a total of $2,052 (36 months x $57).

(6) How much can the department reduce my benefit to collect an overpayment?

(a) Your monthly benefit cannot be reduced by more than half of the corrected benefit.

(b) If half of your corrected monthly benefit is less than the full actuarial reduction necessary to recover the overpayment you received, the department will reduce your benefit by half and may put a claim against your estate.

History

Statutory Authority: RCW 41.50.[0]50 and 2024 c 304 s 301 through 303. WSR 25-03-027, s 415-02-075, filed 1/7/25, effective 1/8/25. Statutory Authority: RCW 41.50.130. WSR 23-07-043, § 415-02-075, filed 3/8/23, effective 4/8/23.

Wash. Admin. Code § 415-02-080 Identification of members.

The department is authorized by the Internal Revenue Code to solicit Social Security numbers. The department uses Social Security numbers as the identifying number for the member file to ensure that any amounts paid from retirement accounts are properly reported to the Internal Revenue Service (IRS) as required by law. Each member of the retirement system is required to supply his or her Social Security number to the department. Failure to do so will not cause the member to lose benefits, but may result in misreporting to the IRS which can lead to adverse tax consequences for the member.

History

Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-080, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-02-080, filed 2/15/78.

Wash. Admin. Code § 415-02-100 Can I have my insurance premiums deducted from my retirement allowance?

(1) The department will accept requests by retirees to deduct insurance premiums from retirement allowances if the retiree's insurance provider has at least 25 such retirees enrolled in a deduction program and has an established agreement with the department.

(2) The department may suspend deductions if the provider has fewer than 25 participants and remains under 25 participants for more than 90 days.

(3) This rule applies to all retirement systems administered by the department.

History

Statutory Authority: SECURE Act 2.0, P.L. 117-328, and RCW 41.50.050. WSR 23-22-111, § 415-02-100, filed 10/31/23, effective 11/2/23. Statutory Authority: RCW 41.50.050(5). WSR 07-22-026, § 415-02-100, filed 10/26/07, effective 11/26/07
WSR 06-21-001, § 415-02-100, filed 10/4/06, effective 11/4/06. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-100, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 84-24-017 (Order V), § 415-02-100, filed 11/28/84.

Wash. Admin. Code § 415-02-110 Determination of employee status.

(1) An employee of a retirement system employer, other than a teachers' retirement system plan I retiree, who otherwise meets the eligibility criteria to participate in a state-administered retirement system is required to establish or continue membership in that system. An independent contractor is not eligible for active membership in any state-administered retirement system.

(2)(a) The department will review the entire relationship between the worker and the retirement system employer in order to determine whether a worker is an independent contractor or an employee. Generally, a worker is an employee if the employing individual or entity has the right to control and direct the work of the worker, not only as to the result to be accomplished, but also as to the means or methods by which the result is accomplished.

(b) Generally, a worker is an independent contractor if the employing entity has the right to control or direct only the result of the labor or services and not the means and methods accomplishing the labor or services.

(c) Whether or not the parties intend to establish an employer-employee relationship, or whether the parties regard the worker as being an independent contractor is not controlling. When the elements of direction and control are present in determining the means and methods of performing the worker's labor or service, any disclaimers to the contrary are not binding on the department for the purpose of determining employer-employee status. The terms of the contract and the actual arrangement under which the labor or services are performed will determine whether a worker is an employee or independent contractor.

(d) In evaluating whether the retirement system employer has direction or control over the means and methods of performing the worker's labor or services, no one factor is determinative. The department will apply several factors, including but not limited to the following:

(i) Is the worker required to comply with detailed work instructions or procedures about when, where and how the worker must perform services? An employer has control if the employer requires or has the right to require the worker to comply with instructions about the manner in which services must be performed.

(ii) Does the employing individual or entity provide free training for the worker, or have the right to train the worker? Typically, an employer would have the right to train an employee but not an independent contractor.

(iii) Are the worker's services an integral part of the employing individual's or entity's business operation? Usually the regular administrative work of a business is performed by employees rather than independent contractors. Services outside the usual course of the employer's business may imply independent contractor status.

(iv) Is the worker required to perform the labor or services personally? While employees are typically required to personally perform labor or services, independent contractors are not necessarily required to perform personally, but may subcontract part or all of the required labor or services to another party.

(v) Does the employer hire, supervise or pay others to perform the same job as the worker? Usually a person who works the same job or performs the same function as performed by employees of the employer is an employee rather than an independent contractor.

(vi) Does the worker hire, supervise and pay others on the job under a contract to furnish labor and materials? Independent contractors may or may not be responsible for performing the contracted labor or services themselves, and usually have the right to hire and terminate their own employees who perform the contracted labor or services.

(vii) Does the worker perform continuing services for the retirement system employer? Independent contractors are typically hired for a job of relatively short-term or temporary duration and do not have a continuous relationship with or perform continuing services for the employing entity.

(viii) Are the worker's hours, routine or schedule set by the employing entity? The establishment of a set routine or schedule for the worker by the employer indicates employee status. Independent contractors are typically free to set their own hours of work.

(ix) Is the worker required to devote his or her full time to the business of a single employing individual or entity? A worker who is required to work full time for a single employer is likely to be an employee. Independent contractors are usually free to provide labor or services for two or more employing entities concurrently.

(x) Does the employing individual or entity require the worker to perform labor or services on the employer's premises? The employing entity is likely to have the right of control over the worker's method of work if the work is performed solely on the employer's premises, particularly if the worker could perform the required labor or services elsewhere.

(xi) Does the employing individual or entity require the worker to perform labor or services in a set sequence? A worker is likely to be an employee if the worker must perform work in an order or sequence set by the employer.

(xii) Is the worker required to provide regular, oral or written reports to the employer? Regular reports, for example weekly time sheets, are usually required of employees as opposed to independent contractors.

(xiii) Is the worker paid by unit of time (hour, week or month)? Employees are typically paid by unit of time while independent contractors are typically paid by the job (commission, bid, piecework or lump sum). Payment for labor or services upon completion of the performance of specific portions of a project or on the basis of an annual or periodic retainer usually indicates independent contractor status.

(xiv) Does the employing individual or entity reimburse the worker for the worker's job-related expenses? Independent contractors typically pay their own business or travel expenses; the regular expenses they incur as part of providing labor or services are generally included in the stipulated contract payment and are not reimbursed by the employing entity.

(xv) Does the worker providing labor or services furnish the tools and supplies necessary for the performance of the contracted labor or service? Generally, an employer furnishes tools and supplies for their employees while independent contractors furnish their own.

(xvi) Has the worker invested in the equipment or facilities used in performing the labor or services? A significant investment by the worker in the equipment or facilities used in performing the labor or services usually indicates independent contractor status.

(xvii) Does the worker have a right to realize a profit or have a significant risk of loss as a result of the worker's services? Having the right to a profit or the risk of loss arising from the worker's services implies independent contractor status. The worker may be presumed to have assumed the risk of loss if the worker assumes financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of a performance bond, warranties, errors, and omissions insurance or liability insurance relating to the labor or services provided.

(xviii) Does the worker perform services for several persons or firms concurrently? Performance of services for a number of different unrelated clients indicates independent contractor status.

(xix) Does the worker offer services to the general public on a regular or consistent basis? An individual actively advertising services to the general public and representing to the public that the labor and services are to be provided by an independently established business is typically an independent contractor. The following are evidence of "actively advertising":

(A) The worker uses commercial advertising or business cards as is customary in operating a similar business, or is a member of a trade association;

(B) The worker uses a telephone listing and service for the business that is separate from the worker's personal residence listing and service.

(xx) Does the employer have the right to discharge the worker at will? An employee is typically subject to discharge or layoff at the will of the employer.

(xxi) Does the worker have the right to terminate the employment relationship without incurring liability? The right to terminate the work relationship at will usually indicates employee status.

(3) Typically, an independent contractor works for an employing individual or entity as a specialist in an independently established occupation, profession, trade or business. While the right of control over the method or means of work is determinative, the department shall also consider the following factors in evaluating independent contractor status. The degree of importance of each factor varies depending on the labor or services to be performed and the context in which the labor or services are performed.

(a) Does the worker perform labor or services only pursuant to written contracts?

(b) Has the worker providing labor or services attained business registrations, professional occupation licenses or certificates required by state law or local government ordinances to perform the contracted labor or services?

(i) Purchased worker's compensation insurance and paid taxes required for an independent business;

(ii) Filed income tax returns in the name of an independent business; or

(iii) Filed a Schedule of Expenses for the type of business conducted or a Business Schedule C or Farm Schedule F as part of the personal income tax return for the previous year if the worker performed the labor or services as an independent contractor in previous years?

(d) Does the worker providing labor or services maintain a separate set of books or records that reflect all items of business income and expenses as an independently established business?

(e) Has the worker assumed financial responsibility for defective workmanship or for service not provided as evidenced by the ownership of a performance bond, warranties, errors and omissions insurance or liability insurance relating to the labor or services to be provided?

(4) The burden of persuasion in claiming that a worker is an independent contractor or an employee is on the worker or employer making the claim.

History

Statutory Authority: RCW 41.50.050. WSR 94-09-039, § 415-02-110, filed 4/19/94, effective 5/20/94.

Wash. Admin. Code § 415-02-115 How is separation determined for retirement eligibility?

(1) Have I separated from service? All retirement plans administered by the department of retirement systems require a separation from service before you are eligible to begin receiving retirement benefits. This is consistent with Internal Revenue Service (IRS) requirements for distributions from qualified retirement plans. In accordance with the IRS interpretation, you have separated from service only when you have ended the employment relationship without any reasonable expectation between you and your employer that you will return to work for the same employer in any capacity (including in an eligible or ineligible position or as an independent contractor).

(2) How will the department determine if separation from service occurred? The department will examine the facts and circumstances on a case-by-case basis to determine whether separation occurred. No single factor is determinative. Factors to be considered may include, without limitation, the following:

(a) Was there a prior agreement between you and your employer that you would return to work for that employer? If there was an understanding between you and your employer that you would perform services for that employer at a later date, you have not separated from service. Such understanding may be written or unwritten; it may be contractual or noncontractual in nature.

(b) How long was your absence? If your absence from work was less than thirty days, the department will presume that separation did not occur unless the employer provides enough information to disprove the presumption. An absence from work longer than thirty days is not sufficient proof that separation did occur if other factors indicate that an agreement existed for you to return to work for the same employer.

(d) Were your actions and your employer's actions consistent with the expectation that your absence from work was total and permanent? For example: Was access to the employer's facilities, computer systems, and your personal email and voice mail accounts terminated? Were your leave accruals cashed out? Did you remove all of your personal belongings from the employer's premises?

(3) If I terminate from my position with an understanding that I will return to service with the same employer in an ineligible position or as an independent contractor, will I have separated from service? No. If, at the time of your termination, there was an understanding between you and your employer that you would return to work for that employer in any capacity, including in an ineligible position or as an independent contractor, you have not separated from service and are not eligible to retire.

(4) What happens if I begin to receive retirement benefits and then it is determined that separation from service did not occur? If you begin to receive retirement benefits without a valid separation from service, you have received a benefit overpayment that must be repaid to the department pursuant to RCW 41.50.130 and/or 41.50.139.

(5) May I contest the department's decision? If the department determines, based on a review of the circumstances, that you did not separate from service, you may petition for review under chapter 415-04 WAC.

(6) Examples:

(a) Example 1. Mary has met the age and service requirements for retirement eligibility. Aaron is hired to fill the position she will be leaving. Mary submits her retirement application and leaves her job. Shortly thereafter, Aaron resigns and leaves abruptly, causing a vacancy at a critical time. After a separation of only three weeks, Mary returns to perform the work until the position can be filled again. Has a separation occurred?

Yes, if there are no other facts to the contrary, Mary separated from service and is eligible to retire. At the time of her termination, neither Mary nor her employer expected that she would return to employment. However, if Mary returns to work before thirty days have passed, this may cause her monthly retirement benefit to be reduced based on the requirements of her plan.

(b) Example 2. Robert is leaving his position as a police officer. Before leaving, he agrees to return to work for the same employer in a capacity that is not eligible for membership in the law enforcement officers' and firefighters' retirement system (LEOFF). He will begin his new position following a six week absence. Has a separation occurred?

No, Robert did not separate from service because there was an agreement that he would return to work for the same employer. Without a valid separation from service, Robert is not eligible to begin receiving LEOFF retirement benefits.

(7) Is there a difference between "separation from service" and "separation from employment"? Some of the retirement plans require "separation from service" in order to receive a monthly benefit. Others require "separation from employment." The department interprets these two statutory terms identically for purposes of eligibility for retirement. In this rule the term "separation from service" refers both to:

(a) The requirements for "separation from service" in RCW 41.40.193, 41.32.480, 41.26.090, and 41.26.490; and

(b) The requirements for "separation from employment" in RCW 41.40.680, 41.40.801; 41.32.795, 41.32.855; 41.35.450, 41.35.640; and 41.37.240.

History

Statutory Authority: RCW 41.50.050(5). WSR 16-12-052, § 415-02-115, filed 5/25/16, effective 6/25/16.

Wash. Admin. Code § 415-02-120 Investigative subpoenas.

(1) During the course of the administration of its duties, including, but not limited to, audit or investigation, the department may issue a subpoena under RCW 41.50.137. The department may direct the subpoena to any employer, member, person or entity (served party) who may possess information which is relevant and material to compel the party to:

(a) Appear and give testimony; and/or

(b) Produce any books, papers, correspondence, memoranda, or other documents, which the department deems relevant and material.

(2) The subpoena must:

(a) Identify "Washington state department of retirement systems" as the agency issuing the subpoena;

(b) Identify the name and address of the party subpoenaed;

(d) State a reasonable time and place for the production of the information, but no later than twenty days after service; and

(e) Notify the served party that if the information is not produced, the department will apply to the superior court under RCW 34.05.588 for an appropriate order or other remedy.

(3) The subpoena may be served by:

(a) Delivering it personally; or

(b) Sending a copy by certified mail, return receipt requested.

History

Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-120, filed 4/21/00, effective 5/22/00.

Wash. Admin. Code § 415-02-130 Will I receive retirement account information?

(1) Your total service credit, earned by calendar month, is available in accordance with RCW 41.50.065 via a personal account on the DRS website. DRS will remind you of the availability of service credit information in your online account with an annual notification on the DRS website.

The department will provide you with a paper copy of your service credit upon request.

(2) Service credit is based on information provided to DRS by your employer, and is subject to correction.

History

Statutory Authority: RCW 41.50.050 and 41.50.065. WSR 18-14-072, § 415-02-130, filed 6/29/18, effective 7/30/18. Statutory Authority: RCW 41.50.050(5) and 41.50.065. WSR 12-12-047, § 415-02-130, filed 6/1/12, effective 7/2/12
WSR 02-03-120, § 415-02-130, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. WSR 00-10-016, § 415-02-130, filed 4/21/00, effective 5/22/00.

Wash. Admin. Code § 415-02-140 What is excess compensation and how is the employer's excess compensation billing calculated?

(1) What is excess compensation? Excess compensation refers to certain payments from an employer to an employee when the payment is used in the calculation of the employee's retirement allowance. The following payments are excess compensation when they are reportable compensation and used in the calculation of the employee's retirement allowance:

(a) A cash out of unused annual leave in excess of two hundred forty hours;

(b) A cash out of other forms of leave, including sick leave and holiday leave;

(c) A payment for a personal expense, if the payment qualifies as reportable compensation in the employee's own retirement system;

(d) That portion of any payment, such as an overtime or incentive payment, that exceeds twice the employee's regular rate of pay for the period of time that the overtime or incentive payment applies; and

(e) A termination or severance payment.

(2) How does the payment of excess compensation affect employers? The department determines how much an employee's retirement benefit will increase as a result of the excess compensation, and bills the employer or employers for the present value of that increase.

(a) If an employee cashes out annual leave while working concurrently for two or more employers and the total cash-outs result in excess compensation, each employer's billing will be based on:

(i) The number of hours cashed out by that employer in relation to the total number of hours cashed out by all employers; and

(ii) The hourly rate paid by that employer.

Example: Brian, a PERS 1 member, separated from employment at Agency A and Agency B at the same time. He cashed out 75 hours of annual leave from Agency A and 225 hours from Agency B, resulting in a total of 300 hours that will be used in the calculation of his average final compensation (AFC). A cash-out of unused annual leave in excess of two hundred forty hours is excess compensation (see subsection (1)(a) of this section). Therefore, sixty hours of the cash-out is excess compensation. (300 hours - 240 hours = 60 hours of excess compensation.)

| Employer | Total hours cashed out | Percentage of total hours cashed out | Excess compensation billing will be based on: | | --- | --- | --- | --- | | Agency A | 75 hours | 25% (75/300) | 15 hours (60 hours of excess compensation hours x 25% = 15 hours) at the hourly rate paid by Agency A. | | Agency B | 225 hours | 75% (225/300) | 45 hours (60 hours of excess compensation hours x 75% = 45 hours) at the hourly rate paid by Agency B. |

(b) If an employee cashes out annual leave from two or more successive employers during his/her AFC period and the total cash-outs result in excess compensation, the department will:

(i) Determine the hours cashed out sequentially (employer by employer);

(ii) Identify the employer at the time the cumulative total cashed out exceeded two hundred forty hours, resulting in excess compensation; and

(iii) Bill the employer, identified in (b)(ii) of this subsection, and any subsequent employers during the AFC period, for the number of excess compensation hours each cashed out.

Example: Deborah is a TRS 1 member who changed employment three times during her AFC period.

When Deborah separated employment from School District A, she cashed out 156 hours of annual leave;
When she separated employment from School District B, she cashed out 96 hours of annual leave; and
When she separated from School District C, she cashed out an additional 48 hours of annual leave.

| School District | Annual Leave Cash-out | Rationale and Determination | | --- | --- | --- | | A 7/1/03 - 6/30/04 | 156 | The department will not bill School District A because excess compensation did not result from the 156 hours of annual leave Deborah cashed out at School District A. | | B 7/1/04 - 2/28/05 | 96 | The cumulative total of the annual leave cashed out by School District A and School District B exceeds 240 hours, and results in 12 hours of excess compensation1. School District B's excess compensation billing will be based on 12 hours at the hourly rate paid by School District B. | | C 3/1/05 - 6/30/05 | 48 | Since the cumulative total exceeded 240 hours prior to Deborah's employment with School District C, all of the leave cashed out by Agency C is excess compensation. School District C's excess compensation billing will be based on 48 hours at the hourly rate paid by School District C. |

| 1 | 156 hours (cashed out by School District A) plus 96 hours (cashed out by Agency B) = 252 hours. A cash-out of unused annual leave in excess of two hundred forty hours is excess compensation (subsection (1)(a) of this section). 252 hours - 240 hours = 12 hours of excess compensation. | | --- | --- |

(3) How is the excess compensation billing calculated? To determine the amount of each employer's excess compensation billing, the department:

(a) Determines the increased amount of the employee's monthly retirement allowance that will result from the increase in the AFC, based on a standard benefit allowance (benefit option one);

(b) Determines the actuarial factor, based on the employee's age and retirement plan, from WAC 415-02-340; and

(c) Divides the amount of the monthly benefit increase in (a) of this subsection by the actuarial factor in (b) of this subsection.

If two or more employers are responsible for an employee's excess compensation, the department will calculate the bill for each employer individually, based solely on the excess compensation attributed to that employer. See subsection (2)(a) and (b) of this section.

(4) Examples:

(a) Example 1: Excess compensation arising from cash out of sick leave (PERS Plan 1):

Denise is a 59 year-old PERS Plan 1 member working for a public utility district. She will retire with thirty years of service, and will cash out $8,000 in sick leave. Denise earned her two highest years of pay during her last two years of employment; therefore, the department will use these years to compute her AFC.

| Year 1 | - | $59,000 Salary | | --- | --- | --- | | Year 2 | - | $61,000 Salary + $8,000 sick leave cash out |

Q: Did Denise receive excess compensation?

A: Yes. Under subsection (1)(b) of this section, the $8,000 sick leave cash out is excess compensation.

Q: Will the excess compensation increase Denise's retirement allowance?

A: Yes. Denise's retirement allowance will increase by $200/month as shown:

| Without the excess compensation (cash out): | | | | --- | --- | --- | | AFC | = | $59,000 + $61,000 = $120,000 $120,000/24 = $5,000/month | | Retirement allowance | = | 2% x 30 years x $5,000 = $3,000/month | | With the excess compensation (cash out): | | | | AFC | = | $59,000 + $61,000 + $8,000 = $128,000 $128,000/24 = $5,333.33/month | | Retirement allowance | = | 2% x 30 years x $5,333.33 =$3,200/month | | Difference in retirement allowances: | | | | $3,200/month - $3,000/month = $200/month | | |

Q: What is the employer's excess compensation billing?

A: The employer must pay $24,565.50, as shown:

| Using an annuity factor of 0.00814151: | | | | --- | --- | --- | | $200/month | = | $24,565.50 | | 0.0081415 | | | | 1Based on Denise's age of 59. The factor can be found in the table in WAC 415-02-340. | | |

(b) Example 2: Excess compensation arising from cash out of leave (TRS Plan 1):

George is a TRS Plan 1 member who has 28 years of service and is retiring at age 55 from a school district. The collective bargaining agreement provides two days of personal holiday leave per year and allows for the cash out at retirement of any unused balance of personal holiday leave. Personal leave days are defined as "other forms of leave" under subsection (1)(b) of this section. The following example shows the computation of excess compensation:

| Year 1 | - | $52,500 Salary | | --- | --- | --- | | Year 2 | - | $54,000 Salary + $900 for four days of personal leave cash out |

Q: Did George receive excess compensation?

A: Yes. Under subsection (1)(b) of this section, the $900 leave cash out is excess compensation.

Q: Will the excess compensation increase George's retirement allowance?

A: Yes. George's retirement allowance will increase by $21/month as shown:

| Without the excess compensation (cash out): | | | | --- | --- | --- | | AFC | = | $52,500 + $54,000 = $106,500 $106,500/24 = $4,437.50/month | | Retirement allowance | = | 2% x 28 years x $4,437.50 =$2,485/month | | With the excess compensation (cash out): | | | | AFC | = | $52,500 + $54,000 + $900 = $107,400 $107,400/24 = $4,475/month | | Retirement allowance | = | 2% x 28 years x $4,475 = $2,506/month | | Difference in retirement allowances: | | | | $2,506/month - $2,485/month = $21/month | | |

Q: What is the employer's excess compensation billing?

A: The employer must pay $2,802.28, as shown:

| Using an annuity factor of 0.00749392: | | | | --- | --- | --- | | $21/month | = | $2,802.28 | | 0.0074939 | | | | 2Based on George's age of 55. The factor can be found in the table in WAC 415-02-340. | | |

Susan is retiring at age 65 in PERS Plan 2. Susan's employer awarded her a $15,083.33 bonus for work she did on a special project in February. The department will compute Susan's excess compensation as follows:

| Year 1 | - | $59,000 Salary | | --- | --- | --- | | Year 2 | - | $59,000 Salary | | Year 3 | - | $59,000 Salary | | Year 4 | - | $59,000 Salary | | Year 5 | - | $76,083.33 (includes a $15,083.33 bonus for services provided in the month of February). |

Q: Did Susan receive excess compensation?

A: Yes. Under subsection (1)(d) of this section, the portion of the bonus that exceeds twice the employee's regular rate of pay for that period ($4,916.67) is excess compensation, as shown:

| Regular monthly rate: | $61,000/12 = $5,083.33/month | | --- | --- | | Twice February's monthly rate: | 2 x $5,083.33 = $10,166.66 | | Excess compensation: | $15,083.33 - $10,166.66 = $4,916.67 |

Q: Will the excess compensation increase Susan's retirement allowance?

A: Yes. It increases by $49.16/month, as shown:

| Without excess compensation (portion of bonus): | | | | --- | --- | --- | | AFC | = | $59,000 + $59,000 + $59,000 + $59,000 +$76,083.33 - $4,916.67 = $307,166.66 $307,166.66/60 = $5,119.44/month | | Retirement allowance | = | 2% x 30 years x $5,119.44 = $3,071.67/month | | With the excess compensation (portion of bonus): | | | | AFC | = | $59,000 + $59,000 + $59,000 + $59,000 + $76,083.33 = $312,083.33 $312,083.33/60 = $5,201.39/month | | Retirement allowance | = | 2% x 30 years x $5,201.39 = $3,120.83/month | | Difference in retirement allowances: | | | | $3,120.83/month - $3,071.67/month = $49.16/month | | |

Q: What is the employer's excess compensation billing?

A: The employer must pay $6,784.62, as shown:

| Using an annuity factor of 0.0072458: | | | | --- | --- | --- | | $49.16/month | = | $6,784.62 | | 0.0072458 | | |

History

Statutory Authority: RCW 41.50.050(5) and 41.50.150. WSR 05-12-107, § 415-02-140, filed 5/27/05, effective 6/27/05
WSR 03-06-043, § 415-02-140, filed 2/27/03, effective 4/1/03.

Wash. Admin. Code § 415-02-150 How is regular interest credited to Plan 1 and Plan 2 individual accounts?

The director has the statutory authority to set the terms of regular interest and modify those terms consistent with RCW 41.50.033. This rule summarizes how regular interest is credited to Plan 1 and Plan 2 individual accounts effective July 1, 2022.

(1) You are required to make contributions to your retirement plan each pay period.

(2) The department maintains an individual account in your name. In your individual account, the department tracks your contributions and the regular interest credited to your account consistent with this rule. Taken together, your contributions plus the regular interest that has been credited to your account are defined to be your accumulated contributions.

(3) Amounts in your individual account (both contributions and previously credited regular interest) accrue regular interest daily at the rate currently in effect. As long as your individual account is in existence, regular interest will continue to accrue, regardless of whether or not you are in active employment.

(4) Regular interest is calculated and credited to your account periodically.

(a) In WSPRS, regular interest is calculated and credited monthly, on the last day of the month. (If you withdraw your accumulated contributions mid-month, the department will calculate and credit your account with the regular interest accrued during the partial month prior to your withdrawal.)

(b) In all other plans 1 and 2, regular interest is calculated and credited quarterly. (If you withdraw your accumulated contributions or transfer your accumulated contributions to another plan mid-quarter, the department will calculate and credit your account with the regular interest accrued during the partial quarter prior to your withdrawal or transfer.)

(c) Because regular interest is calculated on both your contributions and previously credited regular interest, regular interest is compound interest.

(5) Rate of regular interest. The director has the statutory authority to set the rate of regular interest.

(a) During each odd year, the director will consider whether to change the rate of regular interest.

(b) If the rate is to be changed, the new rate will be effective July 1st of the following even year.

(c) In setting the rate, the director will consider the inflation assumption published by the Office of the State Actuary in the bi-annual Economic Experience Study and adopted by the Pension Funding Council.

(6) Example 1. For illustration purposes only, examples will assume the rate of regular interest is 5.5 percent per year. John begins PERS Plan 2 employment. John's employer submits the following contributions to PERS Plan 2:

| 3/11 | $100 | | --- | --- | | 3/27 | $100 | | 4/10 | $100 | | 4/26 | $100 | | 5/12 | $100 | | 5/27 | $100 | | 6/11 | $100 | | 6/25 | $100 | | 7/11 | $100 |

(a) On March 31st, regular interest of $0.36 is credited to John's account. This is calculated as follows (except where noted, calculations are rounded to four decimal places):

(i) $0.2411 on the account balance of $100 from 3/12 to 3/27. That is $100 for 16 days, the regular interest for this balance is:

.055 * 16/365 * 100 = $0.2411

(ii) $0.1205 on the account balance of $200 from 3/28 to 3/31. That is $200 for four days, the regular interest for this balance is:

.055 * 4/365 * 200 = $0.1205

(iii) The total regular interest credited for the first quarter is $0.36 ($0.2411 + $0.1205 = $0.3616 which rounds to $0.36).

(iv) The balance in John's account on March 31st, is $200.36 - New Contributions ($200) + Regular Interest ($0.36).

(b) On June 30th, regular interest of $6.56 is credited to John's account. This is calculated as follows:

(i) $0.3019 on the account balance of $200.36 from 4/1 to 4/10. That is $200.36 for 10 days, the regular interest for this balance is:

.055 * 10/365 * 200.36 = $0.3019

(ii) $0.7242 on the account balance of $300.36 from 4/11 to 4/26. That is $300.36 for 16 days, the regular interest for this balance is:

.055 * 16/365 * 300.36 = $0.7242

(iii) $0.9653 on the account balance of $400.36 from 4/27 to 5/12. That is $400.36 for 16 days, the regular interest for this balance is:

.055 * 16/365 * 400.36 = $0.9653

(iv) $1.1310 on the account balance of $500.36 from 5/13 to 5/27. That is $500.36 for 15 days, the regular interest for this balance is:

.055 * 15/365 * 500.36 = $1.1310

(v) $1.3570 on the account balance of $600.36 from 5/28 to 6/11. That is $600.36 for 15 days, the regular interest for this balance is:

.055 * 15/365 * 600.36 = $1.3570

(vi) $1.4775 on the account balance of $700.36 from 6/12 to 6/25. That is $700.36 for 14 days, the regular interest for this balance is:

.055 * 14/365 * 700.36 = $1.4775

(vii) $0.6030 on the account balance of $800.36 from 6/26 to 6/30. That is $800.36 for five days, the regular interest for this balance is:

.055 * 5/365 * 800.36 = $0.6030

(viii) The total regular interest credited for the second quarter is $6.56 ($0.3019 + $0.7242 + $0.9653 + $1.1310 + $1.3570 + $1.4775 + $0.6030 = $6.5599 which rounds to $6.56).

(ix) The account balance on June 30th is $806.92 - March 31st Balance ($200.36) + New Contributions ($600) + Regular Interest ($6.56).

(7) Example 2. John terminates PERS Plan 2 employment on July 1st, after making one contribution for the third quarter. He chooses to withdraw the amount in his individual account. On July 17th, he receives a warrant for $907.74, calculated as follows:

(a) John receives $2.16 in regular interest for the period from July 1st through July 17th.

(i) $1.3375 on the account balance of $806.92 from 7/1 to 7/11. That is $806.92 for 11 days, the regular interest for this balance is:

.055 * 11/365 * $806.92 = $1.3375

(ii) $0.8200 on the account balance of $906.92 from 7/12 to 7/17. That is $906.92 for six days, the regular interest for this balance is:

.055 * 6/365 * $906.92 = $0.8200

(iii) The total regular interest credited for the third quarter is $2.16 ($1.3375 + $0.8200 = $2.1575 which rounds to $2.16).

(b) The total withdrawal is $909.08 - June 30th Balance ($806.92) + New Contributions ($100) + Regular Interest ($2.16).

History

Statutory Authority: RCW 41.50.050. WSR 22-13-052, § 415-02-150, filed 6/8/22, effective 7/9/22. Statutory Authority: RCW 41.50.033 and 41.50.050. WSR 18-07-063, § 415-02-150, filed 3/15/18, effective 4/15/18.

Wash. Admin. Code § 415-02-160 Will postretirement employment performed during a period of emergency affect my retirement benefit?

During a period of emergency proclaimed by the governor under RCW 43.06.010(12) regarding the COVID-19 pandemic, and for which the governor has waived or suspended applicable statutory limitations, public service employment performed by a retiree shall not cause a suspension or reduction of retirement benefits.

For the purpose of this section, a "period of emergency" includes only the following: COVID-19 pandemic, for the period covered by the governor's proclamation.

History

Statutory Authority: RCW 41.50.050. WSR 20-16-006, § 415-02-160, filed 7/22/20, effective 8/22/20.

Wash. Admin. Code § 415-02-173 How is my benefit affected if I return to work and am impacted by more than one annual hourly limit?

(1) How is my benefit affected if I return to work in positions with two different employers that qualify for more than one annual hourly limit?

If you return to work in more than one position, and the positions have different annual hourly limits, you will be limited to the highest annual hourly limit for all positions combined.

Examples: Don is retired from teachers' retirement system (TRS) 2 and returned to work as a teacher. Don's nonadministrative TRS position at a school district has an annual limit of 1,040 hours. While working at the school district Don also takes a position at a state agency. The state agency position is a public employees' retirement system (PERS) position and is subject to an annual limit of 867 hours. Don's annual hourly limit remains at 1,040 hours. Don later separates from the TRS nonadministrative school district position and Don's annual hourly limit of 1,040 hours remains in effect for the remainder of the current calendar year. Don's limit will be 867 hours the following year if he continues in the PERS position.

Pat is a 2008 ERF retiree, who returned to work as a driver for the department of transportation (DOT) in a PERS position with an annual limit of 867 hours. Pat gets a second job, working as a bus driver for a school district. The nonadministrative position in the school employees' retirement system (SERS) is subject to an annual limit of 1,040 hours. Pat's benefit is governed by the highest limit, in this case the SERS bus driver position at the school district. Pat's annual limit will be 1,040 hours in a calendar year.

(2) If I receive pension payments from more than one DRS administered retirement system, and each system has different annual hourly limits, how will my benefit be affected?

If you are retired from multiple DRS systems, each of your benefits will be affected according to rules of the respective system.

Example: Alex retired from two systems, PERS and SERS, and returned to work as a bus driver in a SERS-eligible position at a school district after the mandatory 30-day break. Alex's two benefits will be impacted differently.

• PERS - To qualify for the 1,040-hour annual hourly limit in PERS, you need a 100-day break in service. Alex only has a 30-day break before returning to work, so Alex's PERS benefit will be subject to an 867-hour limit.

• SERS - Alex's SERS benefit does not require the 100-day break. So, Alex's annual hourly limit for the SERS benefit will be 1,040 hours.

History

Statutory Authority: RCW 41.50.050, 2022 c 110, 2023 cc 99 and 410. WSR 24-10-022, § 415-02-173, filed 4/22/24, effective 4/23/24
WSR 23-24-091, § 415-02-173, filed 12/5/23, effective 12/7/23.

Wash. Admin. Code § 415-02-175 May I establish service credit for the time I was on an unpaid authorized leave of absence?

(1) Will I get service credit for the time I was on an unpaid authorized leave of absence? You will receive service credit for the period of time you are on an unpaid authorized leave of absence, up to a maximum of 24 service credit months during your entire working career, provided all of the following apply:

(a) You are a member of LEOFF Plan 2, PERS Plan 2 or 3, PSERS, SERS Plan 2 or 3, or TRS Plan 2 or 3;

(b) Your leave of absence was authorized by your employer;

(c) You resumed employment according to the requirements in subsection (3) of this section, unless you are a member of LEOFF Plan 2; and

(d) You establish the service credit for the period of leave according to the provisions in this section.

(2) How does an unpaid authorized leave of absence affect my retirement? If you establish service credit for the period of time you were on an unpaid authorized leave of absence:

(a) It will be used as part of your total service credit to determine retirement eligibility and pension; but

(b)(i) Except as noted in (b)(ii) of this subsection, the period of time you were on leave will not be included in your average final compensation period.

Example:

Joseph has the following earnable compensation prior to retirement:

| YR 1 | $30,000 | | --- | --- | | YR 2 | $35,000 | | YR 3 | $40,000 | | YR 4 | $45,000 | | YR 5 | $50,000 | | YR 6 | Unpaid leave of absence for entire year | | YR 7 | $55,000 |

Joseph's AFC period will be YR 2, YR 3, YR 4, YR 5, and YR 7.

(ii) This provision does not apply to interruptive military service. If you establish service credit for a period of interruptive military service and that period falls in your AFC period, you are entitled to have the salary you would have earned during that time period used in the calculation of your AFC.

(3) Do I qualify to establish this service credit? As a requirement for establishing this service credit, you must resume employment within the same retirement system you left, unless you are a LEOFF Plan 2 member and retire instead of returning to work.

(a) After resuming employment, you may request, and pay for, service credit whether you are a contributing member or whether you become inactive.

(b) If you are a law enforcement officer in LEOFF Plan 2 and took a part-time unpaid leave of absence while you worked part-time, you may request service credit. In this case, you may only request part-time service credit for the portion of time you were on unpaid leave of absence.

(4) How do I request this service credit? If you wish to establish this service credit, you must contact the department. The department will obtain written verification from your employer confirming the months of your authorized leave of absence and your salary for the months preceding and following the leave.

(5) How does the department determine the cost of establishing this service credit?

(a) In order to establish service credit for the period of time you were on leave of absence, you must pay the employee and employer retirement contributions, plus applicable interest. LEOFF Plan 2 members must also pay the contributions normally paid by the state.

(b) The amount of the employee and employer contributions is calculated as follows:

(i) For TRS members, the salary upon which contributions are calculated is determined by averaging the salary earned for the school year, as defined in RCW 28A.150.040, prior to your unpaid leave of absence and the salary earned in the school year after you returned to work. If you were on leave of absence for less than the entire school year, that year's salary will be prorated according to the number of months you were on leave of absence.

(ii) For law enforcement officers in LEOFF Plan 2 who took a part-time unpaid leave of absence while working part-time, the salary upon which contributions are calculated is determined by:

(A) Averaging your basic salary during the last full month of employment before your part-time leave of absence, and your basic salary during the first full month after you return to full-time employment; and

(B) Multiplying the monthly salary determined according to (b)(ii)(A) of this subsection by the number of months you were on leave.

(C) For members retiring directly from an authorized leave of absence instead of returning to work, the basic salary at the time that the authorized leave of absence was granted will be adjusted for any cost-of-living or other pay increases provided to similar jobs or job classes during each month of the leave period.

(iii) For members of other systems, the salary upon which contributions are calculated is determined by:

(A) Averaging the compensation earned during the last full month of employment before your leave of absence, and the compensation you earned during the first full month after you returned to work; and

(B) Multiplying the monthly salary determined according to (b)(iii)(A) of this subsection by the number of months you were on leave.

If you worked part-time prior to the leave of absence, partial month wages will be used to estimate your average salary. In this case, you may only establish part-time service credit for the period of time you were on leave of absence.

(6) What is the payment process for establishing this service credit?

(a) You may purchase this service credit in one payment, or make payments at any time until the deadline expires.

(b) Interest will accrue on the unpaid balance until payment is made in full.

(c) The department will accept funds that have been rolled over from a tax deferred retirement account for the purchase of the service credit. However, the amount you may roll over is limited to the purchase price of the service credit. If the rollover amount does not cover the entire purchase price, you must pay the additional amount within 30 days of the rollover. If the balance is not paid within 30 days, the rollover funds will be returned to the original financial institution.

(d) If you took more than one authorized leave of absence, the department will bill you separately for each occurrence. Service credit will be granted for each occurrence only after the bill for that period is paid in full.

(7) What is the deadline for establishing this service credit? Except as provided in subsection (9) of this section:

(a) If you are a member of LEOFF Plan 2, PERS Plan 2, PSERS, or SERS Plan 2, payment in full must be received within five years from the initial date of your return to an eligible position, or prior to your retirement, whichever occurs first.

(b) If you are a member of PERS Plan 3 or SERS Plan 3, payment in full must be received prior to your retirement.

(c) If you are a member of TRS Plan 2 or 3, payment in full must be received by August 31st of the fifth school year, as defined in RCW 28A.150.040, after you return to employment or prior to your retirement, whichever comes first. The school year during which you return to work will be counted as year one.

(8) What if I do not make payment in full by the deadline?

(a) If you are a Plan 2 member or a PSERS member and do not make payment in full by the deadline, the amount you paid will be refunded to you.

(b) If you are a Plan 3 member and do not make payment by the deadline, the portion of your payments that were:

(i) Employer contributions will be refunded to you; and

(ii) Employee contributions will be deposited into your defined contribution account and available to you only upon separation from service.

(c) If you are a Plan 2 member or a PSERS member, the department will refund partial payments prior to the deadline upon your request.

(d) If you are a PERS Plan 2, SERS Plan 2, or TRS Plan 2 member and transfer to Plan 3 prior to making payment in full:

(i) The department will refund any partial payments; and

(ii) You must reapply under Plan 3 if you still wish to establish this service credit.

(9) What is the exception to the deadline? After your initial deadline has passed, you retain the right to establish this service credit until the date of your retirement. However, the purchase price will be equal to the full actuarial value of the increase in benefit that results from the purchased service credit. The department will use the two-part formula in WAC 415-10-030 to determine actuarial value.

(10) What state law applies to establishing service credit for an unpaid authorized leave of absence?

(a) PERS Plan 2: RCW 41.40.710;

(b) PERS Plan 3: RCW 41.40.805;

(d) TRS Plan 3: RCW 41.32.865;

(e) SERS Plan 2: RCW 41.35.470;

(f) SERS Plan 3: RCW 41.35.650;

(g) LEOFF Plan 2: RCW 41.26.520;

(h) PSERS: RCW 41.37.260;

(i) Deadline extension: RCW 41.50.165.

History

Statutory Authority: RCW 41.50.050 and 2025 c 112. WSR 26-10-011, s 415-02-175, filed 4/27/26, effective 4/28/26. Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-02-175, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050(5), 41.40.710, 41.40.805, 41.32.810, 41.32.865, 41.35.470, 41.35.650, 41.26.520, 41.37.260. WSR 06-18-009, § 415-02-175, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.40.710, 41.40.805, 41.32.810, 41.32.865, 41.35.470, 41.35.650, 41.26.520, 41.50.165. WSR 04-20-005, § 415-02-175, filed 9/23/04, effective 10/24/04.

Wash. Admin. Code § 415-02-177 May I purchase additional service credit?

(1) What is the option for purchasing additional service credit? The following statutes provide an option for eligible members to purchase additional service credit that provides a guaranteed, lifetime increase to their monthly retirement benefit:

(a) RCW 41.26.199 for LEOFF Plan 1 members;

(b) RCW 41.26.432 for LEOFF Plan 2 members;

(d) RCW 41.37.265 for PSERS Plan 2 members;

(e) RCW 41.35.183 for SERS Plan 2 and 3 members;

(f) RCW 41.32.066 for TRS Plan 1, 2, and 3 members; and

(g) RCW 43.43.233 for WSPRS Plan 1 and 2 members.

(2) Am I eligible to purchase additional service credit?

(a) You may purchase additional service credit if you are eligible to retire from one or more of the following plans and you elect a monthly benefit rather than a lump sum payment:

(i) LEOFF Plan 1 or 2 under RCW 41.26.090 or 41.26.430;

(ii) PERS Plan 1, 2, or 3 under RCW 41.40.180, 41.40.630, or 41.40.820;

(iii) PSERS Plan 2 under RCW 41.37.210;

(iv) SERS Plan 2 or 3 under RCW 41.35.420 or 41.35.680;

(v) TRS Plan 1, 2, or 3 under RCW 41.32.480, 41.32.765, or 41.32.875; or

(vi) WSPRS Plan 1 or 2 under RCW 43.43.250.

(b) If you retire as a result of a disability, you may purchase additional service credit if you meet the requirements in (a) of this section.

(3) How much additional service credit may I purchase? If you are eligible, you may purchase from one to 60 months of additional service credit in whole month increments.

(4) May I use the additional purchased service credit to qualify for normal retirement or an early retirement? No. You may not use the purchased service credit to qualify for normal retirement or to qualify for an early retirement.

(5) When must I apply to purchase additional service credit? You must submit your request to purchase additional service credit to the department at the same time you submit your application for retirement.

(6) How much will my monthly retirement benefit increase if I purchase additional service credit? The increase in your monthly retirement benefit will be calculated using the benefit formula for your system and plan, with a reduction for early retirement, if applicable.

Example 1 (PERS Plan 2): John is a member of PERS Plan 2. He applies for retirement, effective the first month after his 62nd birthday and chooses to purchase an additional 60 months (five years) of service credit. His average final compensation (AFC) is $4,000 per month. For illustration purposes in this example only, we will use .7240000 as the corresponding early retirement factor (ERF) for retiring three years early (actuarial factors change periodically). As a result, John's monthly benefit will increase by $289.60 per month, calculated as follows:

| Amount of increase | = | 2% x additional service credit years x AFC x ERF | | --- | --- | --- | | | = | 2% x 5 years x $4,000 x .7240000 | | | = | $289.60 |

Example 2 (TRS Plan 3): Jane is a member of TRS Plan 3. She applies for retirement, effective the first month after her 62nd birthday and chooses to purchase an additional 60 months (five years) of service credit. Her AFC is $4,000 per month. For illustration purposes in this example only, we will use .7240000 as the corresponding ERF for retiring three years early (actuarial factors change periodically). As a result, Jane's monthly retirement benefit will increase by $144.80 per month, calculated as follows:

| Amount of increase | = | 1% x additional service credit years x AFC x ERF | | --- | --- | --- | | | = | 1% x 5 years x $4,000 x .7240000 | | | = | $144.80 |

Example 3 (LEOFF Plan 2): Jim is a member of LEOFF Plan 2. He applies for retirement, effective the first month after his 53rd birthday and chooses to purchase an additional 60 months (five years) of service credit. His final average salary (FAS) is $4,000 per month. No ERF is needed for this calculation as Jim has already reached normal retirement age for LEOFF Plan 2. Jim's monthly retirement benefit will increase by $400 per month, calculated as follows:

| Amount of increase | = | 2% x additional service credit years x FAS | | --- | --- | --- | | | = | 2% x 5 years x $4,000 | | | = | $400 |

(7) How is the cost of the additional purchased service credit calculated? The cost to purchase additional service credit is calculated by dividing the amount of the increase in subsection (6) of this section by the age-based annuity factor in effect at the time of retirement. (See WAC 415-02-340 for more information.)

Example. In subsection (6) of this section, Example 1, it was determined that John's retirement benefit would increase by $289.60 per month. For illustration purposes in this example only, we will use .0065016 as the annuity factor for John's retirement date (actuarial factors change periodically). As a result, John's cost to purchase the five years of additional service credit would be $44,542.88, calculated as follows:

| Cost | = | Amount of increase ÷ age-based annuity factor | | --- | --- | --- | | | = | $289.60 ÷ .0065016 | | | = | $44,542.88 |

(8) How and when do I pay for the additional service credit? The department will generate a bill to you for the cost of the additional service credit.

(a) Payment may be made with an eligible rollover, a direct rollover or a trustee-to-trustee transfer, if allowed by the transferring plan. Payment may also be made with after-tax dollars, such as money from a personal savings account.

(b) DRS can accept a rollover of pretax dollars from your DCP account. To purchase additional service credit with Roth dollars, you must request a distribution first, then pay the bill with a check.

(9) When will my benefit increase be effective? The increase in your benefit will be effective the day after the department receives your full payment.

Example 1: If your full payment is received on August 31st, your benefit increase will be effective for the entire month of September and every month thereafter.

Example 2: If your full payment is received August 13th, your August benefit payment will be prorated to provide an increase for the days from August 14th through August 31st. Your September benefit and future monthly payments will reflect the entire monthly increase from purchasing the additional service credit.

(10) If I choose a benefit option with a survivor feature, will my survivor's monthly benefit reflect the additional purchased service credit? Yes. Depending upon the rules for your retirement system and plan and the benefit option you choose at retirement, your survivor's monthly benefit will be a percentage of the gross monthly retirement benefit you were receiving at the time of your death. Since the additional service you purchased is included in the calculation of your monthly benefit, the survivor option you designate for your monthly benefit will also be applied to the benefit from the purchased service credit. You cannot choose a different survivor. If you choose a benefit option with a survivor feature and your survivor dies before you, your monthly retirement benefit will increase to the amount it would have been had you not selected a survivor option.

(11) Will I receive a cost of living adjustment (COLA) on the portion of my benefit that is based on the additional purchased service credit?

(a) For all systems and plans, except as noted in (b) of this subsection, your COLA will be based on your gross monthly retirement benefit, including the increase due to the purchased service credit.

(b) If you retire from PERS Plan 1 or TRS Plan 1 and you do not elect the optional auto COLA, you will not receive a COLA on the additional purchased service credit amount.

(12) If I purchase additional service credit and then return to work, how will my retirement benefit be affected? Your entire retirement benefit, including the amount attributable to purchased service credit, is subject to the return to work provisions of your system and plan. The following rules describe the impact on your benefit if you return to work as a retiree of the referenced systems and plans:

| PERS Plans 1, 2, and 3: | WAC 415-108-710 | | --- | --- | | TRS Plan 1: | WAC 415-112-541 | | TRS Plans 2 and 3: | WAC 415-112-542 | | SERS Plans 2 and 3: | WAC 415-110-710 | | PSERS Plan 2: | WAC 415-106-700 | | LEOFF Plan 2: | WAC 415-104-111 |

(13) If I retire and purchase less than 60 months of additional service credit, may I purchase more at a later time? No. You may not purchase additional months of service credit from the same plan unless you return to membership and retire again from the same system and plan. You must meet the eligibility requirements provided in subsection (2) of this section at the time you retire again. You may not purchase more than a total of 60 months of service credit regardless of how many times you retire again from the same system and plan.

(14) May I purchase service credit from more than one retirement plan?

(a) If you are a dual member under chapter 415-113 WAC, Portability of public employment benefits, and you combine service credit to retire as a dual member, you may purchase up to 60 months of additional service credit from each of your dual member plans.

(b) If you retire from more than one plan, but are not a dual member under chapter 415-113 WAC, you may purchase up to 60 months of additional service credit from each plan in which you meet the eligibility requirements in subsection (2) of this section.

(15) How are the funds I paid to purchase the additional service credit treated upon my death (and the death of my survivor, if applicable)?

(a) Plans 1 and 2. The amount paid to purchase the additional service credit is credited to your individual account as part of your accumulated contributions. Distribution of accumulated contributions after your death (and the death of your survivor, if any) is governed by the statutes and rules applicable to your plan. See:

(i) WAC 415-108-326 for PERS Plan 1 and 2;

(ii) WAC 415-112-504(9) for TRS Plan 1;

(iii) WAC 415-112-505(7) for TRS Plan 2;

(iv) WAC 415-110-610(7) for SERS Plan 2;

(v) WAC 415-106-600(7) for PSERS Plan 2;

(vi) WAC 415-103-215 for WSPRS Plan 1;

(vii) WAC 415-103-225(7) for WSPRS Plan 2;

(viii) WAC 415-104-202 for LEOFF Plan 1; or

(ix) WAC 415-104-215(7) for LEOFF Plan 2.

(b) Plan 3. If you and your survivor (if you selected a survivor option) die before the amount of your purchased service credit has been paid back to you in your monthly retirement benefit, the difference will be refunded to your designated beneficiary.

History

Statutory Authority: RCW 41.50.050, 41.50.770, and SECURE Act 2.0 § 603. WSR 23-18-025, § 415-02-177, filed 8/25/23, effective 9/25/23. Statutory Authority: RCW 41.50.050. WSR 18-01-020, § 415-02-177, filed 12/8/17, effective 1/8/18. Statutory Authority: RCW 41.50.050(5). WSR 16-04-048, § 415-02-177, filed 1/27/16, effective 2/27/16
WSR 13-18-034, § 415-02-177, filed 8/28/13, effective 10/1/13
WSR 13-06-025, § 415-02-177, filed 2/27/13, effective 4/1/13
WSR 10-16-086, § 415-02-177, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5), 2006 c 214, and RCW 41.26.432. WSR 06-16-043, § 415-02-177, filed 7/26/06, effective 8/26/06.

Wash. Admin. Code § 415-02-178 May I purchase an annuity?

(1) Am I eligible to purchase an annuity? You are eligible to purchase a defined benefit plan annuity at the time of retirement if you are a member of TRS (RCW 41.32.067), WSPRS (RCW 43.43.315), LEOFF Plan 1 (RCW 41.26.105), LEOFF Plan 2 (RCW 41.26.463), PERS (RCW 41.40.131), SERS (RCW 41.35.235), or PSERS Plan 2 (RCW 41.37.295). This annuity provides a lifetime increase to your monthly benefit. (For purchasing an annuity from your Plan 3 defined contribution account, refer to WAC 415-111-320.)

(2) Can I purchase an annuity if I take a lump sum payment? You may not purchase an annuity if you elect a lump sum payment instead of a monthly benefit.

(3) Are there limits to the annuity amount I may purchase? There is no maximum limit on the purchase amount. If you are a LEOFF or WSPRS member the minimum purchase amount is $25,000. If you are a PERS, SERS, or PSERS member, the minimum purchase amount is $5,000. There is no minimum required for TRS members.

(4) When can I apply to purchase an annuity? You must submit your request to purchase an annuity to the department at the time you apply for retirement.

(5) How much will my monthly benefit increase if I purchase an annuity? The increase in your monthly benefit will be calculated using the following formula:

Purchase Annuity Amount x Annuity Factor = Increase to Monthly Benefit

The annuity factor is determined by your age on the later of your retirement date or the date your retirement application is submitted to the department.

Example: John is a member of LEOFF Plan 2. He applies for retirement and requests to purchase an annuity for $45,000. For illustration purposes in this example only, we will use 0.0051025 as the corresponding annuity factor (factors change periodically). John's monthly benefit will increase by $229.61 per month, calculated as follows:

Purchase Annuity Amount x Annuity Factor = Increase to Monthly Benefit

$45,000 x 0.0051025 = $229.61

(6) How and when do I pay for the annuity? The department will generate a bill to you for the cost of the annuity after we receive your request to purchase.

(a) For all TRS members, payment may be made by making a one-time personal payment (however, IRS regulations limit the amount of after-tax dollars you may use); and you may roll over funds from another tax-deferred retirement account. To purchase the annuity with Roth dollars, you must request a distribution first, then pay the bill with a check.

(b) For LEOFF, WSPRS, PERS, SERS, and PSERS members, the annuity must be purchased by rolling over funds from an "eligible retirement plan" which is a tax qualified plan offered by a governmental employer (like the state of Washington's deferred compensation program) or rolling over tax-deferred funds that originated with a governmental employer. You cannot use a Roth balance (if applicable) for this payment. You can only use dollars from your pretax balance. The annuity payment is taxable income when you receive it.

(c) For PERS Plan 1 or TRS Plan 1 members, Post-30 year contributions withheld under the provisions of RCW 41.40.191 or 41.32.4986 respectively, may not be used to purchase the annuity.

(d) Payment must be made in full by 90 days after the later of your retirement date or bill issue date. Your annuity will begin once your payment is received and your retirement is processed. The effective date for the start of this benefit is the later of your retirement date or the payment in full date plus one day.

(7) What are the survivor options for my annuity? The survivor option you designate for your retirement benefit will also be used for your annuity purchase, with the exception of WSPRS Plan 1 Option A and LEOFF Plan 1.

If you are a WSPRS Plan 1 member who chose Option A or you are a LEOFF Plan 1 member, your annuity will be paid for your lifetime only. Under these two survivor options, even though the retirement benefit may be paid over two lifetimes, there is no actuarial reduction. No actuarial reduction can be applied to the annuity, therefore the annuity can only be treated as if a single life option was chosen.

If you choose a benefit option with a survivor feature and your survivor dies before you, your monthly annuity payment will increase to the amount it would have been had you not selected a survivor option.

(8) Will I receive a cost of living adjustment (COLA) on the portion of my benefit that is based on the purchased annuity? If you are eligible for an annual COLA adjustment on your monthly benefit, you will receive the same COLA percentage on this annuity.

(9) If I purchase an annuity and then return to work, how will the annuity portion of my benefit be affected? You will continue to receive the annuity portion of your monthly benefit payment even if you return to work, or return to membership.

(10) If I retire then return to membership and reretire, may I purchase another annuity? Yes. You may purchase another annuity when you reretire provided you are reretiring from an eligible plan that allows an annuity purchase.

(11) May I purchase an annuity from more than one retirement plan?

(a) If you are a dual member under chapter 415-113 WAC, Portability of public employment benefits, and you combine service credit to retire as a dual member, you may purchase an annuity from each dual member plan that allows an annuity purchase.

(b) If you are not a dual member and retire separately from more than one plan you may purchase an annuity from each eligible plan that allows an annuity purchase.

(12) What happens to my annuity upon my death (and the death of my survivor, if applicable)?

| System Plan | Benefit Option | Annuity Payment Upon Death | | --- | --- | --- | | TRS 1 | Maximum Option | At the time of your death the annuity payment stops. | | TRS 1, TRS 2, TRS 3, LEOFF 2, WSPRS 2, PERS 1, PERS 2, PERS 3, SERS 2, SERS 3, and PSERS 2 | Option 1 (single life) | At the time of your death the annuity payments stop. The original amount you paid for your annuity, less any payments you have received, will be paid to your designated beneficiary. | | WSPRS 1 | Option A | | | LEOFF 1 | Automatic Survivor | | | TRS 1, TRS 2, TRS 3, LEOFF 2, WSPRS 2, PERS 1, PERS 2, PERS 3, SERS 2, SERS 3, and PSERS 2 | Option 2, 3, 4 (joint life) | At the time of your death, payments will continue to your survivor. At the time of your survivor's death, the original amount you paid for your annuity, less any payments you and your survivor have received, will be paid to your designated beneficiary. | | WSPRS 1 | Option B (joint life) | |

History

Statutory Authority: RCW 41.50.050, 41.50.770, and SECURE Act 2.0 § 603. WSR 23-18-025, § 415-02-178, filed 8/25/23, effective 9/25/23. Statutory Authority: RCW 41.50.050. WSR 21-22-047, § 415-02-178, filed 10/28/21, effective 11/28/21
WSR 20-01-145, § 415-02-178, filed 12/17/19, effective 1/17/20. Statutory Authority: RCW 41.50.050(5). WSR 17-07-021, § 415-02-178, filed 3/7/17, effective 4/7/17
WSR 16-04-048, § 415-02-178, filed 1/27/16, effective 2/27/16.

Wash. Admin. Code § 415-02-180 Is it possible to receive more than one month of service credit in a single retirement plan for a calendar month?

You may not receive more than one month of service credit for a calendar month, or twelve months of service credit during a service credit year, in any one retirement plan.

This includes, but is not limited to, receiving more than one month of service credit during a calendar month for:

(1) Working in two or more positions covered by the same retirement system;

(2) Military service and service as an employee in the same month;

(3) Purchasing service credit for a period of paid or unpaid leave that occurred during the same month you earned service credit for service as an employee;

(4) Serving as an elected or appointed official during the same month you earned service credit for service as an employee; or

(5) Working more than the minimum number of hours required to earn one month of service credit.

| example: | Mary, a PERS 1 member, worked full time for the department of retirement systems continuously for five years from January 1, 1996, through December 31, 2000. During the same period, she worked evenings and Saturdays (full time) in a PERS eligible position for the department of licensing. Mary earned a total of five years of service credit, which is the maximum service credit a member may earn in a five-year period. | | --- | --- |

History

Statutory Authority: RCW 41.50.050(5). WSR 05-13-045, § 415-02-180, filed 6/9/05, effective 7/10/05.

Wash. Admin. Code § 415-02-200 Can I transfer former LEOFF Plan 1 service?

If you are a member of PERS, TRS, SERS, or WSPRS, and you have previously established service credit in LEOFF Plan 1, you may irrevocably choose to transfer your LEOFF Plan 1 service to your current retirement system and plan subject to the following conditions:

(1) The choice to transfer service must be filed in writing with the department no later than one year from the date you become employed by a PERS, TRS, SERS, or WSPRS employer in an eligible position.

(2) If you transfer your service credit under this section:

(a) You will forfeit (lose) all rights to benefits as a LEOFF Plan 1 member and will be permanently excluded from membership.

(b) Your transferred service will not apply to the eligibility requirements for military service credit as defined in RCW 41.40.170(3) for PERS Plan 1 or in RCW 43.43.260(3) for WSPRS Plan 1.

(3) When you transfer your service credit under this section to your current retirement system and plan, DRS will transfer:

(a) All of your accumulated LEOFF Plan 1 contributions;

(b) An amount sufficient to ensure that the employer contribution rate in your current system and plan will not increase because of the transfer; and

(4) If you previously withdrew contributions from LEOFF Plan 1, you:

(a) May restore the contributions, together with interest as determined by the director, and recover the service represented by the contributions for the sole purpose of transferring service under this section;

(b) Must restore the contributions before the transfer can occur; and

(5) If you do not meet the time limitations of subsection (1) of this section, you may restore any withdrawn contributions and transfer service under this section by paying the amount required under subsection (3)(b) of this section less any employee contributions transferred.

(6) Terms used:

LEOFF - Law enforcement officers' and firefighters' retirement system.

PERS - Public employees' retirement system.

SERS - School employees' retirement system.

TRS - Teachers' retirement system.

WSPRS - Washington state patrol retirement system.

History

Statutory Authority: RCW 41.50.050. WSR 21-16-020, § 415-02-200, filed 7/23/21, effective 8/23/21. Statutory Authority: RCW 41.50.050(5), 41.26.195. WSR 04-04-038, § 415-02-200, filed 1/29/04, effective 3/1/04.

Wash. Admin. Code § 415-02-210 What is an indexed retirement allowance?

If you are a member of an indexed retirement plan as defined in WAC 415-02-030 and have at least 20 years of service credit when you leave employment, your pension benefit will increase by three percent for each year you delay receiving it, up to your full retirement age. The increased amount is referred to as an indexed retirement allowance.

(1) How will my indexed retirement allowance be calculated? If there is a period of at least one month between your separation from employment in the plan and your date of retirement, the department will calculate your indexed retirement allowance in the following way:

Using the average salary, increase the retirement allowance from the date both of the following have occurred and end on the last day of the month prior to attainment of the full retirement age.

(a) Separation from the retirement plan; and

(b) Accrual of 20 years of service credit.

Example: A PERS Plan 3 member separates December 24, 2017, with 23 years of service credits at age 63 and defers receiving their retirement until age 65, January 1, 2019. This member will receive indexing starting January 2018 through December 2018 (12 months of indexing).

(2) What if I return to service after completing 20 years of service credit? If you separate with at least 240 months of service credits, wait to retire, then return to membership before retiring, the indexing of your retirement benefit will be calculated two ways, with the higher of the two being used for your retirement calculation.

(a) Method 1: Use the average salary from the first separation after you attained 20 years of service credit. Indexing would apply to the number of calendar months starting from the first separation date. Indexing ends the month prior to the chosen retirement date or attainment of the full retirement age whichever is sooner, and excludes the months of re-employment following the first separation date.

(b) Method 2: Use the highest average salary based on all earnings throughout the entire employment period. Indexing would apply from the last separation date to the end of the month prior to the chosen retirement date or full retirement age, whichever is sooner.

Example: You are a member of a single DRS retirement system who separates with at least 240 months of service credits, waits to retire, then returns to membership before retiring. You now have 20 years of service credits on your inactive employment period, and will have at least two separation dates. DRS will calculate the benefit in the following two ways and provide you the higher of the two results:

Method 1 - System AFC/FAS with Interruptive Indexing.

• Use the AFC/FAS from the first separation after you attained 20 years of service credit excluding months when you were reemployed.

Method 2 - System AFC/FAS without Interruptive Indexing.

• Use the highest AFC/FAS based on all earnings, where indexing only be allowed from the last separation date to the retirement date.

(3) If your separation from employment occurs on the first of the month, that month will be included in the months indexed between separation and retirement. Any separation date after the first of the month will have indexing begin the following month.

History

Statutory Authority: RCW 41.50.050. WSR 22-15-007, § 415-02-210, filed 7/6/22, effective 8/6/22.

Wash. Admin. Code § 415-02-250 Retiree medical accounts established under Internal Revenue Code (IRC) section 401(h).

RCW 41.26.470(10), 41.26.510(5), and 43.43.285 (2)(b) authorizes LEOFF Plan 2 and WSPRS Plan 1/2 to provide reimbursement to eligible retirees and/or to their eligible survivors for certain medical insurance premiums. These reimbursements are authorized by IRC section 401(h), subject to the IRC and federal regulations.

(1) How is the money to fund these benefits held by the state? Pursuant to IRC section 401(h), there is established a retiree medical account within the trust fund of each of the respective plans. The money to fund the foregoing reimbursements for medical insurance premiums is held in these "retiree medical accounts." The assets in each of these retiree medical accounts shall be accounted for separately from other trust funds. There are no individual member accounts within a retiree medical account.

(2) How are the assets in the retiree medical accounts invested? The assets in the retiree medical accounts are commingled with other trust fund accounts for investment purposes. Portions of the investment expenses and investment earnings for the commingled investments are allocated to the retiree medical accounts on a reasonable basis.

(3) How are assets in the retiree medical accounts used?

(a) Assets in the retiree medical accounts are held in trust for the exclusive benefit of eligible retirees and their eligible survivors.

(b) The assets of the respective retiree medical accounts shall be used only for the payment of the benefits provided in RCW 41.26.470(10), 41.26.510(5), and 43.43.285 (2)(b), and the expenses of administering these sections. Assets in the retiree medical accounts may not be used for any other retirement benefit provided by chapters 41.26 and 43.43 RCW or any other purpose.

(c) If any individual forfeits an interest in the benefits provided in RCW 41.26.470(10), 41.26.510(5), and 43.43.485 (2)(b), the money in the retiree medical account shall be used to provide benefits to those who remain eligible.

(d) Upon satisfaction of all liabilities under RCW 41.26.470(10), 41.26.510(5), and 43.43.285 (2)(b), any assets in a retiree medical account that are not used as provided in (b) of this subsection shall be transferred to the department of retirement systems' (DRS) expense fund for the benefit of employers, as required by IRC section 401 (h)(5).

(e) These benefits are subordinate to the retirement benefits provided by the plan.

(4) How are the retiree medical accounts funded?

(a) The retiree medical accounts are funded by designated retirement contributions, appropriations, and any other sources. The funding structure and the process for determining the contributions for the accounts are set out in chapter 41.45 RCW, in particular RCW 41.45.050, 41.45.060, 41.45.0604, 41.45.0631, and 41.45.070.

(b) At no time shall the contributions to a retiree medical account plus the contributions to its respective plan for the one-time duty-related death benefit be in excess of twenty-five percent of the total contributions to its respective plan (not including contributions to fund past service credits). This comparison is made by comparing the cumulative contributions that have been made after the effective date of the retiree medical account.

(5) In adopting this section, DRS intends to comply in all respects with IRC sections 401(a) and 401(h) and to preserve the status of LEOFF Plan 2 and WSPRS Plan 1/2 as tax-qualified governmental plans under section 401(a) and 414(d) of the Internal Revenue Code.

History

Statutory Authority: RCW 41.50.050(5) and chapter 43.43 RCW. WSR 11-18-017, § 415-02-250, filed 8/26/11, effective 9/26/11.

Wash. Admin. Code § 415-02-260 What happens to my monthly retirement benefit when I die?

If a survivor benefit will not be paid on your account, a prorated portion of your defined benefit for the month of your death will be paid to your estate. Any contributions that have not been paid in retirement benefits will be paid to your beneficiary. If your named beneficiaries have all predeceased you, remaining contributions will be paid to your estate. Amounts you owe the department, if any, will be subtracted from your account prior to payments being made to your beneficiary or estate.

History

Statutory Authority: RCW 41.50.050. WSR 21-10-036, § 415-02-260, filed 4/28/21, effective 5/29/21.

Wash. Admin. Code § 415-02-261 What happens if a beneficiary disclaims a lump sum benefit?

(1) A beneficiary may disclaim a payment in writing with the department as prescribed by the department. If the beneficiary was a primary beneficiary and there are other living primary beneficiaries, the disclaimed benefit will be split among the other primary beneficiaries in the same proportion (rounded) awarded by the member or retiree.

(2) General formula: A member has n beneficiaries, with each beneficiary receiving a percentage and the total percentage equal to 100. When one beneficiary disclaims their benefit, there are then n-1 beneficiaries. The sum of these percentages is now less than 100. To determine the new percentages, divide the original percentage for each beneficiary by the new total of the remaining percentages.

Example: Chris has listed three people as primary beneficiaries: Tom at 34 percent, Carl at 33 percent, and Wilma at 33 percent. Chris passed away. Tom disclaims the benefit with the department. Carl and Wilma each receive 50 percent of the contributions.

Example: Chris has listed three people as primary beneficiaries: Tom at 50 percent, Carl at 25 percent, and Wilma at 25 percent. Chris passed away. Carl disclaims the benefit with the department. Tom receives 67 percent and Wilma 33 percent of the contributions.

Example: Chris has listed four people as primary beneficiaries: Tom at 40 percent, Carl at 30 percent, Wilma at 20 percent, and Liam at 10 percent. Chris passed away. Carl disclaims their 30 percent of the benefit with the department. Tom receives 57 percent (40 divided by 70), Wilma receives 29 percent (20 divided by 70) and Liam receives 14 percent (10 divided by 70) of the contributions.

Example: Chris has listed four people as primary beneficiaries with the following percentages: Person A with "a" percent, person B with "b" percent, person C with "c" percent, and person D with "d" percent.

Chris passed away. Person B disclaims the benefit with the department. Person A receives a/(a+c+d), person C receives c/(a+c+d), and person D receives d/(a+c+d).

(3) If the primary beneficiary disclaims the benefit and there are no other primary beneficiaries, the benefit will pass to the contingent beneficiary designation made by the member or retiree. If there are no contingents, it will pass to the estate of the retiree or per the succession in law for the retirement system and plan of the member.

History

Statutory Authority: RCW 41.50.050. WSR 23-07-044, § 415-02-261, filed 3/8/23, effective 4/8/23.

Wash. Admin. Code § 415-02-300 How does the department adopt administrative factors?

WAC 415-02-300

(1) The department adopts administrative factors following recommendations by the office of the state actuary (OSA). When underlying economic or demographic assumptions for the covered retirement systems change, OSA reviews administrative factors.

(2) Every two years, the following process applies to all retirement systems administered by the department except law enforcement officers' and fire fighters' retirement system (LEOFF) Plan 2:

(a) OSA publishes an economic experience study in the fall of odd-numbered years.

(b) The pension funding council reviews OSA's published study and may adopt updated economic assumptions in fall of odd-numbered years.

(c) If new economic assumptions are adopted, OSA recommends updated factors to the department in the spring of even-numbered years.

(d) In spring of even-numbered years, the department determines whether to adopt updated factors.

(e) If factors are adopted, the department will post them to its website and begin using them in benefit estimate calculations starting in the summer of even-numbered years.

(f) New factors take effect during the first quarter of the following year.

(3) Every two years, the following process applies to LEOFF Plan 2:

(a) OSA publishes an economic experience study in the fall of odd-numbered years.

(b) The LEOFF Plan 2 retirement board reviews OSA's published study and may adopt updated economic assumptions in fall of odd-numbered years.

(c) If new economic assumptions are adopted, OSA notifies the LEOFF Plan 2 retirement board and the department in the spring of even-numbered years of the impact the new economic assumptions have on LEOFF Plan 2 factors.

(d) Upon notification of new LEOFF Plan 2 factors, the department will post them to its website and begin using them in benefit estimate calculations starting in the summer of even-numbered years.

(e) New factors take effect during the first quarter of the following year.

(4) Any adjustments to administrative factors resulting from a demographic experience study conducted by OSA every five to six years are incorporated into the applicable schedule described in subsections (2) and (3) of this section.

History

Statutory Authority: RCW 41.50.050 and 41.45.030. WSR 26-17-040, s 415-02-300, filed 8/12/26, effective 9/12/26. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-300, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-300, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 02-18-048, § 415-02-300, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-02-305 How are administrative factors used?

WAC 415-02-305

The department uses administrative factors in benefit and bill calculation formulas to adjust baseline pension benefits amounts, annuity benefits amounts, and other member billings to account for impacts to the retirement trust funds caused by events including, but not limited to, early retirements, joint and survivor benefit options, and purchasing additional service credits.

History

Statutory Authority: RCW 41.50.050 and 41.45.030. WSR 26-17-040, s 415-02-305, filed 8/12/26, effective 9/12/26.

Wash. Admin. Code § 415-02-310 How does the department use my age in calculating benefits?

This section provides an overview of the several different ways in which the department uses age in calculating benefits. The department may use your age to determine your retirement date, early retirement factors to apply, survivor factors, or cost-of-living (COLA) adjustment factors.

(1) Present value: The department uses a rounding method to determine your age when calculating what your future lifetime monthly benefit is worth in present-day dollars. If the number of months in your age is under six months, the department will round down. If the number is six months or more, the department will round up. See WAC 415-02-340 for more information about the present value calculations.

Example 1:

At the time that the department is calculating Sharon's age in making a present value calculation, Sharon is 55 years, 5 months and 26 days old. The department will round down and use 55 as Sharon's age.

Example 2:

At the time that the department is calculating Donna's age in making a present value calculation, Donna is 54 years and 7 months old. The department will round up and use 55 as Donna's age.

(2) Early retirement: The department uses the difference between the date you are eligible for normal retirement and your date of actual retirement to calculate any actuarial reduction to your benefit. See WAC 415-02-320 for more information about early retirement.

(a) Step 1: The department determines the date you are eligible for normal retirement.

(i) All plans (except for LEOFF Plan 1, TRS Plan 1, WSPRS Plans 1 and 2, JRF and JRS): You can retire the first day of the month following your meeting the age requirement for retirement if you are otherwise eligible.

| Example: | Jake was born on May 12, 1941. On May 12, 2006, Jake reached age 65 and met the age requirement for retirement. Provided that he is otherwise eligible, Jake's retirement date is June 1, 2006. | | --- | --- |

(ii) LEOFF Plan 1, TRS Plan 1, WSPRS Plans 1 and 2, JRF, and JRS: If a retirement date other than the first of the month is allowed, you can retire on the day you meet the age requirement, or the following day (depending on the plan).

| Example: | If Jake is a member of this type of plan, he could retire May 12th or 13th, 2006 (his birthday or the day after his birthday). | | --- | --- |

(b) Step 2: The department determines the difference between the date you are eligible for normal retirement and your date of actual retirement as follows:

(i) Example 1:

| Date of eligibility for normal retirement | 06/01/06 | | --- | --- | | Date of actual retirement | 08/01/02 | | Determination of full years: | 08/01/02 to 07/31/05 is 3 years | | Determination of full months: | 08/01/05 to 05/31/06 is 10 months | | Difference is: | 3 years, 10 months |

(ii) Example 2:

| Date of eligibility for normal retirement | 05/13/06 | | --- | --- | | Date of actual retirement | 08/01/02 | | Determination of full years: | 08/01/02 to 07/31/05 is 3 years | | Determination of full months: | 08/01/05 to 04/30/06 is 9 months | | Additional days are not considered: | 05/01/06 to 05/13/06 are not considered | | Difference is: | 3 years, 9 months |

(c) Step 3: Determine the early retirement factor. The department uses the difference calculated in step 2 to determine the early retirement factor used to calculate your benefit as described in WAC 415-02-320.

(3) Optional COLA factor for PERS Plan 1 and TRS Plan 1. The department uses the rounding method described in the "present value" subsection in this section to calculate your age when determining the optional COLA factor. See WAC 415-02-360 for a description of the optional COLA factor calculation.

(4) Calculating age to use in determining the survivor option factor. At retirement, if you select a survivor option, the department must calculate the difference between your age and your survivor beneficiary's age. See WAC 415-02-380 for more information about survivor options.

(a) Step 1: The department calculates your age and your survivor beneficiary's age at the time of your retirement.

(b) Step 2: The department rounds the ages, using the same method described in the "present value" subsection in this section.

Example:

| Member's age: | 60 | | | --- | --- | --- | | Minus survivor beneficiary's age: | 49 | | | | 11 | |

Result: The department will use the survivor option factor for a survivor beneficiary who is 11 years younger than the member.

Example:

| Member's age: | 65 | | | --- | --- | --- | | Minus survivor beneficiary's age: | 67 | | | | -2 | |

Result: The department will use the survivor option factor for a survivor beneficiary who is two years older than the member.

(5) Terms used

(a) JRF - Judicial retirement fund.

(b) JRS - Judicial retirement system.

(d) PERS - Public employees' retirement system.

(e) SERS - School employees' retirement system.

(f) TRS - Teachers' retirement system.

(g) WSPRS - Washington state patrol retirement system.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-16-086, § 415-02-310, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 08-20-068, § 415-02-310, filed 9/25/08, effective 10/26/08
WSR 03-06-044, § 415-02-310, filed 2/27/03, effective 4/1/03.

Wash. Admin. Code § 415-02-320 Early retirement factors.

(1) What are early retirement factors? Early retirement factors (ERFs) are actuarial factors used by the department to reduce a monthly retirement benefit when that payment begins before the member has qualified for normal retirement based on age and service. This reduction offsets the cost to the plan of paying the monthly benefit for a longer time.

(2) In what situations will the department use an ERF?

(a) The department will use an ERF to reduce a monthly benefit in any of the following situations, subject to the law governing your plan, and subject to the exceptions in (b) of this subsection:

(i) You choose to retire early.

(ii) You retire due to a disability before you are eligible for normal retirement.

(iii) You die before you are eligible for normal retirement, and your beneficiary is eligible for a monthly benefit.

(b) An ERF is not used in the following circumstances, although another method may be used to reduce benefits as required by the laws governing each plan:

(i) You meet your plan's requirements for "alternate early retirement";

(ii) You meet PSERS requirements for "early retirement";

(iii) You retire for service or due to a disability, from PERS Plan 1 or TRS Plan 1;

(iv) You are a member of LEOFF Plan 1;

(v) You retire due to a duty-related disability from LEOFF Plan 2;

(vi) You retire due to a disability or die before retirement from WSPRS Plan 1; or

(vii) You retire due to a disability from WSPRS Plan 2.

| | Early Retirement | Disability Retirement | Death Prior to Retirement | | --- | --- | --- | --- | | LEOFF Plan 1: | N/A | N/A | N/A | | LEOFF Plan 2: | RCW 41.26.430 | RCW 41.26.470 | RCW 41.26.510 | | PERS Plan 1: | N/A | N/A | RCW 41.40.270 | | PERS Plan 2: | RCW 41.40.630 | RCW 41.40.670 | RCW 41.40.700 | | PERS Plan 3: | RCW 41.40.820 | RCW 41.40.825 | RCW 41.40.835 | | PSERS: | N/A | RCW 41.37.230 | RCW 41.37.250 | | SERS Plan 2: | RCW 41.35.420 | RCW 41.35.440 | RCW 41.35.460 | | SERS Plan 3: | RCW 41.35.680 | RCW 41.35.690 | RCW 41.35.710 | | TRS Plan 1: | N/A | N/A | RCW 41.32.520 | | TRS Plan 2: | RCW 41.32.765 | RCW 41.32.790 | RCW 41.32.805 | | TRS Plan 3: | RCW 41.32.875 | RCW 41.32.880 | RCW 41.32.895 | | WSPRS Plan 1: | RCW 43.43.280 | N/A | N/A | | WSPRS Plan 2: | RCW 43.43.280 | N/A | RCW 43.43.295 |

(3) How does the department determine the number of years on which to base the ERF? The calculation varies among plans:

(a) ERFs are based on the number of years between the age at which you retire, or die, and the age at which you would have qualified for normal retirement based on age and service.

Example - Early retirement: Sandy, a PERS Plan 2 member, applies for retirement at age 56 years and one month with a total of 21.11 years of service. Her average final compensation (AFC) is $3,500.00.

PERS Plan 2 provides for two percent (.02) of AFC per year of service. A PERS Plan 2 member must be age 65 to retire with an unreduced benefit (i.e., normal retirement), but is eligible to retire with an actuarially reduced benefit (i.e., early retirement) at age 55 with 20 years of service credit.

The difference between Sandy's age now (56) and the age at which she would have qualified for normal retirement (age 65) is 8 years and 11 months. For illustration purposes in this example only, we will use 0.3987 as the corresponding ERF for retiring 8 years and 11 months early (actuarial factors change periodically). As a result, Sandy's monthly benefit will be $589.16. The department will use the following formula to determine Sandy's monthly benefit: $3,500 (AFC) x .02 x 21.11 (service credit years) x 0.3987 (ERF).

(b) WSPRS Plan 2 only: The ERF used to calculate your survivor's monthly benefit if you die before retirement is based on the number of years between the age at which you die and age fifty-five (55) or when you could have attained twenty-five (25) years of service, whichever is less. See RCW 43.43.295.

Example - Early retirement: The survivor benefit, in this example, will also have a reduction applied for 100% joint and survivor option, based on the difference between John's age and his survivor's age.

John, a WSPRS Plan 2 member dies prior to retirement. John is age 40 and has 15 years of service at the time of his death. John's Average Final Salary (AFS) is $4,000. John's surviving spouse, Emily, is also age 40.

Since John would have attained 25 years of service before he would have attained age 55, the ERF used to calculate Emily's benefit will be based on the 10 years it would have taken John to reach 25 years of service. For illustration purposes in this example only, we will use 0.403 as the corresponding ERF for retiring 10 years early, and 0.889 as the corresponding joint and survivor (J&S) factor (actuarial factors change periodically). As a result, Emily will receive a monthly benefit of $429.92. The department will use the following formula to determine Emily's monthly benefit: $4,000 (AFS) x .02 x 15 (service credit years) x 0.403 (ERF) x 0.889 (J&S).

(c) TRS Plan 1 only: The ERF used to calculate your survivor's monthly benefit if you die before retirement is based on the number of years between the age at which you die and the age at which you would have first become eligible to retire under RCW 41.32.480. See RCW 41.32.520.

Example - Death before retirement: Robert, a 56 year-old TRS Plan 1 member, died with 23.17 years of service credit. His AFC is $3,171.74.

TRS Plan 1 provides an unreduced benefit (i.e., normal retirement) at age 55 with 25 years of service credit.

Robert's wife, Karen, is two years younger than Robert. Karen will receive an actuarially reduced benefit based on the date Robert would have first qualified for an unreduced benefit (i.e., normal retirement). If Robert had continued in service, he would have met eligibility requirements in one year and 10 months, when he earned 25 years of service credit. For illustration purposes in this example only, we will use 0.8410 as the corresponding ERF for retiring one year and 10 months early, and 0.918 as the corresponding J&S Option 2 factor (actuarial factors change periodically). As a result, Karen's monthly benefit will be $1,134.73.

The department will use the following formula to determine Karen's monthly benefit: 23.17 (Robert's service credit years) x .02 x $3,171.74 (AFC) x 0.8410 (ERF) x 0.918 (the Option 2 factor).

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-320, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-320, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5), chapter 41.45 RCW. WSR 06-18-009, § 415-02-320, filed 8/24/06, effective 9/24/06
WSR 02-18-048, § 415-02-320, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-02-325 2008 Early retirement factors.

(1) What are the 2008 early retirement factors? In chapter 491, Laws of 2007, the legislature created optional early retirement factors (ERFs) for members retiring on or after September 1, 2008. Referred to as the 2008 ERFs, these optional factors are available to Plan 2 and Plan 3 members of the following retirement systems: Public employees' retirement system (PERS); school employees' retirement system (SERS); and teachers' retirement system (TRS). The 2008 ERFs provided a higher retirement benefit than the three percent ERFs, but imposed stricter return to work rules. Effective January 1, 2024, the stricter return to work rules were removed and eligible retirees who retired under the three percent ERFs will have or have had their benefit recalculated under the 2008 ERFs.

(2) If I retire before age 65 using the 2008 ERFs, how will my benefit be calculated? Your normal (age 65) retirement benefit will be multiplied by the factor shown in the following table, based on your age at the time of your early retirement.

| Retirement Age | 2008 Early Retirement Factor | | --- | --- | | 55 | 0.80 | | 56 | 0.83 | | 57 | 0.86 | | 58 | 0.89 | | 59 | 0.92 | | 60 | 0.95 | | 61 | 0.98 | | 62 | 1.00 | | 63 | 1.00 | | 64 | 1.00 | | 65 | 1.00 |

(3) Am I eligible for the 2008 ERFs? Plan 2 and Plan 3 members of PERS, SERS, and TRS, who entered membership prior to May 1, 2013, must be at least age 55 and have at least 30 service credit years to be eligible for retirement using the 2008 ERFs.

(4) What are the return to work rules if I retire under the 2008 ERFs?

Please refer to WAC 415-108-710, 415-110-710, and 415-112-525 for specific system rules.

History

Statutory Authority: RCW 41.50.050, 2022 c 110, 2023 c 99, and 2023 c 410. WSR 23-24-091, § 415-02-325, filed 12/5/23, effective 12/7/23. Statutory Authority: RCW 41.50.050. WSR 20-01-079, § 415-02-325, filed 12/11/19, effective 1/11/20. Statutory Authority: RCW 41.50.050(5). WSR 17-04-050, § 415-02-325, filed 1/26/17, effective 2/26/17.

Wash. Admin. Code § 415-02-340 Monthly benefit per $1.00 of accumulation for defined benefit plans.

(1) What does the phrase "monthly benefit per $1.00 of accumulation for defined benefit plans" mean? It refers to an actuarially equivalent value that the department uses to:

(a) Determine what a future lifetime monthly benefit is worth in present-day dollars;

(b) Determine the equivalent value of a lump sum when compared with monthly payments;

(d) For TRS Plan 1 only: Determine the reduction in the monthly retirement benefit if some or all of the accumulated contributions in a member's individual account are withdrawn at retirement pursuant to RCW 41.32.498.

(2) What information is used to determine the "monthly benefit per $1.00 of accumulation for defined benefit plans" values? The values, which change periodically, are based on the expected duration of lifetime payments for recipients over a range of ages. These values differ by system and plan.

The younger a person is at retirement, the longer the anticipated lifetime of payments would be, and the greater the sum required to provide for these payments. The amount of monthly lifetime benefit that a present-day dollar buys increases as the remaining life expectancy of the recipient decreases.

(a) Example:

Celina is a 65-year-old PERS Plan 2 member who is eligible to receive $45.00 per month. She wants to know how much money she would receive if she accepted a lump sum payment instead. For illustration purposes in this example only, we will assume that $.0069798 per month for life has a present day cash value of one dollar ($1.00) for Celina's system, plan, and age class. Celina divides $45.00 by .0069798 and learns that her lump sum payment would be $6,447.18.

(b) Example:

Fred is a 58-year-old TRS Plan 1 member. The balance in Fred's account is $124,934.00. Upon retirement, Fred chooses to withdraw the $124,934.00 (as only members of TRS Plan 1 can do and still receive a monthly benefit). For illustration purposes in this example only, we will assume that $.0077298 per month for life has a present day cash value of one dollar ($1.00) for Fred's system, plan, and age class. Fred multiplies $124,934.00 by .0077298, and learns that his monthly retirement benefit will be reduced by $965.71 per month if he withdraws his account balance.

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-340, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-340, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5), chapter 41.45 RCW. WSR 06-18-009, § 415-02-340, filed 8/24/06, effective 9/24/06
WSR 02-18-048, § 415-02-340, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-02-345 TRS Plan 1 Option 1 benefit factors.

What is a TRS Plan 1 Option 1 benefit factor? At the time of retirement, a TRS Plan 1 member may choose to receive an Option 1, standard benefit, which is a slightly reduced lifetime monthly benefit. This option allows the final unpaid monthly benefit and any remaining balance of contributions to be paid in a lump sum to the retiree's estate or named beneficiary at the time of the retiree's death. The reduction to the monthly benefit is based on an Option 1 factor and is applied against the annuity portion of the monthly benefit. The actuarial factor that is used is determined by the age of the member at the time of retirement (actuarial factors change periodically). For more information about the Option 1 standard benefit, see RCW 41.32.530 (1)(a).

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-345, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-345, filed 7/30/10, effective 9/1/10
WSR 03-24-051, § 415-02-345, filed 11/26/03, effective 1/1/04.

Wash. Admin. Code § 415-02-350 What are cost-of-living adjustments (COLA) and how are they calculated?

(1) What is a cost-of-living adjustment (COLA)? The value of a retiree's, beneficiary's, or ex-spouse's monthly benefit may change in the years after retirement because of inflation or other factors. A COLA automatically adjusts benefits based on the cost of living changes.

(2) What retirement plans include COLAs? With one exception, all retirement plans administered by the department provide one or more of the types of COLAs listed in subsection (3) of this section. The judges retirement fund (chapter 2.12 RCW) does not provide a COLA.

| RETIREMENT SYSTEM | PLAN | COLA TYPE | STATUTE | | --- | --- | --- | --- | | JUDICIAL | | Base | RCW 2.10.170 | | LEOFF | Plan 1 | Base | RCW 41.26.240 | | LEOFF | Plan 2 | Base | RCW 41.26.440 | | PSERS | | Base | RCW 41.37.160 | | PERS | Plan 1 | Uniform | RCW 41.40.197 | | PERS | Plan 1 | Optional | RCW 41.40.188 (1)(c) | | PERS | Plan 2 | Base | RCW 41.40.640 | | PERS | Plan 3 | Base | RCW 41.40.840 | | SERS | Plans 2 and 3 | Base | RCW 41.35.210 | | TRS | Plan 1 | Uniform | RCW 41.32.489 | | TRS | Plan 1 | Optional | RCW 41.32.530 (1)(d) | | TRS | Plan 2 | Base | RCW 41.32.770 | | TRS | Plan 3 | Base | RCW 41.32.845 | | WSPRS | Plans 1 and 2 | Base | RCW 43.43.260 |

(3) What are the types of COLAs?

(a) Optional COLA

The optional COLA is an option you may select at retirement. If you choose this option, your monthly retirement benefit will be actuarially reduced at retirement, and you will receive an automatic adjustment in your monthly retirement benefit each year for the rest of your life. The optional COLA has no age requirement and is limited to a maximum of three percent of your monthly benefit.

(b) Base COLA

The base COLA is applied in July (April for LEOFF Plan 1) of each year and adjusts the benefit based on the change in the Consumer Price Index for the Seattle-Tacoma-Bremerton, Washington area for all plans except the Judicial Retirement System which is based on the U.S. City Average. Base COLAs are limited to a maximum of three percent of the monthly benefit for all affected plans except LEOFF Plan 1. During a calendar year, the base COLA is payable to:

(i) Retirees who have been retired for at least one year by July 1st of each year (April 1st for LEOFF Plan 1); and

(ii) Beneficiaries or eligible ex-spouses who receive benefit payments from an account that, by July 1st, has paid a monthly benefit for at least one year (April 1st for LEOFF Plan 1).

The uniform COLA is an annual adjustment to the benefit, based on years of service. The annual adjustment for the uniform COLA is independent from any other COLA. During a calendar year, it is payable to:

(i) Retirees who, by July 1st, have received a retirement benefit for at least one year and who, by December 31st, will have reached age sixty-six or older;

(ii) Beneficiaries and eligible ex-spouses who receive benefit payments from an account that, by July 1st, has paid a monthly benefit for at least one year and who, by December 31st, will have reached age sixty-six or older; and

(iii) Retirees, beneficiaries, or eligible ex-spouses of any age whose retirement benefit is calculated under the minimum formula.

(4) Who is responsible for determining the amount of the COLA? The office of the state actuary (OSA) bases the percentages of the COLAs on the Consumer Price Index. The Index is based on wages earned by urban wage earners and clerical workers in the Seattle-Tacoma-Bremerton, Washington area. OSA provides this information to the department annually.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-16-086, § 415-02-350, filed 7/30/10, effective 9/1/10
WSR 08-20-068, § 415-02-350, filed 9/25/08, effective 10/26/08
WSR 08-01-079, § 415-02-350, filed 12/17/07, effective 1/17/08. Statutory Authority: RCW 41.50.050(5), 2.10.170, 41.26.240, 41.26.440, 41.37.160, 41.40.197, 41.40.188 (1)(c), 41.40.640, 41.40.840, 41.35.210, 41.32.489, 41.32.530 (1)(d), 41.32.770, 41.32.845, 43.43.260. WSR 06-18-009, § 415-02-350, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 03-06-044, § 415-02-350, filed 2/27/03, effective 4/1/03.

Wash. Admin. Code § 415-02-360 What is the optional cost-of-living adjustment (COLA) for PERS Plan 1 and TRS Plan 1?

(1) PERS Plan 1 and TRS Plan 1 members can choose to receive an initially reduced retirement benefit in order to receive an annual cost-of-living adjustment in the future. With this optional COLA, the member's monthly retirement benefit is actuarially reduced at the time of retirement. Thereafter, the monthly benefit of the member (and subsequently their beneficiary) is adjusted annually, based on changes in the consumer price index (CPI), up to the statutory maximum. For more information, see:

PERS Plan 1: RCW 41.40.188 (1)(c); WAC 415-108-326

TRS Plan 1: RCW 41.32.530 (1)(d); WAC 415-112-504

(2) Examples

(a) Ernie is a member of TRS Plan 1. He retires at age 55 with 30 years of service and chooses the Single Life Option (no survivor beneficiary). His average final compensation (AFC) is $4,295.33 per month.

(i) If he does not choose the optional COLA, his monthly benefit will be $2,577.20 (2% x 30 x $4,295.33).

(ii) If he does choose the optional COLA, his initial monthly benefit will be reduced. For illustration purposes in this example only, we will use 0.7396 as the optional COLA factor for Ernie's age at retirement (actuarial factors change periodically). As a result, Ernie's initial monthly benefit will be reduced to $1,909.19 (.7396 x $2,577.20). This monthly amount may increase each year with changes in the CPI.

(b) Tina is a member of PERS Plan 1. She retires with 30 years of service credit at age 52 and 8 months. Because she has 30 years of service, there is no reduction for an early retirement. Tina chooses the Single Life Option (no survivor beneficiary). Her average final compensation (AFC) is $3,825.00 per month.

(i) If she does not choose the optional COLA, her monthly benefit will be $2,295.00 (2% x 30 x $3,825.00).

(ii) If she does choose the optional COLA, her initial monthly benefit will be reduced. For illustration purposes in this example only, we will use 0.7375 as the optional COLA factor for Tina's age at retirement (actuarial factors change periodically). As a result, Tina's initial monthly benefit will be reduced to $1,692.56 (.7375 x $2,295.00). This monthly amount may increase each year with changes in the CPI.

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-360, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-360, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 08-20-068, § 415-02-360, filed 9/25/08, effective 10/26/08
WSR 02-18-048, § 415-02-360, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-02-370 Factors for establishing or restoring service credit.

RCW 41.50.165(2) and chapter 415-10 WAC allow you to establish or restore service credit by paying the actuarial value of the resulting increase in your monthly retirement allowance. This section describes what the factors take into consideration when the department uses actuarial factors to calculate the lump sum costs. See also chapter 415-10 WAC.

What are the factors and how are they used in calculating the lump sum costs of establishing or restoring service credit? For each system and plan there is a two-dimensional "age and service" table of actuarial factors which are used to calculate the cost of establishing or restoring service credit.

The department will calculate the actuarial value of the service credit you purchase using the following formula:

Total Cost = Part 1 Cost + Part 2 Cost

Part 1: Annual Average Salary x Service Credit Years to Purchase x Factor 1

Part 2: Annual Average Salary x Current Service Credit Years x (Factor 1 – Factor 2)

Factor 1 takes into consideration your current age and service credit, including the service credit you are purchasing.

Factor 2 takes into consideration your current age and service credit, excluding the service credit you are purchasing.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-02-370, filed 2/27/14, effective 10/1/14
WSR 13-18-034, § 415-02-370, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5), 41.50.165. WSR 06-18-009, § 415-02-370, filed 8/24/06, effective 9/24/06
WSR 03-15-006, § 415-02-370, filed 7/3/03, effective 8/3/03.

Wash. Admin. Code § 415-02-380 How will my retirement benefit be affected if I choose a survivor option?

WAC 415-02-380

If you choose a survivor benefit option, your benefit will be affected as described in this section.

(1) What is a survivor benefit option? A survivor benefit option will pay a lifetime monthly benefit to your survivor beneficiary after your death.

(2) What is a survivor beneficiary? A survivor beneficiary is the person you designate to receive a lifetime monthly benefit after your death.

(3) What benefit options are available? All available benefit options, including survivor benefit options, are described in detail for each system and plan in the following state laws and agency rules:

| LEOFF Plan 1: | RCW 41.26.164 | WAC 415-104-202 | | --- | --- | --- | | LEOFF Plan 2: | RCW 41.26.460 | WAC 415-104-215 | | PERS Plan 1: | RCW 41.40.188 | WAC 415-108-326 | | PERS Plan 2: | RCW 41.40.660 | WAC 415-108-326 | | PERS Plan 3: | RCW 41.40.845 | WAC 415-108-326 | | PSERS: | RCW 41.37.170 | WAC 415-106-600 | | SERS Plans 2 and 3: | RCW 41.35.220 | WAC 415-110-610 | | TRS Plan 1: | RCW 41.32.530 | WAC 415-112-504 | | TRS Plan 2: | RCW 41.32.785 | WAC 415-112-505 | | TRS Plan 3: | RCW 41.32.851 | WAC 415-112-505 | | WSPRS Plan 1: | RCW 43.43.278 | WAC 415-103-215 | | WSPRS Plan 2: | RCW 43.43.271 | WAC 415-103-225 |

(4) How will selecting a survivor benefit option affect my monthly retirement benefit? If you select a survivor benefit option your monthly retirement benefit will be reduced to offset the cost of potentially paying the benefit for a longer period of time. The reduction will be based on survivor option factors that are available on the DRS website.

(5) Does my survivor beneficiary's age affect how much my monthly retirement benefit will be reduced? Yes. Your survivor beneficiary's age is used in determining the amount of your monthly retirement benefit and the benefit of your survivor beneficiary. The younger the survivor beneficiary, the longer they are expected to receive a benefit. Your monthly benefit will be reduced accordingly.

(a) Example:

Kendra, a PERS Plan 2 member, chooses Option 3 (joint and 50 percent survivorship) at retirement. Her monthly Option 1 nonsurvivor benefit amount, which would stop at the time of her death, is $2,000.00. She names her nephew, Steve, as her survivor beneficiary. This means, if Kendra dies before Steve, Steve will receive a monthly benefit equal to half the amount Kendra was receiving. Steve is 30 years younger than Kendra. The department will reduce Kendra's monthly retirement benefit using the survivor option factor for a member who is 30 years older than the beneficiary. For illustration purposes in this example only, we will use 0.776 as the corresponding Option 3 benefit factor (actuarial factors change periodically). As a result, Kendra's Option 3 monthly benefit amount will be $1,552.00 ($2,000.00 x 0.776).

(b) Example:

Mark, a LEOFF Plan 2 member, chooses Option 2 (joint and 100 percent survivorship) at retirement. His monthly Option 1 nonsurvivor benefit amount, which would stop at the time of his death, is $2,000.00. He names his wife, Susan, as his survivor beneficiary. This means, if Mark dies before Susan, Susan will receive a monthly benefit equal to the amount Mark was receiving. Mark is five years younger than Susan. The department will reduce Mark's monthly retirement benefit using the survivor option factor for a member who is five years younger than the beneficiary. For illustration purposes in this example only, we will use 0.898 as the corresponding Option 2 benefit factor (actuarial factors change periodically). As a result, Mark's Option 2 monthly benefit amount will be $1,796.00 ($2,000.00 x 0.898).

(6) How will naming a nonspousal survivor beneficiary affect my benefit options? When you name a nonspouse survivor, your benefit options may be limited when your survivor is 11 or more years younger than you. Your available options are based on the age difference between you and your survivor.

(a) Age difference: Less than 11 years: Eligible for Option 2 (100 percent), Option 3 (50 percent), or Option 4 (66.67 percent) survivor benefit option. These options are also all available if the age difference is 11 years or more, but the survivor's age is the higher number.

(b) Age difference: 11–24 years: Eligible for Option 3 (50 percent) or Option 4 (66.67 percent) survivor benefit options.

(d) If you retire before the age the IRS requires your required minimum distributions (RMDs) to begin, the age difference between you and your survivor will be reduced by the number of years between your age at retirement and your RMD age.

(i)  If you were born before July 1, 1949, your RMD age is 70.

(ii) If you were born between July 1, 1949, and December 31, 1950, your RMD age is 72.

(iii) If you were born between January 1, 1951, and December 31, 1959, your RMD age is 73.

(iv) If you were born on or after January 1, 1960, your RMD age is 75.

If you retire after your RMD age, there is no adjustment to the age difference between you and your nonspouse survivor.

(e) Example: Janet was born January 5, 1961, and will retire September 1, 2026. She plans to name her son, born April 14, 1985, as her survivor beneficiary. The age difference between Janet and her son is 24 years. Janet's RMD age is 75, and she is retiring at age 65 so the age difference is reduced by 10 years (75 minus 65) for an adjusted age difference of 14 (24 minus 10) years. Janet is eligible to choose between survivor Option 3 (50 percent) and Option 4 (66.67 percent) for her son.

(7) What if my survivor beneficiary passes away before I do? If you are receiving a reduced benefit with a survivor option and your survivor passes away before you do, you may request to have your benefit increased to the Option 1 nonsurvivor amount. Your benefit increase will be effective the first of the month following your survivor's passing. DRS may require a copy of your survivor's certified death certificate.

(a) How will my new benefit amount be calculated?

(i) If you retired on or after January 1, 1996, and are not a member of LEOFF Plan 1, or if you are a member of WSPRS Plan 1 regardless of your retirement date, your new benefit amount will be calculated as follows:

Your original Option 1 nonsurvivor benefit amount

the sum of Cost of Living Adjustments (COLAs) added

to your benefit prior to your survivor's death

(ii) If you retired prior to January 1, 1996, and are not a member of WSPRS Plan 1, or if you are a member of LEOFF Plan 1 regardless of your retirement date, your new benefit amount will be calculated as follows:

Benefit Amount ÷ the Administrative Factor

The "benefit amount" is your retirement benefit as of July 1, 1998, or as of the date of your survivor's death, whichever is later.

The "administrative factor" is the rate that was used to calculate your reduced benefit for the continuing survivor option. If you retired prior to January 1, 1996, the administrative factor is the rate that was in effect on July 1, 1998, and is available for reference on the DRS website.

(b) If you are a PERS Plan 1 member receiving "state-funded long-term care services" as defined in RCW 41.40.189, you are not eligible for the increase described in this subsection if it would make you ineligible for the state-funded long-term care services. You must notify DRS to waive the increase if this applies to you.

History

Statutory Authority: RCW 41.50.050. WSR 26-17-035, s 415-02-380, filed 8/11/26, effective 8/12/26
WSR 20-06-040, § 415-02-380, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-02-380, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-02-380, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5), 41.26.164, 41.26.460, 41.40.188, 41.40.660, 41.40.845, 41.37.170, 41.35.220, 41.32.530, 41.32.785, 41.32.851, 43.43.271. WSR 06-18-009, § 415-02-380, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5). WSR 05-23-062, § 415-02-380, filed 11/14/05, effective 12/15/05. Statutory Authority: RCW 41.50.050(5), 41.26.162, 41.26.164, chapter 41.45 RCW. WSR 03-12-014, § 415-02-380, filed 5/27/03, effective 7/1/03. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 03-02-087, § 415-02-380, filed 12/31/02, effective 2/1/03
WSR 02-18-048, § 415-02-380, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-02-385 Judicial benefit multiplier actuarial factors.

If you are a justice of the Washington supreme court or a judge in the court of appeals, superior court, district court, or municipal court and are an eligible member of the public employees' retirement system Plans 1, 2, or 3, you may purchase an increase on the benefit multiplier on past judicial service credit earned before becoming a judicial benefit multiplier (JBM) program member. The cost formula for purchasing the increase is equal to five percent of your salary earned for each month of increase, plus five and one-half percent annual interest, accumulated monthly, or the actuarial cost, whichever is less. See WAC 415-108-350.

(1) How does the department use the judicial benefit multiplier actuarial factors? The department uses the judicial benefit multiplier actuarial factors to determine the actuarial equivalent value of the increase to the benefit resulting from the higher benefit multiplier. The factor is based on the age of the member at the time the bill for the higher benefit multiplier is created. For more information about the JBM program, please see WAC 415-108-350.

(2) What is the actuarial calculation to increase the benefit multiplier on past judicial service credit? The actuarial formula to determine the cost to increase past judicial service to the higher benefit multiplier is:

| Months to Increase | × | Average Final Compensation | × | 12 | × | Actuarial Factor | = | Cost | | --- | --- | --- | --- | --- | --- | --- | --- | --- |

(3) JBM actuarial factor table. The actuarial factor table is available on the DRS website at www.drs.wa.gov.

History

Statutory Authority: RCW 41.50.050, 2.14.115, 41.32.581, 41.32.584, 41.32.587, 41.40.124, 41.40.127, 41.40.404, 41.40.408, 41.40.760, 41.40.763, 41.40.767, 41.40.770, 41.40.870, 41.40.873, 41.40.877, 41.40.880, 41.45.200, 41.45.203, and 41.45.207. WSR 24-01-024, § 415-02-385, filed 12/8/23, effective 1/8/24.

Wash. Admin. Code § 415-02-500 Property division in dissolution orders.

This section applies to all retirement plans that the department administers. This section also directs you to additional sections as needed for your particular situation.

(1) What can a court do? A court can enter a dissolution order dividing your retirement account in either of the following ways:

(a) Awarding an interest2 in your account to your ex-spouse by using WAC 415-02-510 or 415-02-530; or

(b) Splitting3 your account into two separate accounts (one for you and one for your ex-spouse) by using WAC 415-02-520 or 415-02-540, but only if you are vested at the time the dissolution order is entered. "Vested" is defined in subsection (15) of this section.

(2) Which section should I use? Consult the following table for direction to the section to use in developing your property division dissolution order. Different sections are provided depending on whether your property division dissolution order is going to provide an interest to your ex-spouse or whether you are splitting your retirement account with your ex-spouse.

| If you are in this system and plan: | And the following is true: | Use this section: | | --- | --- | --- | | Any | You need general information and rules about drafting dissolution orders related to your retirement plan and system. | 415-02-500 | | JRF, JRS, LEOFF Plan 1, and WSPRS Plan 1 | You are drafting a dissolution order. (We recommend that you contact the department for assistance because some exceptions may apply.) | 415-02-510 | | LEOFF Plan 2, PERS Plan 1 or 2, PSERS, SERS Plan 2, and TRS Plan 1 or 2, WSPRS Plan 2 | You are drafting a dissolution order that will be entered before you are vested. | 415-02-510 | | | You are vested and you are drafting a dissolution order that splits your benefit into two separate accounts (for you and your ex-spouse). | 415-02-520 | | PERS Plan 3, SERS Plan 3, and TRS Plan 3 | You are drafting a dissolution order that will be entered before you are vested. | 415-02-530 | | You are vested and you are drafting a dissolution order that splits your benefit into two separate accounts (for you and your ex-spouse). | 415-02-540 | | | PERS Plan 2, SERS Plan 2, and TRS Plan 2 | The department has already accepted your property division order, and you are considering a transfer to Plan 3. | 415-02-550 |

(3) What are the requirements for dissolution orders and amendments that provide for a property division of my retirement account? The order must:

(a) Be entered by a court of competent jurisdiction and enforceable in Washington state;

(b) Be filed with the department within 90 days of the court's entry of the order;

(d) Provide the name and date of birth of your ex-spouse;

(e) Incorporate the applicable language in this section and one of the following: WAC 415-02-510, 415-02-520, 415-02-530, or 415-02-540; and

(f) Indicate which WAC section was used in support of the order.

(4) What else, besides a copy of the dissolution order, must my ex-spouse and I provide to the department? You must provide addresses and Social Security numbers for both you and your ex-spouse before the department will honor a dissolution order or amendment. This information can be submitted in a cover letter, in another document, or by other means arranged with the department.

(5) I belong to more than one retirement plan. Does the order have to be written any differently? The order must include specific provisions for each plan.

(a) Example for providing an interest to an ex-spouse (RCW 41.50.670 and WAC 415-02-510): Paul belongs to both TRS Plan 2 and PERS Plan 3. His preretirement dissolution order gives an interest in his retirement accounts to his ex-spouse. The order should include the language provided in:

(i) WAC 415-02-510 to divide Paul's TRS Plan 2 monthly retirement allowance or accumulated contributions.

(ii) WAC 415-02-530 to divide Paul's PERS Plan 3 monthly retirement allowance and/or accumulated contributions.

(b) Example for splitting an account with an ex-spouse: Mary is vested in both TRS Plan 2 and PERS Plan 3. Her preretirement dissolution order provides for splitting her retirement accounts with her ex-spouse. The order should include the language provided in:

(i) WAC 415-02-520 for preretirement splits to divide Mary's TRS Plan 2 retirement account.

(ii) WAC 415-02-540 for preretirement splits to divide Mary's PERS Plan 3 monthly retirement allowance and/or defined contributions.

(6) What happens if my ex-spouse misses the 90-day deadline for filing a copy of the dissolution order with the department?

(a) RCW 41.50.670 requires the "obligee" (ex-spouse) to file a copy of the dissolution order with the department within 90 days of the order's entry with the court of record.

(b) The department will accept an order after the 90-day deadline but will not make retroactive payments or split your defined contribution account retroactively.

(7) How will the department divide the "after-tax" and "tax-deferred" dollars in my retirement account between my ex-spouse and me? Depending on your plan and how long you have been a member, your retirement account may include both "after-tax" and "tax-deferred" dollars. The department will divide the "after-tax" and "tax-deferred" dollars based on the amount(s) awarded to your ex-spouse, unless the dissolution order states otherwise.

| Example: | At the time of John's marriage dissolution, he had $50,000 total contributions in his retirement account with $20,000 in after-taxed dollars and $30,000 in tax-deferred dollars. The dissolution order awards 50% of his accumulated contributions to his ex-spouse, Susan. Therefore, the department will give Susan $10,000 of after-tax dollars and $15,000 of tax-deferred dollars. | | --- | --- |

(8) If I am in a retirement plan that offers survivor options, can the court order me to name my ex-spouse as my survivor beneficiary? Yes. To do so, the dissolution order must include the language in RCW 41.50.790(1).

(9) Is there a minimum benefit amount that the department will pay to my ex-spouse if the property division dissolution order splits my retirement account with my ex-spouse? The answer is different depending on if the department accepts the property division dissolution order before or after you retire.

(a) before retirement split: Yes. If the court order splits your account with your ex-spouse, and your ex-spouse's monthly payment will be less than the minimum monthly dollar amount for your retirement plan, the department may make a lump sum payment instead of monthly payments. The lump sum payment will be equal to the present value of the monthly payments. The department will not make the lump sum payment until your ex-spouse meets the age requirement for a normal retirement for your system and plan.

(b) after retirement split: No. The department will pay the amount specified in the dissolution order as the ex-spouse's monthly payment amount even if it is less than the minimum monthly dollar amount for your system and plan.

(10) Is there a maximum payment amount that the department will pay to my ex-spouse? Yes. A court may not order the department to pay more than 75 percent of your monthly retirement allowance to your ex-spouse. See RCW 41.50.670(4).

(11) What happens to my account if I return to retirement system membership? Please contact the department for information if you are in this situation.

(12) What language should the property division order use to divide my deferred compensation program (DCP) account? Refer to WAC 415-501-495 or contact DCP for information about your DCP account and your marriage dissolution.

(13) How do I contact the department for additional assistance? Contact information is available in WAC 415-06-100 (How do I contact the department?). Any release of information to someone besides the member requires a signed information release form or a subpoena duces tecum.

(14) Where can I find examples of completed property division dissolution orders? Following are examples of the required language from the statutes and WAC sections that must be used in a dissolution order. The information in bold italics will be dictated by your own circumstances.

(a) Example 1. Jane Doe, a nonvested member of PERS Plan 2, and her husband, John Doe, decide to divorce. WAC 415-02-510 governs dissolution orders of nonvested members of PERS Plan 2. Jane and John complete the paragraphs in RCW 41.50.670(2) and WAC 415-02-510(2) as follows:

| Defined Benefits: RCW 41.50.670(2), paragraph two, and WAC 415-02-510(2) | If Jane Doe (the obligor) receives periodic retirement payments as defined in RCW 41.50.500, the department of retirement systems shall pay to John Doe (the obligee), N/A dollars from such payments or a fraction where the numerator is equal to 24 (the number of months in which service credit was earned while the marital community was in existence), and the denominator is equal to the number of months of service credit earned by the obligor at the time of retirement X 50 percent of such payments. | | --- | --- | | | If the obligor's debt is expressed as a percentage of his or her periodic retirement payment and the obligee does not have a survivorship interest in the obligor's benefit, the amount received by the obligee shall be the percentage of the periodic retirement payment that the obligor would have received had he or she selected a standard allowance. | | Accumulated Contributions: RCW 41.50.670(2), paragraph three, and WAC 415-02-510(2) | If Jane Doe (the obligor) requests or has requested a withdrawal of accumulated contributions as defined in RCW 41.50.500, or becomes eligible for a lump sum death benefit, the department of retirement systems shall pay to John Doe (the obligee) $5,700 dollars plus interest at the rate paid by the Department of Retirement Systems on member contributions. Such interest will accrue from the date of this order's entry with court of record. |

(b) Example 2: Binh Nguyen (a TRS Plan 3 retiree) and his wife, Lan Nguyen, are obtaining a property division dissolution order that splits his retirement account. When he retired, Binh had selected Lan to receive survivor benefits. WAC 415-02-540 applies, and the couple completes the required paragraphs.

| Defined Benefits: WAC 415-02-540 (13) | The Department of Retirement Systems (department) shall create a defined benefit account for Lan Nguyen (ex-spouse) in the Teachers' Retirement System Plan 3 (name of retirement system and plan) and pay him or her $350 (amount) for his or her life. To pay for this benefit, Binh Nguyen's (member's) monthly defined benefit payment will be reduced for life. This provision shall become effective no more than 30 days after the department's acceptance of the order. | | --- | --- | | Defined Contributions: WAC 415-02-540(9) | The Department of Retirement Systems (department) shall split Binh Nguyen's (member's) defined contribution account in the Teachers' Retirement System Plan 3 (name of retirement system and plan) and create a separate account for Lan Nguyen (ex-spouse). The amount of $25,000 (amount) shall be transferred from Binh Nguyen's (member's) defined contribution account to Lan Nguyen's (ex-spouse's) new account. This provision shall become effective no more than 30 days after the department's acceptance of the order. |

(15) Terms used:

(a) Department's acceptance - The department's determination that a dissolution order fully complies with the department's requirements and with chapter 41.50 RCW.

(b) Dissolution order - RCW 41.50.500.

(d) Obligor - RCW 41.50.500(6).

(e) Plan 3 - WAC 415-111-100.

(f) Vested - The status of a member who has the amount of service credit required by the member's system and plan for a service retirement when the age requirement is met.

Footnotes for section:

| 1 | "Dissolution order" means any judgment, decree, or order of spousal maintenance, property division, or court-approved property settlement incident to a decree of divorce, dissolution, invalidity, or legal separation issued by the superior court of the state of Washington or a judgment, decree, or other order of spousal support issued by a court of competent jurisdiction in another state or country, that has been registered or otherwise made enforceable in this state. RCW 41.50.500(3) (2002). | | --- | --- | | 2 | When a court awards an interest in your retirement account, the department is required to pay a portion of your monthly retirement allowance or a portion of your contributions to your ex-spouse. | | 3 | When a court splits your retirement account, the department will establish a separate account for your ex-spouse. Once the account has been established, your account and your ex-spouse's account are not tied in any way. |

History

Statutory Authority: RCW 41.50.050. WSR 23-01-003, § 415-02-500, filed 12/7/22, effective 1/7/23. Statutory Authority: RCW 41.50.050(5) and 41.50.680. WSR 10-14-072, § 415-02-500, filed 7/1/10, effective 8/1/10. Statutory Authority: RCW 41.50.050(5), 41.50.670, 41.50.680, 41.50.790. WSR 06-18-009, § 415-02-500, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.50.500, [41.50.]670-[41.50.]710, [41.50.]790 and 2002 c 158. WSR 03-12-014, § 415-02-500, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-02-510 How can a property division dissolution order give my ex-spouse an interest in my Plan 1 or 2 retirement account?

(1) Who uses this section? You must use this section if you are a member of LEOFF Plan 1, WSPRS Plan 1, JRF or JRS, or a nonvested member of LEOFF Plan 2, PERS Plan 1 or 2, PSERS, SERS Plan 2, TRS Plan 1 or 2, or WSPRS Plan 2.

(2) Dividing a defined monthly retirement benefit (defined benefit). Your defined monthly retirement benefit may be divided between you and your ex-spouse.

(a) What language must the property division dissolution order or amendment include? The order must include the language in RCW 41.50.670(2), provided below. The order or amendment must state either a specific dollar amount or percentage of the benefit. It cannot state both. (See example in WAC 415-02-500(14).)

If (the obligor) receives periodic retirement payments as defined in RCW 41.50.500, the department of retirement systems shall pay to (the obligee) dollars from such payments or percent of such payments. If the obligor's debt is expressed as a percentage of his or her periodic retirement payment and the obligee does not have a survivorship interest in the obligor's benefit, the amount received by the obligee shall be the percentage of the periodic retirement payment that the obligor would have received had he or she selected a standard allowance.

If (the obligor) requests or has requested a withdrawal of accumulated contributions as defined in RCW 41.50.500, or becomes eligible for a lump sum death benefit, the department of retirement systems shall pay to (the obligee) dollars plus interest at the rate paid by the department of retirement systems on member contributions. Such interest to accrue from the date of this order's entry with the court of record.

(b) How will my account be affected if the department accepts the property division dissolution order before I retire?

(i) Your ex-spouse will not receive any payments from the department until you terminate your employment or retire.

(ii) If you terminate your employment and request a withdrawal of your accumulated contributions, the department will pay your ex-spouse his or her share when you receive your payment. If you terminate your employment and do not request a withdrawal of contributions, your ex-spouse will be unable to receive his or her share until you withdraw your accumulated contributions.

(iii) If you die before retirement, the department will pay your ex-spouse his or her share of your accumulated contributions in a lump-sum payment.

(i) If included in the dissolution order, the department will begin paying your ex-spouse his or her portion of your monthly retirement allowance the first month after the department has accepted the order.

(ii) If your ex-spouse dies before you, the portion of your monthly retirement allowance that was being paid to your ex-spouse will be paid to you.

(iii) If you die before your ex-spouse, payments to your ex-spouse stop unless the department accepted the order at least 30 days before you retired and the order required the department to name your ex-spouse as a survivor beneficiary (if allowed by your retirement system and plan). See RCW 41.50.700(1) and 41.50.790.

(iv) If you are a member of LEOFF Plan 1 or WSPRS Plan 1 and if one of the provisions in RCW 41.50.700(3) applies:

(A) Your ex-spouse may be eligible to receive payments for the life of your surviving spouse; or

(B) If you are a member of LEOFF Plan 1, your ex-spouse may be eligible to receive payments for his or her lifetime.

(d) Is there a maximum payment amount that a property division dissolution order can award to my ex-spouse? Yes. See RCW 41.50.670(4) and WAC 415-02-500(10) for information.

(e) If the property division dissolution order directs the department to make payments to my ex-spouse, how will the payments be made? The department will make the required payments as specified in the dissolution order directly to your ex-spouse.

(f) What happens if I transfer to Plan 3 after the department has accepted my property division dissolution order or most recent amendment? See WAC 415-02-550 for information.

(g) Can I amend my existing order to remove my ex-spouse as my survivor beneficiary? Yes. To remove your ex-spouse as your survivor beneficiary, you must submit a "conformed copy" of the court order splitting your account. A conformed copy is a copy of the order that has been signed by the judge or commissioner on or after July 1, 2003, and filed with the court. Removing your ex-spouse as survivor beneficiary will change your retirement benefit. See WAC 415-02-520(9) for the language that must be used.

(3) Terms used:

(a) Department's acceptance - That the department's determination that a dissolution order fully complies with the department's requirements and with chapter 41.50 RCW.

(b) Dissolution order - RCW 41.50.500.

(d) Obligor - RCW 41.50.500(6).

(e) Plan 3 - WAC 415-111-100.

(f) Vested - The status of a member who has the amount of service credit required by the member's system and plan for a service retirement when the age requirement is met.

Footnote to section:

| 1 | When a court awards an interest in your retirement account, the department is required to pay a portion of your monthly retirement allowance or a portion of your contributions to your ex-spouse. | | --- | --- |

History

Statutory Authority: RCW 41.50.050. WSR 23-01-003, § 415-02-510, filed 12/7/22, effective 1/7/23
WSR 22-13-052, § 415-02-510, filed 6/8/22, effective 7/9/22. Statutory Authority: RCW 41.50.050(5), 41.50.670, 41.50.680, 41.50.790. WSR 06-18-009, § 415-02-510, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.50.500, [41.50.]670-[41.50.]710, [41.50.]790 and 2002 c 158. WSR 03-12-014, § 415-02-510, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-02-520 How can my Plan 1 or 2 retirement account be split by a property division dissolution order?

(1) Who uses this section? Vested members of LEOFF Plan 2, PERS Plan 1 or 2, PSERS, TRS Plan 1 or 2, SERS Plan 2, or WSPRS Plan 2 who have or will have a property division dissolution order or amendment dated on or after July 1, 20032. If you are not a vested member, use WAC 415-02-510.

(2) What are the rules for splitting my account? If you and your ex-spouse are eligible, the department will split your retirement account into two separate accounts—one for you, and one for your ex-spouse. The rules for splitting your account are different depending on whether your dissolution order or most recent amendment is dated before or after retirement.

(3) How will my account be affected if the department accepts the property division dissolution order before my retirement?

(a) The department will split your retirement account into two completely separate accounts and create an account for your ex-spouse under his or her Social Security number for the amount awarded in the dissolution order.

(b) The department will pay each of you out of your separate accounts either a monthly allowance or a withdrawal of contributions.

(c) If you retire and receive a monthly retirement allowance, your monthly retirement allowance will have a permanent reduction to offset the amount awarded as a monthly payment to your ex-spouse.

(d) Your monthly retirement allowance will be payable over your lifetime, and your ex-spouse's monthly payment will be payable over your ex-spouse's lifetime.

(e) You will have the right to choose a benefit option with a survivor feature. See WAC 415-02-320.

(f) Your ex-spouse will not have the right to choose a benefit option with a survivor feature, but may name a beneficiary to receive any final death payment that may be due.

(g) If you terminate employment, any decision you make about your accumulated contributions will have no effect upon your ex-spouse's separate account.

(h) When you or your ex-spouse dies, there will be no impact to the other person's retirement account because the accounts are independent from one another.

(i) Your ex-spouse may begin receiving monthly payments when your ex-spouse reaches retirement age for your retirement plan, or the first day of the month following the department's acceptance of the order, whichever is later. The minimum age for an ex-spouse to begin receiving a benefit from:

(A) TRS Plan 1 and PERS Plan 1 is age 60;

(B) PERS Plan 2, PSERS, SERS Plan 2, and TRS Plan 2 it is age 65;

(D) WSPRS Plan 2 is age 55.

Your age or retirement eligibility has no effect on when your ex-spouse is eligible to begin receiving a monthly payment. Your ex-spouse must apply for his or her monthly payment according to the rules for your system and plan.

(j) Your ex-spouse may withdraw his or her share of the accumulated contributions at any time before receiving a monthly payment. Regardless of whether your ex-spouse withdraws or receives a monthly payment, your monthly retirement allowance will be permanently reduced to account for your ex-spouse's share of your retirement account.

(4) Is there a limit to the amount of contributions I can award to my ex-spouse? Yes. The amount of contributions awarded to your ex-spouse cannot be greater than the percentage of your monthly retirement allowance used to determine the amount of the monthly payment awarded to your ex-spouse.

| Example: | | | --- | --- | | Accumulated contributions earned during the marriage period: | $50,000 | | Member's monthly retirement allowance: | $1,000 | | Percentage of member's monthly retirement allowance awarded to ex-spouse: | 50% | | Monthly payment awarded to ex-spouse: | $500 (50% of $1,000) | | Contributions awarded to ex-spouse: | $25,000 (50% of 50,000) |

(5) What happens if my retirement account was split and then I retire early?

(a) If you are eligible and decide to retire early, or must retire early because of a disability, your retirement plan may require that your monthly retirement allowance be reduced by an early retirement factor (ERF) or by some other method. See WAC 415-02-320.

(b) To determine the reduction to your monthly retirement allowance (when an ERF is used) because of your preretirement split, the adjustment to the amount awarded to your ex-spouse in the dissolution order will be reduced by the ERF used to reduce your monthly retirement allowance.

Example: You are a member of PERS Plan 2 and retire for disability two years before you are eligible for a service retirement. The dissolution order awarded your ex-spouse a monthly payment of $500.

| Your monthly retirement allowance before ERF is applied: | $2,500 | | | --- | --- | --- | | ERF (factor for retiring two years early) | 0.82 | | | Your base allowance: | $2,050 | ($2500 x 0.82 ERF) | | Adjustment for divorce split: | - $410 | (ex-spouse's $500 x 0.82 (ERF)) | | The monthly retirement allowance you will receive: | $1640 | ($2050 - $410) | | Your ex-spouse will receive the full monthly amount ($500) that was awarded to him or her in the dissolution order, regardless of your benefit amount. | | |

(6) What language must be used for a property division dissolution order or amendment that is accepted by the department before my retirement?

(a) The order must include the language provided below. Do not use the language in RCW 41.50.670(2). The exact dollar amount of your ex-spouse's monthly payment must be specified. Do not use formulas or percentages.

The Department of Retirement Systems (department) shall create an account for (ex-spouse) in the (name of retirement system and plan) and transfer $ from 's (member's) accumulated contributions account into 's (ex-spouse's) account. If (ex-spouse) does not withdraw the contributions and becomes eligible, the department will pay him or her $ (amount) as a monthly payment for his or her life. If (member) retires and receives a monthly retirement benefit payment, the payment will be permanently reduced to account for 's (ex-spouse's) monthly payment. This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(b) If you are a member of PERS Plan 1 or TRS Plan 1, the amount of service credit awarded to your ex-spouse must be specified in the order if he or she is awarded a portion of gainsharing payments and cost-of-living adjustments. Because gainsharing payments and cost-of-living adjustments are based on service credit, the following paragraph must be included:

If (ex-spouse) receives a monthly retirement payment, the department shall use (number) months of service credit to calculate future gainsharing payments, if any, and cost-of-living adjustments when he or she becomes eligible.

(7) How will my account be affected if the department accepts the property division dissolution order after my retirement?

(a) The department will split your retirement account only if you selected your ex-spouse to receive survivor benefits at the time you retired. If you did not select your ex-spouse to receive survivor benefits at the time you retired, you cannot use this section. You must use WAC 415-02-510.

(b) If you selected your ex-spouse to receive survivor benefits at the time you retired, the rules in subsection (3)(a) through (d) of this section will apply.

(c) At the time the department splits your account, your ex-spouse will be removed as the survivor beneficiary on your account.

(d) Regardless of his or her age, your ex-spouse will begin receiving a monthly payment the first month after the department has accepted the dissolution order.

(8) If the property division dissolution order is dated after my retirement, how will my monthly retirement allowance be calculated after the split?

(a) The dissolution order must state the exact dollar amount your ex-spouse is to receive as his or her separate monthly payment. The following describes how the new amount of your monthly retirement allowance will be calculated, assuming your ex-spouse was awarded a monthly payment of $1,000 in the dissolution order.

| Step 1 | The department will determine the single life benefit of your current monthly retirement allowance by dividing your current monthly allowance by the survivor option factor (see WAC 415-02-380) in effect at the time of the split. | | --- | --- |

Example:

Current monthly retirement allowance = $1679.38

Option factor = 0.9400000

Single life benefit amount = $1679.38/0.9400000 = $1786.57

| Step 2 | The single life benefit ($1786.57) is divided by your annuity factor (see WAC 415-02-360) to determine the current present value of the single life benefit amount. The annuity factor the department uses is the factor for your age as of the date of the split. | | --- | --- |

Example:

Your age at time of the split = 61 years old

Annuity factor for age 61 = 0.0084149

Present value of single life benefit = $1786.57/0.0084149 = $212,310.31

| Step 3 | The department then determines the present value of your ex-spouse's share by dividing your ex-spouse's monthly payment (as awarded in the dissolution order) by your ex-spouse's annuity factor. The annuity factor is the factor for your ex-spouse's age as of date of the split. | | --- | --- |

Example:

Ex-spouse's monthly benefit amount = $1000

Ex-spouse's age at time of the split = 67

Annuity factor for age 67 = 0.0095028

Present value of your ex-spouse's monthly benefit = $1000/0.0095028 = $105,232.14

| Step 4 | Next, the department subtracts your ex-spouse's present value from the single life benefit present value. The result is the present value of the benefit you will receive. | | --- | --- |

Example:

Present value of single life benefit = $212,310.31

Less present value of ex-spouse's benefit = -105,232.14

Your present value = $107,078.17

| Step 5 | The department determines the amount of your new monthly retirement allowance by multiplying your present value by your annuity factor. | | --- | --- |

Example:

Your present value = $107,078.17

Annuity factor = 0.0084149

Your new monthly retirement allowance = $107,078.17 x 0.0084149 = $901.05

(b) The department determines the percentage of the total present value each of you will receive by dividing each of your present value amounts by the single life benefit present value amount.

Example:

Your percentage of the single life benefit present value: $107,078.17/$212,310.31 = .5043

Your ex-spouse's percentage of the single life benefit present value: $105,232.14/$212,310.31 = .4957

(9) What language must be used in a property division dissolution order or amendment that is accepted by the department after my retirement?

(a) The order must include the language provided below. Do not use the language in RCW 41.50.670(2). The exact dollar amount of your ex-spouse's monthly benefit must be specified. Do not use formulas or percentages.

The Department of Retirement Systems (department) shall create an account for (ex-spouse) in the (name of retirement system and plan) and pay him or her $ (amount) as a monthly benefit payment for his or her life. To pay for this benefit, 's (retiree's) monthly retirement benefit payment will be reduced for his or her life. If (retiree) has any unused contributions remaining in his or her account, $ (amount) shall be transferred to 's (ex-spouse's) account. This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(b) If the member is in PERS Plan 1 or TRS Plan 1, the amount of service credit awarded to the ex-spouse must be specified in the order if he or she is entitled to a portion of gainsharing payments and cost-of-living adjustments. Because gainsharing payments and cost-of-living adjustments are based on service credit, the following paragraph must be included:

(10) Is there a maximum payment amount that the department will pay to my ex-spouse? Yes. See RCW 41.50.670(4) or WAC 415-02-500(10) for information.

(11) May I amend an existing order that awarded an interest in my account to my ex-spouse under WAC 415-02-520, and remove my ex-spouse as my survivor beneficiary? Yes. To remove your ex-spouse as your survivor beneficiary, you must submit a "conformed copy" of the court order splitting your account. A conformed copy is a copy of the order that has been signed by the judge or commissioner on or after July 1, 2003, and filed with the court. Removing your ex-spouse as your survivor beneficiary will change the amount of your monthly retirement allowance. See WAC 415-02-520(9) for the language that must be used.

Example:

Julio and May were married when Julio retired. Julio chose benefit Option 2 (joint and 100 percent survivorship) when he retired, and named May as his survivor beneficiary. Two years after Julio's retirement, the couple divorced. The court awarded "100 percent of retirement benefits" to Julio. Julio later learned that this award did not change the survivor option. Julio may return to court and obtain an order stating that May is to receive "$0" as the dollar amount for her separate monthly benefit. The order must use the language in WAC 415-02-520(9) and be signed by the court no sooner than July 1, 2003.

(12) What happens if I transfer to Plan 3 after the property division dissolution order has been filed with the department? See WAC 415-02-550 for information.

(13) Terms used:

(a) Department's acceptance - The department's determination that a dissolution order fully complies with the department's requirements and RCW 41.50.500.

(b) Dissolution order - RCW 41.50.500.

(d) Vested - The status of a member who has the amount of service credit required by the member's system and plan for a service retirement when the age requirement is met.

Footnotes to section:

| 1 | When a court splits your retirement account, the department will establish a separate account for your ex-spouse. Once the account is established, your account and your ex-spouse's account are not tied in any way. | | --- | --- | | 2 | If your ex-spouse was not listed as your survivor beneficiary at retirement, then no postretirement property division dissolution order (or postretirement amendment) may split your retirement account using WAC 415-02-520. |

History

Statutory Authority: RCW 41.50.050. WSR 23-01-003, § 415-02-520, filed 12/7/22, effective 1/7/23. Statutory Authority: RCW 41.50.050(5), 41.50.670, 41.50.680, 41.50.790. WSR 06-18-009, § 415-02-520, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.50.500, 41.50.670 et seq., 41.50.790. WSR 04-09-043, § 415-02-520, filed 4/14/04, effective 5/15/04
WSR 03-24-049, § 415-02-520, filed 11/26/03, effective 1/1/04. Statutory Authority: RCW 41.50.050(5), 41.50.500, [41.50.]670-[41.50.]710, [41.50.]790 and 2002 c 158. WSR 03-12-014, § 415-02-520, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-02-530 How can a property division dissolution order give my ex-spouse an interest in part of my Plan 3 retirement account?

(1) You must use this section if you are a member of TRS Plan 3, PERS Plan 3 or SERS Plan 3 and do not have enough service credit to receive a service retirement from the defined benefit portion of your retirement plan when you meet the age requirement.

(2) Dividing a defined monthly retirement benefit (defined benefit). Your defined monthly retirement benefit may be divided between you and your ex-spouse.

(a) What language must the property division dissolution order or amendment include to pay a portion of my defined monthly retirement benefit to my ex-spouse? The order must use the language in RCW 41.50.670(2), provided below. The order or amendment must state either a specific dollar amount or percentage of the benefit. It cannot state both.

(b) How will the defined benefit portion of my retirement account be affected if the department accepts the property division dissolution order before I retire?

(i) Your ex-spouse will not receive any payments from your defined benefit portion until you retire.

(ii) If you or your ex-spouse dies before you retire, the portion of your defined benefit account awarded to your ex-spouse in the dissolution order ends.

(c) How will the defined benefit portion of my retirement account be affected if the department accepts the property division dissolution order after I retire?

(i) If included in the dissolution order, the department will begin paying your ex-spouse his or her portion of your defined benefit payment the first month after the department has accepted the order.

(ii) If your ex-spouse dies before you, the portion of your defined benefit payment being paid to him or her will be paid to you.

(iii) If you die before your ex-spouse, payments to your ex-spouse stop unless the department accepted the order at least 30 days before you retired and it required the department to name your ex-spouse as a survivor beneficiary. See RCW 41.50.700(1) and 41.50.790.

(d) Is there a maximum payment amount of the defined benefit portion of my retirement account that the property division dissolution order can award to my ex-spouse? Yes. See RCW 41.50.670(4) and WAC 415-02-500(10) for information.

(3) Can I amend my existing order to remove my ex-spouse as my survivor beneficiary? Yes. To remove your ex-spouse as your survivor beneficiary, you must submit a "conformed copy" of the court order splitting your account. A conformed copy is a copy of the order that has been signed by the judge or commissioner on or after July 1, 2003, and filed with the court. Removing your ex-spouse as survivor beneficiary will change your retirement benefit. See WAC 415-02-540 (9) and (14) for the language that must be used.

(4) Dividing a defined contribution account. Your accumulated defined contribution account may be divided between you and your ex-spouse.

(a) What language must be used in a property division dissolution order to award a portion of my defined contribution account to my ex-spouse? The order must include the language provided in the following paragraph. The exact dollar amount to transfer to your ex-spouse's defined contribution account must be specified. Do not use formulas or percentages. (See example in WAC 415-02-500 (14)(b)).

The Department of Retirement Systems (department) shall split (member's) defined contribution account in the (name of retirement system and plan) and create a separate account for (ex-spouse). The amount of $ (amount) shall be transferred from 's (member's) defined contribution account to 's (ex-spouse's) new account. This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(b) Can my entire defined contribution account balance be awarded to my ex-spouse? Yes, using the language provided in the following paragraph:

The Department of Retirement Systems (department) shall transfer (member's) entire defined contribution account in the (name of retirement system) to a separate account for (ex-spouse). This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(c) If the department accepts the property division dissolution order before I retire, how will the department divide my defined contribution account with my ex-spouse?

(i) The amount the dissolution order awards to your ex-spouse will be deducted from your account and set up in a separate account for your ex-spouse. Upon acceptance of the order, the department will affect the transfer of the specified amount as soon as administratively possible. The amount in your ex-spouse's separate account will be subject to market gains and losses after the transfer.

(ii) You and your ex-spouse will manage your individual portions of the account independently from one another.

(iii) You must continue to contribute to your account during your employment.

(iv) Your ex-spouse may not contribute to his or her account.

(d) If the department accepts the property division dissolution order after I retire, how will the department divide my defined contribution account with my ex-spouse? If your defined contribution account has not been exhausted at the time the department accepts the dissolution order, the department will divide the remaining funds as specified in the dissolution order according to subsections (3) and (4) of this section.

(e) What options does my ex-spouse have in managing his or her separate defined contribution account? Your ex-spouse may:

(i) Transfer money between the state-managed (WSIB) or the self-directed (SELF) investment programs; and

(ii) Transfer money among the investment options in the SELF-directed program.

(iii) If you die before a distribution has been made from your defined contribution account, your beneficiary(ies) must apply for a lump sum distribution of the funds in your account.

(iv) If you die before a distribution has been made from your defined contribution account, your ex-spouse must begin receiving distribution of his or her funds at that time according to the distribution options in WAC 415-111-310.

(v) If your ex-spouse dies before a distribution has been made from his or her defined contribution account, your ex-spouse's beneficiary(ies) must apply for a lump sum distribution of the funds in his or her account.

(vi) If you die after you begin receiving funds from your defined contribution account but before your funds have been exhausted, the remaining balance of the funds will be disbursed to your designated beneficiary(ies).

(vii) If your ex-spouse dies after receiving funds from his or her account but before the funds have been exhausted, the remaining balance of the funds will be disbursed to your ex-spouse's designated beneficiary.

(5) Terms used:

(a) Department's acceptance - Order that fully complies with the department of retirement systems' requirements and chapter 41.50 RCW.

(b) Dissolution order - RCW 41.50.500.

(d) Obligee - RCW 41.50.500(5).

(e) Obligor - RCW 41.50.500(6).

(f) Plan 3 retirement systems - WAC 415-111-100.

(g) Split accounts - WAC 415-02-030.

(h) Survivor benefits - WAC 415-02-030.

Footnote to section:

| 1 | When a court awards an interest in your retirement account, the department is required to pay a portion of your monthly retirement benefit payments or a portion of your contributions to your ex-spouse. | | --- | --- |

History

Statutory Authority: RCW 41.50.050. WSR 23-01-003, § 415-02-530, filed 12/7/22, effective 1/7/23. Statutory Authority: RCW 41.50.050(5), 41.50.500, [41.50.]670-[41.50.]710, [41.50.]790 and 2002 c 158. WSR 03-12-014, § 415-02-530, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-02-540 How can my Plan 3 retirement account be split by a property division dissolution order?

(1) Who may use this section? You may use this section if:

(a) You are a member of TRS Plan 3, SERS Plan 3 or PERS Plan 3;

(b) You have enough service credit to receive a defined benefit payment when you meet the age requirement for your system; and

(c) You have or will have a property division dissolution order or amendment dated on or after July 1, 20032. If your ex-spouse will be receiving an interest in your account, use WAC 415-02-530.

(2) What are the rules for splitting my account? If you and your ex-spouse are eligible, the department will split both portions of your retirement account (defined benefit and defined contributions) into two separate accounts - one for you, and one for your ex-spouse. The rules for splitting your account are different depending on whether your dissolution order or most recent amendment is dated before or after retirement.

(3) How will the defined benefit portion of my retirement account be affected if the department accepts the property division dissolution order before I retire?

(a) The department will split your defined benefit account into two completely separate accounts and create an account for your ex-spouse for the amount awarded in the defined benefit portion of the dissolution order under your ex-spouse's Social Security number.

(b) The department will pay each of you a defined benefit, when eligible, out of your separate accounts.

(c) The amount awarded to your ex-spouse as his or her defined benefit payment will be a permanent reduction to your defined benefit payment amount.

(d) Your defined benefit payment will be payable over your lifetime, and your ex-spouse's defined benefit payment will be payable over his or her lifetime.

(e) You will have the right to pick a survivor option for your defined benefit payment for your own account.

(f) Your ex-spouse will not have the right to pick a survivor option for his or her defined benefit payment but may name a beneficiary to receive any final death payment that may be due.

(g) You may begin receiving your defined benefit payment when eligible according to the rules for your system.

(h) Your ex-spouse may begin receiving monthly payments when he or she reaches age 65, or the first day of the month following the department's acceptance of the order, whichever is later. Your ex-spouse must apply for retirement according to the rules for your system and plan. Your age or retirement eligibility has no effect on when your ex-spouse is eligible to begin receiving his or her monthly benefit.

(i) When you or your ex-spouse dies, there will be no impact to the other person's retirement account, because the accounts are independent from one another.

(4) What happens to my defined benefit if my account was split and then I retire early?

(a) If you are eligible and decide to retire early, or must retire early because of a disability, your monthly retirement benefit payment will be reduced by an early retirement factor (ERF). See WAC 415-02-320.

(b) To determine the reduction to your benefit because of your preretirement split (see subsection (3)(c) of this section), the adjustment to the amount awarded to your ex-spouse in the dissolution order will be reduced by the ERF used to reduce your benefit.

Example: You are a member of TRS Plan 3 and retire for disability five years before you are eligible for a service retirement. The dissolution order awarded your ex-spouse a monthly benefit of $250.

| Your defined benefit before ERF is applied: | $1,000 | | | --- | --- | --- | | ERF (factor for retiring two years early) | 0.61 | | | Your base benefit: | $610 | ($1,000 x 0.61 ERF) | | Adjustment for divorce split: | -$152.50 | (ex-spouse's $250 x 0.61 (ERF) ) | | The defined benefit you will receive: | $457.50 | ($610 - $152.50) | | Your ex-spouse will receive the full monthly amount ($250) that was awarded to him or her in the dissolution order, regardless of your benefit amount. | | |

(5) What language must be used in a property division dissolution order that the department accepts before I retire to pay a portion of my monthly defined benefit payment to my ex-spouse? The order must use the language provided below. Do not use the language in RCW 41.50.670(2). The exact dollar amount of your ex-spouse's defined monthly benefit payment must be specified. Do not use formulas or percentages.

The Department of Retirement Systems (department) shall create a defined benefit monthly account for (ex-spouse) in the (name of retirement system and plan). When (ex-spouse) becomes eligible for monthly payments, [s]he (upon application) will begin to receive $ per month for the remainder of his/her lifetime. When (member) becomes eligible for monthly payments, [s]he (upon application) will begin to receive the calculated monthly benefit less the amount herein specified for (ex-spouse). This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(6) If ordered in the dissolution order, how will the department split my preretirement defined contribution account?

(a) The amount the dissolution order awards to your ex-spouse will be deducted from your defined contribution account and set up in a separate account for your ex-spouse under his or her Social Security number. Upon acceptance of the order, the department will affect the transfer of the specified amount as soon as administratively possible. The amount in your ex-spouse's separate account will be subject to market gains and losses after the transfer.

(b) You and your ex-spouse will manage your separate accounts independently from one another.

(d) Your ex-spouse may not contribute to his or her account.

(7) What options does my ex-spouse have in managing his or her separate defined contribution account? Your ex-spouse may:

(a) Transfer money between investment programs (state-managed (WSIB) or self-directed (SELF)); and

(b) Transfer money among the investment options in the SELF-directed program.

(8) How will the department make distributions to my ex-spouse and me out of our defined contribution accounts?

(a) You must be separated from employment before funds in your account can be distributed according to your distribution choice.

(b) Your ex-spouse may begin receiving distribution of the funds in his or her account at any time according to his or her distribution choice.

(d) If you die before a distribution has been made from your defined contribution account, your beneficiary(ies) must apply for a lump sum death benefit from your account.

(e) If your ex-spouse dies before a distribution has been made from his or her account, your ex-spouse's beneficiary(ies) must apply for a lump sum death payment from his or her account.

(f) If you die after you begin receiving funds but before the funds in your account have been exhausted, the balance will be paid to your designated beneficiary(ies).

(g) If your ex-spouse dies after receiving funds but before the funds in his or her account have been exhausted, the balance will be paid to your ex-spouse's designated beneficiary(ies).

(9) What language must be used in a property division dissolution order to award a portion of my defined contribution account to my ex-spouse? The order must include the language provided in the following paragraph. The exact dollar amount to transfer to your ex-spouse's defined contribution account must be specified. Do not use formulas or percentages. (See example in WAC 415-02-500 (14)(b)).

(10) Can my entire defined contribution account balance be awarded to my ex-spouse? Yes, using the language provided in the following paragraph:

(11) Can I amend an existing order that has awarded an interest in my account to my ex-spouse under WAC 415-02-530 and remove my ex-spouse as my survivor beneficiary? Yes. To remove your ex-spouse as your survivor beneficiary, you must submit a "conformed copy" of the court order splitting your account. A conformed copy is a copy of the order that has been signed by the judge or commissioner on or after July 1, 2003, and filed with the court. Removing your ex-spouse as survivor beneficiary will change your retirement benefit. See WAC 415-02-540 (9) and (14) for the language that must be used.

Example:

Julio and May were married when Julio retired. Julio chose survivor Option 2 (joint and 100 percent survivorship) when he retired. This meant that if Julio died, May would receive monthly survivor benefits. Two years after Julio's retirement, the couple divorced. The court awarded "100 percent of retirement benefits" to Julio. Julio later learned that this award did not change the survivor option. Julio can return to court and obtain an order stating that May is to receive "$0" as the dollar amount for her separate monthly benefit. The order must use the language in WAC 415-02-540 and be signed by the court no sooner than July 1, 2003.

(12) If the dissolution order or amendment is dated after my retirement, how will my defined monthly retirement benefit payment be split?

(a) The department will split your defined monthly retirement benefit payment only if you selected your ex-spouse to receive a survivor benefit at the time you retired. If you did not select your ex-spouse to receive a survivor benefit at the time you retired, you cannot use this section. You must use WAC 415-02-530.

(b) If you selected your ex-spouse to receive survivor benefits at the time you retired, the rules in subsection (3)(a) through (f) of this section will apply.

(c) At the time the department splits your account, your ex-spouse will be removed as the survivor beneficiary on your account.

(d) Regardless of his or her age, your ex-spouse will begin receiving a monthly benefit payment the first month after the department accepts the property division dissolution order.

(13) If the dissolution order or amendment is dated after my retirement, how will my monthly retirement benefit be calculated after the split?

(a) The dissolution order must state the exact dollar amount your ex-spouse is to receive as his or her separate monthly benefit. The following describes how the new amount of your benefit will be calculated assuming your ex-spouse was awarded a monthly benefit of $600 in the dissolution order.

| Step 1 | The department will determine the single life benefit of your current monthly benefit payment by dividing your currently monthly benefit payment by the survivor option factor (see WAC 415-02-380) in effect at the time of the split. | | --- | --- |

Example:

Currently monthly benefit = $1200

Option factor = 0.865

Single life benefit amount = $1200/0.865 = $1387.28

| Step 2 | The single life benefit ($1387.28) is divided by your annuity factor (see WAC 415-02-340) to determine the current present value of the single life benefit amount. The annuity factor the department uses is the factor for your age as of the date of the split. | | --- | --- |

Example:

Your age at time of the split = 61 years old

Annuity factor for age 61 = 0.0065448

Present value of single life benefit = $1387.28/0.0065448 = $211,966.75

| Step 3 | The department then determines the present value of your ex-spouse's share by dividing your ex-spouse's monthly benefit amount (as awarded in the dissolution order) by your ex-spouse's annuity factor. The annuity factor is the factor for your ex-spouse's age as of date of the split. | | --- | --- |

Example:

Ex-spouse's monthly benefit amount = $600

Ex-spouse's age at time of the split = 67

Annuity factor for age 67 = 0.0076715

Present value of your ex-spouse's monthly benefit =$600/0.0076715 = $78,211.56

| Step 4 | Next, the department subtracts your ex-spouse's present value from the single life benefit present value. The result is the present value of the benefit you will receive. | | --- | --- |

Example:

Present value of single life benefit = $211,966.75

Less present value of ex-spouse's benefit = -78,211.56

Your present value = $133,755.19

| Step 5 | The department determines your new monthly benefit amount by multiplying your present value by your annuity factor. | | --- | --- |

Example:

Your present value = $133,755.19

Annuity factor = 0.0065448

Your new monthly benefit amount = $133,755.19 x 0.0065448 = $875.40

(b) The department determines the percentage of the total present value each of you will receive by dividing each of your present value amounts by the single life benefit present value amount.

Example:

Your percentage of the single life benefit present value:

$133,755.19/$211,966.75 = .6310

Your ex-spouse's percentage of the single life benefit present value:

$78,211.56/$211,966.75 = .3690

(14) What language must the postretirement property division dissolution order or most recent amendment include to split my monthly defined benefit payment with my ex-spouse? Do not use the language in RCW 41.50.670(2). The order must include the language provided in the following paragraph. The exact dollar amount of your ex-spouse's monthly benefit payment must be specified. Do not use formulas or percentages. (See example in WAC 415-02-500 (14)(b).)

The Department of Retirement Systems (department) shall create a defined benefit account for (ex-spouse) in the (name of retirement system and plan) and pay him or her $ (amount) for his or her life. To pay for this benefit, (member's) monthly defined benefit payment will be reduced for life. This provision shall become effective as soon as administratively possible after the department's acceptance of the order.

(15) How will the department split my postretirement defined contribution account? If your defined contribution account has not been fully disbursed at the time of the dissolution order, the department will split the remaining portion of your defined contribution according to the provisions of subsections (6) through (9) of this section.

(16) Is there a maximum payment that a property division dissolution order can award to my ex-spouse? Yes. See RCW 41.50.670(4) and WAC 415-02-500(10) for information.

(17) Terms used:

(a) Department's acceptance - A dissolution order that fully complies with the department of retirement systems' requirements and chapter 41.50 RCW.

(b) Dissolution order - RCW 41.50.500.

(d) Split accounts - WAC 415-02-030.

(e) Survivor benefits - WAC 415-02-030.

(f) Plan 3 retirement systems - WAC 415-111-100.

(g) TRS - Teachers' retirement system.

Footnotes to section:

| 1 | When a court splits your retirement account, the department will establish a separate account for your ex-spouse. Once the account is established, your account and your ex-spouse's account are not tied in any way. | | --- | --- | | 2 | If an ex-spouse was not listed as the member's survivor beneficiary at retirement, then no postretirement property division order (or postretirement amendment) may split the member's retirement account using WAC 415-02-540. |

Reviser's note: The brackets and enclosed material in the text of the above section occurred in the copy filed by the agency.

Wash. Admin. Code § 415-02-550 What happens to my defined contributions if I transfer to Plan 3 after the department of retirement systems accepts my property division dissolution order?

(1) Who may use this section? You may use this section if you were a member of PERS Plan 2, SERS Plan 2, or TRS Plan 2 and first obtained a property division dissolution order using the language in RCW 41.50.670(2) and WAC 415-02-510 or 415-02-520, and then transfer to Plan 3.1

(2) What happens if the property division dissolution order (using the language in RCW 41.50.670(2) and WAC 415-02-510) did not split my account? Refer to WAC 415-02-530 for information about your defined benefit account and about your and your ex-spouse's defined contribution accounts after you transfer to Plan 3.

(3) What happens if the property dissolution order used the language in WAC 415-02-520 and did split my account?

(a) Your ex-spouse's account will remain in Plan 2. Your ex-spouse is ineligible to transfer to Plan 3.

(b) The balance of your accumulated contributions remaining in your Plan 2 account after it was split will be transferred to your Plan 3 defined contributions account. (Refer to chapter 415-111 WAC for information about your defined contribution account.)

(4) Terms used:

(a) Dissolution order - RCW 41.50.500.

(b) Ex-spouse - WAC 415-02-030.

(d) Plan 3 retirement systems - WAC 415-111-100.

(e) SERS - School employees' retirement system.

(f) Split accounts - WAC 415-02-030.

(g) TRS - Teachers' retirement system.

Footnote to section:

| 1 | The section does not apply to retirees, because retirees cannot transfer to Plan 3. | | --- | --- |

History

Statutory Authority: RCW 41.50.050(5). WSR 16-08-008, § 415-02-550, filed 3/24/16, effective 4/24/16. Statutory Authority: RCW 41.50.050(5), 41.50.500, 41.50.670, 41.50.710, and 41.50.790. WSR 08-10-025, § 415-02-550, filed 4/25/08, effective 5/26/08. Statutory Authority: RCW 41.50.050(5), 41.50.500, [41.50.]670-[41.50.]710, [41.50.]790 and 2002 c 158. WSR 03-12-014, § 415-02-550, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-02-700 Are fallen heroes' survivor benefits nontaxable?

(1) What is the fallen heroes tax exemption? The department makes survivor benefit annuity payments to qualified survivor beneficiaries of public safety officers killed in the line of duty. All or part of the annuity benefit paid may be nontaxable under applicable federal law1. Lump sum payments do not qualify for nontaxable treatment under this provision of law.

(a) Who is covered? Deceased public safety officers who were members of LEOFF, PERS, PSERS and WSPRS. If the deceased officer was a member of another plan, please contact the department or your tax advisor to discuss the matter.

(b) What time period is covered?

| member's date of death | survivor benefit payment date | | --- | --- | | On or after January 1, 1997 | On or after January 1, 1997 | | On or before December 31, 1996 | On or after January 1, 2002 |

(2) Can I rely on the department's determination of whether the payments are nontaxable? No.

(a) The department does not guarantee that payments should or should not be designated as exempt from federal income tax.

(b) The department does not guarantee that it was correct in withholding or not withholding taxes from survivor benefit payments to you.

(i) Represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will occur because of its nontaxable determination; or

(ii) Assume any liability for your compliance with the Internal Revenue Code.

(d) You should consult with your own tax advisor regarding all questions of federal or state income, payroll, personal property or other tax consequences regarding any payments you receive from the department.

(3) How will the department determine whether to withhold or not withhold from your survivor benefit annuity payment for income tax purposes?

(a) If you receive survivor benefit annuity payments because of the death of a public safety officer killed in the line of duty, and you are the public safety officer's spouse, ex-spouse, or child, the department will not withhold taxes on the portion of your survivor benefit payments attributable to the officer's service as a public safety officer.

(b) The department will compare the service credits associated with the member's employment as a public safety officer to the member's overall service credit to determine the portion of the survivor benefit payment that qualifies.

(c) Examples: In the following examples, assume that the plan administrator has determined that the death of the member qualifies under the fallen heroes tax exemption provision. Assume that the monthly survivor benefit payable is $2000.

Example 1. Joe was employed as a law enforcement officer. He spent his entire career in law enforcement from July 1, 1976, until his death on June 10, 2003 (324 months).

Total service credit = 324 months

Service credit as public safety officer = 324 months

324 / 324 = 1.0

1.0 x $2,000 = $2,000

$2,000 is not subject to withholding

Example 2. Brian was employed as a research analyst for a state agency from July 1, 1976, to May 30, 1995 (227 months service credit). He was employed in a public safety officer position for another state agency from June 1, 1995, until his death on June 10, 2003 (97 months service credit).

Total service credit = 324 months

Service credit as public safety officer = 97 months

97 / 324 = .299383

.299383 x $2,000 = $598.77

$598.77 is not subject to withholding

Example 3. Susan was hired on July 1, 1976, as a research analyst for a state agency. She terminated that employment on May 30, 1995 (227 months service credit). Susan was hired into a public safety officer position on June 1, 2003, for another state agency. She died on June 4, 2003.

Total service credit = 227.25 months

Service credit as public safety officer = .25 months

.25 / 227.25 = .001100

.001100 x $2,000 = $2.20

$2.20 is not subject to withholding

(d) What are the exceptions? Subsection (3)(a) of this section shall not apply with respect to the death of any public safety officer if:

(i) The death was caused by the intentional misconduct of the officer or by the officer's intention to bring about his or her own death;

(ii) The officer was voluntarily intoxicated at the time of death;

(iii) The officer was performing his or her duties in a grossly negligent manner at the time of death; or

(iv) The payment is to an individual whose actions were a substantial contributing factor to the death of the officer.

(4) Who will decide whether to withhold money for income tax from your survivor benefit payments?

(a) The plan administrator will make the decision.

(b) If you disagree with the plan administrator's decision, you may petition for review under chapter 415-04 WAC.

(5) What types of evidence will the department use in making the decision regarding whether to withhold taxes from the survivor payments?

(a) Cause of death stated on the certified death certificate;

(b) Facts surrounding the public safety officer's death;

(d) The deceased's membership records;

(e) Materials that the survivor submits for consideration; and

(f) Any other relevant evidence.

(6) Examples:

(a) Police officer: Charles is a police officer who works for a police department in a large Washington city. He receives a call to report to duty because a riot has started downtown. Charles drives to the riot scene and is killed getting out of his car from a bullet fired by a rioter. The department will not withhold taxes on survivor benefit payments.

(b) Firefighter: Elaine is a firefighter who attends a barbecue party on the Fourth of July. During the party, the barbecue falls over and the garage catches on fire. Elaine grabs a hose and puts out the fire, but dies from smoke inhalation in the process. The department would review the evidence and circumstances to determine whether Elaine would be considered to be "on duty" at the time of her death. If Elaine was not on duty, the department will withhold taxes on survivor benefit payments.

(c) Park ranger: Bobbi is a park ranger employed by the state parks and recreation commission. Her job duties include administration, development, maintenance, and visitor services, in addition to law enforcement, within a state park or park area. She is required to have knowledge of fire prevention and suppression methods and equipment. Although Bobbi is commissioned to enforce laws, her principal job functions do not include criminal law enforcement or crime control. The department would withhold taxes on payments to her survivors unless Bobbi was actually engaged in crime control, enforcement of criminal law, or fire suppression at the time of her death.

(7) Definitions used;2 these definitions apply to this WAC section only.

(a) Chaplain - Any individual serving as an officially recognized or designated member of a legally organized fire department or legally organized police department, or an officially recognized or designated public employee of a legally organized fire or police department who was responding to a fire, rescue, or police emergency.

(b) Child - Any natural, illegitimate, adopted, or posthumous child or stepchild of a deceased public safety officer who, at the time of the public safety officer's death, is:

(i) Eighteen years of age or under;

(ii) Over eighteen years of age and a student as defined in Section 8101 of Title 5, United States Code; or

(iii) Over eighteen years of age and incapable of self-support because of physical or mental disability;

(c) Firefighter - An individual serving as an officially recognized or designated member of a legally organized fire department and an officially recognized or designated public employee member of a rescue squad or ambulance crew.

(d) Intoxication - A disturbance of mental or physical faculties:

(i) Resulting from the introduction of alcohol into the body as evidenced by:

(A) A postmortem blood alcohol level of .20 per centum or greater; or

(B) A postmortem blood alcohol level of at least .10 per centum but less than .20 per centum unless the department receives convincing evidence that the public safety officer was not acting in an intoxicated manner immediately prior to his death; or

(ii) Resulting from drugs or other substances in the body.

(e) Law enforcement officer - An individual involved in crime and juvenile delinquency control or reduction, or enforcement of the laws, including, but not limited to, police, corrections, probation, parole, and judicial officers.

(f) Line of duty means:

(i) Any action which an officer whose primary function is crime control or reduction, enforcement of the criminal law, or suppression of fires is obligated or authorized by rule, regulations, condition of employment or service, or law to perform, including those social, ceremonial, or athletic functions to which the officer is assigned, or for which the officer is compensated, by the public agency he or she serves. For other officers, "line of duty" means any action the officer is so obligated or authorized to perform in the course of controlling or reducing crime, enforcing the criminal law, or suppressing fires; and

(ii) Any action which an officially recognized or designated public employee member of a rescue squad or ambulance crew is obligated or authorized by rule, regulation, condition of employment or service, or law to perform.

(g) Public agency - Any unit of government that meets the definition of "employer" in any retirement plan that the department administers.

(h) Public safety officer:

(i) Regardless of full-time or part-time status, an individual serving a public agency in an official capacity as a law enforcement officer, firefighter, chaplain, or member of a rescue squad or ambulance crew; or

(ii) An individual who is performing official duties in cooperation with the Federal Emergency Management Agency in an area, if those official duties:

(A) Are related to a major disaster or emergency that has been, or is later, declared to exist with respect to the area under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5121 et seq.); and

(B) Are determined by the head of the agency to be hazardous duties.

(i) Rescue - The provision of first response emergency medical treatment, transportation of persons in medical distress and under emergency conditions to medical care facilities, or search and rescue assistance in locating and extracting from danger persons lost, missing, or in imminent danger of bodily harm.

Footnotes to section:

| 1 | The "Omnibus Crime Control and Safe Streets Act of 1968," Act June 19, 1969, P.L. 90-351, which appears generally as 42 USCS §§ 3701 et seq., including Title 26 U.S.C. Sec. 101(h) as amended by the Fallen Hero Survivor Benefit Fairness Act of 2001. | | --- | --- | | 2 | These definitions duplicate, as closely as possible, those in 42 USCS § 3796b (2003), the applicable federal definition section. Provisions not applicable to any plans administered by the department have been deleted. |

History

Statutory Authority: RCW 41.50.050(5), 41.04.393. WSR 06-18-009, § 415-02-700, filed 8/24/06, effective 9/24/06
WSR 03-18-031, § 415-02-700, filed 8/26/03, effective 10/1/03.

Wash. Admin. Code § 415-02-710 What is the $150,000 death benefit?

(1) What is the $150,000 death benefit? This is a benefit consistent with workers' compensation law, Title 51 RCW. The benefit may be nontaxable under applicable federal law. It is payable to LEOFF, PERS, PSERS, SERS, TRS, and WSPRS beneficiaries if the member died as a result of:

(a) An injury sustained in the course of employment; or

(b) An occupational disease or infection that arose naturally and proximately out of employment.

(2) Who is covered? Deceased members of LEOFF, PERS, PSERS, SERS, TRS, and WSPRS. If the deceased was a member of another plan, please contact the department.

(3) Who will determine eligibility for the benefit? The Washington state department of labor and industries (L&I) will determine eligibility consistent with Title 51 RCW and applicable retirement statutes in chapter 41.26 RCW (LEOFF), chapter 41.40 RCW (PERS), chapter 41.37 RCW (PSERS), chapter 41.35 RCW (SERS), chapter 41.32 RCW (TRS), or chapter 43.43 RCW (WSPRS).

(4) Who will receive the $150,000 death benefit?

(a) LEOFF Plan 2, PERS, PSERS, SERS, TRS, and WSPRS Plan 2: The person(s) the member designated as his or her beneficiary(ies) for his or her retirement plan will receive the benefit unless the member designated a different beneficiary(ies) for the $150,000 death benefit. If the member did not designate a beneficiary for either the plan or death benefit, then the member's death benefit shall be paid to the member's surviving spouse as if in fact the spouse had been nominated by written designation, or if there is no surviving spouse, then to the member's estate.

(b) LEOFF Plan 1 and WSPRS Plan 1: In these plans, the member's surviving spouse is automatically the beneficiary for the member's retirement plan. The member may designate a different person(s) for the $150,000 death benefit. If the member did not designate a beneficiary for either the plan or death benefit, then the member's death benefit shall be paid to the member's surviving spouse as if in fact the spouse had been nominated by written designation, or if there is no surviving spouse, then to the member's estate.

(5) How do I apply for the benefit? To apply:

(a) Obtain an application from the department.

(b) Submit a correctly completed application to the department. The department will submit the application to L&I.

(6) How will I receive the benefit? L&I will notify you and the department of approval or disapproval of eligibility. If you are approved, you may choose to have the department send the lump sum payment directly to you or to your bank.

(7) How will DRS treat the $150,000 payment for tax purposes?

(a) The department will treat the payment as nontaxable.

(b) The department does not guarantee that payments should or should not be designated as exempt from federal income tax.

(c) The department does not guarantee that it was correct in withholding or not withholding taxes from the death benefit payment.

(d) The department does not:

(i) Represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will occur because of its nontaxable determination; or

(ii) Assume any liability for your compliance with the Internal Revenue Code.

(e) You should consult with your own tax advisor regarding all questions of federal or state income, payroll, personal property or other tax consequences regarding any payments you receive from the department.

History

Statutory Authority: RCW 41.50.050(5), 41.04.017, 41.26.048, 41.32.053, 41.35.115, 41.40.0931, 41.40.0932, 43.43.285. WSR 08-11-102, § 415-02-710, filed 5/20/08, effective 6/20/08
WSR 06-18-009, § 415-02-710, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5), 41.04.017, 41.26.048, 41.32.053, 41.35.115, 41.40.0932, 43.43.285. WSR 03-24-050, § 415-02-710, filed 11/26/03, effective 1/1/04.

Wash. Admin. Code § 415-02-740 What are the IRS limitations on maximum benefits and maximum contributions?

(1) Basic Internal Revenue Code (IRC) section 415 limitations. Subject to the provisions of this section, benefits paid from, and employee contributions made to, the plan shall not exceed the maximum benefits and the maximum annual addition, respectively, as applicable under IRC section 415. This rule applies retroactively beginning on January 1, 2009, except as otherwise stated.

(2) Definitions. As used in this section:

(a) "IRC section 415(b) limit" refers to the limitation on benefits established by IRC section 415(b);

(b) "IRC section 415(c) limit" refers to the limitation on annual additions established by IRC section 415(c); and

(3) Basic IRC section 415(b) limitation. Before January 1, 1995, a member may not receive an annual benefit that exceeds the limits specified in IRC section 415(b), subject to the applicable adjustments in that section. On and after January 1, 1995, a member may not receive an annual benefit that exceeds the dollar amount specified in IRC section 415 (b)(1)(A), subject to the applicable adjustments in IRC section 415(b) and subject to any additional limits that may be specified in this section. In no event shall a member's annual benefit payable in any limitation year from this plan be greater than the limit applicable at the annuity starting date, as increased in subsequent years pursuant to IRC section 415(d) and the regulations thereunder.

(4) Annual benefit definition. For purposes of IRC section 415(b), the "annual benefit" means a benefit payable annually in the form of a straight life annuity (with no ancillary benefits) without regard to the benefit attributable to the after-tax employee contributions (except pursuant to IRC section 415(n)) and to all rollover contributions as defined in IRC section 415 (b)(2)(A). The "benefit attributable" shall be determined in accordance with treasury regulations.

(5) Adjustments to basic IRC section 415(b) limitation for form of benefit. If the benefit under this plan is other than a straight life annuity with no ancillary benefit, then the benefit shall be adjusted so that it is the equivalent of the straight life annuity, using factors prescribed in treasury regulations.

If the form of benefit without regard to the automatic benefit increase feature is not a straight life annuity or a qualified joint and survivor annuity, then the preceding sentence is applied by either reducing the IRC section 415(b) limit applicable at the annuity starting date or adjusting the form of benefit to an actuarially equivalent amount (determined using the assumptions specified in Treasury Regulation section 1.415 (b)-1 (c)(2)(ii)) that takes into account the additional benefits under the form of benefits as follows:

(a) For a benefit paid in a form to which IRC section 417 (e)(3) does not apply (generally, a monthly benefit), the actuarially equivalent straight life annuity benefit that is the greater of (or the reduced IRC section 415(b) limit applicable at the annuity starting date which is the "lesser of" when adjusted in accordance with the following assumptions):

(i) The annual amount of the straight life annuity (if any) payable to the member under the plan commencing at the same annuity starting date as the form of benefit to the member; or

(ii) The annual amount of the straight life annuity commencing at the same annuity starting date that has the same actuarial present value as the form of benefit payable to the member, computed using a five percent interest assumption (or the applicable statutory interest assumption); and

(A) For years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation section 1.417 (e)-1(d)(2) (Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62); or

(B) For years after December 31, 2008, the applicable mortality tables described in section 417 (e)(3)(B) of the Internal Revenue Code (Notice 2008-85 or any subsequent Internal Revenue Service guidance implementing section 417 (e)(3)(B) of the Internal Revenue Code).

(b) For a benefit paid in a form to which IRC section 417 (e)(3) applies (generally, a lump sum benefit), the actuarially equivalent straight life annuity benefit that is the greatest of (or the reduced IRC section 415(b) limit applicable at the annuity starting date which is the "least of" when adjusted in accordance with the following assumptions):

(i) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using the interest rate and mortality table, or tabular factor, specified in the plan for actuarial experience;

(ii) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable, computed using a five and one-half percent interest assumption (or the applicable statutory interest assumption); and

(A) For years prior to January 1, 2009, the applicable mortality tables described in Treasury Regulation section 1.417 (e)-1 (d)(2) (Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62); or

(iii) The annual amount of the straight life annuity commencing at the annuity starting date that has the same actuarial present value as the particular form of benefit payable (computed using the applicable interest rate for the distribution under Treasury Regulation section 1.417 (e)-1 (d)(3) (the thirty-year treasury rate (prior to January 1, 2007, using the rate in effect for the month prior to retirement, and on and after January 1, 2007, using the rate in effect for the first day of the plan year with a one-year stabilization period)); and

(A) For years prior to January 1, 2009, the applicable mortality rate for the distribution under Treasury Regulation section 1.417 (e)-1 (d)(2) (the mortality table specified in Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62), divided by 1.05; or

(6) Benefits not taken into account for IRC section 415(b) limit. For purposes of this section, the following benefits shall not be taken into account in applying these limits:

(a) Any ancillary benefit which is not directly related to retirement income benefits;

(b) That portion of any joint and survivor annuity that constitutes a qualified joint and survivor annuity; and

(c) Any other benefit not required under IRC section 415 (b)(2) and treasury regulations thereunder to be taken into account for purposes of the limitation of IRC section 415 (b)(1).

(7) Other adjustments in IRC section 415(b) limitation.

(a) In the event the member's retirement benefits become payable before age sixty-two, the limit prescribed by this section shall be reduced in accordance with regulations issued by the Secretary of the Treasury pursuant to the provisions of IRC section 415(b), so that such limit (as so reduced) equals an annual straight life benefit (when such retirement income benefit begins) which is equivalent to a one hundred sixty thousand dollar (as adjusted) annual benefit beginning at age sixty-two.

(b) In the event the member's benefit is based on at least fifteen years of service as a full-time employee of any police or fire department or on fifteen years of military service, the adjustments provided for in (a) of this subsection shall not apply.

(c) The reductions provided for in (a) of this subsection shall not be applicable to preretirement disability benefits or preretirement death benefits.

(8) Less than ten years of participation adjustment for IRC section 415(b) limitation. The maximum retirement benefits payable to any member who has completed less than ten years of participation shall be the amount determined under subsection (3) of this section multiplied by a fraction, the numerator of which is the member's years of participation and the denominator of which is ten.

(a) The reduction provided by this subsection cannot reduce the maximum benefit below ten percent.

(b) The reduction provided by this subsection shall not be applicable to preretirement disability benefits or preretirement death benefits.

(c) For purposes of this subsection, a member's "years of participation" equal the amount of service credit used in the computation of the member's retirement allowance, except as follows. Service credit purchased pursuant to RCW 41.26.199 (LEOFF Plan 1), RCW 41.26.432 (LEOFF Plan 2), RCW 41.32.066 (TRS), RCW 41.35.183 (SERS), RCW 41.37.265 (PSERS), RCW 41.40.034 (PERS), and RCW 43.43.233 (WSPRS) is not included in a member's "years of participation."

(9) Effect of cost-of-living adjustment (COLA) without a lump sum component on IRC section 415(b) testing. Effective on and after January 1, 2009, for purposes of applying the IRC section 415(b) limit to a member with no lump sum benefit, the following will apply:

(a) A member's applicable IRC section 415(b) limit will be applied to the member's annual benefit in the member's first limitation year without regard to any automatic COLAs;

(b) To the extent that the member's annual benefit equals or exceeds the limit, the member will no longer be eligible for COLA increases until such time as the benefit plus the accumulated increases are less than the IRC section 415(b) limit; and

(c) Thereafter, in any subsequent limitation year, a member's annual benefit, including any automatic COLA increases, shall be tested under the then applicable IRC section 415(b) limit including any adjustment to the IRC section 415 (b)(1)(A) dollar limit under IRC section 415(d), and the treasury regulations thereunder.

(10) Effect of COLA with a lump sum component on IRC section 415(b) testing. On and after January 1, 2009, with respect to a member who receives a portion of the member's annual benefit in a lump sum, a member's applicable limit will be applied taking into consideration COLA increases as required by IRC section 415(b) and applicable treasury regulations.

(11) IRC section 415(c) limit. After-tax member contributions or other annual additions with respect to a member may not exceed the lesser of forty thousand dollars, as adjusted pursuant to IRC section 415(d), or one hundred percent of the member's compensation.

(a) Annual additions are defined to mean the sum (for any year) of employer contributions to a defined contribution plan, member contributions, and forfeitures credited to a member's individual account. Member contributions are determined without regard to rollover contributions and to picked-up employee contributions that are paid to a defined benefit plan.

(b) For purposes of applying the IRC section 415(c) limits only and for no other purpose, the definition of compensation where applicable will be compensation actually paid or made available during a limitation year, except as noted below and as permitted by Treasury Regulation section 1.415 (c)-2, or successor regulation; provided; however, that member contributions picked up under IRC section 414(h) shall not be treated as compensation.

(c) Unless another definition of compensation that is permitted by Treasury Regulation section 1.415 (c)-2, or successor regulation, is specified by the plan, compensation will be defined as wages within the meaning of IRC section 3401(a) and all other payments of compensation to an employee by an employer for which the employer is required to furnish the employee a written statement under IRC sections 6041(d), 6051 (a)(3), and 6052 and will be determined without regard to any rules under IRC section 3401(a) that limit the remuneration included in wages based on the nature or location of the employment or the services performed (such as the exception for agricultural labor in IRC section 3401 (a)(2)).

(i) However, for limitation years beginning on and after January 1, 1998, compensation will also include amounts that would otherwise be included in compensation but for an election under IRC sections 125(a), 402 (e)(3), 402 (h)(1)(B), 402(k), or 457(b). For limitation years beginning on and after January 1, 2001, compensation will also include any elective amounts that are not includible in the gross income of the employee by reason of IRC section 132 (f)(4).

(ii) For limitation years beginning on and after January 1, 2009, compensation for the limitation year will also include compensation paid by the later of two and one-half months after an employee's severance from employment or the end of the limitation year that includes the date of the employee's severance from employment if:

(A) The payment is regular compensation for services during the employee's regular working hours, or compensation for services outside the employee's regular working hours (such as overtime or shift differential), commissions, bonuses or other similar payments, and, absent a severance from employment, the payments would have been paid to the employee while the employee continued in employment with the employer; or

(B) The payment is for unused accrued bona fide sick, vacation or other leave that the employee would have been able to use if employment had continued.

Any payments not described in (c)(ii) of this subsection are not considered compensation if paid after severance from employment, even if they are paid within two and one-half months following severance from employment, except for payments to the individual who does not currently perform services for the employer by reason of qualified military service (within the meaning of IRC section 414 (u)(1)) to the extent these payments do not exceed the amounts the individual would have received if the individual had continued to perform services for the employer rather than entering qualified military service.

(iii) Back pay, within the meaning of Treasury Regulation section 1.415 (c)-2(g)(8), shall be treated as compensation for the limitation year to which the back pay relates to the extent the back pay represents wages and compensation that would otherwise be included under this definition.

(iv) Beginning January 1, 2009, to the extent required by IRC sections 3401(h) and 414 (u)(12), an individual receiving a differential wage payment (as defined in section 3401 (h)(2) of the Internal Revenue Code) from an employer shall be treated as employed by that employer, and the differential wage payment shall be treated as compensation for purposes of applying the limits on annual additions under section 415(c) of the Internal Revenue Code. This provision shall be applied to all similarly situated individuals in a reasonably equivalent manner.

(v) An employee who is in qualified military service (within the meaning of IRC section 414 (u)(1)) shall be treated as receiving compensation from the employer during such period of qualified military service equal to:

(A) The compensation the employee would have received during such period if the employee were not in qualified military service, determined based on the rate of pay the employee would have received from the employer but for the absence during the period of qualified military service; or

(B) If the compensation the employee would have received during such period was not reasonably certain, the employee's average compensation from the employer during the twelve month period immediately preceding the qualified military service (or, if shorter, the period of employment immediately preceding the qualified military service).

(vi) If the annual additions for any member for a plan year exceed the limitation under IRC section 415(c), the excess annual addition will be corrected as permitted under the Employee Plans Compliance Resolution System (or similar IRS correction program).

(vii) For limitation years beginning on or after January 1, 2009, a member's compensation for purposes of this subsection shall not exceed the annual limit under IRC section 401 (a)(17).

(12) Service purchases under IRC section 415(n). Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, if a member makes one or more contributions to purchase permissive service credit under the plan, then the requirements of IRC section 415(n) will be treated as met only if:

(a) The requirements of IRC section 415(b) are met, determined by treating the accrued benefit derived from all such contributions as an annual benefit for purposes of IRC section 415(b); or

(b) The requirements of IRC section 415(c) are met, determined by treating all such contributions as annual additions for purposes of IRC section 415(c).

(c) For purposes of applying this subsection, the plan will not fail to meet the reduced limit under IRC section 415 (b)(2)(C) solely by reason of this subsection and will not fail to meet the percentage limitation under IRC section 415 (c)(1)(B) solely by reason of this subsection.

(d) For purposes of this subsection the term "permissive service credit" means service credit:

(i) Recognized by the plan for purposes of calculating a member's benefit under the plan;

(ii) Which such member has not received under the plan; and

(iii) Which such member may receive only by making a voluntary additional contribution, in an amount determined under the plan, which does not exceed the amount necessary to fund the benefit attributable to such service credit.

Effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, such term may include service credit for periods for which there is no performance of service, and, notwithstanding (d)(ii) of this subsection, may include service credited in order to provide an increased benefit for service credit which a member is receiving under the plan.

(e) The plan will fail to meet the requirements of this section if:

(i) More than five years of nonqualified service credit are taken into account for purposes of this subsection; or

(ii) Any nonqualified service credit is taken into account under this subsection before the member has at least five years of participation under the plan.

(f) For purposes of (e) of this subsection, effective for permissive service credit contributions made in limitation years beginning after December 31, 1997, the term "nonqualified service credit" means permissive service credit other than that allowed with respect to:

(i) Service (including parental, medical, sabbatical, and similar leave) as an employee of the government of the United States, any state or political subdivision thereof, or any agency or instrumentality of any of the foregoing (other than military service or service for credit which was obtained as a result of a repayment described in IRC section 415 (k)(3));

(ii) Service (including parental, medical, sabbatical, and similar leave) as an employee (other than as an employee described in (f)(i) of this subsection) of an education organization described in IRC section 170 (b)(1)(A)(ii) which is a public, private, or sectarian school which provides elementary or secondary education through grade twelve, or a comparable level of education, as determined under the applicable law of the jurisdiction in which the service was performed;

(iii) Service as an employee of an association of employees who are described in (f)(i) of this subsection; or

(iv) Military service, other than qualified military service under section 414(u), recognized by the plan.

(g) In the case of service described in (f)(i), (ii), or (iii) of this subsection, such service will be nonqualified service if recognition of such service would cause a member to receive a retirement benefit for the same service under more than one plan.

(h) In the case of a trustee-to-trustee transfer after December 31, 2001, to which IRC section 403 (b)(13)(A) or 457 (e)(17)(A) applies, without regard to whether the transfer is made between plans maintained by the same employer:

(i) The limitations of (e) of this subsection will not apply in determining whether the transfer is for the purchase of permissive service credit; and

(ii) The distribution rules applicable under federal law to the plan will apply to such amounts and any benefits attributable to such amounts.

(i) For an eligible member, the limitation of IRC section 415 (c)(1) shall not be applied to reduce the amount of permissive service credit which may be purchased to an amount less than the amount which was allowed to be purchased under the terms of the plan as in effect on August 5, 1997. For purposes of this subsection (12)(i), an eligible member is an individual who first became a member in the plan before January 1, 1998.

(13) Modification of contributions for IRC sections 415(c) and 415(n) purposes. Notwithstanding any other provision of law to the contrary, the department may modify a request by a member to make a contribution to the plan if the amount of the contribution would exceed the limits provided in IRC section 415 by using the following methods:

(a) If the law allows, the department may establish either a lump sum or a periodic payment plan for the member to avoid a contribution in excess of the limits under IRC sections 415(c) or 415(n).

(b) If payment pursuant to (a) of this subsection will not avoid a contribution in excess of the limits imposed by IRC sections 415(c) or 415(n), the department may either reduce the member's contribution to an amount within the limits of those sections or refuse the member's contribution.

(14) Repayments of cash outs. Any repayment of contributions, including interest thereon, to the plan with respect to an amount previously refunded upon a forfeiture of service credit under the plan or another governmental plan maintained by the state or a local government within the state shall not be taken into account for purposes of IRC section 415, in accordance with applicable treasury regulations.

(15) Participation in other qualified plans: Aggregation of limits.

(a) The IRC section 415(b) limit with respect to any member who at any time has been a member in any other defined benefit plan as defined in IRC section 414(j) maintained by the member's employer shall apply as if the total benefits payable under all such defined benefit plans in which the member has been a member were payable from one plan.

(b) The IRC section 415(c) limit with respect to any member who at any time has been a member in any other defined contribution plan as defined in IRC section 414(i) maintained by the member's employer shall apply as if the total annual additions under all such defined contribution plans in which the member has been a member were payable from one plan.

(16) Reduction of benefits priority. Reduction of benefits and/or contributions to all plans, where required, shall be accomplished by first reducing the member's defined benefit component under any defined benefit plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be determined by the plan and the plan administrator of such other plans; and next, by reducing the member's defined contribution component benefit under any defined benefit plans; and next by reducing or allocating excess forfeitures for defined contribution plans in which the member participated, such reduction to be made first with respect to the plan in which the member most recently accrued benefits and thereafter in such priority as shall be established by the plan and the plan administrator for such other plans provided; however, that necessary reductions may be made in a different manner and priority pursuant to the agreement of the plan and the plan administrator of all other plans covering such member.

(17) Technical and Miscellaneous Revenue Act of 1988 (TAMRA) election. This subsection applies only to those plans for which it has been approved by the IRS. This subsection applies retroactively beginning on January 1, 1990, only to participants who first became participants in the system before January 1, 1990. For purposes of this subsection, these participants are referred to as "qualified participants." For a qualified participant, the 415(b) limit shall not be less than the accrued benefit of the participant under the plan determined without regard to any amendment of the plan made after October 14, 1987.

(18) Ten thousand dollar limit; less than ten years of service. Notwithstanding anything in this section to the contrary, the retirement benefit payable with respect to a member shall be deemed not to exceed the limit set forth in this subsection if the benefits payable, with respect to such member under this plan and under all other qualified defined benefit pension plans to which the member's employer contributes, do not exceed ten thousand dollars for the applicable limitation year and for any prior limitation year and the employer has not at any time maintained a qualified defined contribution plan in which the member participated, provided, however, that if the member has completed less than ten years of service with the employer, the limit under this section shall be a reduced limit equal to ten thousand dollars multiplied by a fraction, the numerator of which is the number of the member's years of service and the denominator of which is ten, and such that the fraction so calculated may not be less than one-tenth.

History

Statutory Authority: RCW 41.50.050(5). WSR 12-21-036, § 415-02-740, filed 10/10/12, effective 11/10/12
WSR 10-24-099, § 415-02-740, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-750 How does the department comply with Internal Revenue Code distribution rules?

(1) All benefits paid from the retirement plan shall be distributed in accordance with a reasonable and good faith interpretation of the requirements of section 401 (a)(9) of the Internal Revenue Code, as applicable to a governmental plan within the meaning of section 414(d) of the Internal Revenue Code. In order to meet these requirements, the retirement plan shall be administered in accordance with the following provisions:

(a) If a plan member separates from service prior to attaining eligibility for a future benefit and the balance of the member's accumulated contributions is less than $1,000, the department may initiate a refund of the member's accumulated contributions following written notification to the member.

(i) A refund of the accumulated contributions initiated by the department under the terms of this section shall terminate all rights to benefits in the retirement plan.

(ii) If the member is reemployed in an eligible position, service credits earned prior to the refund may be restored upon repayment according to the provisions of the plan.

(b) Distribution of a member's benefit must begin by the later of April 1st following the calendar year in which a member attains age seventy and one-half or April 1st of the year following the calendar year in which the member retires;

(c) Unless distributed in a lump sum, the member's entire interest must be distributed over the member's life or the lives of the member and a designated beneficiary, or over a period not extending beyond the life expectancy of the member or of the member and designated beneficiary;

(d) The life expectancy of a member or the member's spouse or beneficiary may not be recalculated after the benefits commence;

(e) If a member dies before the required distribution of the member's benefits has begun, the member's entire interest must be either:

(i) Distributed (in accordance with federal regulations) over the life or life expectancy of the designated beneficiary, with the distributions beginning no later than December 31st of the calendar year following the calendar year of the member's death; or

(ii) Distributed within five years of the member's death.

(f) The amount of an annuity paid to a member's beneficiary may not exceed the maximum determined under the incidental death benefit requirement of section 401 (a)(9)(G) of the Internal Revenue Code, and the minimum distribution incidental benefit rule under Treasury Regulation section 1.401 (a)(9)-6, Q&A 2; and

(g) If a member dies after the distribution of the member's benefits has begun, the remaining portion of the member's interest will be distributed at least as rapidly as under the method of distribution being used for the member as of the date of the member's death.

(2) The retirement system pursuant to a valid dissolution order as defined in RCW 41.50.500 may establish separate benefits for a member and nonmember.

(3) The death and disability benefits provided by the plan are limited by the incidental benefit rule set forth in section 401 (a)(9)(G) of the Internal Revenue Code and Treasury Regulation section 1.401-1 (b)(1)(i) or any successor regulation thereto. As a result, the total death or disability benefits payable may not exceed twenty-five percent of the cost for all of the members' benefits received from the plan.

History

Statutory Authority: RCW 41.50.050 and 41.50.180. WSR 21-22-048, § 415-02-750, filed 10/28/21, effective 11/28/21. Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-750, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-751 How does the department comply with Internal Revenue Code rollover rules?

(1) A distributee may elect to have eligible rollover distributions paid in a direct rollover to an eligible retirement plan the distributee specifies, pursuant to section 401 (a)(31) of the federal Internal Revenue Code.

(2) "Eligible rollover distribution" means any distribution of all or any portion of the balance to the distributee with the following exceptions:

(a) Any distribution that is one of a series of substantially equal periodic payments (not less frequently than annually) made for the life (or the life expectancy) of the distributee or the joint lives (or joint life expectancies) of the distributee and the distributee's designated beneficiary, or for a specified period of ten years or more;

(b) Any distribution to the extent such distribution is required under section 401 (a)(9) of the Internal Revenue Code;

(d) Any other distribution that is reasonably expected to total less than two hundred dollars during the year.

Effective January 1, 2002, a portion of a distribution will not fail to be an eligible rollover distribution merely because the portion consists of after-tax employee contributions that are not includible in gross income. However, such portion may be transferred only to an individual retirement account or annuity described in section 408 (a) or (b) of the Internal Revenue Code, or to a qualified defined contribution plan described in section 401(a) of the Internal Revenue Code, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible, or on or after January 1, 2007, to a qualified defined benefit plan described in section 401(a) of the Internal Revenue Code or to an annuity contract described in section 403(b) of the Internal Revenue Code, that agrees to separately account for amounts so transferred (and earnings thereon), including separately accounting for the portion of the distribution that is includible in gross income and the portion of the distribution that is not so includible.

Effective January 1, 2002, the definition of eligible rollover distribution also includes a distribution to a surviving spouse, or to a spouse or former spouse who is an alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Internal Revenue Code.

(3) "Eligible retirement plan" means any of the following that accepts the distributee's eligible rollover distribution:

(a) An individual retirement account described in section 408(a) of the Internal Revenue Code;

(b) An individual retirement annuity described in section 408(b) of the Internal Revenue Code;

(d) A qualified trust described in section 401(a) of the Internal Revenue Code;

(e) Effective January 1, 2002, an annuity contract described in section 403(b) of the Internal Revenue Code;

(f) Effective January 1, 2002, a plan eligible under section 457(b) of the Internal Revenue Code that is maintained by a state, political subdivision of a state, or any agency or instrumentality of a state or a political subdivision of a state that agrees to separately account for amounts transferred into such 457(b) plan from this plan; or

(g) Effective January 1, 2008, a Roth IRA described in section 408A of the Internal Revenue Code.

(4) "Distributee" means an employee or former employee. It also includes the employee's or former employee's surviving spouse and the employee's or former employee's spouse or former spouse who is the alternate payee under a qualified domestic relations order, as defined in section 414(p) of the Internal Revenue Code. Effective January 1, 2007, a distributee further includes a nonspouse beneficiary who is a designated beneficiary as defined by section 401 (a)(9)(E) of the Internal Revenue Code. However, a nonspouse beneficiary may rollover the distribution only to an individual retirement account or individual retirement annuity established for the purpose of receiving the distribution, and the account or annuity will be treated as an "inherited" individual retirement account or annuity.

(5) "Direct rollover" means a payment by the plan to the eligible retirement plan specified by the distributee.

History

Statutory Authority: RCW 41.50.050(5). WSR 12-21-036, § 415-02-751, filed 10/10/12, effective 11/10/12
WSR 10-24-099, § 415-02-751, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-752 How does the department comply with Internal Revenue Code compensation limit rules?

(1) As used in this section, the term "eligible member" means a person who first became a member of the plan prior to the plan year beginning after December 31, 1995. Pursuant to section 13212 (d)(3)(A) of OBRA '93, and the regulations issued under that section, eligible members are not subject to the limits of section 401 (a)(17) of the Internal Revenue Code, and the maximum compensation used in computing employee and employer contributions to or benefits due from the plan for eligible members shall be the maximum amount allowed by the plan to be so used on July 1, 1993. The limits referenced in subsections (2) and (3) of this section apply only to years beginning after December 31, 1995, and only to individuals who first became plan members in plan years beginning on and after January 1, 1996.

(2) Effective with respect to plan years beginning on and after January 1, 1996, and before January 1, 2002, the annual compensation of a plan member (who is not an eligible member) which exceeds one hundred fifty thousand dollars (as adjusted for cost-of-living increases under section 401 (a)(17)(B) of the Internal Revenue Code) shall be ignored for purposes of computing employee and employer contributions to or benefits due from the plan. Effective only for the 1996 plan year, in determining the compensation of an employee eligible for consideration under this provision, the rules of section 414 (g)(6) of the Internal Revenue Code shall apply, except that in applying such rules, the term "family" shall include only the spouse of the member and any lineal descendants of the employee who have not attained age nineteen before the close of the year.

(3) Effective with respect to plan years beginning on and after January 1, 2002, the annual compensation of a plan member (who is not an eligible member) which exceeds two hundred thousand dollars (as adjusted for cost-of-living increases in accordance with section 401 (a)(17)(B) of the Internal Revenue Code) may not be used in determining benefits or contributions due for any plan year. Annual compensation means compensation during the plan year or such other consecutive twelve-month period over which compensation is otherwise determined under the plan (the determination period). The cost-of-living adjustment in effect for a calendar year applies to annual compensation for the determination period that begins with or within such calendar year. If the determination period consists of fewer than twelve months, the annual compensation limit is an amount equal to the otherwise applicable annual compensation limit multiplied by a fraction, the numerator of which is the number of months in the short determination period, and the denominator of which is twelve. If the compensation for any prior determination period is used in determining a plan member's contributions or benefits for the current plan year, the compensation for such prior determination period is subject to the applicable annual compensation limit in effect for that prior period. The determination period for testing contributions is the calendar year.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-752, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-753 How does the department comply with Internal Revenue Code vesting rules?

(1) In addition to protections provided by state law, a plan member shall be one hundred percent vested in all plan benefits upon attainment of the normal retirement age and service requirements.

(2) A plan member shall be one hundred percent vested in his or her accumulated contributions at all times.

(3) The plan may only be terminated by action of the legislature and employer contributions must be paid in accordance with state law. In the event the legislature took action to terminate a plan, in whole or in part, or discontinue employer contributions to the plan, any applicable state law and constitutional protections would apply to accrued benefits. In such event, pursuant to federal rules, a plan member's accrued benefit under the plan in nonforfeitable to the extent funded.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-753, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-754 How does the department comply with Internal Revenue Code definitely determinable benefit rules?

(1) In conformity with section 401 (a)(8) of the Internal Revenue Code, any forfeitures of benefits by members or former members of the plan will not be used to pay benefit increases. However, such forfeitures shall be used to reduce employer contributions.

(2) In conformity with section 401 (a)(25) of the Internal Revenue Code, actuarial equivalence for purposes of calculating benefit options is determined using the following assumptions and without employer discretion:

Interest rate: Five percent; and

(a) For years prior to January 1, 2009, the mortality table specified in Revenue Ruling 2001-62 or any subsequent revenue ruling modifying the applicable provisions of Revenue Ruling 2001-62; or

(b) For years after December 31, 2008, the applicable mortality tables described in section 417 (e)(3)(B) of the Internal Revenue Code, Notice 2008-85, or any subsequent Internal Revenue Service guidance implementing section 417 (e)(3)(B) of the Internal Revenue Code.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-754, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-755 How does the department comply with Internal Revenue Code USERRA rules?

Effective December 12, 1994, notwithstanding any other provisions of state law, contributions, benefits and service credit with respect to qualified military service are governed by section 414(u) of the Internal Revenue Code and the Uniformed Services Employment and Reemployment Rights Act (USERRA) of 1994.

Effective with respect to deaths occurring on and after January 1, 2007, while a member is performing qualified military service (as defined in chapter 43 of Title 38 of the United States Code), to the extent required by section 401 (a)(37) of the Internal Revenue Code, survivors of a member of a retirement system are entitled to any additional benefits that the system would provide if the member had resumed employment and then died, such as accelerated vesting or survivor benefits that are contingent on the member's death while employed. In any event, a deceased member's period of qualified service must be counted for vesting purposes.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-755, filed 12/1/10, effective 1/1/11.

Wash. Admin. Code § 415-02-756 How does the department comply with Internal Revenue Code exclusive benefit rules?

No assets of the retirement system may be used for or diverted to a purpose other than the exclusive benefit of the members and their beneficiaries at any time prior to the satisfaction of all liabilities with respect to members and their beneficiaries.

History

Statutory Authority: RCW 41.50.050(5). WSR 10-24-099, § 415-02-756, filed 12/1/10, effective 1/1/11.

Chapter 415-04 Petition procedure.

Wash. Admin. Code § 415-04-015 When can I use the petition process?

You may use the petition process to request review of administrative decisions that address the following matters, including, but not limited to:

(1) Service credits;

(2) Service retirement benefits;

(3) Membership in the retirement systems;

(4) Disability benefits, except as otherwise provided by law;

(5) Survivor benefits; and

(6) Benefit increases provided by RCW 41.16.145 or 41.18.104.

(7) Deferred compensation accounts, except that review of decisions regarding payments due to unforeseeable emergency, are governed by WAC 415-08-015.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-015, filed 8/24/01, effective 9/24/01.

Wash. Admin. Code § 415-04-017 What is not covered by this chapter?

You may not use the petition process to request review of administrative decisions that address the following matters, including, but not limited to:

(1) Overpayments if the procedures in RCW 41.50.135 or 41.50.138 apply.

(2) Deferred compensation plan payments because of an unforeseeable emergency (see WAC 415-08-015).

(3) Law enforcement officers' and firefighters' (LEOFF) Plan 1 appeals of disability board decisions that the LEOFF administrator reviews. For more information about LEOFF Plan 1 disability board appeals, please refer to RCW 41.26.140 (reexaminations of disability beneficiaries), RCW 41.26.200 (right to appeal); WAC 415-104-035 (jurisdiction), WAC 415-104-045 (who can appeal, and deadline), WAC 415-104-050 (how DRS will handle the appeal), and WAC 415-104-060 (records reviewed on appeals).

History

Statutory Authority: RCW 41.50.050(5), 41.50.060, 41.50.770, 41.50.780, 2001 c 42. WSR 02-12-084, § 415-04-017, filed 6/4/02, effective 7/5/02. Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-017, filed 8/24/01, effective 9/24/01.

Wash. Admin. Code § 415-04-020 How do I file a petition for review?

(1) You may request administrative review of an administrator's decision by filing a petition with the petition examiner.

(2) You must file the petition within one hundred twenty days from the date you received the administrator's decision.

(3) If you fail to file the petition within one hundred twenty days, you lose the right to judicial review, because of your failure to exhaust administrative remedies as required by RCW 34.05.534.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-020, filed 8/24/01, effective 9/24/01. Statutory Authority: RCW 41.50.050 and 41.50.780(11). WSR 96-16-020, § 415-04-020, filed 7/29/96, effective 7/29/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-04-020, filed 5/18/93, effective 6/18/93. Statutory Authority: RCW 41.50.050. WSR 91-19-064, § 415-04-020, filed 9/16/91, effective 10/17/91
Order 4, § 415-04-020, filed 7/27/77.

Wash. Admin. Code § 415-04-025 Who may file a petition?

You may file a petition if you are a member, current or former spouse, designated beneficiary or employer, and have a sufficient stake in the outcome of the petition proceeding.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-025, filed 8/24/01, effective 9/24/01.

Wash. Admin. Code § 415-04-030 What should my petition include?

Your petition should include:

(1) A statement of what you want the department to do (relief requested) after considering the petition;

(2) An explanation of why your request has merit;

(3) All facts relating to the petition, including any relevant documents or sworn statements;

(4) The name and address of your attorney, if applicable; and

(5) Your name, address, phone number, fax number, email address, and signature.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-030, filed 8/24/01, effective 9/24/01. Statutory Authority: RCW 41.50.050 and 41.50.780(11). WSR 96-16-020, § 415-04-030, filed 7/29/96, effective 7/29/96.

Wash. Admin. Code § 415-04-035 How much information do I need to provide in support of my petition?

You bear the burden of convincing the petition examiner that you are entitled to the relief requested. You must provide sufficient information to outweigh the information that the plan administrator used in making the administrative determination that is being reviewed.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-035, filed 8/24/01, effective 9/24/01.

Wash. Admin. Code § 415-04-037 If I petition for disability retirement benefits, who pays the cost of obtaining additional medical data?

If you petition the department for a disability retirement benefit and you need to provide additional medical data in support of your petition, you must pay any cost involved.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-037, filed 8/24/01, effective 9/24/01.

Wash. Admin. Code § 415-04-040 What will the department do after receiving my petition?

The department's petition examiner will:

(1) Acknowledge receipt of your petition;

(2) Notify persons or entities potentially impacted by the outcome of the process, such as the member, current or former employer(s), designated beneficiaries, or former spouse, that you filed a petition;

(3) If deemed necessary or useful, request additional information at any time;

(4) Issue a written decision within ninety days of the date the department received your petition, unless that deadline is extended for good cause; and

(5) If deemed necessary or useful, and without issuing a petition decision, refer the petition back to the appropriate administrator for a new determination if:

(a) The petition adds new issues or facts that have not been addressed in the plan administrator's final determination; or

(b) The administrator did not have access to information that may have changed the outcome of the administrative determination.

History

Statutory Authority: RCW 41.50.050(5). WSR 16-12-051, § 415-04-040, filed 5/25/16, effective 6/25/16
WSR 04-09-042, § 415-04-040, filed 4/14/04, effective 5/15/04. Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-040, filed 8/24/01, effective 9/24/01. Statutory Authority: RCW 41.50.050 and 41.50.780(11). WSR 96-16-020, § 415-04-040, filed 7/29/96, effective 7/29/96.

Wash. Admin. Code § 415-04-050 How do I appeal a petition decision?

(1) You may file an appeal of the petition decision with the department's director no later than sixty days after you receive the petition decision.

(2) You must follow the procedures in chapter 415-08 WAC in filing your appeal.

(3) If you fail to file your appeal within sixty days, you lose your right to judicial review, because of your failure to exhaust administrative remedies as required by RCW 34.05.534.

History

Statutory Authority: RCW 41.50.050(5), 41.50.050, 41.50.060. WSR 01-18-018, § 415-04-050, filed 8/24/01, effective 9/24/01. Statutory Authority: RCW 41.50.050 and 41.50.780(11). WSR 96-16-020, § 415-04-050, filed 7/29/96, effective 7/29/96.

Chapter 415-06 Public records.

Wash. Admin. Code § 415-06-010 Purpose.

The purpose of this chapter shall be to ensure compliance by the department of retirement systems with the provisions of chapter 1, Laws of 1973, (Initiative 276), Disclosure—Campaign finances—Lobbying—Records; now codified as chapter 42.17 RCW.

History

Order 4, § 415-06-010, filed 7/27/77.

Wash. Admin. Code § 415-06-020 Definitions.

(1) Public records. "Public record" includes any writing containing information relating to the conduct of governmental or the performance of any governmental or proprietary function prepared, owned, used or retained by any state or local agency regardless of physical form or characteristics.

(2) Writing. "Writing" means handwriting, typewriting, printing, photostating, photographing, and every other means of recording any form of communication or representation, including letters, words, pictures, sounds; or symbols, or combination thereof, and all papers, maps, magnetic or paper tapes, photographic films and prints, magnetic or punched cards, discs, drums and other documents.

(3) "Department" means the department of retirement systems.

(4) "Director" means the director of retirement systems.

History

Order 4, § 415-06-020, filed 7/27/77.

Wash. Admin. Code § 415-06-030 Public records officer.

The department's records shall be in the charge of the public records officer designated by the department. The person so designated shall be located in the administrative office of the department. The public records officer shall be responsible for the following: The implementation of the departments rules and regulation regarding release of public records, coordinating the staff of the department in this regard, and generally insuring compliance by the staff with the public records disclosure requirements of chapter 1, Laws of 1973.

History

Order 4, § 415-06-030, filed 7/27/77.

Wash. Admin. Code § 415-06-040 Office hours.

Public records shall be available for inspection and copying during the customary office hours of the department. For the purposes of this chapter, the customary office hours shall be from 9:00 a.m. to noon and from 1:00 p.m. to 4:00 p.m., Monday through Friday, excluding legal holidays.

History

Order 4, § 415-06-040, filed 7/27/77.

Wash. Admin. Code § 415-06-050 Requests for public records.

In accordance with requirements of chapter 1, Laws of 1973 that agencies prevent unreasonable invasions of privacy, protect public records from damage or disorganization, and prevent excessive interference with essential functions of the agency, public records may be inspected or copied or copies of such records may be obtained, by members of the public, upon compliance with the following procedures:

(1) A request shall be made in writing upon a form prescribed by the department which shall be available at its administrative office. The form shall be presented to the public records officer; or to any member of the department's staff, if the public records office is not available, at the administrative office of the department during customary office hours. The request shall include the following information:

(a) The name of the person requesting the records;

(b) The time of day and calendar date on which the request was made;

(d) If the matter requested is referenced within the current index maintained by the records officer, a reference to the requested record as it is described in such current index;

(e) If the requested matter is not identifiable by reference to the department's current index, an appropriate description of the record requested.

(2) In all cases in which a member of the public is making a request, it shall be the obligation of the public records officer or staff member to whom the request is made, to assist the member of the public in appropriately identifying the public record requested.

History

Order 4, § 415-06-050, filed 7/27/77.

Wash. Admin. Code § 415-06-060 Fees.

(1) No fee shall be charged for the inspection of public records or for locating public records and making them available for copying. However, the department may charge fees for copying and providing copies of public records. Such fees will not exceed the rates established in RCW 42.56.120, as amended by section 3, chapter 304, Laws of 2017.

(2) Pursuant to RCW 42.56.120, as amended by section 3, chapter 304, Laws of 2017, the department declares for the following reasons that it would be unduly burdensome to calculate the actual costs of copying and providing copies of public records: Department resources were not allocated for performing a study to calculate the actual costs; the department lacks the necessary resources to perform such a study and calculations; and such a study would interfere with and disrupt other essential department functions.

History

Statutory Authority: RCW 41.50.050(5). WSR 17-24-021, § 415-06-060, filed 11/28/17, effective 12/29/17
Order 4, § 415-06-060, filed 7/27/77.

Wash. Admin. Code § 415-06-070 Exemptions.

(1) The department reserves the right to determine that a public record requested in accordance with the procedures outlined in WAC 415-06-050 is exempt under the provisions of section 31, chapter 1, Laws of 1973.

(2) In addition, pursuant to section 26, chapter 1, Laws of 1973, the department reserves the right to delete identifying details when it makes available or publishes any public record, in any cases when there is reason to believe that disclosure of such details would be an invasion of personal privacy protected by chapter 1, Laws of 1973. The public records officer will fully justify such deletion in writing.

(3) All denials of requests for public records must be accompanied by a written statement specifying the reason for the denial, including a statement of the specific exemption authorizing the withholding of the record and a brief explanation of how the exemption applies to the record withheld.

History

Order 4, § 415-06-070, filed 7/27/77.

Wash. Admin. Code § 415-06-080 Review of denials of public records requests.

(1) Any person who objects to the denial of a request for a public record may petition for prompt review of such decision by tendering a written request for review. The written request shall specifically refer to the written statement by the public records officer or other staff member which constituted or accompanied the denial.

(2) Immediately after receiving a written request for review of a decision denying a public record, the public records officer or other staff member denying the request shall refer it to the director or an assistant director of the department. The director or assistant shall immediately consider the matter and either affirm or reverse such denial as soon as legally possible. In any case, the request shall be returned with a final decision, within two business days following the original denial.

(3) Administrative remedies shall not be considered exhausted until the director has returned the petition with a decision or until the close of the second business day following denial of inspection, whichever occurs first.

History

Order 4, § 415-06-080, filed 7/27/77.

Wash. Admin. Code § 415-06-090 Records index.

(1) Purpose. This rule is intended to implement RCW 42.17.260 (4)(a) and (b), which require state agencies to establish and implement a system of indexing for certain records maintained by state agencies.

(2) Responsibility for department's indexing system. The department's indexing system for records covered under this section is administered by the manager of the files unit. All record indices described in this section shall be located at the department's files unit.

(3) The department shall establish and implement a system of indexing for all records issued before July 1, 1990, for which the department has maintained an index. The department has maintained an index for the following records which have existed before July 1, 1990:

(a) "Final opinions" which include the director's final orders and other final orders in adjudicative proceedings concerning the department;

(b) "Statements and interpretations of law and policy" which include the department's "DRS notices" advising employers of the department's position regarding law and/or policy; and formal and informal opinions by the state attorney general's office, used by the department as the basis for administrative decisions;

(d) "Planning policies and goals";

(e) "Factual reports and studies" by department staff, consultants, other governmental entities, and private organizations;

(f) "Correspondence" by the department in which the department determines or provides an opinion on the rights of state government, the public, subdivisions of state government, or any private party.

(4) The department shall establish and implement a system of indexing for the following records on or after July 1, 1990:

(a) "Final orders" which are issued in an adjudicative proceeding as defined by RCW 34.05.010(1) containing analyses or decisions of substantial importance to the department;

(b) "Declaratory orders" which are issued pursuant to RCW 34.05.240 containing analyses or decisions of substantial importance to the department;

(c) "Interpretive statements" which are a written expression of an opinion by the department, entitled "interpretive statement" by the department's director, or his or her designee, and relating to the meaning of a statute or other provision of law, court decision, or agency order; and

(d) "Policy statements" which are a written description of the department's current policy, entitled "policy statement" by the department's director, or his or her designee, and implementing a statute or other provision of law, or court decision, or agency order.

(5) The system of indexing the records identified in WAC 415-06-090 (3) and (4) is as follows:

(a) An index will be organized in WAC 415-06-090 (3) and (4).

(b) Staff of the department's legal/legislative affairs unit will select the final orders and declaratory orders to be indexed reviewing all final orders and declaratory orders entered after June 30, 1990, and evaluating the substantial importance of the orders.

(c) Records will be indexed by a phrase describing the record's subject, issue or holding, and by citation of the law involved. Examples of phrases to be used are "service credit," "retirement benefits," "membership," and "contributions."

(6) Availability: The department record index shall be available to all persons in the same manner as public records available for inspection, under chapter 415-06 WAC.

History

Statutory Authority: RCW 41.50.050 and 42.17.260 (4)(a) and (b). WSR 91-19-061, § 415-06-090, filed 9/16/91, effective 10/17/91
Order 4, § 415-06-090, filed 7/27/77.

Wash. Admin. Code § 415-06-100 How do I contact the department?

(1) Mailing address: Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380.

(2) Street address: 6835 Capitol Blvd., Tumwater, WA 98501.

(3) Phone numbers: (360) 664-7000 or toll-free (outside Olympia area) 1 (800) 547-6657, or TDD (for the hearing impaired) (360) 586-5450.

(4) Email address: recep@drs.wa.gov.

(5) Website: http://www.drs.wa.gov.

History

Statutory Authority: RCW 41.50.050(5) and 42.17.250. WSR 03-24-052, § 415-06-100, filed 11/26/03, effective 12/27/03. Statutory Authority: RCW 41.50.050(5), 41.50.055(5), 34.05.220 (1)(b), 42.17.250. WSR 01-18-017, § 415-06-100, filed 8/24/01, effective 9/24/01
Order 4, § 415-06-100, filed 7/27/77.

Wash. Admin. Code § 415-06-110 Adoption of form.

The director hereby adopts for use by all persons requesting inspection and/or copying or copies of the department records, the form attached hereto as Appendix A, entitled "Request for public record."

appendix a

request for public records

| Name of Requestor: | | | --- | --- | | Address: | Phone: | | Date of Request: | Time of Request: | | Nature of Request: | | | 1. | Index Reference . . . . | | 2. | If not identifiable by reference to the index, then describe the document(s) in detail. . . . | | | . . . . | | | . . . . | | | . . . . | | Signature | . . . . | | | |

| For Office Use Only: | | | | --- | --- | --- | | (1) | | | | Request Granted □ | Record Withheld □ | Record Withheld In part □ | | (2) | If withheld, name the exemption contained in section 31, chapter 1, Laws of 1973, which authorizes the withholding of the record or part of record: Subsection (1) ( ). | | | (3) | If withheld, briefly explain how the exemption applies to the record withheld. | | | (4) | If request granted, time . . . . . . . , day . . . . . . . . . | |

History

Order 4, § 415-06-110, filed 7/27/77.

Chapter 415-08 Appeals.

Wash. Admin. Code § 415-08-010 Scope.

This chapter governs the procedure the department follows in conducting adjudicative proceedings under chapter 34.05 RCW. The department adopts the model rules of procedure contained in chapter 10-08 WAC to the extent that those provisions are not contrary to the provisions of this chapter. These rules shall govern all adjudicative proceedings before the department.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-010, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-010, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-010, filed 7/27/77.

Wash. Admin. Code § 415-08-015 Appealing a denied request for an in-service deferred compensation withdrawal.

WAC 415-501-510 and Section 457 of the Internal Revenue Code authorize distributions from the deferred compensation plan due to an unforeseeable emergency. If your application for a pay out is denied, you are entitled to have that decision reviewed.

(1) Filing deadline. You must apply for review in writing within sixty days of the date you receive the denial.

(2) Contents of review application. Your application must contain the items listed in WAC 415-08-023.

(3) Type of proceeding. Within twenty days of receipt of your application, the department will notify you in writing that it will conduct either:

(a) A brief adjudicative proceeding under RCW 34.05.482 through 34.05.494; or

(b) A full adjudicative proceeding under this chapter.

(4) Brief adjudicative proceeding.

(a) The director's designee will serve as presiding officer. The presiding officer will:

(i) Review the agency's view of the matter, as expressed in the documentation denying your request for a withdrawal;

(ii) Review the materials you have previously submitted, as well as any additional material you wish to submit;

(iii) Give each party an opportunity to be informed of the other's view of the matter;

(iv) Make a decision on the request; and

(v) Within ten days, give the parties a brief written statement of the reasons for the decision and information about any internal review available.

(b) If the presiding officer makes an unfavorable determination in your case, you may request an administrative review provided you do so within twenty-one days after you are served with the presiding officer's written determination. If you seek administrative review, the reviewing officer will be a different person than the presiding officer.

(c) If you do not seek administrative review, you may seek judicial review within thirty days after you are served with the written determination (see RCW 34.05.542).

(5) Full adjudicative proceeding. If the department conducts a full adjudicative proceeding, that proceeding will be governed by the Administrative Procedure Act (chapter 34.05 RCW), and rules adopted thereunder; and chapters 10-08 and 415-08 WAC. The department will be represented in the proceeding by an assistant attorney general.

History

Statutory Authority: RCW 41.50.050(5), 41.50.060, 41.50.770, 41.50.780, 2001 c 42. WSR 02-12-084, § 415-08-015, filed 6/4/02, effective 7/5/02. Statutory Authority: RCW 41.50.050 and 41.50.780(11). WSR 96-16-020, § 415-08-015, filed 7/29/96, effective 7/29/96.

Wash. Admin. Code § 415-08-020 Time limit for filing appeals—Procedure.

(1) Any party aggrieved by a petition decision rendered pursuant to chapter 415-04 WAC may appeal the decision by filing a notice of appeal within sixty days from the date such decision was communicated to the party.

(2) The appealing parties shall file the original and two copies of the notice of appeal with the department. The department will acknowledge receipt of the copies filed. The department's stamp placed upon such copies shall be prima facie evidence of the date of receipt. The department may thereafter require additional copies to be filed if necessary.

(3) If a party fails to file a timely appeal the party waives the right to judicial review due to failure to exhaust administrative remedies as required by RCW 34.05.534.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-020, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-020, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-020, filed 7/27/77.

Wash. Admin. Code § 415-08-023 Contents of the notice of appeal.

The notice of appeal must contain:

(1) The name and mailing address of the member or beneficiary, and the employer of the member;

(2) The name and legal residence of the appealing party, together with the mailing address of his or her representative, if any;

(3) In the case of disability claims:

(a) The date and nature of the accident, injury or disease, the place it occurred and location of the employer, in the case of disability claims; and

(b) If the injury or disease did not occur in the county where the member or beneficiary resides, the name of the county in which the appealing party desires to have the hearing held and a city or town most convenient within the county where the hearing is to be held;

(4) A statement identifying the decision appealed from and that portion of the decision considered to be unjust or unlawful;

(5) A clear and concise statement of facts in support of the grounds stated including, where applicable, a description of the physical facts constituting the claimant's present disability and how it is manifested;

(6) The type of relief sought, including specific dates at which time the appealing party believes the benefit accrued; and

(7) A statement that the appealing party has read the notice of appeal and believes the contents to be true, followed by his or her signature and the signature of his or her representative, if any.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-023, filed 5/7/96, effective 6/7/96.

Wash. Admin. Code § 415-08-025 Presiding officer.

The director will designate a presiding officer to issue an order. The director may issue a general or specific presiding officer designation.

(1) If the director designates a presiding officer to issue a final order, that person shall be a different person than director's designee under chapter 415-04 WAC.

(2) If the director designates a presiding officer to issue a proposed order the director, or a person designated by the director, will be the reviewing officer. In that event, the reviewing officer will issue a final order.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-025, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-025, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-08-027 Parties may stipulate to the record on appeal.

If the parties stipulate to a record, a hearing before the presiding officer may be waived by agreement of all parties. The presiding officer will then issue a final order on the stipulated record.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-027, filed 5/7/96, effective 6/7/96.

Wash. Admin. Code § 415-08-030 Parties.

The parties to an appeal shall be the appealing party or parties and the department. There is no obligation to serve notices, pleadings or correspondence upon any person who has not entered an appearance as a party. Service upon the representative of a party shall constitute service upon such party.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-030, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-030, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-030, filed 7/27/77.

Wash. Admin. Code § 415-08-040 Representing another person before the presiding officer.

Only the following persons may appear in a representative capacity before the presiding officer:

(1) Attorneys at law duly qualified and entitled to practice before the supreme court of the state of Washington.

(2) Attorneys at law duly qualified and entitled to practice before the highest court of record of any other state, if the attorneys at law of the state of Washington are permitted to appear in a representative capacity before administrative agencies of such other state, and if not otherwise prohibited by our state law.

(3) A legal intern authorized to practice law pursuant to Admission to Practice Rule (APR) 9 of the state supreme court and subject to the limitations contained in said rule. A legal intern shall not appear without the presence of the supervising attorney except in ex parte matters and noncontested cases.

(4) A bona fide officer, partner, or full-time employee of an individual firm, association, partnership, or corporation who appears on behalf of the entity.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-040, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-040, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-040, filed 7/27/77.

Wash. Admin. Code § 415-08-050 Appearance in certain proceedings may be limited to attorneys.

In all hearings involving the taking of testimony and the formulation of a record subject to review by the courts, where the presiding officer determines that representation in such hearing requires a high degree of legal training, experience, and skill, the board or its examiner may limit those who may appear in a representative capacity to attorneys-at-law.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-050, filed 5/7/96, effective 6/7/96
Order 4, § 415-08-050, filed 7/27/77.

Wash. Admin. Code § 415-08-080 Withdrawal or substitution of representatives.

An attorney or other representative withdrawing from a case shall immediately so notify the presiding officer and all parties of record in writing, or shall state such withdrawal for the record at a conference or hearing. Any substitution of an attorney or representative shall be accomplished by written notification to the presiding officer and to all parties of record.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-080, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-080, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-080, filed 7/27/77.

Wash. Admin. Code § 415-08-090 Ethical conduct required.

All persons appearing in a representative capacity in proceedings before the presiding officer shall conform to the standards of ethical conduct required of attorneys before the courts of Washington. If any such person does not conform to such standards, the presiding officer may, in his/her discretion and depending on all the circumstances, admonish or reprimand such person, exclude such person from further participation in the proceedings and adjourn the same, or report the matter to the department.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-090, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-090, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-090, filed 7/27/77.

Wash. Admin. Code § 415-08-100 Appearance by former employee of agency or former member of attorney general's staff.

No former employee of the department or system or former member of the attorney general's staff may appear in a representative capacity on behalf of other parties in a formal proceeding wherein he or she previously took an active part as a representative of the department. No such former employee shall appear where to do so would violate RCW 42.52.080.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-100, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-100, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-100, filed 7/27/77.

Wash. Admin. Code § 415-08-105 Prehearing and posthearing memoranda.

A presiding officer shall grant all timely requests to submit prehearing and posthearing memoranda, and shall set a reasonable time for the submission of memoranda. The department reserves the right to file a brief in response to any posthearing brief submitted by another party.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-105, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-105, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-08-280 Discovery.

Any party may obtain discovery in the manner specified in Superior Court Civil Rule 26(a). The attendance of witnesses may be compelled by the use of a subpoena. Such discovery shall be governed generally by the procedures established by Superior Court Civil Rules 26-37, inclusive.

History

Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-280, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-280, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-280, filed 7/27/77.

Wash. Admin. Code § 415-08-420 Presentation of evidence—Burden of proof.

(1) The presiding officer shall determine the proper order of presentation of evidence.

(2) The person appealing or requesting a hearing shall have the burden of proof in the matter.

History

Statutory Authority: RCW 41.50.050(5), 41.50.060, 41.50.770, 41.50.780, 2001 c 42. WSR 02-12-084, § 415-08-420, filed 6/4/02, effective 7/5/02. Statutory Authority: RCW 41.50.050, 41.50.060 and 34.05.425. WSR 96-11-036, § 415-08-420, filed 5/7/96, effective 6/7/96. Statutory Authority: RCW 41.50.050(5) and 34.05.250. WSR 93-11-079, § 415-08-420, filed 5/18/93, effective 6/18/93
Order 4, § 415-08-420, filed 7/27/77.

Chapter 415-10 Purchase of service credit after statutory deadline RCW 41.50.165.

Wash. Admin. Code § 415-10-010 Can I purchase service credit after the statutory deadline?

RCW 41.50.165 generally allows you to purchase service credit that you failed to establish or reestablish within the statutory deadline.

(1) You must pay the actuarial value of the increase to your retirement benefit. The actuarial value of the increase to your benefit means the cost to the retirement system trust fund of:

(a) Including the additional service credit in your retirement benefit calculation; and

(b) Beginning your retirement benefit at an earlier age, if applicable.

(2) The valuation is based upon economic assumptions. The cost to the retirement system trust fund for the increased value to your benefit is calculated based upon interest rate assumptions adopted by the pension funding council and actuarial factors calculated by the state actuary and adopted by the department.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-010, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050(5) and 41.50.165. WSR 02-03-120, § 415-10-010, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-010, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-010, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-020 Definitions.

As used in this chapter:

(1) Annual average salary means:

(a) In PERS Plan 1, TRS Plan 1 or WSPRS Plan 1: The average of your two highest consecutive years of compensation as of the date of your service credit purchase.

(b) In Plan 2 or Plan 3: The average of your five highest consecutive years of compensation as of the date of your service credit purchase.

(c) In PSERS: The average of your five highest consecutive years of compensation as of the date of your service credit purchase.

(d) In LEOFF Plan 1: The basic salary attached to your position at the date of your service credit purchase.

(2) Factors means the actuarial cost factors calculated by the state actuary and, except as noted below, adopted by the department that are used in the formulas for calculating the cost of a service credit purchase. The law enforcement officers' and firefighters' (LEOFF) retirement board adopts the LEOFF Plan 2 factors.

(3) LEOFF means the law enforcement officers' and firefighters' retirement system established under chapter 41.26 RCW.

(4) PERS means the public employees' retirement system established under chapter 41.40 RCW.

(5) PSERS means the public safety employees' retirement system established under chapter 41.37 RCW.

(6) SERS means the school employees' retirement system established under chapter 41.35 RCW.

(7) Service credit being purchased means the number of service credit months or service credit years you are purchasing.

(8) TRS means the teachers' retirement system established under chapter 41.32 RCW.

(9) WSPRS means the Washington state patrol retirement system established under chapter 43.43 RCW.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-020, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-048, § 415-10-020, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 41.50.050(5), 41.50.165. WSR 03-15-006, § 415-10-020, filed 7/3/03, effective 8/3/03. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 02-03-120, § 415-10-020, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-020, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-020, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-030 Calculation of cost to purchase service credit.

The department will calculate the actuarial value of the service credit you purchase under RCW 41.50.165(2) using the following formula:

Total Cost = Part 1 Cost + Part 2 Cost

Part 1: Annual Average Salary x Service Credit Years to Purchase x Factor 1

Part 2: Annual Average Salary x Current Service Credit Years x (Factor 1 – Factor 2)

Factor 1 takes into consideration your current age and service credit, including the service credit you are purchasing.

Factor 2 takes into consideration your current age and service credit, excluding the service credit you are purchasing.

The Part 1 cost pays for the additional value of the service credit you plan to purchase.

The Part 2 cost pays for the increased value of your current service credit. The value of your current service credit may increase with this purchase because you may be eligible for earlier retirement, better early retirement factors, or both. For some situations the Part 2 cost will be $0.

Example: Purchase of additional service credit.

Ron is an active PERS Plan 2 member who currently has 5 years of service. Ron turned age 45 last month. His annual average salary is $40,000. Ron would like to purchase 15 years of service that he previously withdrew but did not restore before the deadline.

The department will calculate the cost of purchasing the service credit using the Service Credit Purchase Cost formula:

Total Cost = Part 1 Cost + Part 2 Cost

Part 1: Annual Average Salary x Service Credit Years to Purchase x Factor 1

Part 2: Annual Average Salary x Current Service Credit Years x (Factor 1 – Factor 2)

The cost of Ron's purchase would be calculated as follows:

Part 1: $40,000 (Annual Average Salary) x 15 (Years to Purchase) x 0.1660* (Factor 1) = $99,600

Part 2: $40,000 (Annual Average Salary) x 5 (Current Service Credit) x (0.1660* – 0.1128*)(Factor 1 - Factor 2) = $10,640

Ron's total cost to purchase 15 years of service credit is $110,240 (Part 1 + Part 2).

*Factors used are for illustration purposes in this example only as actuarial factors change periodically.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-030, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-048, § 415-10-030, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 41.50.050(5), 41.50.165. WSR 03-15-006, § 415-10-030, filed 7/3/03, effective 8/3/03
WSR 02-03-120, § 415-10-030, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-030, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-030, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-050 Restrictions on purchasing service credit.

(1) You may not purchase service credit under RCW 41.50.165(2) if your deadline to establish or reestablish the service credit has not expired.

(2) If you are reestablishing credit you must purchase at least the service credit you earned in any one calendar month of employment.

(3) If you are establishing optional service credit, you must purchase the entire period of service.

(4) Your ability to purchase service credit may be limited by Internal Revenue Code restrictions. The department may limit the amount of service credit you may purchase in any calendar year in order to stay within the maximum employee contribution limits established by the Internal Revenue Code for 401(a) tax qualified plans.

(5) You may not make installment payments. If you purchase service credit under this section, you must make payment in a single lump-sum as determined by the department for each unit of service credit purchased.

(6) Purchasing service credit will not move you from one plan to another. Plan membership is based upon the date your retirement system membership was established. Purchasing prior service credit does not change the date you first established membership and therefore does not change your plan membership.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-050, filed 2/27/14, effective 10/1/14. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-050, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-050, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-060 Crediting service credit purchases.

If you do not purchase all of your previously withdrawn service credit, the department will recredit your purchased service beginning with the oldest month of service canceled by your withdrawal.

History

Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-060, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-070 Requesting an estimate—Requesting a bill.

(1) The department will provide you a service credit purchase estimate upon request. If, after receiving the estimate, you wish to purchase some or all of the available credit you must request a bill. Your request must identify the amount of service credit you wish to purchase.

(2) Your bill will be based on a specific date of payment. The cost to purchase the service credit could change if you attempt to pay after the specific payment date listed on the bill. If you do not make payment by the bill's due date but still wish to purchase service credit, you must request a new bill from the department.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-070, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-070, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-080 If I purchase service credit under RCW 41.50.165, can I receive a refund of my payments?

(1) You may receive a refund only after you separate from service and apply for withdrawal of your contributions. Your payments to purchase service credit under RCW 41.50.165(2) qualify as a part of your accumulated contributions. There are additional restrictions for TRS Plan 1, LEOFF Plan 2 and members of the Plan 3 systems as listed in subsections (2), (3), and (4) of this section.

(2) Restrictions for TRS Plan 1 members. At the time of retirement, RCW 41.32.498(2) prohibits you from withdrawing payments made to purchase service credit under RCW 41.50.165(2).

(3) Restrictions for LEOFF Plan 2 members. Payments made to purchase service credit under RCW 41.50.165(2) and interest on those payments will be refunded at one hundred percent. Those payments will not be included when calculating the one hundred fifty percent refund of contributions under RCW 41.26.540 (1)(b).

(4) Restrictions for Plan 3 members of TRS, SERS and PERS. When you apply for service credit under RCW 41.50.165(2), one-half of the amount due will go into your defined benefit plan and one-half will go into your defined contribution plan. As a member of any Plan 3 system, you may apply for a refund of your contributions from the defined contribution portion of your account upon separation from employment. Your refund will be based on the market value of your contributions, including earnings and losses, at the time you withdraw. The defined benefit portion will be paid when you are eligible to receive benefits.

Example 1 (Market has gains):

Joe restores 5 years of service credit at a total cost of $10,000.00. One-half, or $5,000.00, goes into Joe's defined contribution plan member account, and the other $5,000.00 goes into the pension trust fund for his defined benefit plan. Joe separates two years later and applies for the withdrawal of his defined contribution account. While Joe was in service the market experienced gains. The value of Joe's defined contribution account is now $6,000.00. Joe receives $6,000.00 (minus applicable taxes and penalties). The defined benefit portion is not refundable but Joe will receive a one percent defined benefit allowance when he is eligible.

Example 2 (Market has losses):

Joe restores 5 years of service credit at a total cost of $10,000.00. One-half, or $5,000.00, goes into Joe's defined contribution plan member account, and the other $5,000.00 goes into the pension trust fund for his defined benefit plan. Joe separates two years later and applies for the withdrawal of his defined contribution account. While Joe was in service the market suffered a loss. The value of Joe's defined contribution account is now $4,000.00. Joe receives $4,000.00 (minus applicable taxes and penalties). The defined benefit portion is not refundable but Joe will receive a one percent defined benefit allowance when he is eligible.

History

Statutory Authority: RCW 41.50.050(5), 41.26.540, 41.32.498, 41.40.730, 41.40.830, 41.50.160, 41.50.165, 41.50.175. WSR 02-03-120, § 415-10-080, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-080, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-080, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-10-100 Can a Plan 3 member purchase service credit?

(1) Transferring purchased Plan 2 credit under RCW 41.50.165(2) into Plan 3. If you purchase Plan 2 service credit under this chapter and later enter Plan 3, that credit will also transfer to Plan 3.

(a) Fifty percent of the money you paid to purchase the service credit will be credited to the Plan 3 defined contribution account.

(b) The other fifty percent will be credited to the Plan 3 defined benefit plan established under RCW 41.32.831 for TRS Plan 3, RCW 41.35.600 for SERS Plan 3, and RCW 41.40.780 for PERS Plan 3.

(2) Purchasing Plan 2 service credit after transferring to Plan 3. You may purchase service credit initially available under Plan 2 after you transfer to Plan 3. The service will be credited in Plan 3. If you purchase Plan 2 service credit under this chapter, fifty percent of the money you pay to purchase the service credit will be credited to your Plan 3 defined contribution account. The other fifty percent will be credited to the Plan 3 defined benefit portion established under RCW 41.32.831 for TRS Plan 3, RCW 42.35.600 for SERS Plan 3 and RCW 41.40.780 for PERS Plan 3.

(3) Not applicable for service earned after transferring to Plan 3. Plan 3 does not have any deadlines on establishing optional service.

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-053, § 415-10-100, filed 2/27/14, effective 10/1/14. Statutory Authority: RCW 41.50.050(5), 41.50.165, 41.50.175. WSR 02-03-120, § 415-10-100, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapter 41.50 RCW. WSR 00-22-049, § 415-10-100, filed 10/27/00, effective 11/27/00. Statutory Authority: RCW 41.50.050 and 41.50.165. WSR 97-01-014, § 415-10-100, filed 12/6/96, effective 1/6/97.

Chapter 415-100 Judicial retirement system.

Wash. Admin. Code § 415-100-005 Purpose.

These rules are adopted to implement administration of chapter 2.10 RCW by the director of the department of retirement systems pursuant to RCW 2.10.052.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-014 (Order 87-02), § 415-100-005, filed 3/11/87.

Wash. Admin. Code § 415-100-015 Scope.

These rules shall govern the unique aspects of the administration of chapter 2.10 RCW, Judicial retirement system.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-014 (Order 87-02), § 415-100-015, filed 3/11/87.

Wash. Admin. Code § 415-100-025 Public records.

See chapter 415-06 WAC.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-014 (Order 87-02), § 415-100-025, filed 3/11/87.

Wash. Admin. Code § 415-100-035 Retirement for service.

Any judge who voluntarily leaves service after having served an aggregate of fifteen years but prior to attaining age sixty shall be eligible to apply for and receive a service retirement allowance computed according to RCW 2.10.110 commencing upon his/her attainment of age sixty. Such allowance shall be computed in accordance with RCW 2.10.110 and 2.10.030 (9)(b).

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-014 (Order 87-02), § 415-100-035, filed 3/11/87.

Wash. Admin. Code § 415-100-045 Definition of member.

(1) "Member" means:

(a) A judge as defined in RCW 2.10.030(2), who elected to exchange survivor benefits, filed the requisite documents with the department pursuant to RCW 2.10.140(2), and is making contributions to the system; or

(b) A former judge as defined in RCW 2.10.030(2), who elected to exchange survivor benefits, filed the requisite documents with the department pursuant to RCW 2.10.140(2), and left accumulated contributions in the system; or

(2) A retiree means any judge, as defined in RCW 2.10.030(2), in receipt of a retirement allowance or other benefit provided by chapter 2.10 RCW resulting from service rendered to an employer.

History

Statutory Authority: RCW 2.10.146, 41.26.460, 41.32.530, 41.50.050, 41.32.785, 41.40.188 and 41.40.660. WSR 96-01-047, § 415-100-045, filed 12/14/95, effective 1/14/96. Statutory Authority: RCW 34.05.050 and 1990 c 249. WSR 91-03-013, § 415-100-045, filed 1/7/91, effective 2/7/91.

Wash. Admin. Code § 415-100-051 Married member's benefit selection—Spousal consent required.

The member, if married, must provide the spouse's consent to the option selected under WAC 415-100-055, verified by a notarized signature or other means acceptable to the department. If a married member does not provide verified consent, the department will pay the retired member a joint and one-half survivor benefit allowance and record the member's spouse as the survivor, in compliance with RCW 2.10.146(2).

History

Statutory Authority: RCW 41.50.050. WSR 20-13-065, § 415-100-051, filed 6/15/20, effective 7/16/20. Statutory Authority: RCW 2.10.146, 41.26.460, 41.32.530, 41.50.050, 41.32.785, 41.40.188 and 41.40.660. WSR 96-01-047, § 415-100-051, filed 12/14/95, effective 1/14/96. Statutory Authority: RCW 34.05.050 and 1990 c 249. WSR 91-03-013, § 415-100-051, filed 1/7/91, effective 2/7/91.

Wash. Admin. Code § 415-100-055 Retirement benefit options.

RCW 2.10.146, enables the department to provide retiring members with four retirement benefit options. The member must choose an option when applying for service or disability retirement.

(1) Option One: Benefit option without survivor features (standard allowance). The department pays the retiree a monthly retirement allowance based solely on the single life of the member, in accordance with RCW 2.10.146. When the retiree dies, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:

(a) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or

(b) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or

(d) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.

(2) Benefit options with a survivor feature.

(a) A retiring member is allowed to select from several retirement options which create an actuarially equivalent benefit that includes a survivor feature. The survivor feature entitles the survivor to receive a monthly allowance after the retiree dies. If the member chooses one of the survivor options, the monthly benefit the member will receive is actuarially reduced to offset the cost of the survivor feature. After the retiree dies, the department pays the survivor an allowance for the duration of his or her life. If the retiree and the survivor both die before the retiree's accumulated contributions are exhausted, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:

(i) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or

(ii) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or

(iii) The member's estate; or

(iv) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.

(b) Option Two (joint and whole allowance). When the retiree dies, the department pays the survivor a monthly retirement allowance equal to the gross monthly allowance received by the retiree.

(c) Option Three (joint and one-half allowance). When the retiree dies, the department pays the survivor one-half of the amount of the retiree's gross monthly retirement allowance.

(d) Option Four (joint and two-thirds allowance).

(i) Option Four is available to members retiring on or after January 1, 1996.

(ii) When the retiree dies, the department pays the survivor two-thirds (66.667%) of the member's gross monthly retirement allowance.

(3) Benefit increases when survivor predeceases retiree (pop-up provision).

(a) This subsection applies to members retiring on or after January 1, 1996, who selected Option Two, Three, or Four.

(b) If the survivor dies before the retiree, the retiree's monthly retirement allowance will increase, effective the first day of the following month, to:

(i) The amount that would have been received had the retiree chosen Option One described in subsection (1) of this section; plus

(ii) Any cost-of-living adjustments received prior to the survivor's death based on original selection.

Agnes retires in 1996 (Year 0). She would like Beatrice, her daughter, to receive a monthly allowance after Agnes dies. Therefore, Agnes selects a retirement benefit option with a survivor feature. As a result her monthly allowance is reduced from $2,000 (standard allowance) to $1,750. Unfortunately, Beatrice dies in January 2001 (Year 5). Under the pop-up provision, Agnes' monthly benefit will increase to the amount she would have received had she chosen Option One (standard allowance) plus her accumulated COLA's:

| Year | Option One (Standard Allow.) | Survivor Option (2,3,4) plus COLAs | COLA incr. (3% max) | | $ Increase | | | | --- | --- | --- | --- | --- | --- | --- | --- | | 0 (1996) | 2,000.00 | 1,750.00 | | (ineligible) | | 0.00 | | | 1 (1997) | | 1,750.00 | | .02 | | 35.00 | | | 2 (1998) | | 1,785.00 | | .03 | | 53.55 | | | 3 (1999) | | 1,838.55 | | .025 | | 45.96 | | | 4 (2000) | | 1,884.51 | | .03 | | 56.54 | | | 5 (2001) | 2,000.00 | 1,941.05 | | — | | — | | | | | | | Total COLAs | 191.05 | | | | Original Option One Benefit Amount | + Total COLAs | | | | = New Benefit Amount | | | | $2000 | + $191.05 | | = $2,191.05* | | | | |

| * | In the future (i.e., Year 5), Agnes' COLA will be based on the increased benefit amount ($2,191.05). | | --- | --- |

(d) If the survivor dies and the retiree's benefit increases under this subsection, and thereafter the retiree also dies before all contributions are exhausted, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:

(a) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or

(b) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or

(d) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.

(4) Survivor. For the purposes of this section, "survivor" means a person nominated by the member to receive a monthly benefit allowance after the member dies. A member nominates the survivor at the time of retirement by filing a completed form provided by the department, verified by a notarized signature or other means acceptable to the department.

History

Statutory Authority: RCW 41.50.050. WSR 20-13-065, § 415-100-055, filed 6/15/20, effective 7/16/20. Statutory Authority: RCW 41.50.050(5), 2.10.052, 2.10.070(6), 2.10.140 - [2.10.]146, 2.12.030. WSR 01-13-009, § 415-100-055, filed 6/8/01, effective 7/9/01. Statutory Authority: RCW 2.10.146, 41.26.460, 41.32.530, 41.50.050, 41.32.785, 41.40.188 and 41.40.660. WSR 96-01-047, § 415-100-055, filed 12/14/95, effective 1/14/96. Statutory Authority: RCW 34.05.050 and 1990 c 249. WSR 91-03-013, § 415-100-055, filed 1/7/91, effective 2/7/91.

Wash. Admin. Code § 415-100-190 Actuarial recomputation of retirement allowance upon retirement following reemployment.

(1) The purpose of this rule is to establish a method to actuarially recompute the retirement allowance of a plan member who retires, reenters employment causing his or her retirement allowance to be suspended, and then retires again.

(2) If a member initially retired at or after age sixty and reentered membership, upon the member's next retirement, the department shall recompute the member's retirement allowance pursuant to RCW 2.10.110. In recomputing the member's retirement allowance, the department shall include any additional service credit earned and any applicable increase in the member's average final compensation resulting from the member's reentry into membership. Under no circumstances shall a retiree receive a retirement allowance creditable to a month during which that individual earned service credit.

(3) If a retiree's retirement allowance is suspended under RCW 2.10.155 due to reemployment in an eligible position but the retiree does not reenter membership, upon the retiree's separation from such employment, the retiree shall receive an actuarially recomputed retirement allowance equal to the sum of:

(a) The amount of the monthly suspended retirement allowance; plus

(b) An actuarially computed increase based upon the retirement allowance payments the member did not receive due to reemployment including cost-of-living adjustments. The retiree may elect to receive the actuarially computed increase in either:

(i) An amount amortized over the expected term of the recomputed retirement allowance; or

(ii) A lump sum payment equal to the suspended retirement allowance plus interest.

History

Statutory Authority: RCW 41.50.050. WSR 94-11-008, § 415-100-190, filed 5/5/94, effective 6/5/94.

Chapter 415-103 Washington state patrol retirement system (WSPRS).

Wash. Admin. Code § 415-103-010 WSPRS definitions.

(1) General. The definitions in RCW 43.43.120 and 41.50.010 apply to this chapter. In case of conflict between definitions, RCW 43.43.120 will prevail.

(2) Membership.

(a) WSPRS Plan 1 refers to members of the Washington state patrol retirement system commissioned before January 1, 2003.

(b) WSPRS Plan 2 refers to members of the Washington state patrol retirement system commissioned on or after January 1, 2003.

History

Statutory Authority: RCW 41.50.050(5) and chapter 43.43 RCW. WSR 02-23-037, § 415-103-010, filed 11/13/02, effective 1/1/03. Statutory Authority: RCW 41.50.050(5), 43.43.142, 43.43.278, 43.43.280. WSR 01-13-010, § 415-103-010, filed 6/8/01, effective 7/9/01.

Wash. Admin. Code § 415-103-100 Are payments I receive reportable compensation?

The following table will help you determine whether certain types of payments are reportable compensation. The department determines reportable compensation based upon the nature of the payment, not the name applied. See "salary" as defined in RCW 43.43.120.

| Type of Payment | Commission Date: Prior to 1/1/2003 | Commission Date: On or after 1/1/2003 | | | --- | --- | --- | --- | | Overtime related to RCW 47.46.040 or voluntary overtime, earned prior to 7/1/2001 | Yes | N/A | | | Overtime related to RCW 47.46.040 or voluntary overtime, earned on or after 7/1/2001 and before 7/1/2017 | No | No | | | Overtime up to 70 hours per year1 in total related to either RCW 47.46.040 or voluntary overtime, earned on or after 7/1/20172 | Yes | Yes | | | Overtime in excess of 70 hours per year1 in total related to either RCW 47.46.040 or voluntary overtime, earned on or after 7/1/2017 | No | No | | | Fringe benefits including, but not limited to, any type of insurance, or contributions for insurance, such as medical, dental, or life insurance, for members and/or their dependents | No | No | | | Lump sum payments for: | | | | | | Deferred annual sick leave3 | No | No | | | Unused accumulated annual leave - 240 hour maximum4 | Yes | No | | | Holiday pay - 80 hour maximum | Yes | No |

| 1 | "Year" means "state fiscal year," which is the twelve-month period that begins on July 1st and ends on June 30th of the next calendar year. | | --- | --- | | 2 | The combined total of overtime included in the average final salary, related to either RCW 47.46.040 or voluntary overtime, may not exceed one hundred forty hours for WSPRS Plan 1, or three hundred fifty hours for WSPRS Plan 2. | | 3 | See also RCW 41.04.340(4). | | 4 | See also RCW 43.43.263, 43.01.040 and 43.01.044. |

History

Statutory Authority: RCW 41.50.050. WSR 20-14-040, § 415-103-100, filed 6/25/20, effective 7/26/20. Statutory Authority: RCW 41.50.050(5). WSR 17-20-036, § 415-103-100, filed 9/28/17, effective 10/29/17. Statutory Authority: RCW 41.50.050(5) and chapter 43.43 RCW. WSR 02-23-037, § 415-103-100, filed 11/13/02, effective 1/1/03.

Wash. Admin. Code § 415-103-215 What are the WSPRS Plan 1 retirement benefit options?

This section only applies to members commissioned before January 1, 2003. For purposes of this section, a registered domestic partnership is treated the same as a spousal relationship.

(1) When retiring for service, a married member can choose either Option A (historic retirement option) under RCW 43.43.260 and 43.43.270 or Option B under RCW 43.43.278. Both options include a survivor option that entitles the eligible surviving spouse and any eligible children to receive a monthly benefit after the retiree dies.

(2) Option A (historic retirement option and survivor benefit). The department pays the retiree a monthly retirement benefit in accordance with RCW 43.43.260 (Benefits). The department pays survivor benefits in accordance with RCW 43.43.270 (Retirement allowances).

(a) Surviving spouse. When the retiree dies, the department pays the retiree's surviving spouse a monthly retirement benefit equal to the gross monthly benefit then payable to the retiree, or a benefit equal to 50 percent of the average final salary (AFS) used to determine the retiree's benefit, whichever is less.

(b) Surviving children when there is a surviving spouse. If the retiree has a surviving spouse and surviving unmarried children under the age of 18 years, each child shall be entitled to a benefit equal to five percent of the retiree's average final salary (AFS) at retirement. The combined benefits to the surviving spouse and all children cannot exceed 60 percent of the retiree's AFS.

(3) Option B (actuarially equivalent retirement option and survivor benefit). The department pays the retiree a monthly retirement benefit that is actuarially reduced from the benefit calculated under Option A. The department pays survivor benefits in accordance with RCW 43.43.278 using an actuarial reduction. See WAC 415-02-380 for more information on how your benefit is affected by choosing an optional survivor option.

(a) Surviving spouse. When the retiree dies, the department pays the retiree's surviving spouse a monthly retirement benefit equal to the gross monthly benefit then payable to the retiree.

(b) Surviving children when there is a surviving spouse. If the retiree has a surviving spouse and surviving unmarried children under the age of 18 years, each surviving unmarried child under the age of 18 years shall be entitled to a benefit equal to five percent of the retiree's average final salary (AFS) at retirement.

(4) Benefits included in Option A and Option B.

(a) Cost-of-living adjustment. The retiree's annual adjustment every July is based upon the provisions in RCW 43.43.260(5). The annual adjustment applies to the eligible surviving spouse and any eligible children, who receive a monthly benefit after the retiree dies.

(b) Surviving spouse eligibility. To be eligible for a benefit, the surviving spouse of a retiree must either:

(i) Have been married to the retiree prior to his or her retirement and continuously thereafter until the retiree's death; or

(ii) Have been married to the retiree for at least two years prior to the retiree's death.

(c) Remarriage of surviving spouse. If a surviving spouse who is receiving benefits under this subsection marries another member of WSPRS and that retiree dies before the spouse, the spouse will receive only the higher of the two survivors' benefits for which he or she qualifies. The surviving spouse cannot receive more than one survivor benefit at a time under this subsection.

(d) Surviving children when there is no surviving spouse. If there is no surviving spouse or the surviving spouse dies, the unmarried child or children under the age of 18 years shall be entitled to a benefit equal to 30 percent of the retiree's AFS for one child and an additional 10 percent of AFS for each additional child. The combined benefits to the surviving children cannot exceed 60 percent of the retiree's AFS. Benefit payments under this subsection will be divided equally among the children.

(e) End of benefits. All benefits end when the surviving spouse dies or the youngest unmarried child reaches age 18, whichever occurs last.

(f) Distribution of remaining contributions. Any remaining balance of the retiree's accumulated contributions will be paid to:

(i) The person(s), trust, organization, or retiree's estate specified by the retiree on the appropriate department designated form, duly executed and properly on file with the department on or before the retiree's death; or

(ii) To the retiree's legal representative, if no person or entity designated in (f)(i) of this subsection is living or in existence at the time of the retiree's death.

(5) Pop-up provision.

(a) This subsection only applies to members retiring on or after July 1, 2000, who select Option B.

(b) If the retiree and spouse divorce, or if the spouse dies before the retiree, the retiree may request to have their benefit increased as described in WAC 415-02-380 (6)(a)(i).

History

Statutory Authority: RCW 41.50.050. WSR 25-18-099, s 415-103-215, filed 9/2/25, effective 10/3/25
WSR 20-06-040, § 415-103-215, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-103-215, filed 8/28/13, effective 10/1/13
WSR 10-16-086, § 415-103-215, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5), 43.43.260, [43.43.]270, [43.43.]278, [43.43.]280(1). WSR 02-23-037, § 415-103-215, filed 11/13/02, effective 1/1/03. Statutory Authority: RCW 41.50.050(5), 43.43.142, 43.43.278, 43.43.280. WSR 01-13-010, § 415-103-215, filed 6/8/01, effective 7/9/01. Statutory Authority: RCW 43.43.278 and 41.50.050. WSR 00-11-103, § 415-103-215, filed 5/18/00, effective 6/18/00.

Wash. Admin. Code § 415-103-225 What are my WSPRS Plan 2 retirement benefit options?

WAC 415-103-225

This section applies to WSPRS Plan 2 members. Upon retirement for service under RCW 43.43.250, you must choose to have your monthly retirement benefit paid to you by one of the options described in this section.

(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section include a survivor option. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." Upon your death your survivor beneficiary will be entitled to receive a monthly benefit for the duration of his or her life. Your monthly retirement benefit will be actuarially reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit is affected by choosing a survivor option.

(2) What are my benefit options?

(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your life. Your monthly benefit will cease upon your death.

(b) Option two: Joint and 100 percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.

(c) Option three: Joint and 50 percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to 50 percent of your gross monthly benefit.

(d) Option four: Joint and two-thirds survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667 percent) of your gross monthly benefit.

(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required. For purposes of this section, a registered domestic partnership is treated the same as a spousal relationship.

(a) If you are married and select a nonsurvivor benefit option, you must submit your spouse's consent, verified by notarization or other means acceptable to the department. If you do not provide verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 43.43.271(2).

(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.

(c) If you are married and select a survivor benefit option for someone other than your spouse, verified spousal consent is required. If you do not provide spousal consent, verified by notarization or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 43.43.271(2).

(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least 30 days before your retirement date, spousal consent is not required.

(4) How will naming a nonspousal survivor beneficiary affect my benefit options? When you name a nonspouse survivor, your benefit options may be limited when your survivor is 11 or more years younger than you. Your available options are based on the adjusted age difference between you and your survivor:

(b) Age difference: 11–24 years: Eligible for Option 3 (50 percent) or Option 4 (66.67 percent) survivor benefit options.

(i) If you were born before July 1, 1949, your RMD age is 70.

(ii) If you were born between July 1, 1949, and December 31, 1950, your RMD age is 72.

(iii) If you were born between January 1, 1951, and December 31, 1959, your RMD age is 73.

(iv) If you were born on or after January 1, 1960, your RMD age is 75.

If you retire after your RMD age, there is no adjustment to the age difference between you and your nonspouse survivor.

(e) Example: Janet was born January 5, 1961, and will retire September 1, 2026. She plans to name her son, born April 14, 1985, as her survivor beneficiary. The age difference between Janet and her son is 24 years. Janet's RMD age is 75, and she is retiring at age 65 so the age difference is reduced by 10 years (75 minus 65) for an adjusted age difference of 14 years (24 minus 10). Janet is eligible to choose between survivor Option 3 (50 percent) and Option 4 (66.67 percent) for her son.

(5) Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW 41.50.790.

(6) What happens if I choose a benefit with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.

(7) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following four exceptions:

(a) Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement.

(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a benefit option with a survivor option and name your current spouse as survivor, provided that:

(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;

(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;

(iii) You provide a copy of your certified marriage certificate to the department; and

(iv) You provide proof of your current spouse's birthdate.

(c) Removal of a nonspouse survivor option. If you select a benefit option with a survivor option and name a nonspouse as survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.

(d) One-time change of survivor. You may change your benefit option and/or designated survivor one time within 90 days from the date your first benefit payment is issued. Your change request must be in writing, and must comply with other requirements as described in this section. Your new benefit amount will be effective the first of the month following the receipt of your request by the department.

(8) Who will receive the balance of my accumulated contributions, if any, after my death?

(a) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:

(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.

(ii) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.

(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.

(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.

(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.

(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate.

(9) For more information, see RCW 43.43.271.

History

Statutory Authority: RCW 41.50.050. WSR 26-17-035, s 415-103-225, filed 8/11/26, effective 8/12/26
WSR 25-18-099, s 415-103-225, filed 9/2/25, effective 10/3/25
WSR 22-01-061, § 415-103-225, filed 12/8/21, effective 1/8/22
WSR 20-13-065, § 415-103-225, filed 6/15/20, effective 7/16/20
WSR 20-06-040, § 415-103-225, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-103-225, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5), 43.43.271. WSR 05-23-062, § 415-103-225, filed 11/14/05, effective 12/15/05. Statutory Authority: RCW 41.50.050(5), 43.43.260, [43.43.]271, [43.43.]280(1), [43.43.]295. WSR 02-23-037, § 415-103-225, filed 11/13/02, effective 1/1/03.

Wash. Admin. Code § 415-103-275 How do I designate a beneficiary, and who will receive a distribution if I die before retirement?

This section applies to members commissioned on or after January 1, 2003.

(1) You may designate or change a beneficiary by submitting a Beneficiary Designation form to the department. Your designation will become effective upon the department’s receipt of the form, only if it is completed properly and signed by you and a witness.

(2) You may name one or more of the following as a beneficiary or beneficiaries:

(a) An organization or person, including unborn or later adopted children. However, unborn or later adopted children must be specifically designated as beneficiaries on the form. You must indicate the date of birth for any living person you name as a beneficiary.

(b) Your estate.

(c) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making distribution to any trust, the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number.

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by RCW 43.43.295.

(7) If your surviving spouse is eligible to receive a benefit under RCW 43.43.295(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.

example one.

Facts

John, a member, completes a Beneficiary Designation form. In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

In the place on the form reserved for trust/organizational beneficiaries, he lists the "Barbara Trust." His daughter Barbara is the trust beneficiary. He checks the box to indicate that the trust is a primary beneficiary.

Result

At John's death, Ann and the Barbara Trust are the primary beneficiaries. The department will require the name of the trustee, the tax identification number, a copy of the entire trust and other information specified in this rule before distribution to the trust. Distribution is governed by RCW 43.43.295.

example two.

Facts

John, a member, completes a Beneficiary Designation form. In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

In the place on the form reserved for trust/organizational beneficiaries, he lists his daughter Barbara personally; i.e., no trust name is provided. John checks the corresponding box to indicate a primary beneficiary designation. At John's death, the department learns that John has created no trusts.

Result

Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.

example three.

Facts

When she became a WSPRS member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.

Result

Unless required to do otherwise by court order, the department will comply with RCW 43.43.295(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.

example four.

Facts

John is a member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.

John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 43.43.295(2). However, Mary died the following week before requesting a distribution from the department.

Result

Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike, until each child reaches the age of majority.

History

Statutory Authority: RCW 41.50.050(5). WSR 05-12-041, § 415-103-275, filed 5/25/05, effective 6/25/05.

Wash. Admin. Code § 415-103-300 Actuarial factors and schedules.

See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses factors and schedules to calculate optional retirement allowances of members of the Washington state patrol retirement system Plan 2.

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-103-300, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 02-18-048, § 415-103-300, filed 8/28/02, effective 9/1/02.

Chapter 415-104 Law enforcement officers' and firefighters' retirement system.

Wash. Admin. Code § 415-104-005 Purpose.

These rules are adopted to implement administration of chapter 41.26 RCW by the director of the department of retirement systems pursuant to RCW 41.26.051.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-005, filed 3/11/87.

Wash. Admin. Code § 415-104-011 Definitions.

All definitions in RCW 41.26.030 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.26 RCW are defined in this chapter.

(1) Commissioned means that an employee is employed as an officer of a general authority Washington law enforcement agency and is empowered by that employer to enforce the criminal laws of the state of Washington.

(2) Director of public safety means a person who is employed on or after January 1, 1993, by a city or town on a full-time, fully compensated basis to administer the programs and personnel of a public safety department.

This definition applies only to cities or towns in which the population did not exceed 10,000 at the time the person became employed as a director of public safety.

(3) Elective employer means the employer of the LEOFF Plan 1 elected official during the member's leave of absence from the LEOFF employer for the purpose of serving in elective office.

(4) Full-time employee means an employee who is normally expected to earn basic salary from an employer for a minimum of 160 hours in a calendar month.

(5) Fully compensated employee for firefighters means an employee who is normally expected to earn a basic monthly salary no less than 160 times the state minimum hourly wage. Nominal sums including, but not limited to, stipends or ancillary benefits such as insurance or leave accrual, provided to volunteer firefighters are not compensation for the purpose of determining whether a firefighter is fully compensated.

(6) Fully compensated employee for law enforcement officers means the employee earns basic salary from an employer at a rate of pay comparable to the rate of pay received by full-time employees.

(7) Left the employ of an employer as used in RCW 41.26.470, 41.26.510, and 41.26.520 means any break in employment, whether formally separated or not formally separated, due to service in the uniformed services, national guard, military reserves, federal emergency management agency, or national disaster medical system of the United States Department of Health and Human Services.

(8) LEOFF means the law enforcement officers' and firefighters' retirement system established by chapter 41.26 RCW.

(9) LEOFF employer means the employer, as defined in RCW 41.26.030, who employs the member as a law enforcement officer or firefighter.

(10) LEOFF Plan 1 elected official means a LEOFF Plan 1 member who is a civil service employee on leave of absence because he or she has been elected or appointed to an elective public office and who chooses to preserve retirement rights as an active LEOFF member under the procedure described in this chapter.

(11) Performing service as used in RCW 41.26.470, 41.26.510, and 41.26.520 means engaging in activities in response to a disaster, major emergency, special event, federal exercise, or official training after having left the employ of an employer as described in subsection (7) of this section.

(12) Plan 1 and Plan 2.

(a) "Plan 1" means the law enforcement officers' and firefighters' retirement system providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977.

(b) "Plan 2" means the law enforcement officers' and firefighters' retirement system providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

(13) Public safety officer means a person who is employed on or after January 1, 1993, on a full-time, fully compensated basis by a city or town to perform both law enforcement and firefighter duties.

This definition applies only to cities or towns in which the population did not exceed 10,000 at the time the person became employed as a public safety officer.

(14) Uniformed firefighter position means a position which may only be filled by uniformed personnel as that term is defined in RCW 41.56.030 (7)(e) as in effect on July 1, 1995. A position only qualifies as a uniformed firefighter position if the employer has identified it as such for all purposes. An employer may designate a position as uniformed regardless of whether the employer is covered by public employees' collective bargaining under chapter 41.56 RCW.

History

Statutory Authority: RCW 41.50.50 [ 41.50.050] and 2024 c 319. WSR 24-20-086, s 415-104-011, filed 9/27/24, effective 9/30/24. Statutory Authority: RCW 41.50.050(5). WSR 17-10-035, § 415-104-011, filed 4/26/17, effective 5/27/17
WSR 16-08-007, § 415-104-011, filed 3/24/16, effective 4/24/16. Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 02-18-046, § 415-104-011, filed 8/28/02, effective 9/30/02. Statutory Authority: RCW 41.50.050. WSR 95-16-053, § 415-104-011, filed 7/25/95, effective 8/25/95. Statutory Authority: RCW 41.50.050(5) and 41.04.120. WSR 93-11-078, § 415-104-011, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-104-015 Scope.

These rules shall govern the unique aspects of the administration of chapter 41.26 RCW, Law enforcement officers' and firefighters' retirement system (LEOFF).

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-015, filed 3/11/87.

Wash. Admin. Code § 415-104-025 Public records.

See chapter 415-06 WAC.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-025, filed 3/11/87.

Wash. Admin. Code § 415-104-035 Jurisdiction of director.

The director or the director's designee (director, designee or DRS) does not have authority to review local disability board findings or decisions regarding:

(1) Whether a member’s disability was incurred in the line of duty under RCW 41.26.120 or not incurred in the line of duty under RCW 41.26.125; or

(2) A member's right to the employer's payment for medical services pursuant to RCW 41.26.030(22) and 41.26.150.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-035, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-035, filed 3/11/87.

Wash. Admin. Code § 415-104-045 Appeal of a local disability board decision.

Any person aggrieved by the decision of a local disability board may appeal the decision if it:

(1) Denies disability leave;

(2) Denies disability retirement; or

(3) Cancels a previously granted disability retirement.

The written notice of appeal must be submitted to DRS within thirty days in accordance with RCW 41.26.200.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-045, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-045, filed 3/11/87.

Wash. Admin. Code § 415-104-050 Review of disability board action—Appeal of director's decision.

Under RCW 41.26.120(3) and 41.26.125(3), DRS must review a disability board's order to grant a disability retirement allowance. DRS must:

(1) Affirm (approve) the board’s decision; or

(2) Remand (send back) the case for further proceeding; or

(3) Reverse (deny) the board’s decision.

DRS must serve a copy of the decision on the applicant, employer, and disability board. DRS must notify the applicant of the right to file a notice for hearing (an appeal under RCW 41.26.200) if the DRS decision denies the disability retirement allowance.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-050, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-050, filed 3/11/87.

Wash. Admin. Code § 415-104-060 Records reviewed on appeals filed under RCW 41.26.200.

DRS will review the appeal based on the record established by the disability board and materials appearing in the records of the department of retirement systems. DRS must:

(1) Affirm (approve) the board's decision; or

(2) Remand (send back) the case for further proceeding; or

(3) Reverse (deny) the board's decision.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-060, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-060, filed 3/11/87.

Wash. Admin. Code § 415-104-070 Parties to a de novo hearing.

The applicant, the employer, and the department are parties to a hearing held under RCW 41.26.221. The disability board may appear at such hearing only in support of the department's decision.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-070, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-070, filed 3/11/87.

Wash. Admin. Code § 415-104-080 The department can require an examination.

The department has discretion to require an applicant for disability retirement to undergo a mental and/or physical examination prior to the hearing to be held pursuant to RCW 41.26.221. The cost of such examination is the responsibility of the department.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-080, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-080, filed 3/11/87.

Wash. Admin. Code § 415-104-090 Notice of appeal to the superior court.

Any party aggrieved by a DRS final decision and order issued under RCW 41.26.211 may petition for judicial review within thirty days after the decision and order was mailed. Any party wishing to perfect a superior court appeal must comply with chapter 34.05 RCW, the Administrative Procedure Act.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-090, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-090, filed 3/11/87.

Wash. Admin. Code § 415-104-100 Certification of record.

The director or his/her designated representative shall promptly file with the clerk of the court a certified copy of the complete record of the hearing before the director which shall, upon being so filed, become the record in such case. Appeal shall lie from the judgment of the superior court to the court of appeals or the supreme court as in other cases.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-100, filed 3/11/87. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-104-100, filed 2/15/78. Formerly WAC 297-20-010.

Wash. Admin. Code § 415-104-108 Actuarial factors and schedules.

See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses actuarial factors and schedules to calculate optional retirement allowances of members of the Washington state law enforcement officers' and firefighters' retirement system.

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-108, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 02-18-048, § 415-104-108, filed 8/28/02, effective 9/1/02. Statutory Authority: RCW 41.50.050. WSR 96-03-100, § 415-104-108, filed 1/19/96, effective 2/19/96. Statutory Authority: RCW 41.50.050 and 41.26.060. WSR 91-19-063, § 415-104-108, filed 9/16/91, effective 10/17/91
WSR 91-02-019, § 415-104-108, filed 12/21/90, effective 1/21/91.

Wash. Admin. Code § 415-104-109 How will my retirement membership be determined if I separate from my LEOFF 2 position and begin employment with a new employer in a position that is eligible for a different retirement system administered by DRS, such as PERS, PSERS, TRS, or SERS?

(1) If you separate from LEOFF employment, but are not yet eligible to commence a normal retirement benefit, you will become a member in another DRS retirement system, if you meet the eligibility qualifications in that new system for purposes of your new position. You will become a dual member.

When you apply to begin your LEOFF 2 pension once you qualify for normal retirement, your membership in the new retirement system will end. You will not be eligible to begin collecting your pension in your other retirement plan until you have separated employment from that employer.

If you do not apply for your LEOFF pension immediately upon meeting normal retirement, your pension benefit will be paid retroactively following your application for your LEOFF benefit.

| Example: | After 20 years of service as a firefighter for the city of Spokane, at age 51 you separate from employment with the city and choose not to begin collecting an early retirement from LEOFF 2. You accept a PERS eligible position with Spokane County, at which point you are mandated into PERS membership. You will qualify as a dual member. At normal retirement age, you will be able to begin your LEOFF pension; however, if you do so your PERS membership will end, and you will not begin to draw a pension from PERS until you separate from employment with the county. If you do not begin your LEOFF pension at normal retirement age, you will continue to accrue PERS service credit and be able to retire from both systems when you separate employment. Your LEOFF pension will also be paid retroactively to normal retirement age. | | --- | --- |

| Example: | After 20 years of service as a firefighter for the Benton County, at age 45 you accept a PERS eligible position with the same employer (Benton County), and you are mandated into PERS membership. You will qualify as a dual member. At normal retirement age, you will not be able to begin your LEOFF pension since you have not yet separated employment with the county. When you do separate employment, your LEOFF pension will be paid prospectively based on your separation from employment with your employer. | | --- | --- |

(2) If you separate from LEOFF employment and are eligible to commence a normal retirement benefit, you will have the same requirements and options outlined in WAC 415-104-111(2).

| Example: | After 20 years of service as a police officer with the city of Seattle, you separate from employment with the city at age 56. Prior to commencing your LEOFF pension, you accept a SERS covered position with the Seattle public schools. You have two options: | | --- | --- | | | (a) You can begin your LEOFF pension at any point and forgo membership in SERS. | | | (b) You can join SERS membership. You will not be able to begin your LEOFF pension until you have separated employment with the school district at which point you will receive a retroactive payment for the LEOFF pension payments you missed and your SERS pension benefit would begin if you qualify. |

History

Statutory Authority: RCW 41.50.050. WSR 23-15-125, § 415-104-109, filed 7/19/23, effective 8/19/23.

Wash. Admin. Code § 415-104-111 How is my LEOFF Plan 2 retirement allowance affected if I return to work after retirement?

This rule applies to you if you are a LEOFF 2 retiree who returns to work in an eligible LEOFF, public employees' retirement system (PERS), public safety employees' retirement system (PSERS), school employees' retirement system (SERS), or teachers' retirement system (TRS) position.

(1) If you return to employment in a LEOFF eligible position, you must reenter membershipand your retirement allowance will stop. When you separate from service, the department will calculate your retirement allowance.

(2) The department will:

(a) Recompute your retirement allowance pursuant to RCW 41.26.420 using:

(i) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and

(ii) Any increase in your final average salary resulting from your reentry into membership; and

(iii) An actuarial reduction of your retirement allowance to offset the cost of your benefit option if it includes a survivor feature. See WAC 415-104-215.

(b) Your benefit will be calculated in two separate parts based on service credit earned in each working period and any early retirement factors applicable based on the age of retirement for that period.

(i) The first part (original period) will include:

(A) Service credit that was used in the original retirement calculation.

(B) Any early retirement reduction factor that was in place at the time of the initial retirement.

(D) Any previously earned cost of living adjustments.

(ii) The second part (retiree return to membership period) of the calculation will include:

(A) Only service credit earned during the retiree return to membership working period.

(B) Any appropriate early retirement reduction factors in place at the time of reretirement.

(C) Any survivor factor in place at the time of reretirement will be applied to both retirement periods. You must return to work to become eligible for any survivor benefit option other than the option chosen in the first retirement (WAC 415-104-215 (7)(a)).

(D) The highest salary considering the entire work history.

Example: Pat had 30 years of service when they initially retired at age 50 with a final average salary (FAS) of $5,000. An early retirement factor of .91 was applied to this initial retirement. Pat returned to membership at age 55 and worked for an additional three years and then reretired with a newly calculated FAS of $8,000. No early retirement factor is applicable. Pat also selected a survivorship option at reretirement that will provide them .92 of their calculated retirement benefit.

The two parts of their retirement calculation would be as follows:

Retirement 1: 2% x 30 years x $8,000 x .91 x .92 = $4,018.56

Retirement 2: 2% x 3 years x $8,000 x .92 = $441.60

Part 1 will also include any cost-of-living adjustments previously applied prior to Pat returning to membership. Any early retirement factor applicable to retirement 2 will take into consideration total service credit earned over entire career. The same benefit enhancement that was applied to the first retirement, a lump sum based on service credit or an additional tiered multiplier, will also be applied to the second retirement.

(3) If you enter employment in a PERS, PSERS, SERS, or TRS eligible position, you have two options:

(a) You may decline membership in the PERS, PSERS, SERS, or TRS retirement system. Under this option, you will continue to receive your monthly LEOFF Plan 2 retirement allowance; or

(b) You may choose to become a member of the PERS, PSERS, SERS, or TRS retirement system. Under this option, your LEOFF Plan 2 retirement allowance will be suspended while you earn service credit in the other system. When you terminate employment in the PERS, PSERS, SERS, or TRS eligible position, you will resume receiving your LEOFF Plan 2 retirement allowance, along with a retroactive payment of your LEOFF Plan 2 retirement allowance for the time you were employed.

(i) Your ongoing LEOFF Plan 2 retirement allowance will include any cost of living adjustments (COLAs) that you would have received if your LEOFF allowance had not been suspended during the period of non-LEOFF employment.

(ii) Your retroactive payment will equal the sum of your suspended LEOFF Plan 2 retirement allowances, including COLAs, during the period of non-LEOFF employment. You may choose to receive your retroactive payment in either of the following forms:

(A) A lump sum; or

(B) An increase in your ongoing LEOFF Plan 2 retirement allowance on an actuarial basis. The amount of the increase is calculated by taking the lump sum amount and multiplying it by an actuarial factor that is determined by your age at the time your retirement allowance is resumed. See WAC 415-02-340 for more information on how the department uses actuarial factors to determine the equivalent value of a lump sum amount when compared with monthly payments.

History

Statutory Authority: RCW 41.50.050. WSR 26-09-063, s 415-104-111, filed 4/13/26, effective 5/14/26. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-111, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5) and 41.26.500. WSR 08-23-071, § 415-104-111, filed 11/18/08, effective 12/19/08. Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-048, § 415-104-111, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 41.50.050(5) and 41.26.500. WSR 06-03-096, § 415-104-111, filed 1/17/06, effective 2/17/06
WSR 05-12-043, § 415-104-111, filed 5/25/05, effective 6/25/05. Statutory Authority: RCW 41.50.050(5), 41.26.470, 2001 c 261. WSR 02-14-072, § 415-104-111, filed 6/28/02, effective 7/29/02. Statutory Authority: RCW 41.50.050. WSR 94-09-040, § 415-104-111, filed 4/19/94, effective 5/20/94.

Wash. Admin. Code § 415-104-112 Interim retirement allowance—Employer final compensation report—Final computation of retirement allowance—Adjustment of retirement allowance for errors.

(1) At the time of a member's application for retirement, the department does not have all information necessary to make a final computation of the member's retirement allowance. The department shall compute an interim retirement allowance that shall be paid to the member until the department's final computation of the member's retirement allowance. The interim retirement allowance is an initial, estimated computation of the retiree's retirement allowance subject to adjustment by the department based upon subsequent review of information provided by the member's employer.

(2) In computing the interim retirement allowance, the department may, subject to later correction, consider only the amount of the member's salary actually reported by the employer up to the date of the interim computation, but may impute the member's earned service credit for the same period.

(3) Every employer of a member who applies for retirement shall provide the department with a final compensation report for that member. The report shall be completed on a form provided or approved by the department.

(4) Following the department's computation of the interim benefit and receipt of the employer final compensation report, earnings history, and any additional information requested by the department, the department will complete a final computation of the member's retirement allowance. The department's final computation may increase, decrease, or leave unchanged the amount of the interim retirement allowance computed pursuant to subsection (1) of this section.

(5) Pursuant to RCW 41.50.130, either before or after the department's final computation of the member's retirement allowance as provided in subsection (4) of this section, the department may adjust a member's retirement allowance to correct any error in retirement system records. For purposes of this subsection, errors in retirement system records include, but are not limited to, the following:

(a) Applying an incorrect retirement allowance formula in computing the retirement allowance;

(b) Including service that is not creditable to the member;

(c) Including payments that do not constitute basic salary to a member in the member's retirement allowance computation, or excluding basic salary not reported by an employer;

(d) Benefit overpayments and underpayments;

(e) Including an individual in the membership of the retirement system or plan who is not entitled to such membership;

(f) Excluding an individual from membership in the retirement system or plan who is entitled to such membership.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-112, filed 8/3/99, effective 9/3/99.

Wash. Admin. Code § 415-104-115 Purpose and scope.

The purpose of WAC 415-104-125 through 415-104-175 is to implement the provisions of RCW 41.26.135 to be followed by the department of retirement systems. These rules apply only to disability retirees over age fifty who seek a determination that their disability has ceased.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-115, filed 3/11/87.

Wash. Admin. Code § 415-104-125 DRS review of disability board order.

(1) Under the provisions of RCW 41.26.135, DRS must review a disability board determination that an applicant's disability has ceased pursuant to RCW 41.26.130(3). DRS must:

(a) Affirm (approve) the board's decision; or

(b) Remand (send back) the case for further proceedings; or

(2) A retiree aggrieved by a decision of the local disability board that the disability has not ceased may appeal the determination to the director. The written notice of appeal must be submitted to DRS within thirty days as provided by RCW 41.26.140(6).

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-125, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-125, filed 3/11/87.

Wash. Admin. Code § 415-104-135 Notice for hearing.

A person aggrieved by:

(1) The director's decision on review of the local board determination; or

(2) The director's decision after review of the record on appeal must invoke the director's jurisdiction by filing a notice for hearing in accordance with RCW 41.26.211 and WAC 415-08-020 before they can appeal to the superior court. Such hearing shall be in accordance with RCW 41.26.221.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-135, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-135, filed 3/11/87.

Wash. Admin. Code § 415-104-145 Department examination.

The director or his representative, in his/her discretion, may require a disability retiree to undergo a mental and/or physical examination prior to the hearing to be held pursuant to RCW 41.26.221. The cost of such examination is the responsibility of the department.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-145, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-145, filed 3/11/87.

Wash. Admin. Code § 415-104-155 Burden of proof.

The retiree has the burden of proof in the proceedings before the disability board and the director.

History

Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-155, filed 3/11/87.

Wash. Admin. Code § 415-104-165 Payment of benefits pending final determination.

The department will continue to pay monthly benefits when a disability board determines that a retiree's disability has ceased until there is a final determination from which no appeal is taken. The department will pay either the retiree's monthly service retirement allowance or monthly disability retirement allowance, whichever is less. Any retroactive adjustment required as the result of the final determination will be made after the appeal period has passed.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-165, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-165, filed 3/11/87.

Wash. Admin. Code § 415-104-175 Comparison of disability retirement allowance and service retirement allowance.

In comparing the disability retirement allowance and the service retirement allowance as required by RCW 41.26.130(3), the department must:

(1) Compute the service retirement allowance using a final average salary calculated as follows:

(a) The department shall first calculate the greatest basic salaries that were or would have been payable to such member during any consecutive twenty-four month period within such member's last ten years of service for which service credit is allowed;

(b) The department shall then divide the total basic salaries during the selected twenty-four month period by twenty-four to compute the final average salary.

(2) Compute the service retirement allowance. The service retirement allowance does not include any cost-of-living increases that would have been granted if the service retirement allowance had been in effect during the period of disability retirement.

(3) Compare the service retirement allowance to the monthly disability retirement allowance that the member was receiving on the date that the disability ceased.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-175, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050(5) and 41.50.090. WSR 87-07-016 (Order 87-4), § 415-104-175, filed 3/11/87.

Wash. Admin. Code § 415-104-202 What are my LEOFF Plan 1 retirement benefit options?

(1) What are flexible survivor benefit options? RCW 41.26.164 allows a retiree to provide a survivor option for a spouse who is not eligible for survivor benefits under RCW 41.26.160 or 41.26.161. The survivor option will provide a lifetime benefit for the spouse after the retiree's death.

(2) How will my monthly retirement benefit be affected by selecting a flexible survivor option? Your monthly retirement benefit will be actuarially reduced beginning the first month following the month in which the department receives the completed form.

(3) What are the flexible survivor option choices?

(a) Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, the department will pay your surviving spouse a monthly benefit equal to the gross monthly retirement benefit you were receiving.

(b) Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your surviving spouse will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.

(c) Joint and two-thirds survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your surviving spouse will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.

(4) Do I qualify to add a flexible survivor option? You may select a flexible survivor option if:

(a) Your current spouse is not eligible for survivor benefits under RCW 41.26.160 or 41.26.161;

(b) Some portion of your monthly retirement benefit is payable to you, after any reduction pursuant to a property division obligation under RCW 41.50.670; and

(5) How do I add a flexible survivor option? You may select a flexible survivor option and name your current spouse as your survivor beneficiary, provided that:

(a) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of the marriage, or as otherwise authorized by law;

(b) You provide a copy of your certified marriage certificate to the department;

(d) You file the properly completed forms with the department in a timely manner.

(6) May I remove the flexible survivor option in the future? You may remove your flexible survivor option under the following circumstances:

(a) Your spouse dies before you. Your benefit may be increased as described in WAC 415-02-380 (6)(a)(ii).

(b) You and your spouse divorce. If you choose to remove your former spouse as your survivor, your benefit will increase to the amount you would have received had you not chosen a flexible survivor option plus any cost-of-living adjustments (COLA) you received prior to removing your survivor.

(7) What happens to my eligible surviving children's share if I select a flexible survivor option? There is no impact to the benefit provided under RCW 41.26.160 or 41.26.161 to surviving children if you select a flexible survivor option.

(8) Actuarial information. See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses actuarial factors and schedules to calculate retirement benefits.

(9) Terms used in this section:

(a) Child or children - RCW 41.26.030(7).

(b) Eligible surviving child - RCW 41.26.160 and 41.26.161.

(d) Surviving spouse - RCW 41.26.030(6).

History

Statutory Authority: RCW 41.50.050. WSR 20-06-040, § 415-104-202, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 17-02-033, § 415-104-202, filed 12/28/16, effective 1/28/17
WSR 13-18-034, § 415-104-202, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5), 41.26.164. WSR 05-22-110, § 415-104-202, filed 11/2/05, effective 12/3/05. Statutory Authority: RCW 41.50.050(5), 41.26.162, 41.26.164, chapter 41.45 RCW. WSR 03-12-014, § 415-104-202, filed 5/27/03, effective 7/1/03.

Wash. Admin. Code § 415-104-215 What are my LEOFF Plan 2 retirement benefit options?

WAC 415-104-215

If you retire for service under RCW 41.26.430 or nonduty disability under RCW 41.26.470, or if you choose to receive a monthly benefit for duty disability under RCW 41.26.470, you must choose to have your monthly retirement benefit paid to you by one of the options described in this section.

(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.

(2) What are my benefit options?

(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.

(d) Option four: Joint and two-thirds benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667 percent) of your gross monthly benefit.

(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's consent, verified by notarization or other means acceptable to the department. If you do not provide verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 41.26.460(2).

(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.

(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (5) of this section, which was filed with the department at least 30 days before your retirement date, spousal consent is not required.

(b) Age difference: 11–24 years: Eligible for Option 3 (50 percent) or Option 4 (66.67 percent) survivor benefit options.

(i) If you were born before July 1, 1949, your RMD age is 70.

(ii) If you were born between July 1, 1949, and December 31, 1950, your RMD age is 72.

(iii) If you were born between January 1, 1951, and December 31, 1959, your RMD age is 73.

(iv) If you were born on or after January 1, 1960, your RMD age is 75.

If you retire after your RMD age, there is no adjustment to the age difference between you and your nonspouse survivor.

(e) Example: Janet was born January 5, 1961, and will retire September 1, 2026. She plans to name her son, born April 14, 1985, as her survivor beneficiary. The age difference between Janet and her son is 24 years. Janet's RMD age is 75, and she is retiring at age 65 so the age difference is reduced by 10 years (75 minus 65) for an adjusted age difference of 14 years (24 minus 10). Janet is eligible to choose between survivor Option 3 (50 percent) and Option 4 (66.67 percent) for her son.

(5) Do I have a benefit enhancements choice between the tiered multiplier and lump-sum benefit?

(a) If you were a LEOFF Plan 2 member on or before February 1, 2021, and are retiring with more than 15 years of service credit, you have a choice between the tiered multiplier and the lump-sum benefit. If you are retiring with 15 years or less service credit, you do not have a choice and will receive the lump-sum benefit.

(b) If you elect the lump-sum benefit and it is $20,000 or more, you are eligible to purchase an annuity with all or a portion of the lump-sum benefit. The minimum annuity purchase price is $20,000.

(c) If you became a LEOFF Plan 2 member after February 1, 2021, and are retiring with more than 15 years of service credit, you will receive the tiered multiplier benefit enhancement. Members retiring with 15 years of service credit or less will receive the standard retirement benefit calculation and not an enhanced benefit.

(6) Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW 41.50.790.

(7) What happens if I choose a benefit option with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.

(8) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following five exceptions:

(a) Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement.

(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;

(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;

(iii) You provide a copy of your certified marriage certificate to the department; and

(iv) You provide proof of your current spouse's birthdate.

(e) Retirement type changes. If your retirement status changes due to the acceptance of a new retirement application from service retirement to a nonduty, duty or catastrophic retirement, or duty to catastrophic retirement, you may select a different survivor benefit option. Your benefit will be recalculated to reflect your new survivor option in accordance with WAC 415-104-483.

(9) Who will receive the balance of my accumulated contributions, if any, after my death?

(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.

(ii) If you have not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your surviving spouse.

(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.

(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.

(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.

(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate.

(10) For more information, see RCW 41.26.460.

History

Statutory Authority: RCW 41.50.050. WSR 26-17-035, s 415-104-215, filed 8/11/26, effective 8/12/26
WSR 25-18-099, s 415-104-215, filed 9/2/25, effective 10/3/25. Statutory Authority: RCW 41.50.[0]50, 41.26.291, 2022 c 125, and I.R.C. s 104 (a)(1). WSR 25-09-023, s 415-104-215, filed 4/7/25, effective 4/9/25. Statutory Authority: RCW 41.50.050. WSR 22-11-040, § 415-104-215, filed 5/12/22, effective 6/12/22
WSR 22-01-061, § 415-104-215, filed 12/8/21, effective 1/8/22
WSR 20-13-065, § 415-104-215, filed 6/15/20, effective 7/16/20
WSR 20-06-040, § 415-104-215, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-215, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5), 41.26.460. WSR 05-23-062, § 415-104-215, filed 11/14/05, effective 12/15/05
WSR 03-12-014, § 415-104-215, filed 5/27/03, effective 7/1/03. Statutory Authority: RCW 41.50.050(5), 41.26.460, 41.32.530, 41.32.785, 41.32.851, 41.35.220, 41.40.188, 41.40.660, 41.40.845. WSR 01-10-045, § 415-104-215, filed 4/26/01, effective 6/1/01. Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-215, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 2.10.146, 41.26.460, 41.32.530, 41.50.050, 41.32.785, 41.40.188 and 41.40.660. WSR 96-01-047, § 415-104-215, filed 12/14/95, effective 1/14/96. Statutory Authority: RCW 34.05.050 and 1990 c 249. WSR 91-03-014, § 415-104-215, filed 1/7/91, effective 2/7/91.

Wash. Admin. Code § 415-104-224 Purpose and scope of eligibility rules.

WAC 415-104-225 through 415-104-240 codify the department's existing interpretation of statutes and existing administrative practice regarding eligibility for membership in LEOFF Plan I and Plan II. The department has applied and will apply these rules to determine eligibility for service occurring prior to the effective dates of these sections.

History

Statutory Authority: RCW 41.50.050. WSR 95-16-053, § 415-104-224, filed 7/25/95, effective 8/25/95.

Wash. Admin. Code § 415-104-225 Am I a LEOFF member?

If you are employed by an employer as a law enforcement officer or firefighter, you are required to be a LEOFF member.

(1) Law enforcement officers.

(a) You are a law enforcement officer if you are commissioned and employed on a fully compensated basis as a:

(i) City police officer;

(ii) Town marshal or deputy marshal;

(iii) County sheriff;

(iv) Deputy sheriff, if you passed a civil service exam for deputy sheriff and you possess all of the powers, and may perform any of the duties, prescribed by law to be performed by the sheriff;

(b) Beginning July 1, 2024, the term "law enforcement officer" also includes any person who is commissioned and employed by an employer on a fully compensated basis to enforce the criminal laws of the state of Washington generally, on a less than full-time basis.

(c) Effective January 1, 1994, "law enforcement officer" also includes commissioned persons employed on a full-time, fully compensated basis as a:

(i) General authority Washington peace officer under RCW 10.93.020(3);

(ii) Port district general authority law enforcement officer and you are commissioned and employed by a port district general authority law enforcement agency;

(iii) State university or college general authority law enforcement officer; or

(d) Effective January 1, 1993, "law enforcement officer" also includes commissioned persons employed on a full-time, fully compensated basis as a public safety officer or director of public safety of a city or town if, at the time you first became employed in this position, the population of the city or town did not exceed 10,000. See RCW 41.26.030(3).

(e) If you meet the requirements of (a), (b), (c) or (d) of this subsection, you qualify as a law enforcement officer regardless of your rank or status as a probationary or permanent employee.

(f) You are not a law enforcement officer if you are employed in either:

(i) A position that is clerical or secretarial in nature and you are not commissioned; or

(ii) A corrections officer position and the only training required by the Washington criminal justice training commission for your position is basic corrections training under WAC 139-10-210.

(2) Firefighters.

(a) You are a firefighter if you are employed in a uniformed firefighter position by a fire department of an employer on a full-time, fully compensated basis, and as a consequence of your employment, you have the legal authority and responsibility to direct or perform fire protection activities that are required for and directly concerned with preventing, controlling and extinguishing fires.

(i) "Fire protection activities" may include incidental functions such as housekeeping, equipment maintenance, grounds maintenance, fire safety inspections, lecturing, performing community fire drills, and inspecting homes and schools for fire hazards. These activities qualify as fire protection activities only if the primary duty of your position is preventing, controlling, and extinguishing fires.

(ii) If your employer requires firefighters to pass a civil service examination, you must be actively employed in a position that requires passing such an examination in order to qualify as a firefighter unless you qualify as supervisory firefighter personnel.

(iii) The primary duty of a position is defined by what is expected of the full-time position, not the number of hours or percentage of hours that the duty is performed.

(iv) You are a firefighter if you meet the requirements of this section regardless of your rank or status as a probationary or permanent employee or your particular specialty or job title.

(b) You are a firefighter if your full-time, fully compensated position in a fire department of an employer requires experience as a firefighter. Specifically, if the minimum requirements of a position require an experienced firefighter, the position is presumed to necessitate the experience of a firefighter to perform the essential functions of the position.

(i) To qualify as "supervisory firefighter personnel" you must:

(A) Supervise firefighters or other supervisory firefighter personnel;

(B) Be in a position located within a firefighting department or organization whose primary or sole purpose is fire protection activities; and

(ii) This includes first line supervisors of firefighters, who typically direct from the scene of a fire, up to and including positions that are administrative in nature when the primary duty is to provide executive leadership for fire protection activities, such as setting strategic priorities for the organization.

(d) You are a firefighter if you are employed on a full-time, fully compensated basis by an employer as an emergency medical technician (EMT). To be an emergency medical technician, you must:

(i) Be certified by the department of health to perform emergency medical services at the level of care of an EMT; and

(ii) Complete the requirements of your employer, if any, to perform the job duties of an EMT.

Example A: A full-time fire marshal position or firefighter trainer position in a fire department of an employer requires that the incumbent be an experienced firefighter. The position is a firefighter.

Example B: A Fire Chief of a large fire department does not respond to fires, but instead works in an office setting providing direction and leadership, such as setting strategic priorities and approving hiring and firing, for the Fire Department. The Fire Chief supervises three battalion chiefs, a Human Resources Director, and a Chief Financial Officer. The Fire Chief is supervisory firefighter personnel because the position supervises firefighters, is located within an organization whose sole purpose is fire protection activities, and the primary purpose of the position is to provide executive leadership to fire protection activities.

Example C: An Administrator of an organization whose primary purpose is fire protection activities does not respond to fires, but instead works in an office setting providing direction and leadership, such as setting strategic priorities and approving hiring and firing, for the organization. The Administrator supervises two Battalion Chiefs, a Human Resources Director, and a Chief Financial Officer. The Administrator is supervisory firefighter personnel because the position supervises firefighters, is located within an organization whose primary purpose is fire protection activities, and the primary purpose of the position is to provide executive leadership to fire protection activities.

Example D: A position in a fire department of an employer requires that the incumbent have experience as a firefighter. The position is expected to utilize their firefighter experience to procure proper firefighting equipment and to develop and implement policies and procedures for firefighting activities. The position is a firefighter.

Example E: A full-time fire marshal position in a city planning department of an employer requires that the incumbent be an experienced firefighter. The position is not a firefighter because the position is not located within a firefighting department or organization whose primary or sole purpose is fire protection activities.

Example F: A City Administrator supervises various city departments including a fire department. The City Administrator supervises the Fire Chief, who is a firefighter, as well as other department heads. The City Administrator would not be considered supervisory firefighter personnel because, while the duties of the position include oversight of the fire department, it is not the primary duty of the position. Furthermore, the position is not located within a firefighting department or organization whose primary or sole purpose is fire protection activities.

(e) You do not qualify for membership as a firefighter if you are a volunteer firefighter or resident volunteer firefighter.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Commissioned" - WAC 415-104-011.

(b) "Director of public safety" - WAC 415-104-011.

(d) "Firefighter" - RCW 41.26.030.

(e) "Full time" - WAC 415-104-011.

(f) "Fully compensated" - WAC 415-104-011.

(g) "Law enforcement officer" - RCW 41.26.030.

(h) "Member" - RCW 41.26.030.

(i) "Public safety officer" - WAC 415-104-011.

(j) "Uniformed firefighter position" - WAC 415-104-011.

History

Statutory Authority: RCW 41.50.[0]50 and 2024 c 304. WSR 25-13-061, s 415-104-225, filed 6/12/25, effective 7/1/25. Statutory Authority: RCW 41.50.50 [ 41.50.050] and 2024 c 319. WSR 24-20-086, s 415-104-225, filed 9/27/24, effective 9/30/24. Statutory Authority: RCW 41.50.050. WSR 20-06-039, § 415-104-225, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 16-08-007, § 415-104-225, filed 3/24/16, effective 4/24/16. Statutory Authority: RCW 41.50.050(5) and 41.26.030. WSR 09-05-011, § 415-104-225, filed 2/6/09, effective 3/9/09. Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 02-18-046, § 415-104-225, filed 8/28/02, effective 9/30/02. Statutory Authority: RCW 41.50.050. WSR 96-01-045, § 415-104-225, filed 12/14/95, effective 1/14/96
WSR 95-16-053, § 415-104-225, filed 7/25/95, effective 8/25/95.

Wash. Admin. Code § 415-104-235 Can I terminate my status as a LEOFF member?

(1) Your membership in the retirement system is terminated if you:

(a) Die;

(b) Separate from service; or

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Firefighter" - RCW 41.26.030 and WAC 415-104-225(2).

(b) "Full-time employee" - WAC 415-104-011.

(d) "Member" - RCW 41.26.030.

(e) "Service" - RCW 41.26.030.

History

Statutory Authority: RCW 41.50.50 [ 41.50.050] and 2024 c 319. WSR 24-20-086, s 415-104-235, filed 9/27/24, effective 9/30/24. Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 02-18-046, § 415-104-235, filed 8/28/02, effective 9/30/02. Statutory Authority: RCW 41.50.050. WSR 95-16-053, § 415-104-235, filed 7/25/95, effective 8/25/95.

Wash. Admin. Code § 415-104-245 Am I required to meet minimum medical and health standards in order to establish or reestablish Plan 1 membership?

(1) You may be required to meet minimum medical and health standards in order to establish or reestablish Plan 1 membership.

You are required to meet minimum medical and health standards codified in WAC 415-104-500 through 415-104-755, if you:

(a) Were first employed as a law enforcement officer or firefighter on or after August 1, 1971, and before October 1, 1977; and

(b) Have been separated from service for more than six months for reasons other than a disability leave, a disability retirement, or an authorized leave of absence.

(2) If you are an elected sheriff or an appointed police or fire chief, you are exempt from the age requirement of the standards.

(3) If you are required to meet the minimum medical and health standards, your employer will enroll you in Plan 1 provisionally, depending on the results of your physical examination.

(a) If you are required to meet the minimum medical and health standards, your employer will begin reporting you in LEOFF Plan 1 from the first day of your employment. Your enrollment in Plan 1, however, is provisional depending upon the results of your medical examination.

(b) Your employer is responsible for having you examined by a physician or surgeon appointed by the local disability board and for paying the cost of your examination. Your employer will send a copy of your examination report to the department along with a certification letter of whether you have met the standards.

(4) If you are denied Plan 1 membership because you did not meet minimum medical and health standards, you will enter membership in Plan 2.

(a) The department will review your examination report and if you meet the minimum medical and health standards you will be reported in membership in Plan 1.

(b) If you do not meet the standards, your employer must stop reporting you to the department in Plan 1 and report you in Plan 2. The department will transfer your membership from Plan 1 to Plan 2 retroactively to the beginning of your term of employment.

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Employer" - RCW 41.26.030.

(b) "Firefighter" - RCW 41.26.030.

(d) "Fully compensated" - WAC 415-104-011.

(e) "Law enforcement officer" - RCW 41.26.030.

(f) "Member" - RCW 41.26.030.

(g) "Minimum medical and health standards" - WAC 415-104-500 through 415-104-755.

(h) "Plan 1 and Plan 2" - WAC 415-104-011.

History

Statutory Authority: RCW 41.50.050(5), 41.26.035, 41.26.045 - [41.26.]047. WSR 04-02-003, § 415-104-245, filed 12/24/03, effective 1/1/04. Statutory Authority: RCW 41.50.050. WSR 95-16-053, § 415-104-245, filed 7/25/95, effective 8/25/95.

Wash. Admin. Code § 415-104-298 Purpose and scope of basic salary rules.

WAC 415-104-299 through 415-104-405 codify the department's existing interpretation of statutes and existing administrative practice regarding classification of payments as basic salary in LEOFF Plan I and LEOFF Plan II. The department has applied and will apply these rules to determine the proper characterization of payments occurring prior to the effective dates of these sections.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-298, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-299 Basic salary table.

The following table will help you determine whether certain types of payments are basic salary under LEOFF Plan 1 or 2. Be sure to read the referenced rule to ensure that you have correctly identified the payment in question. The department determines basic salary based upon the nature of the payment, not the name applied to it. See WAC 415-104-311 (Plan 1) and WAC 415-104-360 (Plan 2).

| Type of Payment | LEOFF 1 Basic Salary? | LEOFF 2 Basic Salary? | | --- | --- | --- | | Additional Duty Pay | Yes - WAC 415-104-3205 | Yes - WAC 415-104-360 | | Allowances (i.e. uniform) | No - WAC 415-104-3404 | No - WAC 415-104-390 | | Basic Monthly Rate | Yes - WAC 415-104-3200 | Yes - WAC 415-104-360 | | Cafeteria Plans | No - WAC 415-104-3303 | Yes - WAC 415-104-367 | | Deferred Wages Attached to Position | Yes - WAC 415-104-3201(1) | Yes - WAC 415-104-363(1) | | Deferred Wages not attached to a Position | No - WAC 415-104-3306 | No - WAC 415-104-363(2) | | Disability Payments | No - WAC 415-104-340 | No - WAC 415-104-380 | | Education Attainment Pay | No - WAC 415-104-3301 | Yes - WAC 415-104-375 | | Employer taxes/contributions | No - WAC 415-104-3401 | No - WAC 415-104-383 | | Fringe Benefits, including insurance | No - WAC 415-104-3402 | No - WAC 415-104-385 | | Illegal Payments | No - WAC 415-104-3403 | No - WAC 415-104-387 | | Leave Cash Outs/Severance | No - WAC 415-104-3304 | No - WAC 415-104-401 | | Longevity | Yes - WAC 415-104-311 | Yes - WAC 415-104-375 | | Overtime | No - WAC 415-104-3305 | Yes - WAC 415-104-370 | | Paid Leave | Yes - WAC 415-104-3203 | Yes - WAC 415-104-373 | | Payments in Lieu of Excluded Items | No - WAC 415-104-350 | No - WAC 415-104-405 | | Performance Bonuses | No - WAC 415-104-3302 | Yes - WAC 415-104-377 | | Retroactive Salary Increase | Yes - WAC 415-104-3202 | Yes - WAC 415-104-365 | | Reimbursements | No - WAC 415-104-3404 | No - WAC 415-104-390 | | Retirement or Termination Bonuses | No - WAC 415-104-3406 | No - WAC 415-104-395 | | Shift Differential | Yes - WAC 415-104-3204 | Yes - WAC 415-104-379 | | Special Salary or Wages | No - WAC 415-104-330 | Yes - WAC 415-104-375 | | Standby Pay | No - WAC 415-104-3405 | No - WAC 415-104-393 | | Tuition/Fee Reimbursement | No - WAC 415-104-3404 | No - WAC 415-104-390 | | Workers' Compensation | Not Applicable | No - WAC 415-104-380 |

History

Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 03-06-042, § 415-104-299, filed 2/27/03, effective 4/1/03. Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-104-299, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-299, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-301 What is basic salary?

(1) Basic salary is the compensation used to determine LEOFF contributions and LEOFF retirement allowances. A payment from an employer to a member does not qualify as basic salary unless it meets the statutory definition of basic salary in RCW 41.26.030(13) which is explained in greater detail in WAC 415-104-311 through 415-104-405.

(2) The definition of basic salary is different for Plan I and Plan II. WAC 415-104-311 through 415-104-350 define basic salary for Plan I. WAC 415-104-360 through 415-104-405 define basic salary for Plan II.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-301, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-305 Definitions.

As used in WAC 415-104-299 through 415-104-405:

(1) "Salary or wages" means payments for services rendered by a law enforcement officer or firefighter to an employer. Payments which are not for services rendered to an employer are not a salary or wage and do not qualify as basic salary.

(2) "Longevity pay" means a payment in addition to the basic monthly rate of pay that is:

(a) Based solely upon the length of employment with the employer; and

(b) Paid to all law enforcement officers or firefighters who have served for the same length of time with the employer.

(3) "Position" means the employment held at any particular time. The employment held is defined by the duties required of the employee as a condition of employment.

| Example: | An employer employs two police officers, one who has a high school diploma and one who has a college degree. Although both officers have the same duties, the employer designates the first officer as an "officer 1" and the second officer as an "officer 2." The distinction between the two levels is conditioned upon different levels of education. The second officer is paid at a higher rate. For purposes of determining basic salary, both officers occupy the same position because both have the same duties. The difference in their two rates of pay is an education premium which does not qualify as basic salary, see WAC 415-104-3302. | | --- | --- |

(4) "Attached to a position" means a payment conditioned on specific duties required of the person holding the position.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-305, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-311 How is basic salary for LEOFF Plan I determined?

(1) A payment is LEOFF Plan I basic salary if it is part of the basic monthly rate of salary or wages attached to the position or longevity pay. Special salary or wages are not part of the basic monthly rate and do not qualify as basic salary.

(2) Basic salary is earned when the service is rendered, rather than when payment is made.

| Example: | If a member works during July but does not receive payment for the work until August, the basic salary was earned during July and must be reported to the department as July earnings. | | --- | --- |

(3) Salary characterizations are based upon the nature of the payment. A payment is basic salary if it meets the criteria of subsection (1) of this section. The name given to the payment is not controlling in determining whether the payment is basic salary. The department determines whether a payment is basic salary by considering:

(a) What the payment is for; and

(b) Whether the reason for the payment brings it within the statutory definition of basic salary.

| Example: | A payment based upon educational attainment is not basic salary for LEOFF Plan I. Describing the payment as a "longevity" payment does not change the fact that the payment is for educational attainment. The payment will not be counted as basic salary despite being identified by the employer as a longevity payment. | | --- | --- |

(i) "Salary or wages" - WAC 415-104-3200 through 415-104-3205;

(ii) "Special salary and wages" - WAC 415-104-330 through 415-104-3305;

(iii) "Payments excluded from basic salary because they are not a salary or wage" - WAC 415-104-340 through 415-104-3406.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-311, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3200 Basic monthly rate is LEOFF Plan I basic salary.

The basic monthly rate of compensation paid by an employer to a member for services rendered is basic salary in Plan I. "Basic monthly rate" means the rate of salary or wages attached to a position excluding overtime or special salary or wages.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3200, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3201 Deferred payments.

(1) Deferred payments attached to a position are basic salary. If an employee defers a portion of his or her basic monthly rate of pay it is still basic salary. Deferred payments may include, but are not limited to: Member contributions to LEOFF; salaries or wages deferred pursuant to sections 401(k), 403(b), 414(h), 457, or other similar sections of the United States Internal Revenue Code.

(2) Deferred wages that are not attached to a position are special salary or wages excluded from LEOFF Plan I basic salary.

(a) Employer matching payments are not basic salary. If a member acquires an additional payment that is conditioned upon taking some action in addition to providing services, the payment is based upon the additional action. It is not a salary or wage earned for services rendered. The payment is not basic salary.

| Example: | An employer offers to make a contribution to a deferred compensation plan only if the member elects to defer a portion of his or her salary. Because the member does not have an absolute right to receive the additional contribution for performing the duties required of his or her position, the payment is special salary or wages and is not basic salary. | | --- | --- |

(b) Additional deferred compensation offered to an individual is not basic salary. If an employer pays deferred compensation to a member in addition to the member's basic rate of pay, the payment is special salary or wages and does not qualify as basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3201, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3202 Retroactive basic salary increases attached to a position are LEOFF Plan I basic salary.

If a payment is part of the basic monthly rate of salary or wages attached to a position or is a longevity payment, it is basic salary even if the payment is retroactive. Payments upon reinstatement or in lieu of reinstatement are not considered retroactive basic salary increases. For treatment of those payments see WAC 415-104-3203(3).

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3202, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3203 Paid leave is LEOFF Plan I basic salary.

Payments from an employer for authorized paid absences from work are basic salary.

(1) Leave payments earned for services rendered: Most LEOFF members earn a certain number of leave hours per month, such as sick leave. The leave hours are earned by rendering service during the month the leave was accumulated. The payment a member receives when he or she uses an earned leave day is a deferred salary or wage for services previously rendered. It is basic salary.

| Example: | Assume a member accrues eight hours sick leave per month. The accrued leave in the member's sick leave balance is earned for personal services rendered during a payroll period. When the member is absent from work and uses the sick leave, the sick leave payment is basic salary. | | --- | --- | | | Leave payments earned for services rendered are basic salary only to the extent that they are equivalent to the basic salary a member would have earned had the member been working. The portion of any leave payment that exceeds that amount is not basic salary. |

(2) Leave payments not earned for services rendered: If an employer authorizes a period of paid leave but does not require the use of leave previously earned for services rendered, the payment is not a salary or wage for services rendered. However, RCW 41.26.197 authorizes service credit for all periods of paid leave. Because the periods are creditable, the pay received is considered basic salary to the extent that it is equal to the basic salary the member would have earned had he or she been working. The portion of a leave payment that exceeds that amount is not basic salary.

| Example: | An officer is placed on administrative leave with pay pending an investigation. Although the officer is not rendering services, the period is creditable as an authorized paid leave period under RCW 41.26.197. | | --- | --- |

(a) In order for a payment in lieu of reinstatement to qualify as paid leave the person's termination date must occur after the payroll period(s) when the payment would have been earned.

(b) Payments under WAC 391-45-410 are basic salary for the period(s) covered by the reinstatement.

(c) Payments upon reinstatement or in lieu of reinstatement are basic salary only to the extent that they equal the basic salary a member would have earned had the member been working.

(4) Union leave. Periods of authorized leave to serve as an elected official of a labor organization which meet the requirements of RCW 41.26.197 qualify for service credit. The salary payments provided by the employer subject to reimbursement from the union qualify as basic salary for LEOFF Plan I to the extent that the payments do not exceed the basic salary for the highest paid job class covered by the collective bargaining agreement negotiated between the labor organization and the employer. The portion of any payment identified as paid leave in excess of that amount is not basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3203, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3204 Shift differential is LEOFF Plan I basic salary.

Additional payments to a member for working swing shift or night shift are attached to the duties of the position, e.g., working a nonstandard shift. Those payments are basic salary for LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3204, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3205 Additional duty pay is LEOFF Plan I basic salary.

Salary or wages that a member receives for additional duty assignments are a part of the basic salary attached to the member's position. Those payments are basic salary for LEOFF Plan I.

| Example: | A police officer is assigned to the bomb squad and receives an additional monthly payment for the hazardous duty assignment. The additional payment is for duties required by the employer as part of the member's position. It is attached to the position and is basic salary for LEOFF Plan I. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3205, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-330 What are special salary or wages?

(1) Special salary or wages for services rendered are payments that do not qualify as basic salary because the payment is based upon the attributes of the individual instead of being attached to the position. A payment is not attached to a position if it is not tied to specific duties required of all persons holding the position. Payments that are not attached to a position include but are not limited to the payments described in WAC 415-104-3302 and 415-104-3303.

(2) Longevity pay is not attached to a position because it is based upon the attributes of an individual. It is, however, specifically included as part of basic salary under RCW 41.26.030.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-330, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3301 Educational premium payments are not LEOFF Plan I basic salary.

(1) If an employer provides additional salary based upon the member's level of education that payment is based upon the attributes of the individual and is not attached to the position. It is a special salary or wage and is not basic salary.

| Example: | An employer employs two different law enforcement officers in the position of sergeant. Although their duties are the same, one sergeant receives 3% more in salary than the other because she has a bachelor's degree which the other lacks. The additional 3% is not attached to the position because it is not attached to any additional duties. It is not basic salary for LEOFF Plan I. | | --- | --- |

(2) Payments conditioned upon acquiring and maintaining a designated certification such as emergency medical technician are a form of educational premium pay. The payment is based upon the attributes of the individual and is not attached to the position. It is a special salary or wage and is not basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3301, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3302 Performance bonuses are not LEOFF Plan I basic salary.

Payments to a member for meeting or exceeding performance goals set by the employer are not attached to a position and are not basic salary.

| Example: | An employer offers an annual bonus to members who do not have an accident for a year. The bonus is not part of the basic monthly rate of salary and is not basic salary for LEOFF Plan I. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3302, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3303 Cafeteria plans are not LEOFF Plan I basic salary.

Compensation paid under the provisions of a "cafeteria plan," "flexible benefits plan," or similar arrangement pursuant to section 125 of the United States Internal Revenue Code which give the member an absolute right to receive cash in lieu of the fringe benefits offered is a special salary or wage. Such compensation is not basic salary. If there is no cash option, the value of the fringe benefit is not a salary or wage and is not basic salary. See WAC 415-104-3402.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3303, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3304 Leave cash outs or other severance pay are not LEOFF Plan I basic salary.

(1) A cash out for unused accrued leave is a deferred salary or wage for services previously rendered. A payment in lieu of an accrual of leave qualifies as a leave cash out. The payment is not basic salary in LEOFF Plan I because it is a special salary or wage in addition to the basic monthly rate of salary or wages.

(2) Any other form of severance payment based upon termination is special salary or wages and is not included as basic salary in LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3304, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3305 Overtime is not LEOFF Plan I basic salary.

Overtime, which is additional pay earned for working time in excess of regularly scheduled shift(s), is specifically excluded from basic salary for LEOFF Plan I by RCW 41.26.030 (13)(a). Overtime includes, but is not limited to:

(1) Additional pay for working on a holiday. If a member receives an extra payment because he or she worked on a scheduled holiday, the payment is overtime. The employer may make the additional payment when the holiday occurs or in a lump sum at some other time. In either case, the payment is not basic salary for LEOFF Plan I;

| Example: | A firefighter works on Christmas day. In compensation for working a holiday, she is given the option of taking some other day off with pay or of receiving an extra day's pay in addition to her basic monthly rate of pay. If she opts for the extra day of pay, this payment is overtime and is not LEOFF Plan I basic salary. If she opts to take a day off, this is paid leave and qualifies as LEOFF Plan I basic salary. | | --- | --- |

(2) Callback pay, which is a special rate of pay some employers offer for being called back to work after the end of the member's regular shift;

(3) Court pay, which is an additional payment for appearing in court or performing other duties outside of a member's regularly scheduled shift.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3305, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3306 Deferred wages that are not attached to a position are not LEOFF Plan I basic salary.

See WAC 415-104-3201.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3306, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-340 Disability payments are not LEOFF Plan I basic salary.

(1) Payments from an employer during periods of disability leave for a duty disability (RCW 41.26.120) or a nonduty disability (RCW 41.26.125) are not a payment from the employer for services rendered. The payment is not basic salary for LEOFF Plan I.

(2) Any payment from a third party such as an insurance company for a period of excused absence from work because of an injury or other disability is not a payment from an employer for services rendered. The payment is not basic salary for LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-340, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3401 Employer taxes and contributions are not LEOFF Plan I basic salary.

(1) Any employer payment of the employer or member portion of taxes imposed by the Federal Insurance Contribution Act (FICA) is not a salary or wage to a member and does not qualify as basic salary for LEOFF Plan I.

(2) Employer contributions to LEOFF are not a salary or wage and are not basic salary for LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3401, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3402 Fringe benefits are not LEOFF Plan 1 basic salary.

Fringe benefits provided by an employer are not a salary or wage, and therefore do not qualify as basic salary for LEOFF Plan 1. Fringe benefits include but are not limited to:

(1) Employer retirement contributions;

(2) Any type of insurance such as medical, dental, or life insurance; and any employer contribution to meet the premium or charge for the insurance; or

(3) Any payments by the employer into a private fund to provide health or welfare benefits for members and/or their dependents.

History

Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 03-06-042, § 415-104-3402, filed 2/27/03, effective 4/1/03. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3402, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3403 Illegal payments are not LEOFF Plan I basic salary.

If an employer makes a payment without legal authority, that payment does not qualify as basic salary for LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3403, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3404 Reimbursements or allowances in lieu of a reimbursement are not LEOFF Plan I basic salary.

(1) Reimbursements. If an employer reimburses a member for expenses incurred in providing services for the employer, the purpose of the payment is to pay the member back for out-of-pocket expenses. The payment is not compensation. It is not a salary or wage and is not basic salary for LEOFF Plan I.

(2) Allowances. An allowance paid in lieu of a specific reimbursement for expenses a member is expected to incur in providing services for the employer is characterized the same as a specific reimbursement. The purpose of the payment is to reimburse the member for anticipated out-of-pocket expenses. The payment is not compensation. It is not a salary or wage and does not qualify as basic salary for LEOFF Plan I.

| Example: | An employer provides an annual stipend for the purchase of a uniform or other clothing required for the performance of a member's duties. The payment is a reimbursement for expenses incurred or expected to be incurred and is not basic salary for LEOFF Plan I. | | --- | --- |

(3) Payments based on additional certification or qualifications. If a member receives payments based upon personal expenses incurred in maintaining a certification or qualification, the payment is reimbursement, not compensation. It is not a salary or wage and is not LEOFF Plan I basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3404, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3405 Standby pay is not LEOFF Plan I basic salary.

Payments to a member for time not actually worked when the member must be available to work if the need arises, are not a salary or wage for services rendered. Any such payment does not qualify as basic salary for LEOFF Plan I.

| Example: | Some employers provide payments to a member at less than the member's regular hourly rate in exchange for the member being available to come into work after his or her shift if called, although the member may not be called. Such payments, often referred to as "standby pay," are not basic salary for LEOFF Plan I. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3405, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-3406 Retirement or termination bonuses are not LEOFF Plan I basic salary.

(1) Payments based on notification of intent to retire. An additional payment based fully or partially on notification of a member's intent to terminate or retire is in consideration for the notification. The payment is not a salary or wage for services rendered and is not basic salary for LEOFF Plan I.

(2) Payments based on retirement eligibility. Payments based fully or partially on retirement eligibility are specific to the member and are not attached to the position. These payments are not LEOFF Plan I basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-3406, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-350 Payments in lieu.

A payment or any other transfer in lieu of an item that does not qualify as basic salary is not basic salary for LEOFF Plan I.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-350, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-360 How is basic salary for LEOFF Plan 2 determined?

(1) What payments are included in LEOFF Plan 2 basic salary? Other than the specific exclusions listed in WAC 415-104-397 and 415-104-401, a payment that is a salary or wage earned during a calendar month for personal services rendered by a member to an employer qualifies as LEOFF Plan 2 basic salary.

(a) Certain payments that are not for personal services rendered also qualify if there is a specific statutory provision identifying those payments as LEOFF Plan 2 basic salary. See WAC 415-104-373.

(b) Specific types of payments that qualify as LEOFF Plan 2 basic salary include, but are not limited to, the payments described in WAC 415-104-363(1) and 415-104-365 through 415-104-379.

(c) Other payments not specifically listed qualify as basic salary for LEOFF Plan 2 only if those payments are a salary or wage for services rendered.

(2) Basic salary is earned when the service is rendered, rather than when payment is made.

| Example: | At the end of a month, a firefighter is paid regular compensation for June, plus overtime compensation for May. When the payment is reported to the department, the payment must be properly distributed between what was earned in May and what was earned in June. | | --- | --- |

(3) Salary characterizations are based upon the nature of the payment. Whether a payment is basic salary depends upon whether the payment is earned as a salary or wage for services rendered. The name given to the payment is not controlling. The department determines whether a payment is basic salary by considering:

(a) What the payment is for; and

(b) Whether the reason for the payment brings it within the statutory definition of basic salary.

History

Statutory Authority: RCW 41.50.050. WSR 20-24-109, § 415-104-360, filed 12/1/20, effective 1/1/21. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-360, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-363 Deferred wages.

(1) If earned for services rendered, deferred wages are basic salary. If a member earns salary or wages for services rendered during a payroll period but defers receipt of payment, those earnings are basic salary for LEOFF Plan II. Deferred wages include, but are not limited to:

(a) Member contributions to LEOFF;

(b) Salaries or wages deferred pursuant to sections 401(k), 403(b), 414(h), 457, or other similar sections of the United States Internal Revenue Code.

(2) Deferred wages that a member does not have an absolute right to in exchange for rendering service to an employer are not basic salary. If an employer offers additional payment that is conditioned on taking some action in addition to providing services, the payment is based upon the additional action and is not earned for services rendered. The payment does not qualify as basic salary for LEOFF Plan II.

| Example: | An employer offers to make a contribution to a deferred compensation plan on a member's behalf only if the member elects to defer a portion of his or her salary. Because the member does not have an absolute right to receive the contribution based solely on rendering service, the payment is not basic salary for LEOFF Plan II. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-363, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-365 Retroactive basic salary increases are LEOFF Plan II basic salary.

A retroactive salary increase received for a pay period that a member worked is a salary or wage for services rendered and is basic salary for LEOFF Plan II.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-365, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-367 Cafeteria plans.

Compensation received in any form under the provisions of a "cafeteria plan," "flexible benefits plan," or similar arrangement pursuant to section 125 of the United States Internal Revenue Code is basic salary for LEOFF Plan II if the member has an absolute right to receive cash in lieu of the fringe benefits offered. In such an instance, the fringe benefits are being provided in lieu of cash and are considered basic salary, just as the cash would be. If there is no cash option, the value of the fringe benefit is not a salary or wage and is not basic salary for LEOFF Plan II. See WAC 415-104-385.

History

Statutory Authority: RCW 41.50.[0]50. WSR 25-09-022, s 415-104-367, filed 4/7/25, effective 5/8/25. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-367, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-370 Overtime is included in LEOFF Plan 2 basic salary.

Overtime, additional pay earned for working time in excess of regularly scheduled shift(s), is a salary or wage for services rendered. Overtime payments are considered part of basic salary for LEOFF Plan 2. Overtime includes, but is not limited to:

(1) Additional pay for working on a holiday. If a member receives an extra payment for working on a recognized holiday, the payment is overtime. The employer may make the additional payment when the holiday occurs or in a lump sum at some other time. In either case, the payment is considered to be basic salary for LEOFF Plan 2.

(a) What are recognized holidays for purposes of holiday leave banks? Holidays recognized by either the state of Washington, the federal government, or formalized by an organization; and tied to a specific date. An employer must identify the recognized holidays associated with the hours that are added to the holiday leave bank.

(b) Are personal or floating holidays considered recognized holidays for purposes of holiday leave bank cash outs? No. Personal or floating holidays are not tied to a specific date and are not considered recognized holidays for the purposes of holiday leave bank cash outs.

| Examples: | A firefighter works on Christmas day. As compensation for working on a holiday, the firefighter is given the option of taking some other day off with pay or receiving an extra day's pay. If the firefighter opts for the extra day of pay, this payment is overtime and is LEOFF Plan 2 basic salary. If the firefighter opts to take a day off instead, this is paid leave that qualifies as LEOFF Plan 2 basic salary. | | --- | --- | | | Some employers create holiday leave banks for these employees, and it is considered a regular workday if an employee works on the holiday. Later, the employee may use hours from the holiday leave bank to take a day off and/or cash out all or some of the hours in the future. These cashed out days are reportable if the accrued leave was associated with recognized holidays. Report the cash out in the months the holidays occurred. | | | If the employer does not track the holidays worked, or does not separate out personal or floating holidays from recognized holidays, the employer should use the FIFO (first in, first out) method to report compensation for the holiday bank cash out. Recognized holidays would be accounted for before personal or floating holidays. |

(2) Callback pay, which is a special rate of pay some employers provide members for being called back to work after the end of the member's regular shift;

(3) Court pay, which is an additional payment for appearing in court or performing other duties outside of a member's regularly scheduled shift.

(4) Compensatory time (comp time), is paid time off given to an employee instead of overtime pay in compensation for extra hours of work. However, if the employee later receives this leave as a paid cash out, that payment is for overtime previously worked and therefore is basic salary. Basic salary is earned when the service is rendered, rather than when the payment is made. If the comp time is used as leave, it is reported as leave when used.

| Example: | An employee works eight additional hours in March and receives 12 hours of comp time. The employer has a policy that all unused comp time must be paid out at the end of the fiscal year in June. When this cash out is paid to the employee, the compensation and eight hours were earned in March and should be reported as such. If the comp time is used as leave, it is reported as leave whenever it is used. | | --- | --- |

History

Statutory Authority: RCW 41.50.050. WSR 24-13-062, § 415-104-370, filed 6/14/24, effective 7/15/24
WSR 20-24-109, § 415-104-370, filed 12/1/20, effective 1/1/21. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-370, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-373 Paid leave is LEOFF Plan II basic salary.

Payments received from an employer for authorized paid absences from work are basic salary for LEOFF Plan II. These payments may or may not be for services rendered. Paid leave is basic salary only to the extent that it is the equivalent of the basic salary a member would have earned had the member been working. The portion of any payment identified as paid leave that exceeds that amount is not basic salary.

(1) Leave payments earned for services rendered. Most LEOFF members earn a certain number of leave hours per month, such as sick leave. The leave hours are earned by rendering service during the month the leave was accumulated. The payment a member receives when he or she uses an earned leave day is a deferred salary or wage for services previously rendered. It is basic salary to the extent that it is equal to the basic salary the member would have earned had he or she been working.

(2) Leave payments not earned for services rendered. If an employer authorizes a period of paid leave but does not require the use of leave previously earned for services rendered, the payment is not a salary or wage for services rendered. However, RCW 41.26.520 authorizes service credit for all periods of paid leave. Because the periods are creditable, the pay received is considered basic salary to the extent that it is equal to the basic salary the member would have earned had he or she been working.

(3) Payments upon reinstatement or in lieu of reinstatement are paid leave and therefore qualify as basic salary. The payment will count as basic salary for the payroll periods when the person would have earned the payment had he or she been working. In order for a payment in lieu of reinstatement to qualify as paid leave, the person's termination date must occur after the payroll period when the payment would have been earned. Because the periods are creditable, the pay received is considered basic salary to the extent that it is equal to the basic salary the member would have earned had he or she been working.

(4) Union leave. Periods of authorized leave to serve as an elected official of a labor organization which meet the requirements of RCW 41.26.520 qualify for service credit. The salary payments provided by the employer subject to reimbursement from the union qualify as basic salary for LEOFF Plan II to the extent that they do not exceed the highest paid job class covered by the collective bargaining agreement negotiated between the labor organization and the employer. The portion of any payment identified as paid leave in excess of that amount is not basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-373, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-374 LEOFF Plan 2 part-time leave of absence.

(1) What are the LEOFF Plan 2 part-time leave rules for full-time law enforcement officers?

(a) You must be a current LEOFF Plan 2 law enforcement member;

(b) Your employer must authorize you to work part time and go on an unpaid part-time leave of absence;

(d) When you return to full-time employment, the employment must be with the same employer who granted you the part-time leave.

(2) May I purchase service credit for periods of part-time leave? See WAC 415-02-175 for information about purchasing service credit for an unpaid authorized leave of absence.

History

Statutory Authority: RCW 41.50.50 [ 41.50.050] and 2024 c 319. WSR 24-20-086, s 415-104-374, filed 9/27/24, effective 9/30/24. Statutory Authority: RCW 41.50.050(5). WSR 04-20-005, § 415-104-374, filed 9/23/04, effective 10/24/04. Statutory Authority: RCW 41.50.050(5) and 41.26.520. WSR 02-18-047, § 415-104-374, filed 8/28/02, effective 9/1/02.

Wash. Admin. Code § 415-104-375 Salary or wages not attached to a position are LEOFF Plan II basic salary.

A salary or wage for services rendered to an employer is basic salary for LEOFF Plan II regardless of whether the services are attached to a position.

| Example: | If an employee receives additional salary based upon his or her education, that additional salary is basic salary for LEOFF Plan II even if his or her position does not require that level of education. The payment of a higher salary based upon educational attainment is part of the total compensation for the services provided by the employee. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-375, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-377 Performance bonuses are LEOFF Plan II basic salary.

Payments you earn for meeting or exceeding performance goals set by your employer are a salary or wage for services rendered and qualify as basic salary for LEOFF Plan II. In order to qualify as basic salary, a performance bonus must be documented in an employer policy or specific agreement between the employer and member prior to earning the bonus.

| Example: | An employer offers an annual bonus to a member if he or she meets a certain performance goal, i.e., stays accident free for a year. If the member meets the goal and is paid the bonus, the bonus would be considered basic salary. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-377, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-379 Shift differential is LEOFF Plan II basic salary.

Additional payments to a member for working swing shift or night shift are a salary or wage for services rendered. Those payments are basic salary for LEOFF Plan II.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-379, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-380 Disability payments.

(1) Disability leave supplement. Under certain circumstances, LEOFF II members are entitled to a disability leave supplement for periods of disability leave. See RCW 41.04.500 through 41.04.550.

(a) Employer contributions to the disability leave supplement under RCW 41.04.510(3) are not a salary or wage for services rendered and do not qualify as basic salary. Although the payments are paid leave, they are specifically excluded from basic salary by RCW 41.04.525.

(b) The member paid portion of the disability leave supplement is funded through use of the member's accumulated sick or vacation leave. This portion of the disability leave supplement is, therefore, basic salary, see WAC 415-104-373. The member will receive only partial service credit for the accumulated leave portion of the disability leave supplement.

(2) Workers' compensation. Payments made to a member under Title 51 RCW are neither a salary or wage for services rendered nor paid leave. The payments are not basic salary for LEOFF II. This is true whether the payments come from the workers' compensation trust fund or from an employers' self-insurance program authorized under Title 51 RCW.

(3) Private insurance. Some employers provide additional disability insurance as a supplement to workers' compensation. Any payment from a third party insurance company is neither paid leave nor payment for services rendered. It does not qualify as basic salary for LEOFF Plan II.

(4) Disability leave banks. If an employer maintains a disability leave bank which may be used to make salary replacement payments for members during periods of disability, such payments are paid leave and qualify as basic salary subject to the provisions of WAC 415-104-373.

History

Statutory Authority: RCW 41.50.050(5). WSR 16-10-122, § 415-104-380, filed 5/4/16, effective 6/4/16. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-380, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-383 Employer taxes and contributions are not LEOFF Plan II basic salary.

(1) Any payment by a member's employer of the employer portion of taxes imposed by the Federal Insurance Contribution Act is not a salary or wage and does not qualify as basic salary for LEOFF Plan II.

(2) Employer contributions to LEOFF Plan II are not a salary or wage paid to the member and do not qualify as basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-383, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-385 Fringe benefits are not LEOFF Plan 2 basic salary.

Fringe benefits provided by an employer are not a salary or wage and therefore do not qualify as basic salary for LEOFF Plan 2. Fringe benefits include, but are not limited to:

(1) Employer retirement contributions;

(2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; or

(3) Any employer payments into a private fund to provide health or welfare benefits for the member (or the member and the member's dependents), with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-104-367.

History

Statutory Authority: RCW 41.50.050(5) and chapter 41.26 RCW. WSR 03-06-042, § 415-104-385, filed 2/27/03, effective 4/1/03. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-385, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-387 Illegal payments are not LEOFF Plan II basic salary.

If an employer disburses a payment that the employer does not have legal authority to make, that payment does not qualify as basic salary for LEOFF Plan II.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-387, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-390 Reimbursements or allowances in lieu of a reimbursement are not LEOFF Plan II basic salary.

(1) Reimbursement. If an employer reimburses a member for expenses incurred in providing services for the employer, the purpose of the payment is to pay the member back for out-of-pocket expenses. The payment is not compensation. It is not a salary or wage and is not basic salary for LEOFF Plan II.

(2) Allowance. An allowance paid in lieu of a specific reimbursement for expenses a member is expected to incur in providing services for the employer is characterized the same as a specific reimbursement. The purpose of the payment is to reimburse the member for out-of-pocket expenses. The payment is not compensation. It is not a salary or wage and does not qualify as basic salary for LEOFF Plan II.

| Example: | An employer provides an annual stipend for the purchase of a uniform or other clothing required for the performance of a members' duties. The payment is a reimbursement for expenses incurred or expected to be incurred and is not basic salary for LEOFF Plan II. | | --- | --- |

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-390, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-393 Standby pay is not LEOFF Plan II basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-393, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-395 Termination or retirement bonuses are not LEOFF Plan II basic salary.

An additional payment based on notification of a member's intent to terminate or retire is in consideration for the notification of intent to retire or terminate. The payment is not a salary or wage for services rendered and is not basic salary for LEOFF Plan II.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-395, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-397 Statutorily excluded payments are not LEOFF Plan II basic salary.

Payments authorized by a statute that excludes the payment from the calculation of a public retirement allowance do not qualify as basic salary.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-397, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-401 Cash outs of accrued leave or other forms of severance pay are not LEOFF Plan 2 basic salary.

(1) A cash out from an employer for unused accrued leave is a deferred salary or wage for services previously rendered. However, the payment is not basic salary because it is specifically excluded from the definition of basic salary for LEOFF Plan 2 in RCW 41.26.030.

| Example 1: | "Kelly" days reduce the number of hours an employee works and are commonly used to minimize the need to pay overtime. A firefighter may accrue eleven "Kelly" days based on the shift schedule of the employee. If used as leave and paid at the normal rate of pay, these are basic salary. However, a cash out of this leave is excluded from the definition of basic salary. | | --- | --- | | Example 2: | A police officer may receive a personal or "floating" holiday each year. If used as leave and paid at the normal rate of pay, this holiday pay is basic salary. However, a cash out of this leave is excluded from the definition of basic salary. | | Example 3: | An administrator may receive a monthly accrual of "executive leave" in lieu of additional salary, in recognition of additional hours of public service such as community meetings, council meetings, and major events. However, a cash out of this leave is excluded from the definition of basic salary. |

(2) Other forms of severance pay are not basic salary. Any form of severance payment received from an employer upon termination is not included as basic salary in LEOFF Plan 2 because it is excluded from the statutory definition of basic salary.

History

Statutory Authority: RCW 41.50.050. WSR 20-24-109, § 415-104-401, filed 12/1/20, effective 1/1/21. Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-401, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-405 Payments in lieu.

A payment or any other transfer in lieu of an item that does not qualify as basic salary, is not basic salary. The only exception is compensation paid pursuant to bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-104-3302.

History

Statutory Authority: RCW 41.50.050 and 41.50.055. WSR 97-01-016, § 415-104-405, filed 12/6/96, effective 1/6/97.

Wash. Admin. Code § 415-104-450 How do I designate a beneficiary, and who will receive a distribution if I die before retirement?

This section applies to Plan 2 members.

(1) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you and a witness.

(2) You may name one or more of the following as a beneficiary or beneficiaries:

(b) Your estate.

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number.

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by RCW 41.26.510.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.26.510(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.

Examples:

example one.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

example two.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.

example three.

Facts

When she became a LEOFF Plan 2 member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.

Result

Unless required to do otherwise by court order, the department will comply with RCW 41.26.510(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.

example four.

Facts

John is a LEOFF 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.

John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.26.510(2). However, Mary died the following week before requesting a distribution from the department.

Result

Since Mary died before requesting a distribution of John's account, John and Mary's three minor children are eligible and opt to receive a monthly benefit, share and share alike until each child reaches the age of majority.

History

Statutory Authority: RCW 41.50.050(5). WSR 05-12-041, § 415-104-450, filed 5/25/05, effective 6/25/05. Statutory Authority: RCW 41.50.050. WSR 00-10-017, § 415-104-450, filed 4/21/00, effective 5/22/00.

Wash. Admin. Code § 415-104-455 Are my spouse and dependent children eligible to have their health care insurance premiums paid for?

If you are a Plan 2 member and you die in the line of duty, your surviving spouse and/or dependent children may be eligible for PEBB health care insurance and to have their monthly premiums paid for.

(1) Who can have their health care insurance premiums paid for? To have PEBB health care insurance premiums paid for, your beneficiary must:

(a) Be a surviving spouse or surviving dependent child, as defined in RCW 41.26.030, of a Plan 2 member who dies in the line of duty, as determined by L&I;

(b) Receive a death benefit; and

(2) Who makes this determination? L&I, DRS, and HCA each play a role in determining your spouse or children's eligibility to have their PEBB health care insurance premiums paid for. L&I will determine whether you died in the line of duty and will notify DRS of their determination. DRS will identify your eligible spouse and dependent children and will notify the PEBB program within HCA. The PEBB program will then determine eligibility for enrollment in PEBB health care insurance.

(3) What do my spouse or dependent children need to do to receive these payments? Once DRS is notified of your death in the line of duty, we will send your spouse or dependent children information about enrolling in PEBB health care insurance. If your spouse or dependent children want PEBB health care insurance, they must complete an enrollment application and send it to the PEBB program. DRS or the PEBB program may contact them for more information.

(4) How will the monthly premiums be paid for? Upon enrollment in PEBB health care insurance, DRS will make direct payment of your spouse or dependent children's monthly premiums to HCA. They do not need to send any money to DRS or HCA.

(5) How long can my spouse or dependent children remain enrolled in PEBB health care insurance? Your spouse or dependent children can remain enrolled in PEBB health care insurance so long as they are eligible under HCA rules (see chapters 182-08 and 182-12 WAC). As long as they are eligible for PEBB health care insurance, their monthly premiums will be paid for by DRS.

(6) Definitions:

(a) DRS - Department of retirement systems.

(b) HCA - Health care authority.

(d) PEBB - Public employees benefits board.

History

Statutory Authority: RCW 41.50.050(5) and 41.26.510. WSR 08-15-112, § 415-104-455, filed 7/18/08, effective 8/18/08.

Wash. Admin. Code § 415-104-475 How does a firefighter who provides emergency medical services transfer PERS service credit to LEOFF Plan 2?

(1) Who may use this section? You may use this section if you are:

(a) A member of PERS Plan 1 or Plan 2 eligible for membership in LEOFF Plan 2 as an EMT under RCW 41.26.030;

(b) Currently a LEOFF Plan 2 member who chose LEOFF membership after separating from service as an EMT in a PERS Plan 1 or Plan 2 eligible position; or

(c) Currently a LEOFF Plan 2 member and were formerly employed providing emergency medical services in a PERS Plan 1 or Plan 2 eligible position which was relocated by your employer to a fire department.

(2) How do I know if my job providing emergency medical services was "relocated" to a fire department? To be considered "relocated":

(a) The duties of the position must have required providing emergency medical services and the position must have been covered under PERS Plan 1 or Plan 2;

(b) The employer must have been a city, town, county, or district that transferred the position to a fire department; and

(3) Who determines whether or not my job providing emergency medical services was "relocated" to a fire department? DRS will determine whether or not your job was relocated based on the criteria described in subsection (2) of this section. To do so, DRS will contact your former employer where you provided emergency medical services in a PERS eligible position and verify:

(a) That your position was relocated to a fire department; and

(b) The number of months you worked in that position.

(4) I formerly worked as an EMT for a PERS employer that relocated the job to a fire department. I was not working in the job at the time it was relocated. I am now in a LEOFF Plan 2 eligible position. Can I transfer my PERS Plan 1 or Plan 2 EMT service to LEOFF Plan 2? Yes, whether or not you were working in the job at the time it was relocated, you can transfer your PERS Plan 1 or Plan 2 EMT service as long as you are employed as a firefighter in a LEOFF Plan 2 eligible position at the time you request the transfer.

(5) What do I need to do if I have PERS Plan 1 or Plan 2 EMT service that can be transferred to LEOFF Plan 2? If you have PERS Plan 1 or Plan 2 EMT service that you want to transfer to LEOFF Plan 2, then you must do the following:

(a) Contact the LEOFF unit at DRS. Once DRS verifies you meet the criteria to transfer as described in subsection (1) of this section, DRS will provide you an EMT Transfer Packet that includes an "EMT transfer cost estimate" and an "EMT Request for Transfer" form. You may also request a benefit comparison. You must complete, sign, and return the form to the LEOFF unit to choose to transfer the service credit.

(b) You must pay the difference in the member contribution rates between the PERS rate and the LEOFF rate, plus interest, for each month of EMT service that you transfer. This bill must be paid in full within five years of your election to transfer your EMT service.

(6) Do I have to pay the bill in a lump sum? No, you do not have to pay the bill in a lump sum, you may make installment payments. Interest on the unpaid balance will accrue monthly, at a rate of eight percent annually.

(7) Is there a deadline for requesting to transfer? Yes, you must submit a completed "EMT Request to Transfer" form to the department no later than June 30, 2013.

(8) When will the EMT service be transferred into my LEOFF Plan 2 account? The EMT service will be transferred after:

(a) The bill is paid in full and five years have passed after DRS receives your request to transfer; or

(b) You meet one of the conditions described in subsection (15) of this section.

(9) What if I choose not to transfer my PERS EMT service into LEOFF Plan 2? If you do not choose to transfer your PERS Plan 1 or Plan 2 EMT service, it will remain in PERS. You may either withdraw it or begin receiving a PERS retirement benefit when you are eligible. If you do not withdraw or retire from PERS, you will be a dual member of PERS and LEOFF Plan 2 under the provisions of chapter 41.54 RCW.

(10) Can I retire before the transfer of my PERS EMT service is completed? Yes, you may retire from LEOFF Plan 2 once you are eligible, but your retirement benefit will be calculated using only your LEOFF Plan 2 service.

Once the conditions described in subsection (8) of this section have been met, the PERS Plan 1 or Plan 2 EMT service will be transferred into your LEOFF Plan 2 account and your retirement benefit will be recalculated and increased to include the transferred service. The increase will be prospective only from the day following the five-year waiting period.

For example, if you requested the transfer on September 15, 2006, made the required payment, and you retired on August 1, 2007, your retirement benefit would be increased on September 16, 2011.

(11) What if I request to transfer my PERS Plan 1 or Plan 2 EMT service but change my mind before the transfer is completed? If you decide not to transfer your PERS Plan 1 or Plan 2 EMT service into LEOFF Plan 2, you must notify the LEOFF unit at DRS within five years from the date you requested the transfer. LEOFF staff will cancel your request and refund any money you have paid on the transfer bill.

(12) Can I transfer non-EMT PERS service into LEOFF Plan 2? No, you may not transfer non-EMT PERS service into LEOFF Plan 2. Only the PERS Plan 1 or Plan 2 service credit you earned working as an EMT can be transferred into LEOFF Plan 2.

(13) Can I transfer my PERS Plan 1 or Plan 2 EMT service into LEOFF Plan 2 and withdraw my non-EMT PERS service? Yes, you may transfer your PERS Plan 1 or Plan 2 EMT service into LEOFF Plan 2 and withdraw your non-EMT PERS service. You can withdraw your non-EMT PERS service as soon as the PERS EMT service is fully transferred to LEOFF Plan 2. To be fully transferred, the conditions described in subsection (8) of this section must be met.

(14) Can I transfer my PERS EMT service into LEOFF Plan 1? No, you may not transfer your PERS EMT service into LEOFF Plan 1. If you reentered LEOFF Plan 1 membership after your position was relocated to a fire department, you may choose to remain in PERS or return to LEOFF Plan 1 membership, but you may not transfer the PERS EMT service into LEOFF Plan 1.

(15) What happens if I die or retire for disability before the PERS EMT service is transferred into my LEOFF Plan 2 account? If you elect to transfer your PERS Plan 1 or Plan 2 EMT service to LEOFF Plan 2 but die or retire for disability before the transfer is complete, then one of the following will occur:

(a) If your EMT bill is paid in full but the five-year waiting period has not expired, and you are approved for disability or you die, then DRS will transfer your applicable service credit, accumulated contributions, and interest to your LEOFF Plan 2 account immediately. The transferred service credit, accumulated contributions, and interest will be used to calculate your benefit or, in the case of your death, the benefit your spouse or minor children will receive.

(b) If your EMT bill is not paid in full and you retire for disability, DRS will transfer your applicable service credit, accumulated contributions, and interest into your LEOFF Plan 2 account and use them to calculate your benefit. You will then have the following options:

(i) Pay the bill in full;

(ii) Choose to have your monthly benefit actuarially reduced to reflect the unpaid amount of the bill; or

(iii) Continue to make payments against the remaining amount of the bill. You must pay the bill in full no later than five years from your original election date.

(c) If the EMT bill is not paid in full and you die, DRS will transfer your applicable service credit, accumulated contributions, and interest into your LEOFF Plan 2 account and use them to calculate the benefit for your spouse or minor children. Your spouse or minor children will have the following options:

(i) Pay the bill in full;

(ii) Choose to have their monthly benefit actuarially reduced to reflect the unpaid amount of the bill; or

(iii) Continue to make payments against the remaining amount of the bill. Your spouse or minor children must pay the bill in full no later than five years from your original election date.

Note: If the EMT bill is not paid in full within the five-year period, the monthly benefit will be actuarially reduced to reflect the unpaid amount of the bill.

(16) Terms used:

(a) DRS - Department of retirement systems.

(b) EMT - Emergency medical technician or paramedic who provides emergency medical services.

(d) PERS - Public employees' retirement system.

History

Statutory Authority: RCW 41.50.050(5) and 41.26.547. WSR 09-05-011, § 415-104-475, filed 2/6/09, effective 3/9/09
WSR 04-04-039, § 415-104-475, filed 1/29/04, effective 3/1/04.

Wash. Admin. Code § 415-104-478 Am I eligible for a LEOFF Plan 2 disability benefit?

This section applies to you if you are a LEOFF Plan 2 member who becomes disabled.

Definitions. As used in this section:

Disabled - Totally incapacitated to perform the essential functions of his or her LEOFF Plan 2 eligible position.

(1) Who is entitled to disability benefits? Any member of LEOFF Plan 2 is entitled to disability benefits if the department determines the member has:

(a) Become disabled; and

(b) Separated from all LEOFF-eligible employment due to the disability.

(2) Is there a time limit for filing an application for disability benefits? There is no time limit for applying for benefits. However, your eligibility for a benefit will be based on your condition at the time of separation.

(3) What happens if I become disabled after I retire? Your medical condition at the time of separation will determine whether you qualify for a disability retirement.

(4) What evidence will the department use to determine whether I am entitled to benefits under this section?

(a) To determine if you are entitled to disability benefits, the department will consider any relevant information submitted by you or your employer, or otherwise available to the department, including:

(i) Information and determinations by the department of labor and industries (L&I), a self-insurer or the Social Security Administration;

(ii) Medical, vocational, and other information about your disability;

(iii) Your job description;

(iv) Your membership records, maintained by the department;

(v) Independent medical reviews made by DRS contracted vendors; and

(vi) Any other relevant evidence.

(b) The department reserves the right to consult with a contracted vendor for the purpose of providing an independent medical review of any LEOFF member who applies for disability benefits.

(5) What would disqualify me for disability benefits? You are not eligible for disability benefits if any of the following apply:

(a) Your application does not provide adequate proof that you are disabled;

(b) Your disability is the result of your criminal conduct committed after April 21, 1997 (RCW 41.26.061). Criminal conduct means:

(i) If a member is a defendant in a civil proceeding or has been formally charged in court with a crime, and the member is applying for or receiving a disability retirement benefit for a disability that is the result of the alleged criminal conduct, the department shall withhold payment of any disability benefits until:

(A) The case or charges, or both if both are pending, are dismissed; or

(B) The member is found not guilty in the criminal case or prevails in the civil proceeding, or both if both are pending; or

(ii) If the case or charges, or both if both are pending, are dismissed or if a member is found not guilty or prevails in the civil proceeding, or both if both are pending, the department shall pay the member a disability benefit if he or she otherwise qualifies.

(iii) If the member is convicted or found to be liable for criminal conduct in a civil proceeding, and the member's disability is the result of the criminal conduct, the department shall not pay the member a disability benefit.

(iv) In the absence of a criminal conviction, a superior court may determine by a preponderance of the evidence whether the person participated in criminal conduct.

(6) Who decides if I meet the requirements for benefits under this section? The director of the department of retirement systems (DRS) or their designee will decide if you meet the requirements for benefits under this section.

(7) What if I disagree with a decision made by the director or their designee? If you disagree with the decision of the director of DRS or their designee, you may petition for review under chapter 415-04 WAC.

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-478, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-479 Does my LEOFF Plan 2 disability qualify as a line of duty disability?

This section applies to you if you are a LEOFF Plan 2 member who becomes disabled in the line of duty per RCW 41.26.470.

(1) How is "line of duty" defined? Line of duty means any action or activity occurring in conjunction with your employment or your status as a law enforcement officer or firefighter and required or authorized by law, rule, regulations, or condition of employment or service. "Line of duty" has the same meaning as "course of employment" in worker's compensation law, under RCW 51.08.013. If you have multiple conditions, some duty-related and some not, you may still qualify for a duty-related disability if:

(a) The duty-related condition or conditions, standing alone, would render you disabled; or

(b) The duty-related incident or incidents were the proximate cause of the disabling condition.

(2) What if I have a preexisting condition? The presence of a preexisting condition does not by itself disqualify a member from receiving benefits for duty-related disability.

| Example: | A LEOFF Plan 2 member has asymptomatic congenital osteoarthritis, a degenerative joint disease. While on duty, the member suffered a knee injury. Absent the osteoarthritis, the knee injury may not have been disabling. However, the preexisting degenerative joint disease prevented full recovery from the injury, leaving the member unable to resume LEOFF duties. In this case, the member could qualify for a LEOFF plan 2 duty disability benefit. | | --- | --- |

(3) When are the duty disability provisions effective? The duty disability provisions under RCW 41.26.470 (6) and (7) are effective June 10, 2004.

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-479, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-480 Does my disability qualify me for a LEOFF Plan 2 catastrophic duty disability benefit?

(1) If the department determines you are disabled and you became disabled in the line of duty, you qualify for a catastrophic duty disability if:

(a) The disability or disabilities that qualified you for a LEOFF Plan 2 duty disability benefit are so severe that considering your age, education, work experience, and transferable skills, you cannot engage in any other kind of substantial gainful activity in the labor market; and

(b) Your disability or disabilities have lasted or are expected to last at least 12 months, or are expected to result in your death.

(2) A person with multiple injuries/conditions, some duty-related and some not, could qualify for a catastrophic duty disability but only if the duty injury or injuries, standing on their own, are catastrophically disabling.

Examples:

• Totally disabled, but not from duty injury – Not eligible for catastrophic disability benefit.

A LEOFF Plan 2 member suffers a knee injury on duty, leaving the member disabled from LEOFF employment. The knee injury, by itself, is not totally disabling. The member also suffers from amyotrophic lateral sclerosis (ALS) or Lou Gehrig's disease, a progressive neurodegenerative disease that ultimately leaves the member totally disabled. Pursuant to the ALS diagnosis the member is granted a full disability from the Social Security Administration. In this case the member would qualify for a duty disability, but not for a catastrophic disability because the fully disabling condition, ALS, is not duty related.

• Totally disabled, duty injury totally disabling – Eligible for catastrophic disability benefits.

A LEOFF Plan 2 member suffers a knee injury while fishing. The knee injury, by itself, is neither duty related nor catastrophically disabling. The member also suffers severe burns while fighting a fire, leaving the member fully disabled. The Social Security Administration grants the member a full disability based on the member's total condition. The member qualifies for a LEOFF plan 2 catastrophic disability benefit because the burn injuries, by themselves, render the member totally disabled.

(3) Medical insurance premium reimbursement is an additional benefit for a member who is catastrophically disabled in the line of duty (RCW 41.26.470). However, if you choose to withdraw 150 percent of your accumulated contributions pursuant to RCW 41.26.470(6) you are not entitled to the medical insurance premium reimbursement. For more information, see WAC 415-104-4801.

(4) If you receive catastrophic duty disability benefits, the department will periodically review your income and medical status for continued eligibility. This review is not a reassessment of your initial determination, but an assessment of whether there has been any change in your condition. If it is determined that there has been a change in your condition and you are no longer eligible under subsection (1) of this section, or if you fail to provide required documentation or cooperate with the review, your catastrophic duty disability benefit may be discontinued or converted to a different retirement status. DRS will notify you of your review at least 30 days before the beginning of your review.

(a) Income review: At least annually, you must submit documentation to verify that your income from earnings is below the defined income threshold as defined in subsection (5)(c) of this section. You must also notify the department within 30 calendar days of any changes in your income that could impact your eligibility including, but not limited to, wages and earnings from self-employment. (See subsection (5)(c), (d) and (f) of this section.) If DRS is not notified on time, you may be responsible for any resulting overpayment.

Documentation you may need to provide includes a federal or state income tax return from the most recent year, employment security records for the last four quarters, self-employment documents or 1099, or other documentation as requested by the department.

(b) Medical review: The department will conduct a continuing disability review (CDR) at least once every three years if at the time of your last determination your condition is expected to improve, or every six years if your condition is not expected to improve, until you reach age 65. The department may increase the frequency of your CDRs and reserves the right to require a CDR at any time if notified of a change in your condition, but not more than once every 12 months. The department may also waive the CDR if your disability is determined to be permanent or terminal.

(i) DRS will first review any updated medical information available from any labor and industries claims related to your line of duty injury to determine if additional medical information is needed from you and your primary care provider.

(ii) If needed, the department will provide you with a Disability Review form, which asks for information about whether your medical condition has improved since your last eligibility determination. You will have at least 30 days to complete and return this form to the department or notify the department that you need additional time. Once received, the department will have 90 days to review this information and either notify you of your continued eligibility or the need for additional information. Before making a change to your disability retirement status, the department will consult with a contracted vendor for the purpose of providing an independent medical review.

(5) Definitions. As used in this section:

(a) Catastrophically disabled means the same as "totally disabled" as defined under RCW 41.26.470(9).

(b) Continuing disability review (CDR) means an assessment of your current medical condition to determine if it continues to be catastrophically disabling. The department's medical professional will review recent documentation, with supplemental assessment by external medical experts at the department's discretion.

(c) Defined income threshold means any substantial gainful activity that produces average earnings, as defined in (d) of this subsection, in excess of the federal Social Security disability standards, adjusted annually for inflation. Wages count toward earnings when they are earned, not when you receive them. Self-employment income counts when you receive it, not when you earn it.

(d) Earnings are any income or wages received, which are reportable as wages or self-employment income to the IRS.

(e) Labor market is the geographic area within reasonable commuting distance of where you were last gainfully employed or where you currently live, whichever provides the greatest opportunity for gainful employment.

(f) Substantial gainful activity describes a level of work activity and earnings. Substantial gainful activity is work activity that is both substantial and gainful, and it may be, but is not required to be, from work or self-employment. Earnings as defined in this section includes compensated work activity that meets or exceeds the defined income threshold:

(i) Work activity is substantial if it involves doing significant physical or mental activities. Your work activity may be substantial even if it is done on a part-time basis or if you do less, or get paid less, or have less responsibility than when you worked in your LEOFF position.

(ii) Work activity is gainful if it is work activity that you do for pay or profit. Work activity is gainful if it is the kind of work usually done for pay or profit, whether or not a profit is realized.

(iii) Generally, activities like taking care of yourself, household tasks, profits from rental income, hobbies, therapy, school attendance, club activities, or social programs are not substantial gainful activity.

(g) Transferable skills are any combination of learned or demonstrated behavior, education, training, work traits, and skills that you can readily apply. They are skills that are interchangeable among different jobs and workplaces.

History

Statutory Authority: RCW 41.50.050. WSR 23-17-019, § 415-104-480, filed 8/7/23, effective 9/7/23
WSR 22-08-008, § 415-104-480, filed 3/23/22, effective 4/23/22
WSR 21-01-209, § 415-104-480, filed 12/23/20, effective 1/23/21
WSR 18-13-078, § 415-104-480, filed 6/15/18, effective 7/16/18. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-480, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5) and 41.26.470 (6) and (7). WSR 06-18-007, § 415-104-480, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5) and 41.26.470. WSR 04-22-074, § 415-104-480, filed 11/1/04, effective 12/2/04.

Wash. Admin. Code § 415-104-4801 Medical reimbursement for LEOFF 2 catastrophically disabled members.

WAC 415-104-4801

(1) What type of medical premiums are available for reimbursement for a LEOFF Plan 2 member who is catastrophically disabled in the line of duty?

(a) LEOFF Plan 2 members who are catastrophically disabled in the line of duty are eligible for reimbursement of medical premiums.

(i) For members who are not eligible for medicare, DRS will pay for the member, spouse, state-registered domestic partner, and eligible dependents:

(A) Employer-provided medical insurance;

(B) Medical insurance offered under the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA); or

(C) Other medical premiums, which could include vision and dental, not to exceed the COBRA amount. DRS will not pay for separate supplemental plans for vision, dental, and prescriptions.

(ii) For members who are eligible for medicare, DRS will pay medicare Part A and B.

(b) LEOFF Plan 2 members who are catastrophically disabled are eligible for reimbursement for medical insurance premiums paid after June 30, 2013.

(2) What if I am eligible for medicare coverage? If you or your spouse become eligible for medicare coverage, you must notify DRS when you become eligible. To remain eligible for the reimbursement payment, you must enroll in and maintain enrollment in medicare Part A and B. At that point, DRS will only reimburse for premiums on employer-provided medical insurance, insurance authorized by the federal Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA), medicare Part A (hospital insurance), and medicare Part B (medical insurance) to the member or spouse who is a medicare participant. For the member or spouse who is not a medicare participant, DRS will reimburse for medical premiums described in subsection (1)(a)(i) of this section. DRS will not reimburse for any medicare supplemental or prescription plans.

(3) How do I apply for medical premium reimbursements? To receive medical premium reimbursements, you must first complete a request for medical reimbursement form and provide proof of medical insurance coverage and premium payment to DRS.

(4) What is acceptable as proof of insurance coverage? DRS will accept these documents as proof of insurance coverage:

(a) Invoice from insurance provider.

(b) Certificate from insurance provider.

(d) Social Security Form SSA-1099.

(5) What is acceptable as proof of premium payment? DRS will accept these documents as proof of payment:

(a) Letter from the Social Security Administration showing your medicare deduction from your monthly benefit;

(b) Bank or credit card statement showing insurance payment that is supported by other documentation showing this is for medical insurance;

(d) Copies of both sides of cashed checks.

(6) What if my premiums are deducted from my DRS benefit or my spouse's payroll checks? DRS will accept these documents as proof of both insurance coverage and premium payment:

(a) Premium deduction authorization from your insurance provider, if premium payments are being paid directly from DRS.

(b) Copy of spouse's or partner's pay stub showing insurance deduction amount.

(7) When is documentation required?

(a) You must provide proof of insurance coverage and premium payments at the time you apply for reimbursement. After you are enrolled in the reimbursement program, you must submit this form each time DRS requests, at a minimum twice a year, along with requested documentation.

(b) DRS will reach out to each retiree receiving medical reimbursement payments, and retirees will have 90 days from the date of the letter to provide proof of premium payment. DRS will provide notifications of the 90-day window to ensure that retirees are aware of the requirement to reapply and supply proof.

(c) After 90 days, DRS will suspend reimbursement until proof of insurance coverage and premium payments have been received for each missed period. After DRS receives supporting information, DRS will reinstate reimbursement payments for the month(s) that documentation supports were paid.

(d) Any adjustment in or cancellation of medical premiums paid by retirees may result in an overpayment of the reimbursement paid to the retiree, so changes should be reported to DRS when they occur.

History

Statutory Authority: RCW 41.50.050. WSR 26-16-064, s 415-104-4801, filed 8/3/26, effective 9/3/26
WSR 24-13-026, § 415-104-4801, filed 6/7/24, effective 7/8/24
WSR 23-17-019, § 415-104-4801, filed 8/7/23, effective 9/7/23.

Wash. Admin. Code § 415-104-481 Does my disability qualify as a nonduty LEOFF Plan 2 disability?

This section applies to you if you are a LEOFF Plan 2 member who becomes disabled not in the line of duty.

(1) Who is entitled to nonduty disability benefits? Any member of LEOFF Plan 2 who the department determines has become totally incapacitated to perform the essential functions of his or her LEOFF Plan 2 eligible position as a result of their disability, but did not have the qualifying disability occur in the line of duty, is entitled to a nonduty disability per RCW 41.26.470(1).

(2) What if I have a preexisting condition or conditions? The presence of a preexisting condition does not disqualify a member from receiving benefits.

| Example: | A LEOFF Plan 2 member has asymptomatic congenital osteoarthritis, a degenerative joint disease. While off duty, the member suffered a knee injury. Absent the osteoarthritis, the knee injury may not have been disabling. However, the preexisting degenerative joint disease prevented full recovery from the injury, leaving the member unable to resume LEOFF duties. In this case, the member could qualify for a LEOFF Plan 2 nonduty disability benefit. | | --- | --- |

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-481, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-482 How are the different LEOFF Plan 2 disability benefits calculated?

WAC 415-104-482

(1) Line of duty: As a line of duty disability retiree, you may choose between:

(a) A one-time lump sum payment equal to 150 percent of your retirement contributions; except that, any payments made to restore service credit after the five-year deadline will be paid at 100 percent; or

(b) A monthly disability benefit equal to:

(i) Ten percent of your final average salary (FAS), which is nontaxable; and

(ii) Two percent of your FAS for each year of service beyond five years.

Calculation of monthly disability benefit:

| Example 1: | Chris was approved for line of duty disability. The final average salary (FAS) was $10,000. Chris had 20 years of service credit at the time of retirement. To determine the line of duty disability benefit amount: | | --- | --- |

| 1. | 10% × FAS | = | Nontaxable amount | | --- | --- | --- | --- | | | .10 × $10,000 | = | $1,000 |

| 2. | 2% × FAS × Number of Service Years beyond Five Years | = | Taxable amount | | --- | --- | --- | --- | | | .02 × $10,000 × 15 | = | $3,000 |

| 3. | Nontaxable amount + Taxable amount | = | Total benefit | | --- | --- | --- | --- | | | $1,000 + $3,000 | = | $4,000 |

| Example 2: | Pat was approved for line of duty disability. The final average salary (FAS) was $10,000. Pat had 2 years of service credit at the time of retirement. To determine the line of duty disability benefit amount: | | --- | --- |

| 1. | 10% × FAS | = | Nontaxable amount | | --- | --- | --- | --- | | | .10 × $10,000 | = | $1,000 |

| 2. | 2% × FAS × Number of Service Years beyond Five Years | = | Taxable amount | | --- | --- | --- | --- | | | .02 × $10,000 × 0 | = | $0 |

| 3. | Nontaxable amount + Taxable amount | = | Total benefit | | --- | --- | --- | --- | | | $1,000 + $0 | = | $1,000 |

(2) Catastrophic duty disability: As a catastrophic duty disability retiree, you may choose between:

(b) A monthly disability benefit equal to:

(i) Seventy percent of your final average salary (FAS), which is nontaxable, reduced by any temporary disability benefits or permanent total disability benefits provided to the member under Title 51 RCW and federal Social Security disability benefits, if necessary to ensure that the total combined benefits do not exceed 100 percent of the member's final average salary (FAS). Any such adjustment will be applied prospectively from the time the Title 51 RCW or Social Security determination is made, even if the Title 51 RCW or Social Security disability benefits are retroactively adjusted.

(ii) The reduced benefit cannot be less than the earned service retirement benefit. When the earned service benefit is more than the reduced benefit, the difference is taxable.

(3) LEOFF benefit enhancements.

(a) If you were a LEOFF Plan 2 member on or before February 1, 2021, and are retiring with more than 15 years of service credit, you will have a choice between the tiered multiplier and the lump-sum benefit with a minimum of $20,000. If a percentage of your monthly pension is nontaxable, the lump-sum enhancement payment will be nontaxable at the same percentage. If you are retiring with less than 15 years of service credit, you will not have a choice and will receive the lump-sum benefit of $20,000.

(b) If you became a LEOFF Plan 2 member after February 1, 2021, and are retiring with more than 15 years of service credit, you will receive the tiered multiplier benefit enhancement. Members retiring with 15 years of service credit or less will receive the standard retirement benefit calculation and not an enhanced benefit.

(c) If you qualify for and elect the lump-sum benefit and it is $20,000 or more you are eligible to purchase a lump-sum annuity with some or all of your funds. The minimum purchase price is $20,000.

Calculation of monthly disability benefit:

| Example 1: | Terry was approved for catastrophic disability. The final average salary (FAS) was $10,000. Terry was not receiving benefits from LNI (Title 51 RCW) or Social Security disability insurance (SSDI). Terry had 20 years of service credit at the time of retirement. To determine the catastrophic benefit amount: | | --- | --- |

| 1. | 70% of FAS | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | 2% × FAS × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 20 | = | $4,000 |

Since there is no offset and the monthly disability benefit is greater than the earned benefit, Terry's benefit will be $7,000 a month.

| Example 2: | Pat was approved for catastrophic disability. The final average salary (FAS) was $10,000. Pat was receiving benefits from LNI (Title 51 RCW) and Social Security disability insurance (SSDI) in the amounts of $5,000 and $2,000. Pat had 2 years of service credit at the time of retirement. To determine the catastrophic benefit amount: | | --- | --- |

| 1. | 70% of FAS | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | Monthly disability benefit + LNI benefits + SSDI benefit | = | Total of all benefits | | --- | --- | --- | --- | | | $7,000 + $5,000 + $2,000 | = | $14,000 |

| 3. | Total of all benefits - FAS | = | Reduction amount | | --- | --- | --- | --- | | | $14,000 - $10,000 | = | $4,000 |

| 4. | Monthly disability benefit - Reduction Amount | = | Reduced monthly benefit | | --- | --- | --- | --- | | | $7,000 - $4,000 | = | $3,000 |

| 5. | 2% × FAS × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 2 | = | $400 |

Since the reduced monthly benefit amount is greater than the earned benefit, Pat's nontaxable benefit will be $3,000 a month.

| Example 3: | Chris was approved for catastrophic disability. The final average salary (FAS) was $10,000. Chris was receiving benefits from LNI (Title 51 RCW) and Social Security disability insurance (SSDI) in the amounts of $5,000 and $2,000 respectively. Chris had 20 years of service credit at the time of retirement. To determine the catastrophic benefit amount: | | --- | --- |

| 1. | 70% of FAS | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | Monthly disability benefit + LNI benefits + SSDI benefit | = | Total of all benefits | | --- | --- | --- | --- | | | $7,000 + $5,000 + $2,000 | = | $14,000 |

| 3. | Total of all benefits - FAS | = | Reduction amount (to not exceed 100% of FAS) | | --- | --- | --- | --- | | | $14,000 - $10,000 | = | $4,000 |

| 4. | Monthly disability benefit - Reduction Amount | = | Reduced monthly benefit | | --- | --- | --- | --- | | | $7,000 - $4,000 | = | $3,000 |

| 5. | 2% × FAS × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 20 | = | $4,000 |

| 6. | Earned benefit - Reduced monthly benefit | = | Difference | | --- | --- | --- | --- | | | $4,000 - $3,000 | = | $1,000 |

Chris is entitled to the greater of the catastrophic retirement calculation or the earned benefit. Since the earned benefit is greater than the reduced catastrophic benefit, Chris' benefit will be $4,000 a month and $1,000 of that benefit will be taxable.

Calculation of lump-sum benefit enhancement: If you are eligible for and elect the lump-sum benefit enhancement, you will receive a one-time payment equal to $100 per service credit month or $20,000, whichever is greater.

| Example 1: | Terry retired with 140 service credit months and has elected the lump-sum benefit enhancement payment: | | --- | --- | | | 140 months × $100 = $14,000 | | | Terry's lump-sum benefit falls below the minimum amount owed and they will be paid a lump-sum benefit enhancement of $20,000. |

| Example 2: | Pat retired with 300 service credit months and has elected the lump-sum benefit enhancement payment: | | --- | --- | | | 300 months × $100 = $30,000 | | | Pat's lump-sum benefit calculation is greater than the minimum and they will be paid their total earned lump-sum benefit enhancement of $30,000. |

Calculation of a tiered multiplier enhancement payment: If you are eligible for and elect the tiered multiplier enhancement your benefit for years 15-25 will have a 2.5 percent multiplier.

| Example 1: | Sam retired with 26 service credit years, a final average salary of $9,500 and has elected the tiered multiplier benefit enhancement: | | --- | --- | | | .02 × services years less than 15 and above 25 × final average salary = total 1 | | | .02 × 16 × $9,500 = $3,040 | | | .025 × services years between 15 and 25 × final average salary = total 2 | | | .025 × 10 × $9,500 = $2,375 | | | total 1 + total 2 = total monthly benefit with the tiered multiplier | | | $3,040 + $2,375 = $5,415 | | | Sam's nontaxable monthly benefit with the tiered multiplier enhancement would be $5,415 per month. |

(4) Do I have a benefit enhancement choice between the tiered multiplier and lump-sum benefit?

(a) If you were a LEOFF Plan 2 member on or before February 1, 2021, and are retiring with more than 15 years of service credit, you will have a choice between the tiered multiplier and the lump-sum benefit with a minimum of $20,000. If you are retiring with less than 15 years of service credit, you will not have a choice and will receive the lump-sum benefit with a minimum of $20,000.

(b) If you elect the lump-sum benefit and it is $20,000 or more, you are eligible to purchase a lump-sum annuity with some or all of your funds. The minimum annuity purchase price is $20,000.

(5) Nonduty disability: As a nonduty disability retiree, you receive a benefit of two percent times your final average salary times your service credit years. This disability benefit will be actuarially reduced to reflect the difference in age at the time of disability retirement and age 53.

Calculation of monthly disability benefit:

| Example 1 – Full actuarial reduction: | | | --- | --- | | | Chris, age 47, was approved for a nonduty disability. The final average salary (FAS) was $10,000. Chris had 20 years of service credit at the time of retirement. To determine the nonduty disability benefit amount: |

| 2% × FAS × Service Years × early retirement factor (2018 table) | = | Benefit amount | | --- | --- | --- | | .02 × $10,000 × 20 × 0.5980 | = | $2,392 |

(6) Do I have a benefit enhancements choice between the tiered multiplier and lump-sum benefit?

(a) If you were a LEOFF Plan 2 member on or before February 1, 2021, and are retiring with more than 15 years of service credit, you will have a choice between the tiered multiplier and the lump-sum benefit. If you are retiring with less than 15 years of service credit, you will not have a choice and will receive the lump-sum benefit of $20,000.

(b) If you elect the lump-sum benefit and it is $20,000 or more, you are eligible to purchase an annuity with some or all of your funds. The minimum annuity purchase price is $20,000.

History

Statutory Authority: RCW 41.50.050. WSR 26-16-064, s 415-104-482, filed 8/3/26, effective 9/3/26. Statutory Authority: RCW 41.50.[0]50, 41.26.291, 2022 c 125, and I.R.C. s 104 (a)(1). WSR 25-09-023, s 415-104-482, filed 4/7/25, effective 4/9/25. Statutory Authority: RCW 41.50.050. WSR 21-22-049, § 415-104-482, filed 10/28/21, effective 11/28/21
WSR 18-13-078, § 415-104-482, filed 6/15/18, effective 7/16/18. Statutory Authority: RCW 41.50.050(5). WSR 16-06-069, § 415-104-482, filed 2/25/16, effective 3/27/16. Statutory Authority: RCW 41.50.050(5) and 41.26.470. WSR 09-17-035, § 415-104-482, filed 8/10/09, effective 9/10/09.

Wash. Admin. Code § 415-104-483 Is my disability benefit affected by choosing a survivor option?

(1) If you choose a benefit option with a survivor feature at the time of retirement, your survivor beneficiary will receive an ongoing monthly disability benefit after your death. Your disability benefit will be actuarially reduced to offset the cost of providing payments over two lifetimes. The survivor options are further described in WAC 415-104-215. See WAC 415-02-380 for more information and examples on how the actuarial reduction is applied to your disability benefit.

(2) If your retirement status changes due to the acceptance of a new retirement application from service retirement to a nonduty, duty or catastrophic retirement, or duty to catastrophic retirement, you may select a different survivor benefit option. Your benefit will be recalculated to reflect your new survivor option.

Example 1: Pat retired with a duty disability retirement benefit with survivor option 3 (50%). Pat's condition worsened. Pat applied for and was granted a catastrophic duty disability retirement. Pat selected survivor option 2 (100%) on the catastrophic application. Pat's catastrophic retirement benefit will be calculated to reflect this survivor option.

Example 2: Pat retired with a duty disability retirement benefit with survivor option 2 (100%) for their spouse. Pat's condition worsened. Pat applied for and was granted a catastrophic duty disability retirement benefit. Pat selected survivor option 1 (no ongoing survivor benefit after Pat's death). Pat's spouse will need to agree to this survivor option and the application will need to be notarized.

History

Statutory Authority: RCW 41.50.050. WSR 22-11-040, § 415-104-483, filed 5/12/22, effective 6/12/22
WSR 18-13-078, § 415-104-483, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-484 Is my disability benefit reduced for early retirement?

If you retire for line of duty disability or catastrophic duty disability, your disability benefit will not be reduced for early retirement. If you retire for nonduty disability, your disability benefit will be actuarially reduced to reflect the difference in age at the time of disability retirement and age fifty-three. See WAC 415-02-320 for more information and examples on how the actuarial reduction is applied to your disability benefit.

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-484, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-485 How do I apply for a disability benefit?

(1) The department must receive:

(a) A completed DRS disability retirement application;

(b) Additional information required by the department; and

(2) The process for determining eligibility for a disability benefit can be lengthy and may require additional documentation to complete.

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-485, filed 6/15/18, effective 7/16/18. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-485, filed 8/28/13, effective 10/1/13
WSR 07-09-032, § 415-104-485, filed 4/10/07, effective 5/11/07.

Wash. Admin. Code § 415-104-486 When does my disability benefit end?

The department may require comprehensive medical or psychological examinations to reevaluate your continued eligibility for disability benefits. For catastrophic benefits the department may also require or offer to provide comprehensive vocational examinations and/or submission of earnings information to evaluate your continued eligibility. You are required to contact the department if your medical/vocational or financial situation changes.

(1) Your duty or nonduty disability benefit will cease if:

(a) You return to work in a LEOFF-eligible position; or

(b) Medical examination reveals that you are no longer totally incapacitated for employment in a LEOFF-eligible position and you are no longer entitled to workers' compensation benefits under Title 51 RCW.

(2) Your catastrophic disability benefit will cease if:

(a) You return to work in a LEOFF-eligible position;

(b) Medical/vocational examination, or other information commonly available or provided to the department by an employer, reveals that your disability no longer prevents you from performing substantial gainful activity; or

If you believe you are capable of returning from your disability to work for your former employer and your employer agrees that you have met their requirements (examples could include a fit for duty test or polygraph), your disability benefit will end on the date you start working, as reported to the department by your employer. If you do not meet the requirements of your employer, you may challenge your employer's decision through the collective bargaining process, or other legal process against your employer.

History

Statutory Authority: RCW 41.50.050. WSR 22-04-058, § 415-104-486, filed 1/27/22, effective 2/27/22
WSR 18-13-078, § 415-104-486, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-487 Can my disability retirement type change?

Your disability retirement type may change depending upon the circumstances.

If your original disabling condition or conditions worsen, improve, or recover, the department may adjust your benefit.

(1) Worsening – If the condition or conditions that caused your duty disability worsen, your retirement may be changed to a catastrophic disability. You must submit an application and provide sufficient medical evidence to support a claim that your condition or conditions qualify you for a catastrophic disability. The worsening must be caused by or directly related to the original injury or injuries or illness and not due to the natural aging process or a succeeding cause.

Example: A member retires on a duty-related disability retirement due to a knee injury. The member has surgery related to the knee injury after retirement and suffers side effects from the surgery that prevent the member from performing any substantial gainful employment. The member is eligible to have their benefit adjusted because the aggravation is directly related to the original injury.

Example: A member retires on a duty-related disability retirement due to a knee injury. The member reinjures the knee in a skiing accident and is rendered unable to perform any substantial gainful employment. The member is not eligible to have their benefit adjusted because the aggravation is the result of a succeeding cause and not the original injury.

Example: A member retires on a duty-related disability retirement due to a knee injury. The condition gradually worsens over time until the member is no longer capable of substantial gainful employment. The member is not eligible to have their benefit adjusted because the aggravation is due to aging.

(2) Improvement – If your condition or conditions improve such that you are capable of substantial gainful employment, the department will adjust your catastrophic disability benefit to a duty disability benefit.

(3) Recovery – If your condition or conditions improve such that you are able to return to work in a LEOFF-eligible position, the department will terminate your disability retirement or convert you to a normal retirement benefit if you are eligible.

History

Statutory Authority: RCW 41.50.050. WSR 18-13-078, § 415-104-487, filed 6/15/18, effective 7/16/18.

Wash. Admin. Code § 415-104-490 Death or disability while performing nonduty emergency management service.

(1) If I die or become disabled while performing nonduty emergency management service, will I or my survivors be eligible for LEOFF benefits? As a LEOFF Plan 2 member, you or your survivors may be eligible for nonduty disability or death benefits if you become disabled or die while you are performing nonduty emergency management service.

(2) What are the criteria for eligibility? To be eligible for benefits under this section, you must meet all of the following criteria:

(a) You must be determined by DRS to be eligible for disability benefits as described in RCW 41.26.470 and WAC 415-104-485, or death benefits as described in RCW 41.26.510.

(b) You must have "left the employ of an employer" to "perform service" as both of those terms are defined in WAC 415-104-011. You will need to show evidence, such as a DD214, proof of leave status from your LEOFF employer, orders, or other relevant sources of information.

(c) Your disability or death must have resulted from conditions or events that occurred while you were performing the service described in (b) of this subsection, on or after March 22, 2014.

(3) Will I receive service credit for the emergency management service?

(a) You or your survivors may apply for up to five years of service credit for your emergency management service:

(i) Up to the date of your separation from such service if you are disabled; or

(ii) Up to the date of your death if you die while performing service.

(b) There will be no cost to you for the service credit. The department will bill your employer for contributions. No interest will be charged.

(4) How will the benefits be calculated? If you are approved for benefits under this section, your benefit will be a minimum of ten percent of your average final salary, with an additional two percent for each year of service beyond five. Your benefit will not be reduced for early retirement.

(a) If your application for nonduty disability is approved under this section, the benefit will be calculated as described in RCW 41.26.470(11).

(b) If an application for death benefits filed by your survivors is approved under this section, the benefit will be calculated as described in RCW 41.26.510 (4)(c).

History

Statutory Authority: RCW 41.50.050(5). WSR 17-10-035, § 415-104-490, filed 4/26/17, effective 5/27/17.

Wash. Admin. Code § 415-104-500 LEOFF Plan 1 minimum medical and health standards.

The minimum medical and health standards previously codified in WAC 415-104-510 through 415-104-755 are not currently necessary for administration of the plans and are hereby repealed.

History

Statutory Authority: RCW 41.50.050. WSR 22-05-049, § 415-104-500, filed 2/9/22, effective 3/12/22. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-104-500, filed 2/15/78. Formerly WAC 297-50-010.

Wash. Admin. Code § 415-104-782 Option to preserve LEOFF I retirement rights.

The following rules describe the process by which a LEOFF Plan I member whose retirement rights are protected by RCW 41.04.120 may preserve retirement rights as an active LEOFF member while serving in an elective public office.

A LEOFF Plan I member who is elected or appointed to elective office shall have the option to:

(1) Preserve his or her retirement rights as an active member of LEOFF Plan I; or

(2) Be considered to be on normal leave of absence from the LEOFF I employer.

History

Statutory Authority: RCW 41.50.050(5) and 41.04.120. WSR 93-11-078, § 415-104-782, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-104-783 Verification of eligibility for preservation of LEOFF Plan I membership.

A LEOFF Plan I elected official must provide the department with written verification of a leave of absence from the LEOFF employer for the express purpose of serving in the elective public office. The verification must state a beginning date and an ending date for the leave.

History

Statutory Authority: RCW 41.50.050(5) and 41.04.120. WSR 93-11-078, § 415-104-783, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-104-784 Member contributions for LEOFF Plan I elected officials.

A LEOFF Plan I elected official must pay member contributions directly to the department. Such member contributions will be calculated on the salary for the rank the member held at the time of taking the leave of absence. The department will bill the LEOFF I elected official on a monthly basis. Payment of each month's bill is due to the department by the 15th day of the next month. Failure to pay contributions for two consecutive billing months will result in suspension of LEOFF I elected official status. Such status can be reinstated if overdue contributions are paid within ninety days after notice of suspension.

History

Statutory Authority: RCW 41.50.050(5) and 41.04.120. WSR 93-11-078, § 415-104-784, filed 5/18/93, effective 6/18/93.

Wash. Admin. Code § 415-104-785 Employer contributions for LEOFF Plan I elected officials.

The elective employer shall pay employer contributions for the LEOFF Plan I elected official. Such employer contributions will be calculated on the annual salary paid to the LEOFF I elected official for employment in the elective office. The elective employer will be directly billed by the department for employer contributions for a LEOFF I elected official. The elective employer shall pay employer contributions for LEOFF I elected officials in a timely manner as provided under chapter 415-114 WAC.

History

Statutory Authority: RCW 41.50.050(5) and 41.04.120. WSR 93-11-078, § 415-104-785, filed 5/18/93, effective 6/18/93.

Chapter 415-105 Local disability board procedures.

Wash. Admin. Code § 415-105-010 Preamble.

These rules are not intended to weaken the authority of the local disability board nor to prevent the disability board from adopting additional rules or procedures necessary for performing its duties.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-010, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 81-23-032 (Order 81-03), § 415-105-010, filed 11/16/81.

Wash. Admin. Code § 415-105-020 Purpose.

These rules are adopted under the authority of section 1, chapter 294, Laws of 1981 (RCW 41.26.115) to provide a basis for uniform administration of disability retirement matters. These rules must be followed by each disability board.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-020, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 81-23-032 (Order 81-03), § 415-105-020, filed 11/16/81.

Wash. Admin. Code § 415-105-030 Board doctor.

(1) Each board must appoint a board doctor. The board must not approve a disability retirement without prior examination of the applicant by the board doctor or a specialist selected by the board doctor. The board doctor must be a practicing physician licensed under the provisions of chapter 18.71 RCW; or, if the board doctor practices outside the state of Washington, then he/she must be a physician licensed by the state in which he/she practices.

(2) The board doctor and any selected specialist must be knowledgeable about the normal, routine duties, functions and general demands of the position the applicant held at the time the applicant discontinued service.

(3) The board must furnish the examining physician with the applicant's job and/or position description. The board must inform the physician that the board's decision to grant or deny a disability retirement allowance is to be measured against the actual, normal, routine duties that the applicant performs.

(4) The board doctor or approved specialist will provide medical services requested by the board including examinations pursuant to RCW 41.26.120(1); 41.26.125(1); 41.26.130(5); and 41.26.150 (1)(a).

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-030, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 81-23-032 (Order 81-03), § 415-105-030, filed 11/16/81.

Wash. Admin. Code § 415-105-040 Disability leave.

(1) The applicant must prove the existence of:

(a) A disabling condition; and

(b) Whether or not the condition was incurred in the line of duty.

(2) The application must include the name of each physician contacted by the applicant within the last six months for the disabling illness or injury. The applicant must advise each examining physician that:

(a) The board has requested the evaluation;

(b) Any reports of the evaluation will be reviewed by the board;

(d) The physician may be requested by the board to testify as to his or her findings.

(3) The disability board is authorized to demand the appearance of the applicant and to request the appearance of any other persons it deems appropriate.

(4) Following receipt of an application for disability benefits, the board must:

(a) Review the application and all relevant information about the applicant's fitness for duty;

(b) Consider the duties of the applicant's position; and

The board must either grant or deny disability leave based on the evidence or continue the matter pending receipt of additional information.

(5) If the information before the board is insufficient to determine whether or not the applicant is disabled, the matter can be continued to the next regular meeting or set for consideration at a special meeting. The board must advise the applicant of:

(a) The additional information needed;

(b) The applicant's obligation to provide the additional information; and

(6) The applicant may waive any or all of the disability leave granted pursuant to RCW 41.26.120(4) and 41.26.125(4).

(7) The board is not to use the minimum medical and health standards (MMHS) to determine whether or not an applicant is unfit for duty. The MMHS established pursuant to RCW 41.26.046 govern entry or reentry into LEOFF System membership and were provided only to safeguard the fiscal integrity of the pension system.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-040, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 81-23-032 (Order 81-03), § 415-105-040, filed 11/16/81.

Wash. Admin. Code § 415-105-050 Examination, review and determination.

(1) The board must have the applicant examined during the fifth or sixth month of disability leave. The examination is to be performed by the board doctor or a specialist selected by the board doctor. The board shall not approve the disability retirement without this examination unless:

(a) The applicant establishes that the disabling condition will exist for at least six months; and

(b) The applicant voluntarily waives disability leave.

(2) Following receipt of the examination report, the board must:

(a) Review the medical evidence and all relevant information about the applicant's fitness for duty;

(b) Consider the duties of the applicant's position; and

The board must either grant or deny disability retirement based on the evidence or return the applicant to duty for a reasonable period of trial service.

(3) If the board cannot determine with reasonable certainty whether or not the applicant is disabled, the board may issue a written order that the applicant is to return to duty for a reasonable period of trial service to determine the applicant's fitness for active duty.

(a) The length of the trial service period must be supported by medical evidence.

(b) During the period of trial service the applicant is to return to the same duties in the same position held at the time of discontinuance of service.

(c) If the applicant is found to be disabled, the board is not to grant a second six-month period of disability leave, but is to return the applicant to disability leave status for the remainder, if any, of the initial six-month leave period.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-050, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-050, filed 3/11/87
WSR 81-23-032 (Order 81-03), § 415-105-050, filed 11/16/81.

Wash. Admin. Code § 415-105-060 Granting disability retirement.

(1) The applicant is required to prove that he or she is disabled and unable to perform with average efficiency the duties of the position held at the time of discontinuance of service.

(2) The board must determine, based on the evidence, that the applicant is disabled from performing his or her duties and the disability has been continuous since the beginning of the disability leave period.

(3) The board may make a finding of six months continuous disability prior to the actual conclusion of the six-month period if:

(a) The regular meeting of the board does not precede the end of the six-month disability leave period by more than forty days; and

(b) Medical evidence shows the disability is expected to continue through the full six-month period.

(4) The applicant is not entitled to a disability retirement allowance if:

(a) The employer advises the board that there is an available position for which the applicant is qualified and to which a person of the same grade or rank is normally assigned; and

(b) The board determines that the applicant is capable of discharging the duties of the position with average efficiency.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-060, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-060, filed 3/11/87
WSR 81-23-032 (Order 81-03), § 415-105-060, filed 11/16/81.

Wash. Admin. Code § 415-105-070 Decision and order.

(1) After granting or denying a disability retirement allowance, the board must enter a written decision and order that includes:

(a) Appropriate findings of fact supported by credible evidence sufficient to sustain the decision; and

(b) Conclusions of law.

(2) When a disability retirement allowance is granted, the decision and order and all supporting documentation must be sent to the director of the department of retirement systems.

(a) The accompanying findings of fact shall include at least the following:

(i) The applicant's length of service with the employer and the position held at discontinuance of service;

(ii) The names of the examining physicians and the dates of the examinations;

(iii) The nature of the disability;

(iv) Whether or not the disability was incurred in the line of duty;

(v) Whether or not the disability was incurred in other employment;

(vi) Dates encompassing disability leave;

(vii) Dates related to authorized return to duty on a trial basis and the factual basis for the decision; and

(viii) Dates encompassing waiver of disability leave, if applicable, and that applicant established that the disability will be continuous for at least six months.

(b) The supporting documentation shall include a copy of at least the following:

(i) The application for disability benefits showing the applicant's current mailing address;

(ii) The job description accurately reflecting the duties of the position the applicant held at discontinuance of service;

(iii) Employer statement(s), if any, relevant to the applicant's position and/or fitness for duty;

(iv) All medical and other evidence considered by the board; and

(v) The minutes and/or transcript of all meetings at which the applicant's disability status was considered.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-070, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-070, filed 3/11/87
WSR 81-23-032 (Order 81-03), § 415-105-070, filed 11/16/81.

Wash. Admin. Code § 415-105-072 Burden of proof to cancel disability allowance.

The disability board has the burden of proof in any proceeding to cancel a disability retirement allowance.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-072, filed 8/3/99, effective 9/3/99.

Wash. Admin. Code § 415-105-074 Determination to cancel disability allowance.

The board need not rely solely on medical evidence in making its determination. To cancel a disability retirement allowance, the board must demonstrate that:

(1) The retiree is reasonably able to perform the ordinary duties of his or her former position or a position within the retiree's former rank with average efficiency; and

(2) There has been a material change in the circumstances upon which the retirement was based; and

(3) No other physical or mental disability now prevents the retiree from performing the ordinary duties of his or her position or rank.

The board may not cancel a disability retirement allowance based on a determination that the medical condition was incorrectly diagnosed at the time of the initial disability hearing. If the medical condition for which the retiree was granted disability retirement has improved, but the retiree is still not physically or mentally able to perform his or her duties with average efficiency, the retiree shall continue to receive the disability retirement allowance. The board must send a copy of all determinations and the examination reports and other evidence on which they are based to the department of retirement systems.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-074, filed 8/3/99, effective 9/3/99.

Wash. Admin. Code § 415-105-080 Notice of denial of benefits and right to appeal.

(1) The board must immediately notify the applicant if the board:

(a) Denies disability leave or retirement; or

(b) Cancels a previously granted disability leave or retirement.

(2) The board must advise the applicant of his or her right to appeal the board's decision to the director of the department of retirement systems pursuant to RCW 41.26.200.

(3) Notification and advice must be in writing and served by personal service or mail unless the applicant or the applicant's authorized representative attends the meeting and is advised in person of the board's decision and the applicant's right to appeal.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-080, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 81-23-032 (Order 81-03), § 415-105-080, filed 11/16/81.

Wash. Admin. Code § 415-105-090 Reexamination after retirement.

(1) Every retiree under 49.5 years of age must be medically reexamined every six months by the board doctor or approved physician, except as provided in subsection (4) of this section.

(2) The retirement allowance of any retiree who fails to submit to a medical examination as required in subsection (1) of this section shall be discontinued until the retiree complies with the reexamination requirement. If the retiree continues for one year to refuse to undergo reexamination, the board shall cancel his or her retirement allowance.

(3) If the retiree resides more than one hundred miles from his or her former employer, the board may authorize the retiree to be examined by a physician in the retiree's local area. The board must approve the local area physician and provide him or her with information about the purpose of the examination and the issues to be addressed in the physician's report to the board.

(4) If the board doctor or approved physician finds that no possibility exists for the retiree's recovery and return to duty, the board may determine that subsequent medical examinations are not required. The determination may be made at the time of retirement or at any time thereafter, but must be based on a current (within ninety days) recommendation of the examining physician. The board must notify the department of retirement systems when it makes a determination of permanent disability. A copy of the physician's report must accompany the notice.

(5) If the examination shows that the retiree is fit to perform the duties of the rank or position held at retirement, the retiree shall be entitled to a hearing before the board. The notification and hearing shall comply with the requirements of the Administrative Procedure Act, chapter 34.05 RCW. Unless the retiree waives his or her right to the hearing, the board must hold the hearing before it can cancel the disability retirement allowance.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-090, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-090, filed 3/11/87
WSR 81-23-032 (Order 81-03), § 415-105-090, filed 11/16/81.

Wash. Admin. Code § 415-105-100 Purpose—Age fifty and older.

These rules are adopted under RCW 41.26.115 to implement the provisions of RCW 41.26.130(3) and 41.26.135 and establish procedures to be followed by the applicant and the disability board. These rules apply only to a disability retiree age fifty and older who seeks a determination that his/her disability has ceased.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-100, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-100, filed 3/11/87.

Wash. Admin. Code § 415-105-110 Application to disability board—Age fifty and older.

(1) When a disability retiree over age fifty believes that his/her disability has ceased, he/she may make application to cancel the disability retirement allowance. Such application shall be made to the disability board that originally considered the application for disability retirement.

(2) The application must be in writing and contain the following information:

(a) The retiree's name, birthdate, Social Security number, mailing address, telephone number, former LEOFF employer, and the name and mailing address of the retiree's legal representative, if any;

(b) The nature of the disability and the date the disability ceased;

(c) The names, addresses and telephone numbers of all physicians and other health care practitioners who have been contacted by the retiree or his/her representative in the last year for medical care, consultation or evaluation;

(3) The application must be accompanied by the following documents:

(a) Copies of any written documents supporting the retiree's claim that his/her disability has ceased and that no other physical or mental disability now prevents the retiree from performing the ordinary duties of his/her position or rank;

(b) A copy of the local disability board order granting disability retirement if the original disability board order was summarily affirmed by the director or the LEOFF retirement board; or

(c) A copy of the director's order or the LEOFF retirement board's order if the director or the LEOFF retirement board entered the final order granting disability retirement.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-110, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-110, filed 3/11/87.

Wash. Admin. Code § 415-105-120 Burden of proof in disability board proceedings.

The retiree has the burden of proof in the proceedings before the disability board.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-120, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-120, filed 3/11/87.

Wash. Admin. Code § 415-105-130 Standard for determination.

To obtain a determination that a disability has ceased, the retiree must demonstrate that:

(1) He/she is reasonably able to perform the ordinary duties of his/her former position or position within his/her former rank with average efficiency; and

(2) There has been a material change in the circumstances upon which the original disability determination was based; and

(3) No other physical or mental disability now prevents the retiree from performing the ordinary duties of his/her position or rank.

A retiree may not obtain a determination that his/her disability has ceased by demonstrating that the medical condition was incorrectly diagnosed at the time of the initial disability hearing. The disability board need not rely solely on medical evidence in making its determination. If the medical condition for which the retiree was granted disability retirement has improved, but the retiree is still not physically or mentally able to perform his/her duties with average efficiency, he/she shall continue to receive a disability retirement allowance and shall not be entitled to service retirement.

History

Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-130, filed 3/11/87.

Wash. Admin. Code § 415-105-140 Examination by board physician.

(1) Before acting on an application, the disability board shall have the retiree examined by the board doctor as provided in WAC 415-105-030. If the board doctor has seen the retiree before in any capacity except evaluation on behalf of the disability board, the board doctor must refer the retiree to another physician who has not seen the retiree in any capacity except evaluation on behalf of the disability board.

(2) Before the retiree is examined, the disability board must furnish the board doctor or other physician with a current job description for the rank or position held by the member at the time he/she was granted disability retirement and a copy of these regulations.

(3) The board doctor or other physician will examine the retiree to determine if he/she is able to perform with average efficiency the duties of the rank or position held by the retiree at the time of discontinuance of service and that he/she meets the requirements of WAC 415-105-130.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-140, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-140, filed 3/11/87.

Wash. Admin. Code § 415-105-150 Disability board order.

(1) The board must review the application, the medical evaluation by the board doctor, and any other relevant evidence. The board must determine whether the retiree has met the standards set out in WAC 415-105-130 and is physically and mentally capable of performing his/her duties with average efficiency.

(2) If the board determines that the retiree's disability has ceased, it shall enter its written decision and order including appropriate findings of fact and conclusions of law. The disability board must:

(a) Enter a decision which specifies the date the disability retirement allowance will cease;

(b) Immediately send a copy of the decision and order to the department of retirement systems.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-150, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-150, filed 3/11/87.

Wash. Admin. Code § 415-105-160 Purpose—Under age fifty.

These rules are adopted under RCW 41.26.115 to implement the provisions of RCW 41.26.130(3) and establish procedures to be followed by the applicant and the disability board in cases in which the applicant is under age fifty and believes that his/her disability has ceased.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-160, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-160, filed 3/11/87.

Wash. Admin. Code § 415-105-170 Application to the disability board—Under age fifty.

A disability retiree under age fifty who believes that his/her disability has ceased may apply for a determination that the disability has ceased. The application must be:

(a) Made to the disability board which originally found the member to be disabled; and

(b) In writing; and

Thereafter, the rules and procedures stated in WAC 415-105-120 through 415-105-140 shall be in effect.

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-170, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-170, filed 3/11/87.

Wash. Admin. Code § 415-105-180 Disability board hearing and order.

(1) The board must review the application, the medical evaluation of the board doctor, and any other relevant evidence. The board must then determine whether the retiree has met the standards set out in WAC 415-105-130 and is physically and mentally capable of performing his/her duties with average efficiency. If the board determines that the retiree's disability has ceased, both the retiree and the former employer shall be entitled to a notice and a hearing. Both the notice and the hearing shall comply with the requirements of chapter 34.05 RCW.

(2) After the hearing, the board must enter its written decision and order, including appropriate findings of fact and conclusions of law. The board order must either deny the retiree's application or cancel his/her disability retirement allowance and restore him/her to duty pursuant to RCW 41.26.140(2).

(3) Any person aggrieved by a determination or order of a disability board that the applicant's disability has not ceased may file an appeal with the director pursuant to RCW 41.26.140(6).

History

Statutory Authority: RCW 41.50.050. WSR 99-16-075, § 415-105-180, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.26.115. WSR 87-07-015 (Order 87-3), § 415-105-180, filed 3/11/87.

Chapter 415-106 Public safety employees' retirement system.

Wash. Admin. Code § 415-106-010 Definitions.

The definitions in RCW 41.37.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.37 RCW are defined in this chapter.

(1) AFC means average final compensation as defined in RCW 41.37.010.

(2) City corrections department means any subsection or unit of a city employing correctional employees.

(3) County corrections department means any subsection or unit of a county employing correctional employees.

(4) Employer means the state or local government entities as defined in RCW 41.37.010 employing members eligible for PSERS.

(5) Full-time employee means an employee who is regularly scheduled to provide at least 160 hours of compensated service for an employer each calendar month.

(6) LEOFF means the law enforcement officers' and firefighters' retirement system.

(7) Nursing care, for purposes of membership eligibility under RCW 41.37.010, refers to services provided on behalf of a qualifying PSERS employer in which an employee is required to hold a valid certification and/or license in the state of Washington and the primary duty is to provide direct patient nursing care. Services include the identification of, and discrimination between, the individual's physical and psychosocial needs, treatment, counseling, patient education, self-care and the administration of medication.

(8) PERS means the public employees' retirement system.

(9) Primary responsibility means the fundamental, crucial job duty performed in a position. It does not include marginal responsibilities, which are extra or incidental to the primary responsibility. The primary responsibility of a position may be considered the primary responsibility because:

(a) The position exists to perform that function; or

(b) There are a limited number of employees available who could perform that function; or

(10) PSERS means the public safety employees' retirement system.

(11) Reportable compensation means compensation earnable as that term is defined in RCW 41.37.010.

(12) SERS means the school employees' retirement system.

(13) TRS means the teachers' retirement system.

(14) WSPRS means the Washington state patrol retirement system.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-010, filed 6/13/22, effective 7/14/22
WSR 19-10-038, § 415-106-010, filed 4/26/19, effective 5/27/19. Statutory Authority: RCW 41.50.050(5). WSR 16-17-128, § 415-106-010, filed 8/23/16, effective 9/23/16. Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-046, § 415-106-010, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-080 Actuarial factors and schedules.

See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses factors and schedules to calculate optional retirement allowances for PSERS members.

History

Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-106-080, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5), chapters 41.37, 41.45, and 41.50 RCW. WSR 08-02-046, § 415-106-080, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-100 Am I eligible for PSERS membership?

(1) You are eligible for PSERS membership if you meet the definition of member in RCW 41.37.010.

(2) You are exempt from PSERS membership if:

(a) One or more of the exemptions in RCW 41.37.020 apply to you;

(b) You are a retirement system retiree, estopped from membership under RCW 41.04.270;

(d) You were a PERS Plan 2 or 3 member and were not required to join PSERS membership according to WAC 415-106-110.

History

Statutory Authority: RCW 41.50.050. WSR 19-10-038, § 415-106-100, filed 4/26/19, effective 5/27/19. Statutory Authority: RCW 41.50.050(5), 10.93.020, 41.04.270, 41.37.010 (4) and (5), and 41.37.020. WSR 08-02-046, § 415-106-100, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-105 May I join PSERS if my duties qualify for PSERS membership, but my employer is not specifically listed in RCW 41.37.010?

You do not qualify for membership unless your employer is specifically listed in RCW 41.37.010, even if your employer employs one or more elected or appointed officials who are PSERS members.

History

Statutory Authority: RCW 41.50.050 and 2023 c 199. WSR 24-11-015, § 415-106-105, filed 5/6/24, effective 6/1/24. Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-105, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(4). WSR 08-02-046, § 415-106-105, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-110 If I am a member of PERS, may I change my membership to PSERS?

You may have the right to change your retirement system membership from PERS to PSERS according to the requirements in this section.

(1) You may change retirement system membership from PERS to PSERS if:

(a) You were a member of either PERS Plan 2 or Plan 3 before July 1, 2006; and

(b) On July 1, 2006, you met the requirements for membership in RCW 41.37.010; and

(2) You may also change retirement system membership from PERS to PSERS if:

(a) You were a member of either PERS Plan 2 or Plan 3 before January 1, 2019; and

(b) On January 1, 2019, you met the requirements for membership in RCW 41.37.010; and

(3) You may also change retirement system membership from PERS to PSERS if:

(a) You were a member of either PERS Plan 2 or Plan 3 before June 1, 2024; and

(b) On June 1, 2024, you met the requirements for membership in RCW 41.37.010 (19)(f); and

(4) You may also change retirement system membership from PERS to PSERS if:

(a) You were a member of either PERS Plan 2 or Plan 3 before June 1, 2025; and

(b) On June 1, 2025, you met the requirements for membership in RCW 41.37.010 (19)(d)(iv); and

(5) Your change in membership is prospective only.

(6) You will become a dual member of PSERS and PERS. All service credit and compensation previously reported in PERS will remain in PERS. Your retirement benefits will be governed by the dual member "portability" provisions in chapters 41.54 RCW and 415-113 WAC.

(7) If you meet the conditions in subsection (1), (2), (3), or (4) of this section and do not elect PSERS membership during the election window, you cannot become a member of PSERS while you continue employment with the same employer; however, if you terminate your employment with that employer after the election window begins, and subsequently become employed in a PSERS eligible position, you will be mandated into PSERS membership.

History

Statutory Authority: RCW 41.50.[0]50 and 2024 c 359. WSR 25-15-017, s 415-106-110, filed 7/7/25, effective 7/8/25. Statutory Authority: RCW 41.50.050 and 2023 c 199. WSR 24-11-015, § 415-106-110, filed 5/6/24, effective 6/1/24. Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-110, filed 6/13/22, effective 7/14/22
WSR 19-10-038, § 415-106-110, filed 4/26/19, effective 5/27/19. Statutory Authority: RCW 41.50.050(5), chapters 41.37 and 41.45 RCW, and RCW 41.40.113. WSR 08-02-046, § 415-106-110, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-200 Purpose and scope of reportable compensation rules.

WAC 415-106-205 through 415-106-330 codify the department's interpretation of statutes and administrative practice regarding classification of payments received by members. The department applies these rules to all payments.

History

Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-046, § 415-106-200, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-205 What is reportable compensation?

Reportable compensation is subject to retirement system contributions and is used in the calculation of your retirement benefit.

(1) The department determines whether payments you receive are reportable compensation based on the nature of the payment, not the name of the payment. The department considers the reason for the payment and whether the reason brings the payment within the statutory definition of "compensation earnable" in RCW 41.37.010. It must:

(a) Be paid to you by an employer as a salary or wage for services you provided; or

(b) Qualify as reportable compensation under chapter 41.37 RCW or this chapter.

(2) Your employer must report all of your reportable compensation to the department. Your employer must report compensation for the month in which it was earned. Compensation is earned when the service is provided, rather than when payment is made.

| Example: | Bill is paid in July for work performed during June. The employer must report his compensation to the department as "June earnings." | | --- | --- |

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-205, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-205, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-210 What types of payments are considered reportable compensation?

The following table indicates whether certain types of payments are reportable compensation under PSERS, and provides a cross-reference to the applicable WAC.

| Type of Payment | PSERS Reportable Compensation? | | --- | --- | | Annual leave cash outs | No - WAC 415-106-255 | | Assault pay (state employees) | Yes - WAC 415-106-270 | | Base rate | Yes - WAC 415-106-215 | | Cafeteria plans | Yes - WAC 415-106-290 | | Deferred wages | Yes - WAC 415-106-300 | | Disability insurance payments | No - WAC 415-106-275 | | Disability: Salary imputed while on duty-disability leave | Yes - WAC 415-106-270 | | Employer provided vehicle | No - WAC 415-106-325 | | Employer taxes/contributions | No - WAC 415-106-300 | | Fringe benefits, including insurance | No - WAC 415-106-295 | | Illegal payments | No - WAC 415-106-305 | | Legislative leave | Yes - WAC 415-106-285 | | Longevity/education attainment pay | Yes - WAC 415-106-215 | | Nonmoney compensation | No - WAC 415-106-315 | | Optional payments | No - WAC 415-106-310 | | Overtime payments | Yes - WAC 415-106-220 | | Performance pay | Yes - WAC 415-106-230 | | Paid leave | Yes - WAC 415-106-260 | | Reimbursements | No - WAC 415-106-320 | | Reinstatement payments | Yes - WAC 415-106-240 | | Retirement or termination bonus | No - WAC 415-106-235 | | Retroactive salary increase | Yes - WAC 415-106-245 | | Severance pay | No - WAC 415-106-250 | | Shared leave (state employees) | Yes - WAC 415-106-270 | | Sick leave cash outs | No - WAC 415-106-255 | | Standby pay | Yes - WAC 415-106-225 | | Time off with pay | Yes - WAC 415-106-255 | | Union leave1 | Yes - WAC 415-106-265 | | Unpaid leave2 | Yes - WAC 415-106-280 | | Vehicle allowances | No - WAC 415-106-330 |

1Only specific types of union leave are reportable. See WAC 415-106-265.

2Only the unpaid leave specified in WAC 415-106-280(2) will be used in the calculation of your AFC.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-210, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-215 Are salary increases based on longevity or educational attainment considered reportable compensation?

Most employees receive a base rate of salary or wages expressed as an hourly or monthly rate of pay. This payment is for services you provide and qualifies as reportable compensation. Your rate of salary may be based in part on longevity or educational attainment.

(1) A member who receives a salary increase based upon longevity or educational attainment receives a higher salary without working more hours. The higher salary indicates a higher level of service due to greater experience or more education.

(2) Simply attaching the label "longevity" to a payment does not guarantee that it will be reportable compensation. If a payment described as a longevity payment is actually based upon some other criteria, such as retirement or notification of intent to retire, the payment may not be reportable compensation.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-215, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-220 Are overtime payments reportable compensation?

Overtime is additional pay you earn for working time in excess of your regularly scheduled shift, and is reportable compensation. Some examples of overtime are:

(1) Additional pay for working on a holiday. If you receive an extra payment for working on a scheduled holiday, the payment is overtime. Your employer may make the additional payment when the holiday occurs or in a lump sum at some other time.

| Example: | Bill works on Christmas day. He is given the option of taking another day off with pay or receiving an extra day's pay. If he opts for the extra pay, the payment is overtime and is reportable compensation. If he takes another day off in lieu of the extra pay, it is paid leave and also qualifies as reportable compensation. | | --- | --- |

(2) Callback pay. If your employer offers you a special rate of pay for returning to work when called after the end of your regular shift, it is overtime.

(3) Court pay. If you receive an additional payment for appearing in court or performing other duties outside your regularly scheduled shift, it is overtime.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-220, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-225 Is standby pay reportable compensation?

Standby means you are required by your employer to be prepared to report immediately for work if the need arises, although the need may not arise. According to RCW 41.37.010:

(1) The pay you receive for being on standby qualifies as reportable compensation; however

(2) The time you spend on standby is not counted toward service credit and is not reported to the department by your employer.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-225, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-225, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-230 Is performance pay reportable compensation?

Performance pay for meeting certain performance goals is reportable compensation because it is paid for services provided. Employers must document the dates over which the performance pay is earned, and provide that information if requested by the department.

| Example: | An employer offers each employee in a work group an additional $100 if the work group has no work-related accidents during the upcoming year. Remaining accident free is a performance goal. Therefore the payment will be for services provided and will qualify as reportable compensation. | | --- | --- |

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-230, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 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. | | --- | --- |

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-235, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-240 Are payments for reinstatement or payment instead of reinstatement reportable compensation?

(1) Payments you receive upon reinstatement or instead of reinstatement are reportable compensation to the extent they are equivalent to the salary you would have earned by working in your position. RCW 41.37.010 defines these payments as reportable compensation even though they are not payments for services you provided to your employer. The payment will be prorated over the entire period you were suspended, terminated, or otherwise absent from work.

(2) For purposes of this section, "reinstatement" means that you are entitled to return to full employment rights by action of either:

(a) The employer; or

(b) A personnel board, personnel appeals board or court of law.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-240, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-240, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-245 Are retroactive salary increases reportable compensation?

A retroactive salary increase occurs when your rate of pay is increased and made retroactive to a prior date. You receive a lump sum payment to cover the increase earned during the earlier period.

(1) To qualify as reportable compensation under this section, the retroactive salary increase must be made pursuant to:

(a) An order or conciliation agreement of a court or administrative agency charged with enforcing federal, state, or local statutes, ordinances, or regulations protecting employment rights;

(b) A bona fide settlement of a claim before a court or administrative agency for a retroactive salary increase;

(d) Action by a personnel resources board which expressly states the payments are retroactive.

(2) Your employer must report compensation for the month in which it was earned.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-245, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-250 Is severance pay reportable compensation?

Severance pay, whether or not it is earned over time, is not reportable compensation. See RCW 41.37.010.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-250, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-250, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-255 Is sick leave or vacation leave, whether used or cashed out, reportable compensation?

(1) Sick and annual leave (used). Most PSERS members earn a certain number of sick leave and annual leave hours per month. These leave hours are earned by providing service during the month in which the leave accrues. The payment you receive when you use an earned leave day is reportable compensation.

(2) Sick and annual leave cash outs. Under RCW 41.37.010, sick and annual leave cash outs are not reportable compensation.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-255, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-255, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-260 Is paid leave, which is not earned over time, reportable compensation?

To the extent authorized by RCW 41.37.260, payment you receive from your employer while on an authorized paid leave of absence is reportable compensation provided that:

(1) The payment does not exceed the salary for the position from which you are on leave; and

(2) The payment is received from the employer, not from a third party. Except as provided in WAC 415-106-265, if you receive the payment from your employer, but your employer is reimbursed for the payment by a third party, the payment is not reportable compensation.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.260. WSR 08-02-046, § 415-106-260, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-265 Is the pay I receive from my employer when I am on union leave reportable compensation?

If you take an authorized leave of absence to serve as an elected official of a labor organization and you receive payment from your employer during your leave, the payment may be reportable compensation even if the union reimburses your employer. To qualify as reportable compensation, the payment must meet the specific conditions of RCW 41.37.260(2).

History

Statutory Authority: RCW 41.50.050(5) and 41.37.260. WSR 08-02-046, § 415-106-265, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-270 Is compensation for periods of absence due to sickness or injury reportable compensation?

Compensation you receive for periods of absence due to sickness or injury, which is not covered by earned sick leave, qualifies as reportable compensation only as authorized by RCW 41.37.010 and this section.

(1) Assault pay qualifies as reportable compensation to the extent authorized by RCW 27.04.100, 72.01.045, and 72.09.240.

(2) Duty disability. You may make contributions and receive up to 12 consecutive months of service credit for periods of disability covered by Title 51 RCW or similar federal workers' compensation program as provided in RCW 41.37.060. In this case, the compensation you would have received but for the disability qualifies as reportable compensation to the extent authorized by RCW 41.37.060.

(3) Shared leave.

(a) If you are a state employee, as defined in RCW 41.04.655, the compensation you receive due to participation in a leave-sharing program qualifies as reportable compensation to the extent authorized by RCW 41.04.650 through 41.04.670.

(b) If you are not a state employee, shared leave payments are not specifically authorized by RCW 41.37.010 and do not qualify as reportable compensation.

History

Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-270, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5), 27.04.100, 41.04.650 through 41.04.670, 41.37.010(6), 41.37.060, 72.01.045, and 72.09.240. WSR 08-02-046, § 415-106-270, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-275 Are disability insurance or workers' compensation payments reportable compensation?

(1) Disability insurance payments are not reportable compensation, whether the payments come directly from your employer or from an insurance company.

(2) Workers' compensation payments are not reportable compensation.

| Example: | Susan, an employee on unpaid disability leave, submits her workers' compensation payments to her employer. The employer then issues Susan a check for the same amount through the payroll system. Even though the payment may have the appearance of compensation from the employer, it is not a payment for services provided and is not reportable compensation. | | --- | --- |

(3) See WAC 415-106-270 for information about service credit and imputed compensation for periods of duty disability.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-275, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-280 Will the compensation that is imputed to periods of unpaid leave be used in the calculation of my AFC?

(1) Authorized unpaid leave. If you establish service credit under RCW 41.37.260 for periods of unpaid leave, the compensation imputed to the period of time you are on leave will not be included in your AFC. See WAC 415-02-175.

(2) Military leave. If you purchase service credit for a period of interruptive military service and that period falls in your AFC period, federal law entitles you to have the salary you would have earned during that time period used in the calculation of your AFC.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.260. WSR 08-02-046, § 415-106-280, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-285 Is the pay I receive while on legislative leave reportable compensation?

If you take leave without pay from an eligible PSERS position to serve in the legislature, you may elect to participate in PSERS as a legislator.

For any year in which you serve in the legislature, you may choose that your reportable compensation be either:

(1) The reportable compensation you would have earned had you not served in the legislature; or

(2) The compensation you actually received for nonlegislative public employment and the legislative service combined.

If you choose the option in subsection (1) of this section, you must pay the additional employer and employee contributions to the extent the compensation reported is higher than it would have been under subsection (2) of this section.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-285, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-290 Is compensation applied toward cafeteria plans reportable compensation?

Compensation you receive and apply toward a benefit plan under Internal Revenue Code (IRC) section 125 is reportable compensation if you have an absolute right to receive cash instead of participating in the plan. If there is no cash option, the value of participating in the plan is not reportable compensation. See WAC 415-106-295.

History

Statutory Authority: RCW 41.50.[0]50. WSR 25-09-022, s 415-106-290, filed 4/7/25, effective 5/8/25. Statutory Authority: RCW 41.50.050(5), chapter 41.37 RCW and IRS regulations. WSR 08-02-046, § 415-106-290, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-295 Are fringe benefits reportable compensation?

Fringe benefits provided by an employer are not a salary or wage, and are not reportable compensation. Fringe benefits include, but are not limited to:

(1) Employer retirement contributions;

(2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; and

(3) Any employer payments into a private fund to provide health or welfare benefits for you or your dependents, with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-106-290.

History

Statutory Authority: RCW 41.50.050(5), chapter 41.37 RCW and IRS regulations. WSR 08-02-046, § 415-106-295, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-300 Are payroll deductions reportable compensation?

Amounts withheld from your salary or wages are reportable compensation. Examples include:

(1) Your member contributions to PSERS. Your employer's contributions are a fringe benefit and are not reportable compensation. See WAC 415-106-295.

(2) Amounts withheld for federal income tax purposes; and

(3) Other authorized voluntary deductions, such as deferred compensation or IRC section 457 plan contributions.

History

Statutory Authority: RCW 41.50.050(5), 41.37.010(6) and IRS regulations. WSR 08-02-046, § 415-106-300, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-305 Are payments, which are outside my employer's legal authority, reportable compensation?

Payments made by an employer that go beyond the employer's legal authority are not reportable.

History

Statutory Authority: RCW 41.50.050(5). WSR 08-02-046, § 415-106-305, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-310 Are optional payments reportable compensation?

If you receive an additional payment only on the condition of taking an action other than providing service to your employer, the payment is not reportable compensation.

| Example: | An employer offers to make a contribution to Joe's deferred compensation plan only if Joe agrees to have a portion of his salary deferred. Because Joe does not have a right to receive the contribution based solely on providing service, the payment is not reportable compensation. | | --- | --- |

History

Statutory Authority: RCW 41.50.050(5). WSR 08-02-046, § 415-106-310, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-315 Are nonmoney payments from my employer reportable compensation?

Nonmoney compensation is compensation legally provided to you in a form other than money. Examples include: Living quarters, food, board, equipment, clothing, laundry, transportation, fuel and utilities. The value of nonmoney maintenance compensation you receive from your employer is not reportable compensation.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.010(6). WSR 08-02-046, § 415-106-315, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-320 Are reimbursements for business expenses reportable compensation?

Reimbursements are not reportable compensation. Typical reimbursement payments include mileage reimbursements for use of a private car on employer business, or meal and lodging reimbursements for business trips.

History

Statutory Authority: RCW 41.50.050(5). WSR 08-02-046, § 415-106-320, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-325 Vehicles—Is the value of my use of an employer's vehicle reportable compensation?

The value of an employer-provided vehicle is not reportable compensation.

History

Statutory Authority: RCW 41.50.050(5). WSR 08-02-046, § 415-106-325, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-330 Are vehicle allowances reportable compensation?

(1)(a) A vehicle allowance is not reportable compensation if it is received in lieu of expenses you incur or expect to incur in using your own vehicle for business purposes.

(b) A vehicle allowance qualifies as reportable compensation to the extent that it exceeds your actual expenses. For instance, if you receive both a vehicle allowance and separate reimbursements for vehicle expenses each time you use a privately owned vehicle for business purposes, the vehicle allowance is reportable compensation.

(2) To prove that your vehicle allowance exceeded your actual expenses, your employer must maintain ongoing monthly records, documenting:

(a) The dates, if any, on which you used a privately owned vehicle in performing services for your employer;

(b) The miles you drove the vehicle on each of these trips;

(d) The amount of the allowance less the actual expenses, using IRS methodology. Under the IRS methodology, your actual expenses are the miles you drove multiplied by the IRS rate.

(i) The miles you drove are the number of miles you drove a privately owned vehicle for business purposes during the month.

(ii) "IRS rate" means the Internal Revenue Service mileage rate for use by taxpayers computing the value of the use of a vehicle.

(3) If a vehicle allowance exceeds actual expenses, your employer must report the excess, calculated in subsection (2)(d) of this section.

(4) If any part of a vehicle allowance is included in the calculation of your retirement allowance, your employer will be billed for excess compensation under RCW 41.50.150.

History

Statutory Authority: RCW 41.50.050(5), 41.50.150 and IRS regulations. WSR 08-02-046, § 415-106-330, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-400 If I establish PSERS membership and now hold a state elective position, may I continue to accrue service credit in PSERS?

If you are an active PSERS member and are elected or appointed by the governor to a state elective position, you have the option to continue as a contributing member of PSERS, as limited by the requirements in this section.

(1) You must submit a written application directly to the department.

(2) If you submit your application before your service in a state elective position starts:

(a) Your employee contributions will be deducted from your compensation for your elective service.

(b) Except as provided in WAC 415-106-285, your employer(s) will pay the required employer contributions.

(3) If you submit your application mid-term (after your service in a state elective position has started):

(a) You and your employer will begin making contributions according to subsection (2) of this section.

(b) You must establish service credit for the prior portion of your current term by paying the employee contributions plus interest. Your employer must pay the required employer contributions plus interest.

(4) If you submit your application after your service in a state elective position has been completed, you must pay the required employee and employer contributions for the service credit with interest as determined by the department. Your former employer, at its discretion, may pay the required employer contributions plus interest.

(5) If you work in a PSERS eligible position at the same time you accrue service credit in a state elective position:

(a) Employee contributions will be deducted from your compensation for your service in the PSERS position and in the state elective position; and

(b) Both employers will make employer contributions.

(6) You will earn one service credit month for each calendar month during which you provide service in a state elective position. If you provide concurrent service in a PSERS eligible position, you will not receive additional service credit for that service.

(7) Once you start to accrue service credit in PSERS for a state elective position you must remain an active PSERS member until:

(a) You separate from all eligible public employment. You are not separated from eligible public employment if:

(i) You are reelected or reappointed to a successive term or terms of office; or

(ii) You resign from your state elective position and later resume service in the same state elective position during the same term.

(b) You retire from PSERS, whether or not you continue to serve in your elective position. See WAC 415-106-405.

(8) A state elective position is any position held by any person:

(a) Elected or appointed to a statewide office; or

(b) Elected or appointed as a member of the legislature.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.020(2). WSR 08-02-046, § 415-106-400, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-401 If I hold a state elective position before establishing PSERS membership, may I establish service credit for my prior service in the state elective position?

If you held a state elective position before you established PSERS membership, you have the option to establish service credit for the time you served in the state elective position as limited by the following requirements:

(1) You must be an active PSERS member at the time you submit your application.

(2) The term of office must have begun on or after July 1, 2006.

(3) You must submit a written application directly to the department.

(4) You must pay the required employee and employer contributions for the service credit with interest as determined by the department. Your former employer, at its discretion, may pay the employer contributions plus interest.

(5) You must establish service credit for a full term of office. You may not establish service for only a portion of your term in office. However, if you served multiple terms, you are not required to establish service credit for all of the terms served.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.020(2). WSR 08-02-046, § 415-106-401, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-405 May I retire from PSERS while holding a state elective position?

(1) If you are holding a state elective position and accruing PSERS service credit for your service in that position, you may retire from PSERS and continue to work in your elective position provided:

(a) You are eligible to retire under RCW 41.37.210;

(b) You submit a written statement to the department, waiving the right to earn PSERS service credit for any future period of service in a state elective position; and

(c) Your compensation in the state elective position is fifteen thousand dollars or less per year, adjusted annually for inflation by the director. See subsection (2) of this section.

(2) The compensation threshold in subsection (1)(c) of this section is adjusted on April 1 of each year, based on the average consumer price index for Seattle for the previous calendar year. Effective April 2006, the threshold is $21,551. You may contact the department for the threshold in effect for subsequent years.

History

Statutory Authority: RCW 41.50.050(5), 41.37.020(2) and 41.37.210. WSR 08-02-046, § 415-106-405, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-490 How are the PSERS disability benefits administered?

This section applies to you if you are a PSERS member who becomes disabled.

This section covers disability benefits in RCW 41.37.230. Disability provisions are designed primarily to provide an income to members who have been forced to leave the workforce because of an incapacitating disability. This section applies equally to on-or-off-the-job injuries and/or illnesses.

Members may also be eligible for benefits from the Washington state departments of labor and industries (workers' compensation benefits) and social and health services, the U.S. Social Security Administration, employers, disability insurers, and others. Please contact these organizations directly for more information.

Definitions. As used in this section:

Disabled - A person who is totally incapacitated to perform the essential functions of their PSERS eligible position.

(1) How do I apply for a disability benefit?

(a) You or your representative must contact the department to request an application. The three-part application must be completed by the proper persons and returned to the department.

(b) The department must receive:

(i) A completed disability retirement application. When the department receives Part 1 of your application, you are considered to be an applicant for disability benefits. However, your eligibility will not be determined until the department receives all three parts of the application;

(ii) Additional information required by the department; and

(iii) Any other material you want the department to consider.

(c) The process for determining eligibility for a disability benefit can be lengthy and may require additional documentation to complete.

(2) Is there a time limit for filing an application for disability benefits? There is no time limit for applying. However, your eligibility for a benefit will be based on your condition at the time of separation.

(3) What happens if I become disabled after I retire? Your medical condition at the time of separation will determine whether you qualify for a disability retirement.

(4) What evidence will the department use to determine whether I am entitled to benefits under this section?

(i) Information and determinations by the department of labor and industries (L&I), a self-insurer or the Social Security Administration;

(ii) Medical, vocational, and other information about your disability;

(iii) Your job description;

(iv) Your membership records, maintained by the department;

(v) Independent medical reviews made by DRS contracted vendors; and

(vi) Any other relevant evidence.

(b) The department reserves the right to consult with a contracted vendor for the purpose of providing an independent medical review of any PSERS member who applies for disability benefits.

(5) What would disqualify me for disability benefits? You are not eligible for disability benefits if any of the following apply:

(a) Your application does not provide adequate proof that you are disabled;

(b) Your disability is the result of your criminal conduct committed after July 1, 2006 (RCW 41.37.100).

"Criminal conduct" means:

(i) If a member is a defendant in a criminal proceeding or has been formally charged in court with a crime, and the member is applying for or receiving a disability retirement benefit for a disability that is the result of the alleged criminal conduct, the department shall withhold payment of any disability benefits until:

(A) The case or charges, or both if both are pending, are dismissed; or

(B) The member is found not guilty in the criminal case or prevails in the criminal proceeding; or

(ii) If the case or charges are dismissed or if a member is found not guilty or prevails in the criminal proceeding, the department shall pay the member a disability benefit if they otherwise qualify.

(iii) If the member is convicted or found to be liable for criminal conduct in a criminal proceeding, and the member's disability is the result of the criminal conduct, the department shall not pay the member a disability benefit.

(iv) In the absence of a criminal conviction, a superior court may determine by a preponderance of the evidence whether the person participated in criminal conduct.

(8) Are disability benefits subject to court or administrative orders? Your benefits may be subject to orders for spousal maintenance, child support, property division, or any other administrative or court order expressly authorized by federal law. For more information, see RCW 41.37.090(3) or contact the department.

(9) How is my disability benefit affected if I am a member of more than one retirement system? If you are a member of more than one retirement system, your benefit is governed by portability law. See chapters 41.54 RCW and 415-113 WAC. You may apply for disability only from your active system. However, if you qualify for a disability benefit from your active system, you will also be eligible for a service retirement calculated under the laws governing the inactive system.

(10) How long will I continue to receive a monthly disability allowance? You may receive a monthly disability allowance throughout your lifetime, subject to the provisions of subsection (11) of this section.

(11) Is it possible to lose my monthly disability allowance after I begin receiving it?

(a) The department may, at its expense, require comprehensive medical examinations to reevaluate your eligibility for disability benefits. You will no longer be eligible to receive a disability allowance if the following apply:

(i) Medical evidence indicates you have recovered from the disability for which the department granted your disability benefits; and

(ii) You have been offered reemployment by an employer, as defined in RCW 41.37.010, at comparable compensation; and

(iii) If your monthly disability allowance is from a catastrophic duty disability, also refer to WAC 415-106-550.

(b) If you return to employment and reenter PSERS membership, your benefits will cease.

(12) If I take my disability benefit in a lump sum and return to work, may I restore my service credit? Yes. You may restore your service credit if you take a lump-sum benefit and return to PSERS membership at a later date.

(a) You may restore your service credit within two years of reentering membership or prior to retirement, whichever comes first. You must pay back the lump-sum amount you received, minus the monthly amount for which you were eligible, plus interest as determined by the director.

(b) If you restore your service after two years, you must pay the actuarial value of the resulting increase in your future retirement benefit. See RCW 41.50.165 and 41.37.200.

(13) Are my disability benefits taxable? You should consult with your tax advisor regarding all questions of federal or state income, payroll, personal property or other tax consequences regarding any payments you receive from the department. The department does not:

(a) Guarantee that payments should or should not be designated as exempt from federal income tax;

(b) Guarantee that it was correct in withholding or not withholding taxes from disability payments;

(c) Represent or guarantee that any particular federal or state income, payroll, personal property or other tax consequence will occur because of its nontaxable determination; or

(d) Assume any liability for your compliance with the Internal Revenue Code.

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-490, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-500 PSERS disability benefit.

(1) Am I eligible for a PSERS disability benefit? You are eligible for a disability benefit if, at the time of your separation from employment, you are totally incapacitated to perform the duties of your job or any other PSERS position for which you are qualified by training or experience. Objective medical evidence is required to establish total incapacitation. Vocational and/or occupational evidence may be required at the discretion of the department.

(2) If eligible, what will I receive as a monthly disability allowance?

(a) If you have at least 10 years of service credit in PSERS, you will receive a monthly allowance equal to two percent of your AFC times your service credit years, permanently actuarially reduced to reflect the difference in the number of years between your age when you separate for disability and age 60. Your monthly allowance may be further reduced to offset the cost of the benefit option you choose. See WAC 415-106-600.

(b) If you have less than 10 years of service credit, you will receive a monthly allowance1 equal to two percent of your AFC times your service credit years, permanently actuarially reduced to reflect the difference in the number of years between your age when you separate for disability and age 65. Your monthly allowance may be further reduced to offset the cost of the benefit option you choose. See WAC 415-106-600.

1You may choose to receive a lump sum payment instead of a monthly allowance if your initial monthly allowance will be less than $50. See RCW 41.37.200.

See WAC 415-02-320 for early retirement factors and examples.

(3) Once my application is approved, when will my monthly allowance begin?

(a) Your disability allowance will accrue from the first day of the calendar month immediately following your separation from employment. If you are continuing to earn service credit while on paid leave or through programs such as shared leave, you are not considered to be separated from employment.

(b) Your first payment will include all retroactive benefits to which you are entitled.

(c) Department approval will expire 90 days after the approval date if you have not officially separated from PSERS employment.

(i) If you are continuing to perform the duties of your position or another PSERS position, you may reapply for disability benefits according to WAC 415-106-490 if your condition worsens.

(ii) If you are on leave, the department may reinstate approval upon your request and your employer's verification of your leave status.

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-500, filed 4/2/24, effective 4/3/24. Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-500, filed 6/13/22, effective 7/14/22
WSR 20-06-040, § 415-106-500, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5), 41.37.010(4), 41.37.090(3), 41.37.100, 41.37.200, 41.37.230, 41.50.165, and chapter 41.54 RCW. WSR 08-02-046, § 415-106-500, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-510 Does my disability qualify me for a PSERS catastrophic duty disability benefit?

(1) If the department determines you are disabled and you became disabled in the line of duty, you qualify for a catastrophic duty disability if:

(a) The disability or disabilities that qualified you for a PSERS disability benefit are so severe that considering your age, education, work experience, and transferable skills, you cannot engage in any other kind of substantial gainful activity in the labor market; and

(b) Your disability or disabilities have lasted or are expected to last at least 12 months, or are expected to result in your death.

Example 1:

Totally disabled, but not from a duty injury - Not eligible for a catastrophic duty disability benefit.

A PSERS member suffers a knee injury on duty, leaving them disabled from PSERS employment. The knee injury, by itself, is not totally disabling. The member also suffers from amyotrophic lateral sclerosis (ALS) or Lou Gehrig's disease, a progressive neurodegenerative disease that ultimately leaves the member totally disabled. Pursuant to the ALS diagnosis the member is granted a full disability from the Social Security Administration. In this case the member would qualify for a disability, but not for a catastrophic duty disability because the fully disabling condition, ALS, is not duty related.

Example 2:

Totally disabled, duty injury totally disabling - Eligible for catastrophic duty disability benefits.

A PSERS member suffers a knee injury while fishing. The knee injury, by itself, is neither duty related nor catastrophically disabling. The member also suffers severe injuries on the job while responding to an emergency event at a correctional facility, leaving the member fully disabled. The Social Security Administration grants the member a full disability based on the member's total condition. The member qualifies for a PSERS catastrophic duty disability benefit because the severe injuries, by themselves, render the member totally disabled.

(3) If you receive catastrophic duty disability benefits, the department will periodically review your income and medical status for continued eligibility. This review is not a reassessment of your initial determination, but an assessment of whether there has been any change in your condition. If it is determined that there has been a change in your condition and you are no longer eligible under subsection (1) of this section, or if you fail to provide required documentation or cooperate with the review, your catastrophic duty disability benefit may be discontinued or converted to a different retirement type. DRS will notify you of your review at least 30 days before it starts.

(a) Income review: At least annually, you must submit documentation to verify that your income from earnings is below the defined income threshold as defined in subsection (4)(c) of this section. You must also notify the department within 30 calendar days of any changes in your income that could impact your eligibility including, but not limited to, wages and earnings from self-employment (see subsection (4)(c), (d) and (f) of this section). If DRS is not notified on time, you may be responsible for any resulting overpayment.

Documentation you may need to provide includes a federal or state income tax return from the most recent year, employment security records for the last four quarters, self-employment documents or 1099-R, or other documentation as requested by the department.

(ii) If needed, the department will provide you with a Disability Review form, which asks for information about whether your medical condition has improved since your last eligibility determination. You will have at least 30 days to complete and return this form to the department or notify the department that you need additional time. Once received, the department will have 90 days to review this information and either notify you of your continued eligibility or the need for additional information. Before making a change to your disability retirement status, the department may consult with a contracted vendor for the purpose of providing an independent medical review.

(4) Definitions. As used in this section:

(a) Catastrophically disabled means the same as "totally disabled" as defined under RCW 41.37.230(3).

(b) Continuing disability review (CDR) means an assessment of your current medical condition to determine if it continues to be catastrophically disabling. The department will review recent documentation, with supplemental assessment by external medical experts at the department's discretion.

(d) Earnings are any income or wages received, which are reportable as wages or self-employment income to the IRS.

(f) Substantial gainful activity describes a level of work activity and earnings. Substantial gainful activity is work activity that is both substantial and gainful, and it may be, but is not required to be, from work or self-employment. Earnings as defined in this section include compensated work activity that meets or exceeds the defined income threshold:

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-510, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-520 How are the PSERS catastrophic duty disability benefits calculated?

(1) Catastrophic duty disability: As a catastrophic duty disability retiree, you may choose between:

(a) A taxable, one-time lump-sum payment; or

(b) A monthly benefit equal to:

(i) Seventy percent of your average final compensation (AFC), which is nontaxable, reduced by any disability benefits provided under Title 51 RCW and federal Social Security disability benefits (SSDI), if necessary to ensure that the total combined benefits do not exceed 100 percent of the member's average final compensation (AFC). Any such adjustment will be applied prospectively from the time the Title 51 RCW or Social Security determination is made, even if the Title 51 RCW or Social Security disability (SSDI) benefits are retroactively adjusted.

(ii) The reduced benefit cannot be less than the earned service retirement benefit. When the earned service benefit is more than the reduced benefit, the difference is taxable (subject to any basis recovery).

Calculation of monthly disability benefit:

| Example 1: | Terry was approved for catastrophic duty disability. The average final compensation (AFC) was $10,000. Terry was not receiving benefits from L&I or Social Security disability insurance (SSDI). Terry had 20 years of service credit at the time of retirement. To determine the catastrophic duty disability benefit amount: | | --- | --- |

| 1. | 70% of AFC | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | 2% × AFC × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 20 | = | $4,000 |

Since there is no offset and the monthly disability benefit is greater than the earned benefit, Terry's nontaxable monthly benefit will be $7,000.

| Example 2: | Pat was approved for catastrophic duty disability. The average final compensation (AFC) was $10,000. Pat was receiving benefits from L&I and Social Security disability insurance (SSDI) in the amounts of $5,000 and $2,000. Pat had 2 years of service credit at the time of retirement. To determine the catastrophic duty disability benefit amount: | | --- | --- |

| 1. | 70% of AFC | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | Monthly disability benefit + L&I benefits + SSDI benefit | = | Total of all benefits | | --- | --- | --- | --- | | | $7,000 + $5,000 + $2,000 | = | $14,000 |

| 3. | Total of all benefits - AFC | = | Reduction amount | | --- | --- | --- | --- | | | $14,000 - $10,000 | = | $4,000 |

| 4. | Monthly disability benefit - Reduction amount | = | Reduced monthly benefit | | --- | --- | --- | --- | | | $7,000 - $4,000 | = | $3,000 |

| 5. | 2% × AFC × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 2 | = | $400 |

Since the reduced monthly benefit amount is greater than the earned benefit, Pat's nontaxable monthly benefit will be $3,000.

| Example 3: | Chris was approved for catastrophic duty disability. The average final compensation (AFC) was $10,000. Chris was receiving benefits from L&I and Social Security disability insurance (SSDI) in the amounts of $5,000 and $2,000. Chris had 20 years of service credit at the time of retirement. To determine the catastrophic duty disability benefit amount: | | --- | --- |

| 1. | 70% of AFC | = | Monthly disability benefit | | --- | --- | --- | --- | | | .70 × $10,000 | = | $7,000 |

| 2. | Monthly disability benefit + L&I benefits + SSDI benefit | = | Total of all benefits | | --- | --- | --- | --- | | | $7,000 + $5,000 + $2,000 | = | $14,000 |

| 3. | Total of all benefits - AFC | = | Reduction amount (to not exceed 100% of AFC) | | --- | --- | --- | --- | | | $14,000 - $10,000 | = | $4,000 |

| 4. | Monthly disability benefit - Reduction amount | = | Reduced monthly benefit | | --- | --- | --- | --- | | | $7,000 - $4,000 | = | $3,000 |

| 5. | 2% × AFC × Service Years | = | Earned benefit | | --- | --- | --- | --- | | | .02 × $10,000 × 20 | = | $4,000 |

| 6. | Earned benefit - Reduced monthly benefit | = | Difference | | --- | --- | --- | --- | | | $4,000 - $3,000 | = | $1,000 |

Chris is entitled to the greater of the catastrophic duty disability retirement calculation or the earned benefit. Since the earned benefit is greater than the reduced catastrophic duty disability benefit, Chris' monthly benefit will be $4,000 and $1,000 of that benefit will be taxable (subject to any basis recovery).

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-520, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-530 Is my disability benefit affected by choosing a survivor option?

(1) If you choose a benefit option with a survivor feature at the time of retirement, your survivor beneficiary will receive an ongoing monthly disability benefit after your death. Your disability benefit will be actuarially reduced to offset the cost of providing payments over two lifetimes. The survivor options are further described in WAC 415-106-600. See WAC 415-02-380 for more information and examples on how the actuarial reduction is applied for a survivor benefit.

(2) If your retirement status changes due to the department's acceptance of a new retirement application from service retirement to a disability retirement or catastrophic duty disability retirement, or a disability retirement to a catastrophic duty disability retirement, you may select a different survivor benefit option. Your benefit will be recalculated to reflect your new survivor option.

Example 1: Pat retired with a disability retirement benefit with survivor option three (50%). Pat's condition worsened. Pat applied for and was granted a catastrophic duty disability retirement. Pat selected survivor option two (100%) on the catastrophic application. Pat's catastrophic duty disability retirement benefit will be calculated to reflect this survivor option.

Example 2: Pat retired with a disability retirement benefit with survivor option two (100%) for their spouse. Pat's condition worsened. Pat applied for and was granted a catastrophic duty disability retirement benefit. Pat selected survivor option one (no ongoing survivor benefit after Pat's death). Pat's spouse will need to agree to this survivor option and the application will need to be notarized.

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-530, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-540 Is my catastrophic duty disability benefit reduced for early retirement?

If you retire for a catastrophic duty disability, your disability benefit will not be reduced for early retirement.

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-540, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-550 When does my disability benefit end?

The department may require comprehensive medical or psychological examinations to reevaluate your continued eligibility for disability benefits. For catastrophic duty disability benefits, the department may also require or offer to provide comprehensive vocational examinations and/or submission of earnings information to evaluate your continued eligibility. You are required to contact the department if your medical/vocational or financial situation changes.

(1) Your disability benefit will cease if:

(a) You return to work in a PSERS-eligible position; or

(b) Medical examination reveals you are no longer totally incapacitated for employment in a PSERS-eligible position.

(2) Your catastrophic duty disability benefit will cease if:

(a) You return to work in a PSERS-eligible position;

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-550, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-560 Can my disability retirement type change?

Your disability retirement type may change depending upon the circumstances.

If your original disabling condition or conditions worsen, improve, or you recover, the department may adjust your benefit.

(1) Worsening - If the condition or conditions that caused your disability worsen, your retirement may be changed to a catastrophic duty disability. The timing of this change is dependent on medical determination dates. You must submit an application and provide sufficient medical evidence to support a claim that your condition or conditions qualify you for a catastrophic duty disability. The worsening must be caused by or directly related to the original injury or injuries or illness and not due to the natural aging process or a succeeding cause.

Example 1: A member retires on a disability retirement due to a knee injury. The member has surgery related to the knee injury after retirement and suffers side effects from the surgery that prevent the member from performing any substantial gainful employment. The member is eligible to have their benefit adjusted because the aggravation is directly related to the original injury.

Example 2: A member retires on a disability retirement due to a knee injury. The member reinjures the knee in a skiing accident and is rendered unable to perform any substantial gainful employment. The member is not eligible to have their benefit adjusted because the aggravation is the result of a succeeding cause and not the original injury.

Example 3: A member retires on a disability retirement due to a knee injury. The condition gradually worsens over time until the member is no longer capable of substantial gainful employment. The member is not eligible to have their benefit adjusted because the aggravation is due to aging.

(2) Improvement - If your condition or conditions improve such that you are capable of substantial gainful employment, the department will adjust your catastrophic duty disability benefit to a disability benefit.

(3) Recovery - If your condition or conditions improve such that you are able to return to work in a PSERS-eligible position, the department will terminate your disability retirement or convert you to a normal retirement benefit if you are eligible.

History

Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-560, filed 4/2/24, effective 4/3/24.

Wash. Admin. Code § 415-106-600 What are my retirement benefit options?

WAC 415-106-600

Upon retirement for service under RCW 41.37.210 or retirement for disability under RCW 41.37.230, you must choose to have your retirement benefit paid to you by one of the options described in this section.

(2) What are my benefit options?

(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.

(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's consent, verified by a notarized signature or other means acceptable to the department. If you do not provide verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 41.37.170(2).

(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.

(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required. If you do not provide spousal consent, verified by a notarized signature or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 41.37.170(2).

(b) Age  difference: 11–24 years: Eligible for Option 3 (50 percent) or Option 4 (66.67 percent) survivor benefit options.

(i)  If you were born before July 1, 1949, your RMD age is 70.

(ii) If you were born between July 1, 1949, and December 31, 1950, your RMD age is 72.

(iii) If you were born between January 1, 1951, and December 31, 1959, your RMD age is 73.

(iv) If you were born on or after January 1, 1960, your RMD age is 75.

If you retire after your RMD age, there is no adjustment to the age difference between you and your nonspouse survivor.

(e) Example: Janet was born January 5, 1961, and will retire September 1, 2026. She plans to name her son, born April 14, 1985, as her survivor beneficiary. The age difference between Janet and her son is 24 years. Janet's RMD age is 75, and she is retiring at age 65 so the age difference is reduced by 10 years (75 minus 65) for an adjusted age difference of 14 years (24 minus 10). Janet is eligible to choose between survivor Option 3 (50 percent) and Option 4 (66.67 percent) for her son.

(7) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following five exceptions:

(a) Return to membership. If you retire and then return to membership for at least two years of uninterrupted service, you may choose a different retirement option upon your subsequent retirement. See RCW 41.37.050(3).

(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a survivor benefit option and name your current spouse as survivor beneficiary, provided that:

(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;

(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;

(iii) You provide a copy of your certified marriage certificate to the department; and

(iv) You provide proof of your current spouse's birthdate.

(c) Removal of a nonspouse survivor option. If you select a survivor benefit option and name a nonspouse as your survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.

(e) Retirement type changes. If your retirement status changes due to the acceptance of a new retirement application from service retirement to a disability or catastrophic retirement, or disability to catastrophic retirement, you may select a different survivor benefit option. Your benefit will be recalculated to reflect your new survivor option in accordance with WAC 415-106-530.

(8) Who will receive the balance of my accumulated contributions, if any, after my death?

(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.

(ii) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.

(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.

(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.

(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.

(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate. See RCW 41.37.170.

History

Statutory Authority: RCW 41.50.050. WSR 26-17-035, s 415-106-600, filed 8/11/26, effective 8/12/26
WSR 25-18-099, s 415-106-600, filed 9/2/25, effective 10/3/25. Statutory Authority: RCW 41.50.050 and 41.37.230. WSR 24-08-071, § 415-106-600, filed 4/2/24, effective 4/3/24. Statutory Authority: RCW 41.50.050. WSR 22-01-061, § 415-106-600, filed 12/8/21, effective 1/8/22
WSR 20-13-065, § 415-106-600, filed 6/15/20, effective 7/16/20
WSR 20-06-040, § 415-106-600, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-106-600, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.37.170, 41.50.050(5), 41.37.050, 41.37.170, 41.37.210, 41.37.230, and 41.50.790. WSR 08-02-046, § 415-106-600, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-610 How do I apply for retirement benefits?

You should apply for retirement benefits at least thirty days before your intended retirement date. You can apply online at the department's website or by submitting to the department:

(1) A completed and signed retirement application, verified by notarization or other means acceptable to the department, including:

(a) Your selection of one of the benefit options described in WAC 415-106-600.

(b) Designation of a survivor beneficiary if you selected a benefit option with a survivor feature.

(2) Evidence of your birthdate, only if requested by the department, such as a photocopy of your birth certificate, passport or passport card, government-issued driver license or identification card, NEXUS card, naturalization certificate, certificate of armed services record U.S. DD-214, or other documentation acceptable to the department. If you are requested to submit evidence, the document you submit must include the month, day, and year of your birth.

(3) If you selected a benefit option with a survivor feature, acceptable evidence of your designated survivor beneficiary's birthdate which includes the month, day, and year of birth.

History

Statutory Authority: RCW 41.50.050. WSR 20-13-065, § 415-106-610, filed 6/15/20, effective 7/16/20
WSR 20-06-040, § 415-106-610, filed 2/27/20, effective 3/29/20. Statutory Authority: RCW 41.50.050(5). WSR 16-21-059, § 415-106-610, filed 10/14/16, effective 11/14/16. Statutory Authority: RCW 41.50.050(5), 41.37.170 and 41.50.790. WSR 08-02-046, § 415-106-610, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-620 How does the department calculate my retirement allowance?

(1) When you apply for retirement, you will first receive a provisional retirement allowance.

(a) The department will calculate the provisional allowance based on:

(i) The data for service credit and reportable compensation in the department's system at the time it is calculated; and

(ii) Projections of your salary for periods that have not yet been reported by your employer.

(b) The department will pay you the provisional allowance until your actual retirement allowance has been calculated.

(2) To compute your actual allowance, the department must receive a final compensation report from your employer. The department may also require any of the following from your employer:

(a) Earnings history.

(b) Copies of your employment contract(s).

(3) The department will make a final calculation of your actual retirement allowance by making a final determination of your service credit and AFC and by applying the correct formula to these values. Your actual retirement allowance may be higher or lower than your provisional allowance.

(4) If the amount of your actual allowance is different from your provisional allowance, the department will make the necessary adjustments.

(a) If you were underpaid, the department will pay you a lump sum payment equal to the difference of the total provisional payments you received and the total you would have received based on your actual allowance.

(b) If you were overpaid, the department will recover the overpayment either through a lump sum payment, monthly installment payments, or through an actuarial reduction of your actual allowance.

History

Statutory Authority: RCW 41.50.050(5) and 41.37.190. WSR 08-02-046, § 415-106-620, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-700 What are the return to work rules for PSERS?

(1) How soon can I return to work after I retire without impacting my PSERS retirement benefit? You may begin working immediately after you retire without impacting your PSERS retirement benefit if:

(a) You go to work for a private employer;

(b) You are an independent contractor as defined in WAC 415-02-110;

(d) You work in an ineligible position.

(2) If you return to work in a PERS, SERS, or TRS Plan 2 or Plan 3, or LEOFF Plan 2 eligible position, your retirement benefit will be affected as follows:

(a) If you retire and then return to work sooner than 30 consecutive calendar days from your accrual date (effective retirement date), your monthly retirement benefit will be reduced in accordance with RCW 41.37.050(1) until you remain absent for at least 30 consecutive calendar days.

(b) If you retire and remain absent at least 30 consecutive calendar days from your accrual date, you may work up to 867 hours each calendar year before your retirement benefit is suspended.

(3) If you return to work in an eligible PSERS position, your retirement benefit will be affected as follows:

(a) If you elect to reenter membership, your retirement benefit will be suspended. When you reretire, your retirement benefit will be recalculated pursuant to WAC 415-106-710.

(b) If you return to an eligible PSERS position within 30 consecutive days of your accrual date (effective retirement date) and do not reenter membership, your monthly retirement benefit will be reduced by five and one-half percent for every eight hours you work during that month. This reduction will be applied each month until you remain absent for 30 consecutive calendar days. The reduction will accrue for a maximum of 160 hours per month. Any reduction over 100 percent will be applied to the benefit you are eligible to receive in subsequent months. See RCW 41.37.050(1).

(c) If you return to an eligible PSERS position after being absent for 30 consecutive calendar days from your accrual date (effective retirement date) and do not reenter membership, your retirement benefit will be suspended until you separate from PSERS employment.

(4) If you return to work after retirement from PSERS and another DRS retirement system, see WAC 415-113-300 to determine the effect of returning to work.

(5) What is the annual limit?

(a) No limit. You may work as many hours as you want without affecting your retirement benefit if you work:

(i) In a position that is not eligible for membership in a DRS or higher education retirement plan;

(ii) As an independent contractor;

(iii) For a private employer.

(b) Eight hundred sixty-seven-hour limit. You may work up to 867 hours in a calendar year, in a position that is eligible for membership in a DRS or a public institution of higher education retirement plan, before your retirement allowance is suspended.

(c) One thousand forty-hour limit. From April 14, 2023, through July 1, 2026, if you had a 30-day break from your accrual date, you may work up to 1,040 hours in a calendar year, at a state agency or higher education institution in a nonadministrative position as a licensed nurse.

(6) What hours are counted toward the limit?

(a) Counted toward the annual hour limit: All compensated hours that are worked in an eligible position covered by a DRS or higher education retirement plan, including the use of earned sick leave, vacation days, paid holidays, compensatory time, and cashouts of compensatory time.

(b) Not counted toward the hour limit: Cashouts of unused sick and vacation leave.

(7) What happens if I work more than the annual hour limit?

(a) If you work more than the annual limit, your retirement benefit will be suspended. The suspension will be effective the day after you exceed the hour limit. DRS will prorate your retirement benefit for the month in which you exceed the hour limit.

(b) Your retirement benefit will be restarted beginning the next calendar year (January) or the day after you terminate all eligible employment identified in subsection (2) of this section, whichever occurs first.

(c) DRS will recover any overpayments made to you for the month(s) in which you exceeded the work limit and received a retirement benefit. See RCW 41.50.130.

(8) Terms used.

(a) Accrual date - RCW 41.37.240.

(b) PSERS: Public safety employees' retirement system.

(d) Ineligible position - RCW 41.37.010.

(e) Membership - RCW 41.37.020.

(f) Month - Calendar month as defined in WAC 415-02-030.

History

Statutory Authority: RCW 41.50.050, 2022 c 110, 2023 c 99, and 2023 c 410. WSR 23-24-091, § 415-106-700, filed 12/5/23, effective 12/7/23. Statutory Authority: RCW 41.50.050. WSR 22-13-091, § 415-106-700, filed 6/13/22, effective 7/14/22. Statutory Authority: RCW 41.50.050(5). WSR 16-17-047, § 415-106-700, filed 8/11/16, effective 9/11/16. Statutory Authority: RCW 41.50.050(5), 41.37.050, 41.50.130, chapters 41.32, 41.35, and 41.40 RCW. WSR 08-02-046, § 415-106-700, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-710 How does the department calculate my retirement allowance if I reenter PSERS membership and then reretire?

If you return to work in an eligible PSERS position, you have the option of reentering membership. If you reenter membership, your retirement allowance will be calculated according to this section when you reretire.

(1) If you previously retired before age sixty, the department will:

(a) Calculate your retirement allowance pursuant to RCW 41.37.190 using:

(i) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and

(ii) Any increase in your AFC resulting from your reentry into membership; and

(b) Actuarially reduce your retirement allowance:

(i) Based on the present value of the retirement allowance payments you received during your initial retirement;

(ii) To account for any lump sum payment you took at the time of your previous retirement, plus interest, unless you choose to repay the entire amount before you reretire;

(iii) To reflect the difference in the number of years between your current age and the attainment of age sixty, if you are not yet age sixty; and

(iv) To offset the cost of your benefit option if it includes a survivor feature. See WAC 415-106-600.

(2) If you previously retired at or after age sixty, the department will:

(a) Calculate your retirement allowance pursuant to RCW 41.37.190 using:

(i) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and

(ii) Any increase in your AFC resulting from your reentry into membership; and

(b) Actuarially reduce your retirement allowance:

(i) To account for any lump sum payment you took at the time of your previous retirement, plus interest, unless you choose to repay the entire amount before you reretire; and

(ii) To offset the cost of your benefit option if it includes a survivor feature. See WAC 415-106-600.

(3) Under no circumstances will you receive a retirement allowance creditable to a month during which you earned service credit.

History

Statutory Authority: RCW 41.50.050(5), 41.37.050, 41.37.180, and 41.37.190. WSR 08-02-046, § 415-106-710, filed 12/27/07, effective 1/27/08.

Wash. Admin. Code § 415-106-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in PSERS?

(1) If you have retired from another retirement system authorized by the laws of this state, you cannot participate in PSERS membership unless:

(a) You accrued less than fifteen years of service credit in the other retirement system; or

(b) You are a LEOFF Plan 2 retiree returning to work in a PSERS eligible position and choose to participate in PSERS membership. See WAC 415-104-111.

(2) If you are eligible for normal retirement from another retirement system listed in RCW 41.50.030, you cannot participate in PSERS membership unless:

(a) You accrued less than fifteen years of service credit in the other retirement system; or

(b) You are a dual member as described in RCW 41.54.010.

(3) If you are receiving a disability allowance from another retirement system listed in RCW 41.50.030, you cannot participate in PSERS membership unless you are a LEOFF Plan 2 retiree returning to work in a PSERS eligible position and choose to participate in PSERS membership. See WAC 415-104-111.

(4) Defined terms used. Definitions for the following terms used in this section are:

(a) "Membership" - RCW 41.37.020.

(b) "Service" - RCW 41.37.010.

(c) "Normal retirement" – A member is eligible for normal retirement when they have met their plan's age and/or service credit requirements for a full retirement benefit. Normal retirement does not include early retirement with a reduced benefit, or early retirement with employment restrictions prior to full retirement age. See the following plan definitions of normal retirement:

Public Employees' Retirement System (PERS) Plan 1 – RCW 41.40.180;

Public Employees' Retirement System (PERS) Plan 2 – RCW 41.40.630(1);

Public Employees' Retirement System (PERS) Plan 3 – RCW 41.40.820(1);

Public Safety Employees' Retirement System (PSERS) – RCW 41.37.210 (1) and (2);

School Employees' Retirement System (SERS) Plan 2 – RCW 41.35.420(1);

School Employees' Retirement System (SERS) Plan 3 – RCW 41.35.680(1);

Teachers' Retirement System (TRS) Plan 1 – RCW 41.32.480(1);

Teachers' Retirement System (TRS) Plan 2 – RCW 41.32.765(1);

Teachers' Retirement System (TRS) Plan 3 – RCW 41.32.875(1);

Washington State Patrol Retirement System (WSPRS) – RCW 43.43.250(2).

History

Statutory Authority: RCW 41.50.050(5). WSR 18-08-040, § 415-106-725, filed 3/28/18, effective 4/28/18. Statutory Authority: RCW 41.50.050(5), 41.04.270, and 41.26.500. WSR 09-19-046, § 415-106-725, filed 9/10/09, effective 10/11/09.

Wash. Admin. Code § 415-106-900 How do I designate a beneficiary, and who will receive a distribution if I die before retirement?

(2) You may name one or more of the following as a beneficiary or beneficiaries:

(b) Your estate.

(i) A copy of the entire trust document;

(ii) The name, address, telephone number of the current trustee; and

(iii) The tax identification number.

(3) You may name contingent beneficiaries in addition to primary beneficiaries.

(4) You may change your beneficiary designation at any time.

(5) A change in marital status may invalidate your prior designation.

(6) Your named beneficiary may not necessarily receive a distribution if you die prior to retirement. (See example three.) Distribution is governed by RCW 41.37.250.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.37.250(2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.

example one.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

example two.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

Because John has created no trust, Barbara, personally, will not be a beneficiary.

example three.

Facts

When she became a PSERS member, Joan named her mother as her beneficiary. Joan later married, but did not file a new beneficiary form before she died with eleven years of service.

Result

Unless required to do otherwise by a court order, the department will comply with RCW 41.37.250(2) and pay Joan's surviving spouse either a retirement allowance or lump sum. In this case, Joan's mother will not receive a distribution.

example four.

Facts

John is a PSERS member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.

John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.37.250(2). However, Mary died the following week before requesting a distribution from the department.

Result

History

Statutory Authority: RCW 41.50.050(5) and 41.37.250. WSR 08-02-046, § 415-106-900, filed 12/27/07, effective 1/27/08.

Chapter 415-108 Public employees' retirement system.

Wash. Admin. Code § 415-108-010 Definitions in the public employees' retirement system.

All definitions in RCW 41.40.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.40 RCW are defined in this chapter.

(1) Annual leave means leave provided by an employer for the purpose of taking regularly scheduled work time off with pay. Annual leave does not usually include leave for illness, personal business if in addition to and different from vacation leave, or other paid time off from work. However, if an employer authorizes only one type of leave, covering paid leave for vacation, illness, and any other excused absence from work, such leave will be considered annual leave for purposes of RCW 41.50.150.

(2) Level of union organization means a union or a lodge or division of a union.

(3) Normally as used in the definition of eligible position under RCW 41.40.010 means a position is eligible if it is expected to require at least five months of seventy or more hours of compensated service each month during each of two consecutive years. Once a position is determined to be eligible, it will continue to be eligible if it requires at least five months of seventy or more hours of compensated service during at least one year in any two-year period.

(4) Project position means a position, established by an employer, which has a specific goal and end date.

(5) Public corporation means a public corporation created under RCW 35.21.730. A public corporation may be admitted as an "employer" under the definition in RCW 41.40.010.

(6) Report means an employer's reporting of an employee's hours of service, compensation and contributions to the department on the monthly transmittal report.

(7) Reportable compensation means compensation earnable as that term is defined in RCW 41.40.010.

(8) Retirement plan as used in RCW 41.40.023 and in this chapter, means any plan operated wholly or in part by the state or a political subdivision. This includes, but is not limited to:

(a) The retirement systems listed under RCW 41.50.030;

(b) The retirement systems of the cities of Seattle, Spokane and Tacoma; or

(9) System acronyms used in this chapter are defined as follows:

(a) "PERS" means the public employees' retirement system.

(b) "TRS" means the teachers' retirement system.

(10) Union means a labor guild, labor association, and/or labor organization.

(11) Union employer means a union or a union lodge or other division of a union which has verified that it meets the definition of a Plan 1 employer in RCW 41.40.010.

(12) Year means any twelve consecutive month period established and applied consistently by an employer to evaluate the eligibility of a specific position. The term may include, but is not limited to, a school year, calendar year or fiscal year.

Example: An employer has used the twelve consecutive month period from July 1st to June 30th to evaluate the eligibility of positions. When the employer hires a new employee to fill an existing position, the employer must continue to use the July 1st through June 30th period to define a year for the position.

Example: If the same employer in the above example hires a person to work in a project position beginning in November, the employer will use the twelve-month period beginning in November to evaluate the eligibility of the new position. The employer must consistently apply this twelve-month period to evaluate the eligibility of this position.

History

Statutory Authority: RCW 41.50.050. WSR 21-16-020, § 415-108-010, filed 7/23/21, effective 8/23/21. Statutory Authority: RCW 41.50.050(5) and chapter 41.40 RCW. WSR 02-18-046, § 415-108-010, filed 8/28/02, effective 9/30/02. Statutory Authority: RCW 41.50.050(5), 35.21.730, 41.40.010(4), chapter 41.40 RCW. WSR 01-21-090, § 415-108-010, filed 10/22/01, effective 11/22/01. Statutory Authority: RCW 41.50.050. WSR 98-09-059, § 415-108-010, filed 4/17/98, effective 5/18/98
WSR 95-16-053, § 415-108-010, filed 7/25/95, effective 8/25/95. Statutory Authority: RCW 41.50.050 and Bowles v. Retirement Systems, 121 Wn.2d 52 (1993). WSR 94-11-009, § 415-108-010, filed 5/5/94, effective 6/5/94. Statutory Authority: RCW 41.50.050(5) and 41.40.010 (4)(a). WSR 93-11-077, § 415-108-010, filed 5/18/93, effective 6/18/93. Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-108-010, filed 2/15/78. Formerly WAC 184-01-025 and 184-01-035.

Wash. Admin. Code § 415-108-020 Public records.

See chapter 415-06 WAC.

History

Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-108-020, filed 2/15/78. Formerly WAC 184-20-010.

Wash. Admin. Code § 415-108-030 Statewide cities retirement system.

The former statewide cities retirement system has been merged into the Washington public employees retirement system pursuant to RCW 41.40.405, 41.40.406, and 41.40.407. The statutes and rules applying to the public employees retirement system and the department of retirement systems (as provided in chapters 41.40 and 41.50 RCW and Title 415 WAC) govern the administration and operation of the former statewide cities retirement system.

History

Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-108-030, filed 2/15/78.

Wash. Admin. Code § 415-108-070 Excess contributions to employees' savings fund.

Pursuant to authority granted by RCW 41.40.330(2) this section shall cover all applications by members of the retirement system for permission to make excess contributions to the employees' savings fund.

The total contributions of a member of the state employees' retirement system to the employees' savings fund in any calendar year shall in no event exceed ten percent of the member's earnable compensation for that calendar year.

History

Statutory Authority: RCW 41.50.050(6) and 41.50.090. WSR 78-03-023 (Order IV), § 415-108-070, filed 2/15/78. Formerly WAC 184-12-010.

Wash. Admin. Code § 415-108-315 How do I designate a beneficiary, and who will receive a distribution if I die before retirement?

(1) If you die before retirement, the following statutes govern any distribution from your account:

(a) RCW 41.40.270 for Plan 1 members;

(b) RCW 41.40.700 for Plan 2 members;

(d) RCW 41.34.070 for Plan 3 members' defined contributions. See example three.

(2) You may designate or change a beneficiary by submitting a beneficiary designation form to the department. Your designation will become effective upon the department's receipt of the form, only if it is completed properly and signed by you. Strict compliance with these provisions is required.

(3) You may name one or more of the following as a beneficiary or beneficiaries:

(b) Your estate.

(c) An existing trust, or a trust to be established at a later date or under your last will. If you designate a trust that is not in existence at the time of your death, or is not created under your last will, the designation will be invalid. Before making a distribution to any trust the department must receive:

(i) A copy of the entire trust document;

(ii) The name, address, and telephone number of the current trustee; and

(iii) The tax identification number.

(4) You may name contingent beneficiaries in addition to primary beneficiaries.

(5) You may change your beneficiary designation at any time.

(6) A change in marital status may invalidate your prior designation.

(7) If your surviving spouse is eligible to receive a benefit under RCW 41.40.270(2) (Plan 1) or 41.40.700(2) (Plan 2), but your spouse dies before requesting a distribution, your minor children and your spouse's minor children may elect to receive either:

(a) Your accumulated contributions; or

(b) A monthly benefit, share and share alike, until each child reaches the age of majority. See example four.

(8) For Plan 3 members, if you were eligible but had not applied for a service retirement or had completed enough service to be eligible for a service retirement at the time of your death, your surviving spouse, or your minor children or your spouse's minor children, if your spouse is deceased, is eligible to receive a defined benefit under RCW 41.40.835.

Examples:

EXAMPLE ONE.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

EXAMPLE TWO.

Facts

John, a member, completes a beneficiary designation form.

In the place on the form reserved for persons, he names his daughter Ann. He checks the box to indicate that Ann is a primary beneficiary.

Result

Because John has created no trust, the designation of the Barbara Trust is void. Barbara, personally, will not be a beneficiary.

EXAMPLE THREE.

Facts

When she became a PERS 1 member, Joan was unmarried and named her mother as her beneficiary. Joan later married, but did not complete a new beneficiary form before she died with four years of service.

Result

Unless required to do otherwise by court order, the department will comply with RCW 41.40.270 (1)(b) and pay Joan's surviving spouse the accumulated contributions in her retirement account. In this case, Joan's mother will not receive a distribution.

EXAMPLE FOUR.

Facts

John is a PERS Plan 2 member with eleven years of service. He and his wife Mary have a total of three minor children. They have one child together, and each has one child from a previous marriage.

John and Mary were in a skydiving accident. John died instantly making Mary eligible for a benefit under RCW 41.40.700(2). However, Mary died the following week before requesting a distribution from the department.

Result

History

Statutory Authority: RCW 41.50.050(5). WSR 14-06-056, § 415-108-315, filed 2/27/14, effective 3/30/14
WSR 05-12-041, § 415-108-315, filed 5/25/05, effective 6/25/05. Statutory Authority: RCW 41.50.050(5), 41.40.270, 41.40.700, 41.40.835. WSR 02-03-120, § 415-108-315, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. WSR 00-10-015, § 415-108-315, filed 4/21/00, effective 5/22/00.

Wash. Admin. Code § 415-108-326 What are my retirement benefit options?

WAC 415-108-326

Upon retirement for service under RCW 41.40.180, 41.40.630, or 41.40.820, or for disability under RCW 41.40.210, 41.40.230, 41.40.670, or 41.40.825, you must choose to have the defined benefit portion of your retirement benefit paid to you by one of the options described in this section. If you are a Plan 1 member, you may also select an optional supplemental cost of living adjustment (COLA).

(2) What are my benefit options?

(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.

(d) Option four: Joint and two-thirds survivor benefit.1 The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667 percent) of your gross monthly benefit.

(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's consent, verified by a notarized signature or other means acceptable to the department. If you do not provide spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and 50 percent benefit) with your spouse as the survivor beneficiary as required by RCW 41.40.188, 41.40.660 and 41.40.845.