(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.
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.
[Statutory Authority: RCW 41.50.050
. WSR 97-01-016, § 415-104-363, filed 12/6/96, effective 1/6/97.]