WSR 02-14-072

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed June 28, 2002, 9:22 a.m. ]

Date of Adoption: June 26, 2002.

Purpose: This change is mandated by HB 1045 (chapter 261, Laws of 2001), which changed the retirement age in LEOFF Plan 2 from fifty-five to fifty-three years of age.

Citation of Existing Rules Affected by this Order: Amending WAC 415-104-111.

Statutory Authority for Adoption: RCW 41.50.050(5).

Other Authority: RCW 41.26.470, chapter 261, Laws of 2001.

Adopted under notice filed as WSR 02-10-099 on April 30, 2002.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Effective Date of Rule: Thirty-one days after filing.

June 26, 2002

John Charles

Director

OTS-5609.1


AMENDATORY SECTION(Amending WSR 94-09-040, filed 4/19/94, effective 5/20/94)

WAC 415-104-111   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 ((II)) 2 member who retires, reenters employment causing his or her retirement allowance to be suspended, and then retires again. The actuarially recomputed retirement allowance shall:

(a) Include service credit the member earned following reestablishment of membership if any; and

(b) Account for the actuarial reduction applied to the member's initial retirement if the member initially retired prior to age ((fifty-five)) fifty-three.

(2) If a Plan ((II)) 2 retiree reenters membership, upon the individual's next retirement, the department shall reinstate and actuarially recompute the individual's retirement allowance pursuant to RCW 41.26.500 as follows:

(a) If the member first retired before age ((fifty-five)) fifty-three, the department shall:

(i) Calculate the retirement allowance pursuant to RCW 41.26.420 using the retiree's total years of career service, including service earned prior to initial retirement and service earned after reentering membership;

(ii) Actuarially reduce the member's retirement allowance based on the present value of the retirement allowance payments the individual received during the initial retirement; and

(iii) Calculate any survivor option selected by the retiree based upon the monthly retirement allowance calculated pursuant to (a)(i) and (ii) of this subsection.

(b) If the member initially retired at or after age ((fifty-five)) fifty-three, the department shall recompute the member's retirement allowance pursuant to RCW 41.26.500 and 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 41.26.500 due to reemployment 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 payment the member did not receive due to reemployment. 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.

[Statutory Authority: RCW 41.50.050. 94-09-040, 415-104-111, filed 4/19/94, effective 5/20/94.]

Washington State Code Reviser's Office