WSR 02-18-046

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed August 28, 2002, 1:35 p.m. , effective September 30, 2002 ]

Date of Adoption: August 28, 2002.

Purpose: Consolidate law enforcement officers' and fire fighters' (LEOFF) WAC 415-104-011 - 415-104-0125 into one section, revise into "plain English" as needed, and correct WAC 415-104-225. Consolidate school employees' retirement system (SERS) WAC 415-110-010 - 415-110-0111 into one section and revise into "plain English" as needed. Consolidate teachers' retirement system (TRS) WAC 415-112-015 - 415-112-0167 into one section and revise into "plain English" as needed. Consolidate portability WAC 415-113-030 - 415-113-0309 into one section and revise into "plain English" as needed. Modify all of these WACs by adding a reference to WAC 415-02-030. Modify WAC 415-108-010 by adding a reference to WAC 415-02-030. Update references in other WACs in these chapters so that the references are to the correct citations for the definitions as revised.

Citation of Existing Rules Affected by this Order: Amending WAC 415-104-011, 415-104-225, 415-104-235, 415-108-010, 415-108-680, 415-108-700, 415-108-710, 415-108-725, 415-108-726, 415-108-728, 415-110-010, 415-110-680, 415-110-690, 415-110-700, 415-110-725, 415-110-728, 415-112-015, 415-112-125, 415-112-130, 415-112-135, 415-112-155, 415-112-156, 415-112-541, 415-113-030, 415-113-041, 415-113-042, 415-113-045, 415-113-055, 415-113-057, 415-113-065, 415-113-070, 415-113-080, 415-113-082, 415-113-084, 415-113-090 and 415-113-100; and repealing WAC 415-104-0111, 415-104-0112, 415-104-0113, 415-104-0114, 415-104-0115, 415-104-0117, 415-104-0118, 415-104-0120, 415-104-0121, 415-104-0122, 415-104-0125, 415-110-0102, 415-110-0103, 415-110-0104, 415-110-0108, 415-110-0109, 415-110-0110, 415-110-0111, 415-112-0151, 415-112-0154, 415-112-0156, 415-112-0157, 415-112-0158, 415-112-0159, 415-112-0160, 415-112-0161, 415-112-0162, 415-112-0163, 415-112-0165, 415-112-0167, 415-113-0301, 415-113-0302, 415-113-0303, 415-113-0304, 415-113-0305, 415-113-0306, 415-113-0307, 415-113-0308, and 415-113-0309.

Statutory Authority for Adoption: RCW 41.50.050(5).

Other Authority: Chapter 41.26 RCW (for chapter 415-104 WAC); chapter 41.32 RCW (for chapter 415-112 WAC); chapter 41.35 RCW (for chapter 415-110 WAC); chapter 41.40 RCW (for chapter 415-108 WAC); and chapter 41.54 RCW (for chapter 415-113 WAC).

Adopted under notice filed as WSR 02-15-153 on July 23, 2002.

Changes Other than Editing from Proposed to Adopted Version: Additional grammatical, numbering, and cross-reference changes. Clarity change to the beginning of WAC 415-108-726.

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 0, 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 36, Repealed 39.

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.

Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: These changes primarily affect DRS internal operations. Business requirements will be positively impacted by using a September 30, 2002, effective date to meet internal regulatory reform goals.
Effective Date of Rule: September 30, 2002.

August 28, 2002

John Charles

Director

OTS-5518.3


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 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 ten thousand 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 regularly scheduled to earn basic salary from an employer for a minimum of one hundred sixty hours each calendar month.

(5) Fully compensated employee means an employee who earns basic salary and benefits from an employer in an amount comparable to the salary received by other full-time employees of the same employer who:

(a) Hold the same or similar rank; and

(b) Are employed in a similar position.

(6) LEOFF means the law enforcement officers' and fire fighters' retirement system established by chapter 41.26 RCW.

(7) LEOFF employer means the employer, as defined in RCW 41.26.030, who employs the member as a law enforcement officer or fire fighter.

(8) 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.

(9) Plan 1 and Plan 2.

(a) "Plan 1" means the law enforcement officers' and fire fighters' 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 fire fighters' retirement system providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977.

(10) 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 fire fighter duties.

This definition applies only to cities or towns in which the population did not exceed ten thousand at the time the person became employed as a public safety officer.

(11) Uniformed fire fighter 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 fire fighter 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.

[Statutory Authority: RCW 41.50.050. 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. 93-11-078, 415-104-011, filed 5/18/93, effective 6/18/93.]


AMENDATORY SECTION(Amending WSR 96-01-045, filed 12/14/95, effective 1/14/96)

WAC 415-104-225   Am I a LEOFF member?   If you are employed by an employer as a full-time, fully compensated law enforcement officer or fire fighter, you are required to be a LEOFF member.

(1) Law enforcement officers.

(a) You are a law enforcement officer only if you are commissioned and employed on a full-time, 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) 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

(c) 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 ten thousand. See RCW 41.26.030(3).

(d) If you meet the requirements of (a), (b) or (c) of this subsection, you qualify as a law enforcement officer regardless of your rank or status as a probationary or permanent employee.

(e) 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) Fire fighters. You are a fire fighter if you are employed in a uniformed fire fighter position by 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 ((or)) and extinguishing fires.

(a) "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 ((or)) and extinguishing fires.

(b) You are a fire fighter if you qualify as supervisory fire fighter personnel.

(c) If your employer requires fire fighters 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 fire fighter unless you qualify as supervisory fire fighter personnel.

(d) You are a fire fighter 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.

(e) You do not qualify for membership as a fire fighter if you are a volunteer fire fighter or resident volunteer fire fighter.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Commissioned" - WAC ((415-104-0111)) 415-104-011.

(b) "Director of public safety" - WAC ((415-104-0112)) 415-104-011.

(c) "Employer" - RCW 41.26.030.

(d) "Fire fighter" - RCW 41.26.030.

(e) "Full time" - WAC ((415-104-0114)) 415-104-011.

(f) "Fully compensated" - WAC ((415-104-0115)) 415-104-011.

(g) "Law enforcement officer" - RCW 41.26.030.

(h) "Member" - RCW 41.26.030.

(i) "Public safety officer" - WAC ((415-104-0120)) 415-104-011.

(j) "Uniformed fire fighter position" - WAC ((415-104-0125)) 415-104-011.

[Statutory Authority: RCW 41.50.050. 96-01-045, 415-104-225, filed 12/14/95, effective 1/14/96; 95-16-053, 415-104-225, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 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

(c) Cease to be employed full time as a law enforcement officer or fire fighter.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Fire fighter" - RCW 41.26.030 and WAC 415-104-225(2).

(b) "Full-time employee" - WAC ((415-104-0114)) 415-104-011.

(c) "Law enforcement officer" - RCW 41.26.030 and WAC 415-104-225(1).

(d) "Member" - RCW 41.26.030.

(e) "Service" - RCW 41.26.030.

[Statutory Authority: RCW 41.50.050. 95-16-053, 415-104-235, filed 7/25/95, effective 8/25/95.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 415-104-0111 Commissioned -- Definition.
WAC 415-104-0112 Director of public safety -- Definition.
WAC 415-104-0113 Elective employer -- Definition.
WAC 415-104-0114 Full time -- Definition.
WAC 415-104-0115 Fully compensated -- Definition.
WAC 415-104-0117 LEOFF employer -- Definition.
WAC 415-104-0118 LEOFF Plan I elected official -- Definition.
WAC 415-104-0120 Public safety officer -- Definition.
WAC 415-104-0121 Plan I and Plan II -- Definition.
WAC 415-104-0122 LEOFF -- Definition.
WAC 415-104-0125 Uniformed fire fighter position -- Definition.

OTS-5515.3


AMENDATORY SECTION(Amending WSR 01-21-090, filed 10/22/01, effective 11/22/01)

WAC 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(4).

(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).

(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

(()) (c) Any higher education plan authorized under RCW 28B.10.400.

(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.

(()) (c) "SERS" means the school employees' 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 1 to June 30 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 1 through June 30 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.

[Statutory Authority: RCW 41.50.050(5), 35.21.730, 41.40.010(4), chapter 41.40 RCW. 01-21-090, 415-108-010, filed 10/22/01, effective 11/22/01. Statutory Authority: RCW 41.50.050. 98-09-059, 415-108-010, filed 4/17/98, effective 5/18/98; 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). 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). 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. 78-03-023 (Order IV), 415-108-010, filed 2/15/78. Formerly WAC 184-01-025 and 184-01-035.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-680   Am I eligible for membership?   (1) You are eligible for membership if you are employed in an eligible position. Your position is eligible under RCW 41.40.010 if the position, as defined by your employer, normally requires at least five months of seventy or more hours of compensated service per month during each year.

(2) If you leave an eligible position to serve in a project position, you may retain eligibility. If you are a member and you leave employment in an eligible position to serve in a project position, the project position is eligible if:

(a) The position, as defined by the employer, normally requires at least five months of seventy or more hours of compensated service each month; or

(b) The position requires at least seventy hours per month and you take the position with the understanding that you are expected to return to your permanent eligible position at the completion of the project.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010.

(c) "Member" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Normally" - WAC 415-108-0102.

(((e))) (f) "Project position" - WAC ((415-108-0103)) 415-108-010.

(((f))) (g) "Year" - WAC ((415-108-0108)) 415-108-010.

[Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-680, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-700   Can I qualify for membership if I work in more than one ineligible position with the same employer?   (1) All of your monthly work for an employer counts as one position. If you are employed with the same employer in two ineligible positions during a year which, when combined, equate to an eligible position and your employer expects you to continue in this employment for a second consecutive year, your employer will report the total hours you work in both positions to the department as an eligible position.


Example: A person normally works for one employer as a cook for forty hours each month and as a bus driver for forty hours each month. The person is eligible for membership because he works a total of eighty hours each month for at least five months each year and this is the normal pattern of his employment.
Example: A person normally works for one employer for forty hours each month as a cook. For one year only, she takes on extra duties by also working forty hours per month as a bus driver. Although she worked eighty hours each month for five or more months during one year, she is not eligible for membership because these hours are not the normal pattern of her employment.
Example: A person works for one employer for forty hours each month as a cook and also works for another employer for forty hours each month as a bus driver. The person is not eligible for membership because he cannot combine the hours of employment with these separate employers to establish membership.

(2) You may be reported in TRS if you work in two positions and one position is covered under TRS. See WAC 415-108-728.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Normally" - WAC ((415-108-0102)) 415-108-010.

(f) "Report" - WAC ((415-108-0104)) 415-108-010.

(g) "Year" - WAC ((415-108-0108)) 415-108-010.

[Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-700, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 02-02-060, filed 12/28/01, effective 1/1/02)

WAC 415-108-710   How will returning to work affect my PERS monthly benefit?   (1) You may work for an employer after retirement and continue to receive your retirement allowance if:

(a) You are employed in an ineligible position no sooner than one calendar month after your retirement accrual date;

(b) You are an active member of a higher education retirement plan and are employed no sooner than one calendar month after your retirement benefit accrues;

(c) You are employed as a bona fide independent contractor as defined by WAC 415-02-110;

(d) You are employed as an elected or appointed official directly by the governor under RCW 41.40.150(4) no sooner than one month after your retirement benefit accrues and do not reenter membership;

(e) Your only employment is as an elected official of a city or town and you end your PERS membership under RCW 41.40.023 (3)(b); or

(f) You are employed in an eligible position:

(i) No sooner than one calendar month after your retirement benefit accrues; and

(ii) The time you work does not exceed the "work limit" defined in subsection (2) of this section.

(2) What is the work limit for eligible positions?

(a) Plan 1 retiree working for an employer as defined in RCW 41.40.010 (4)(a): Fifteen hundred hours in a calendar year; or

(b) Plan 2 or 3 retiree working in an eligible position as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030: Eight hundred sixty-seven hours in a calendar year.

(c) The Plan 1 limits will be applied to retirees from both a Plan 1 and a Plan 2 or 3 in another pension plan.

(d) The TRS Plan 1 rules will be applied to retirees from both TRS Plan 1 and PERS Plan 1.

(3) What happens if I work more than the work limit?

(a) The department will suspend your retirement allowance effective the day after the day in which you exceed the work limit. All hours worked for all covered employers in eligible positions are considered in determining the work limit.

(b) You have the option to return to membership in PERS if you are otherwise eligible. The option to return to membership is prospective from the first day of the month following the month in which you request to return to membership.

(4) How will the suspension of benefits affect my retirement allowance?

(a) The department will:

(i) Prorate your retirement allowance for the month during which you exceeded the work limit; and

(ii) Suspend all future retirement allowances while you are working until the next calendar year except that it will:

(iii) Adjust for any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.

(b) If you separate from service, your retirement allowance will resume effective the first day of the month following the date of separation.

(5) Can I return to PERS membership?

(a) If you are a PERS retiree, you may choose to return to membership if you are employed by a PERS employer and meet the eligibility criteria. If you return to membership the department will stop your retirement allowance effective from the first of the month during which you return to employment. Membership will be prospective under RCW 41.40.023(12).

(b) If you reenter membership and later choose to retire again, the department will recalculate your retirement allowance under the applicable statutes and regulations.

(c) If you are a retiree from another retirement system that the department administers, and are eligible to enter PERS membership, you may choose to return to membership. The option to return to membership is prospective from the first day of the month following the month in which you request to return to membership.


Example 1:


Kirk is a PERS Plan 2 retiree. He separates from service on August 15th. His accrual date (retirement) is effective September 1st. Kirk returns to work in a PERS Plan 2 eligible position on January 2nd of the following year. On June 1st he realizes that on or about July 8th, he is going to exceed his eight hundred sixty-seven hour limit for the year. On July 5th he notifies his employer in writing that he chooses to reenter PERS Plan 2 membership.

On July 12th, Kirk works his eight hundred sixty-eighth hour. He is no longer eligible for his PERS Plan 2 retirement benefit as of July 12th. The retirement benefit is stopped for the remainder of July. On August 1st, Kirk is returned to membership and resumes making retirement contributions.


Example 2:


Kristal is a PERS Plan 1 retiree. She separated from service on June 20th. Her accrual date (retirement) is effective July 1st. She begins working in a PERS eligible position the following January. By October 1st, Kristal has exceeded the fifteen hundred hour work limit, and her benefit is suspended. Kristal separates from service on November 15th and her benefit is reinstated December 1st. Kristal qualifies to begin another fifteen hundred hour work period on January 1st.


Example 3:


Millie is a PERS Plan 2 retiree. She separated from service on June 20th. Her accrual date (retirement) is effective July 1st. She begins working in a PERS eligible position on February 1st of the following year. By September 1st, Millie has worked eight hundred sixty-seven hours and continues to work. Millie's benefit is suspended from September 2nd until January 1st if she continues to work.


(6) How soon can I return to work as a retiree? If you return to work sooner than one full calendar month after your accrual date under RCW 41.40.037, your retirement allowance will be reduced by 5.5% for every eight hours worked each month, until you separate for one full calendar month. See RCW 41.40.037.


Example 4:


John's last day of work is September 15th. His accrual date is October 1st. If John wants to return to work after he retires, he will need to wait until at least November 1st to avoid receiving the daily percentage reduction in his retirement allowance.


Example 5:


Tony's last day of work is September 15th. His accrual date is October 1st. Tony returns to work for five work days between October 10th and October 17th. His October retirement allowance will be reduced by five and one-half percent for every eight hours worked in October (RCW 41.40.037); this will be reflected in Tony's November benefit. Tony does not return to work. On December 1st, Tony will qualify to return to work under the work limits described in subsection (2) of this section.


Example 6:


Ruth's last day of work is September 15th. Her accrual date is October 1st. She returns to work on October 10th and continues working. Ruth's retirement benefit will be reduced by 5.5% for each eight hours she works. Under RCW 41.40.037, Ruth's benefit reduction will accrue up to one hundred sixty hours per month. If she stops working, Ruth's full retirement benefit will resume after she remains separated for one full calendar month. Any benefit reduction over one hundred percent will be applied to Ruth's allowance in subsequent months.


(7) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed:

(a) "Accrual date" - RCW 41.40.193, 41.40.680, 41.40.801.

(b) "Eligible position" - RCW 41.40.037(2).

(c) "Employer" - RCW 41.40.010(4).

(d) "Ineligible position" - RCW 41.40.010.

(e) "Law enforcement officer" - RCW 41.26.030.

(f) "Membership" - RCW 41.40.023.

(g) "Report" - WAC ((415-108-0104)) 415-108-010.

[Statutory Authority: RCW 41.50.050(5), 41.04.270, 41.26.030, 41.32.010, 41.32.025, 41.32.480, 41.32.500, 41.32.570, 41.32.765, 41.32.795, 41.32.802, 41.32.855, 41.32.860, 41.32.862, 41.35.010, 41.35.030, 41.35.060, 41.35.450, 41.35.640, 41.40.010, 41.40.023, 41.40.037, 41.40.150, 41.40.193, 41.40.680, 41.40.750, 41.40.801. 02-02-060, 415-108-710, filed 12/28/01, effective 1/1/02. Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-710, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-725   If I have retired from another retirement plan or am eligible to retire, am I excluded from participating in PERS?   (1) If you have retired or are eligible to retire from another retirement system authorized by the laws of this state you cannot participate in PERS membership unless:

(a) You established membership in PERS prior to March 1, 1976; or

(b) You accrued less than fifteen years of service credit in the other retirement plan.

(2) If you are receiving a disability allowance from any retirement system administered by the department you can not participate in PERS unless you established membership in PERS prior to March 1, 1976.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Membership" - RCW 41.40.023.

(b) "Retirement plan" - WAC ((415-108-0105)) 415-108-010.

(c) "Service" - RCW 41.40.010.

[Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-725, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-108-726   ((If)) Can I ((accrue)) earn service credit in PERS and another retirement plan at the same time((, may I participate in PERS))?   (1)(a) Yes. You may earn service credit in PERS and any of the following First Class City Retirement Systems (FCCRS) at the same time if:

(i) You work for a PERS employer and an employer covered by a retirement system of the city of Seattle, Spokane or Tacoma (((First Class City Retirement System)) FCCRS); and

(ii) You cannot report service for the ((First Class City Retirement System)) FCCRS in PERS;

(b) The combined service credit under PERS and the retirement system listed in (a) of this subsection may not exceed one month of service for a calendar month of employment.

(c) To qualify for PERS service credit, it is up to the employee to initiate the process by applying under subsection (2) of this section.


Example: A member works part time for the City of Seattle and part time for the University of Washington (UW). She may receive partial service credit in PERS for the UW service since she cannot report the time she works for Seattle under PERS.
Note: The combined service credit under PERS and the City of Seattle Retirement System may not exceed one month of service for a calendar month of employment. To receive PERS service credit she must apply to the department.

(2) How do I apply?

(a) To apply for membership and service credit under subsection (1) of this section you must send the department an application. The application is a statement that you want membership and/or service credit in PERS. Include:

(i) Your name;

(ii) Your SSN;

(iii) All period(s) of service that you want to receive service credit for;

(iv) All PERS and non-PERS employer(s) that you worked for during the periods of service referenced in (a)(iii) of this subsection.

(b) After the department receives your application, it will contact your employer(s) to verify how much service credit you have earned. When the department receives the necessary information, it will determine how much service credit you will receive. At that time the department will send you a bill for member contributions and interest that must be paid in order to establish the service credit.

(3) When should I submit my payment?

You should pay contributions and interest required under subsection (2)(b) of this section within twenty-four consecutive months from the last day of the calendar year for which you claim service credit. After that date, you must pay the actuarial cost of purchasing the service credit under RCW 41.40.104 and 41.50.165.

(4) What if I worked before this WAC became effective?

If you worked for a PERS employer and for one of the retirement systems listed in subsection (1) of this section, before this WAC became effective, you have until December 31, 2000, to apply in order to purchase service credit by paying member contributions plus interest. After December 31, 2000, you must pay the actuarial cost of purchasing the service credit under RCW 41.40.104 and 41.50.165.

(5) You may participate in PERS if you are concurrently employed, as described in WAC 415-113-200, in a SERS position.

(6) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Membership" - RCW 41.40.023.

(b) "Retirement plan" - WAC ((415-108-0105)) 415-108-010.

(c) "Service" - RCW 41.40.010.

(d) "Normally" - WAC ((415-108-0102)) 415-108-010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-108-726, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 99-22-043, 415-108-726, filed 10/29/99, effective 11/29/99; 95-16-053, 415-108-726, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-108-728   If I work in both a PERS position and TRS position during the same school year, which system will I be in?   (1) If you work in both a PERS and TRS position during the same year, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either PERS or TRS according to the following table:


Former TRS Plan 1 Members 1/

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
A substitute or less than full-time teaching position and a PERS-eligible position

Same employer PERS - for both positions.
Separate TRS employers PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in PERS will be transferred to TRS.

A TRS employer and non-TRS employer PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, you must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions; or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

A full-time teaching position and an eligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer You must elect to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions; or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.


TRS Plan 1 Members

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
A full-time or less than full-time TRS position and an eligible PERS position

Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer You must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions; or

2. Have your TRS service reported in TRS and not receive service credit for PERS position.

A full-time or less than full-time TRS position and an ineligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer TRS - for the TRS position only; your ineligible PERS position is not reportable.

TRS Plan 2 Members

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
An eligible TRS position and an ineligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for TRS position only; your ineligible PERS position is not reported.
A TRS employer and non-TRS employer TRS - for TRS position only; your ineligible PERS position is not reported.
An eligible TRS position and an eligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.3/
A TRS employer and non-TRS employer You must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions; or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.


PERS Members

Type of

Employment 2/

Type of Employer(s)

System You Will Be Reported In

An eligible PERS position and an ineligible TRS or substitute position Same employer PERS - for both positions.
Separate TRS employers PERS - for the PERS position only, unless you qualify for and elect to establish membership in TRS at the end of the school year under WAC 415-112-125(1).


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in PERS will be transferred to TRS.

A TRS employer and non-TRS employer PERS - for the PERS position only. You will not be reported for the TRS position unless you elect to either:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions; or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.


Neither TRS Nor PERS Member

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
An ineligible TRS and an ineligible PERS position Same employer TRS - for both positions if the positions combined, qualify as an eligible position.
Separate employers, TRS or non-TRS Neither position reported.
A substitute teaching position and an ineligible PERS position Same employer Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.
Separate employers, TRS or non-TRS Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.

1/ "Former TRS 1 member", as used here, means you terminate your membership by withdrawing your contributions.
2/ Means during the same school year.
3/ EXAMPLE: A TRS 2 member teaches in an eligible position and during the summer, she works for a state agency in an eligible position under PERS. Because the member has established membership in TRS 2 through employment as a teacher, her state agency employer must report her service and compensation from the PERS position to the Department in TRS 2.
EXAMPLE: A TRS 2 member is employed concurrently by School District A in an eligible TRS position and by School District B in an eligible PERS position. Because he is a TRS 2 member, School District B employer must report his service and compensation from the PERS position to the Department in TRS 2. If the member terminates his employment in the TRS position with School District A, School District B will report him in PERS for the PERS position.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010 (PERS); RCW 41.32.010 (TRS).

(c) "Ineligible position" - RCW 41.40.010.

(d) "Member" - RCW 41.40.010.

(e) "Membership" - RCW 41.40.023.

(f) "Report" - WAC ((415-108-0104)) 415-108-010.

(g) "Service" - RCW 41.40.010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-108-728, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-728, filed 7/25/95, effective 8/25/95.]

OTS-5517.4


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-010   Definitions.   All definitions in RCW 41.35.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.35 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 include leave for illness, personal business if in addition to and different than vacation leave, or other paid time off from work. However, if an employer authorizes only one type of leave to provide paid leave for vacation and illness as well as any other excused absence from work, such leave will be considered annual leave for purposes of RCW 41.50.150.

(2) Normally as used in the definition of eligible position under RCW 41.35.010 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.

(3) Project position means a position, established by an employer, that has a specific goal and end date.

(4) Report means an employer's reporting of an employee's hours of service, compensation and contributions to the department on the monthly transmittal report.

(5) Reportable compensation means compensation earnable as that term is defined in RCW 41.35.010(6).

(6) System acronyms used in this chapter are defined as follows:

(a) "PERS" means the public employees' retirement system.

(b) "SERS" means the school employees' retirement system. (c) "TRS" means the teachers' retirement system.

(7) 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 September 1 to August 31 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 September 1 through August 31 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.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-010, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-680   Am I eligible for membership?   (1) You are eligible for membership if you are employed in an eligible position. Your position is eligible under RCW 41.35.010 if the position, as defined by your employer, normally requires at least five months of seventy or more hours of compensated service per month during each year.

(2) If you leave an eligible position to serve in a project position, you may retain eligibility. If you are a member and you leave employment in an eligible position to serve in a project position, the project position is eligible if:

(a) The position, as defined by the employer, normally requires at least five months of seventy or more hours of compensated service each month; or

(b) The position requires at least seventy hours per month and you take the position with the understanding that you are expected to return to your permanent eligible position at the completion of the project.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.35.010.

(b) "Employer" - RCW 41.35.010.

(c) "Member" - RCW 41.35.010.

(d) "Membership" - RCW 41.35.030.

(e) "Normally" - WAC ((415-110-0102)) 415-110-010.

(f) "Project position" - WAC ((415-110-0103)) 415-110-010.

(g) "Year" - WAC ((415-110-0108)) 415-110-010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-680, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-690   How is my eligibility evaluated?   (1) Your eligibility is based on your position. In evaluating whether your position is eligible, your employer will determine only whether the position meets the criteria of an eligible position under RCW 41.35.010. Your employer will not consider your membership status or individual circumstances unless you:

(a) Leave employment in an eligible position to serve in a project position (see WAC 415-110-680); or

(b) Work in both a SERS and TRS position during the same school year (see WAC 415-110-728).

(2) Your employer will evaluate your position's eligibility for a particular year at the beginning of the year.

(3) Your employer or the department may reclassify your position's eligibility based upon your actual work history. If your employer declares your position to be ineligible at the beginning of a year and by the end of the year, you have actually worked five or more months of seventy or more hours, your employer will, at that time, review your position's eligibility. If at the end of the first year:

(a) Your employer believes your position meets the requirements for an eligible position and declares the position as eligible, you will enter membership and your employer will report you to the department effective from the date your employer declares the position as eligible; or

(b) Your employer believes that the position will not meet the criteria for an eligible position during the next year, your employer may continue to define your position as ineligible. However, if during the next year the position actually requires you to again work seventy or more hours each month for at least five months, the department will declare your position as eligible. You will enter membership in the retirement system.

(i) Except as provided in (b)(ii) of this subsection, your employer will report you to the department effective from the first month of the first year in which your position required you to work for seventy or more hours.

(ii) If:

(A) Your employer has monitored the work history of your position for eligibility;

(B) Has notified you in writing when you entered the position that the position was not considered eligible; and

You will enter membership prospectively.

(4) The department will not reclassify your position's eligibility until history of the position shows that it meets the criteria for an eligible position. If your employer has declared your position ineligible, the department will not reclassify your position as eligible until history of the position shows a period of two consecutive years of at least five months of seventy or more hours of compensated employment each month.

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.35.010.

(b) "Employer" - RCW 41.35.010.

(c) "Ineligible position" - RCW 41.35.010.

(d) "Membership" - RCW 41.35.030.

(e) "Project position" - WAC ((415-110-0103)) 415-110-010.

(f) "Report" - WAC ((415-110-0104)) 415-110-010.

(g) "Year" - WAC ((415-110-0108)) 415-110-010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-690, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-700   Can I qualify for membership if I work in more than one ineligible position with the same employer?   (1) All of your monthly work for an employer counts as one position. If you are employed with the same employer in two ineligible positions during a year which, when combined, equate to an eligible position and your employer expects you to continue in this employment for a second consecutive year, your employer will report the total hours you work in both positions to the department as an eligible position.


Example: A person normally works for one employer as a cook for forty hours each month and as a bus driver for forty hours each month. The person is eligible for membership because he works a total of eighty hours each month for at least five months each year and this is the normal pattern of his employment.
Example: A person normally works for one employer for forty hours each month as a cook. For one year only, she takes on extra duties by also working forty hours per month as a bus driver. Although she worked eighty hours each month for five or more months during one year, she is not eligible for membership because these hours are not the normal pattern of her employment.
Example: A person works for one employer for forty hours each month as a cook and also works for another employer for forty hours each month as a bus driver. The person is not eligible for membership because he cannot combine the hours of employment with these separate employers to establish membership.

(2) You may be reported in TRS if you work in two positions and one position is covered under TRS. See WAC 415-110-728.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.35.010.

(b) "Employer" - RCW 41.35.010.

(c) "Ineligible position" - RCW 41.35.010.

(d) "Membership" - RCW 41.35.030.

(e) "Normally" - WAC ((415-110-0102)) 415-110-010.

(f) "Report" - WAC ((415-110-0104)) 415-110-010.

(g) "Year" - WAC ((415-110-0108)) 415-110-010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-700, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-725   If I have retired from another retirement plan or am eligible to retire, am I excluded from participating in SERS?   (1) If you have retired or are eligible to retire from another retirement system authorized by the laws of this state, you cannot participate in SERS membership unless you accrued less than fifteen years of service credit in the other retirement plan.

(2) If you are receiving a disability allowance from any retirement system administered by the department, you cannot participate in SERS.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Membership" - RCW 41.35.030.

(b) "Retirement plan" - WAC ((415-110-0105)) 415-110-010.

(c) "Service" - RCW 41.35.010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-725, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-728   If I work in both a SERS position and TRS position during the same school year, which system will I be in?   (1) If you work in both a SERS and TRS position during the same year, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either SERS or TRS according to the following table:

Former TRS Plan 1 Members 1/

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
A substitute or less than full-time teaching position and a SERS-eligible position Same SERS employer SERS - for both positions.
Separate SERS employers SERS - for SERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in SERS will be transferred to TRS.

A full-time teaching position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.

TRS Plan 1 Members

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
A full-time or less than full-time TRS position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.
A full-time or less than full-time TRS position and an ineligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.

TRS Plan 2 or 3 Members

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
An eligible TRS position and an ineligible PERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for TRS position only; your ineligible SERS position is not reported.
An eligible TRS position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.3/

SERS Members

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
An eligible SERS position and an ineligible TRS or substitute position Same employer SERS - for both positions.
Separate SERS employers SERS - for the SERS position only, unless you qualify for and elect to establish membership in TRS at the end of the school year under WAC 415-112-125(1).


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in SERS will be transferred to TRS.

Neither TRS Nor SERS Member

Type of

Employment 2/

Type of Employer(s) System You Will Be Reported In
An ineligible TRS and an ineligible SERS position Same employer TRS - for both positions if the positions combined, qualify as an eligible position.
Separate SERS employers Neither position reported.
A substitute teaching position and an ineligible SERS position Same employer Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.
Separate SERS employers Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.

1/ "Former TRS 1 member," as used here, means you terminate your membership by withdrawing your contributions.
2/ Means during the same school year.
3/ EXAMPLE: A TRS 2 member is employed concurrently by School District A in an eligible TRS position and by School District B in an eligible SERS position. Because he is a TRS 2 member, School District B employer must report his service and compensation from the SERS position to the department in TRS 2. If the member terminates his employment in the TRS position with School District A, School District B will report him in SERS for the SERS position.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(b) "Employer" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(c) "Ineligible position" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(d) "Member" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(e) "Membership" - RCW 41.35.030 (SERS).

(f) "Report" - WAC ((415-110-0104)) 415-110-010.

(g) "Service" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-728, filed 12/12/00, effective 1/12/01.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 415-110-0102 Normally -- Definition.
WAC 415-110-0103 Project position -- Definition.
WAC 415-110-0104 Report -- Definition.
WAC 415-110-0108 Year -- Definition.
WAC 415-110-0109 System acronyms -- Definition.
WAC 415-110-0110 Reportable compensation -- Definition.
WAC 415-110-0111 Annual leave -- Definition.

OTS-5519.5


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-112-015   Definitions.   (1) All definitions in RCW 41.32.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.32 RCW are defined in this chapter.

(2) ((As used in this chapter, unless a different meaning is plainly required by the context:))

"Annual leave" means leave provided by an employer for the purpose of ((vacation and does not)) 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 than vacation leave, or other paid time off from work((: Provided,)). However, ((That)) if an employer authorizes only one type of leave ((to provide)), covering paid leave for vacation ((and)), illness, ((as well as)) and any other excused absence from work, such leave will be considered annual leave for purposes of RCW 41.50.150.

(3) Contract period for Plan 1 members as used in RCW 41.32.345 means the period from July 1 to June 30 of the following year.

(4) Ineligible position means a position which does not qualify as an eligible position under RCW 41.32.010.

(5) Pension benefit means that portion of a retiree's monthly retirement allowance that is funded by the state of Washington and the retiree's former employer or employers.

(6) Public educational institution means a school district, the state school for the deaf, the state school for the blind, educational service districts, institutions of higher education, or community colleges.

(7)(a) Public school as defined in RCW 41.32.010 includes school districts, educational service districts, the state school for the deaf, and the state school for the blind but does not include the office of the superintendent of public instruction.

(b) As applied to other TRS employers, "public school" means an institution, fifty percent or more of whose employees are "qualified to teach," whose primary function is to educate students. See subsection (8) of this section.

(8) Qualified to teach as used under RCW 41.32.010 means either:

(a) Having the authority to provide instruction at a common school as defined under RCW 28A.150.020 pursuant to:

(i) A valid teaching certificate issued by the office of the superintendent of public instruction under WAC 180-75-055; or

(ii) A permit to teach issued by lawful authority of this state under RCW 28A.405.010; or

(b) Being employed under a contract to teach with an institution of higher education as defined in RCW 28A.150.020.

(9) Reportable compensation means earnable compensation as that term is defined in RCW 41.32.010(10).

(10)(a) School year for Plan 1 members means the fiscal year running from July 1 to June 30.

(b) "School year" for Plan 2 and 3 members means the twelve-month period from September 1 of one year to August 31 of the following year.

(11) Service in an administrative or supervisory capacity as used under RCW 41.32.010 and in this chapter:

(a) Means:

(i) Service in a managerial role relating to the administration of a public school; or

(ii) Service involving the exercise of direction over employees of the public school.

(b) Includes, but is not limited to, service as: Principal, assistant principal, superintendent, assistant superintendent, personnel manager and business manager.

(12) Service in an instructional capacity means a qualified teacher performing services as a classroom teacher.

(13) Spousal consent requires written evidence that the married member's spouse consents to the retirement option selected by the member. The spouse's notarized signature on the retirement application, duly executed and filed with the department, shall constitute "spousal consent."

(14) System acronyms used in this chapter are defined as follows:

"PERS" means the public employees' retirement system.

"SERS" means the school employees' retirement system.

"TRS" means the teachers' retirement system.

[Statutory Authority: RCW 41.50.050. 95-16-053, 415-112-015, filed 7/25/95, effective 8/25/95. Statutory Authority: RCW 41.50.050 and Bowles v. Retirement Systems, 121 Wn.2d 52 (1993). 94-11-009, 415-112-015, filed 5/5/94, effective 6/5/94. Statutory Authority: RCW 41.32.345 and 41.50.050. 93-20-021, 415-112-015, filed 9/24/93, effective 10/25/93.]


AMENDATORY SECTION(Amending WSR 00-10-015, filed 4/21/00, effective 5/22/00)

WAC 415-112-125   If I am eligible, how can I establish membership?   (1) If you met the conditions in the following table, you established TRS membership. Your plan status depends upon the date you established membership, as indicated in the following table:


Period of Service Type of Employment Plan
Prior to 10/01/771/ If you were contracted to teach full-time you were mandated into membership.

If you were employed under a less than full-time contract and you exercised your option to establish membership prior to 10/01/77, you had the option to apply for membership under RCW 41.32.240, if you worked 90 or more full-time days 2/ during a fiscal year.

Plan 1
10/01/77 through 06/06/90 If you were contracted to teach full-time you were required to be a member.

If you were employed as a substitute teacher or under a less than full-time contract, you have the option to apply for membership under RCW 41.32.240 if you worked a minimum of 90 full-time days 2/ during a school year, provided 1 month had at least 90 hours.

Plan 2
6/07/90

through 08/31/91

You must have been employed in an eligible position as defined in Section 2, Chapter 274, Laws of 1990, (requiring two or more consecutive months of at least 90 hours of compensated employment each month during a school year).

For substitute teachers: If you met the above criteria, you may apply for membership and service credit under RCW 41.32.013 and WAC 415-112-140.

Plan 2
9/01/91

forward

You must be employed in an eligible position (requiring at least 5 months of 70 hours or more of compensated employment each month during a school year).

For substitute teachers:

If you meet the above criteria, you may apply for membership/service credit under RCW 41.32.013 and WAC 415-112-140.

Plan 2
7/01/96 You must be employed in an eligible position (requiring at least 5 months of 70 hours or more of compensated employment each month during the school year).


For substitute teachers: If you meet the above criteria, you may apply for membership/service credit under RCW 41.32.013 and WAC 415-112-140.

Plan 3

1/ If you previously established Plan 1 membership as detailed above, you may reestablish Plan 1 membership after October 1, 1977.

2/ "Ninety days of employment,” under RCW 41.32.240 and this section means either:

(a) Ninety full-time calendar days, or the equivalent, during a school year if you were employed as a teacher under a contract; or

(b) Ninety full-time days of actual, compensated service, or the equivalent, during a school year if you were employed as a substitute teacher.

(c) The "equivalent” of a full-time day of employment under (a) and (b) of this subsection is the sum of partial days which, when added together, equals one full-time day.


(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Member" - RCW 41.32.010.

(b) "Eligible position" - RCW 41.32.010.

(c) "Employer" - RCW 41.32.010.

(d) "Full-time" - RCW 41.32.240

(e) "Service" - RCW 41.32.010.

(f) "Substitute teacher" - RCW 41.32.010.

(g) "Teacher" - RCW 41.32.010.

(h) "School year" - WAC ((415-112-0161)) 415-112-015.

[Statutory Authority: RCW 41.50.050. 00-10-015, 415-112-125, filed 4/21/00, effective 5/22/00; 95-16-053, 415-112-125, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-112-130   If I separate from, and then reenter employment, can I continue to participate in TRS?   (1) If you are a TRS Plan 1 member, you will participate in TRS Plan 1 if you become reemployed with a TRS employer. If you are a Plan 1 member and have separated from service without withdrawing contributions, you will participate in the system again if you become reemployed with a TRS employer, even if you are not working as a teacher.

(2) If you terminate TRS Plan 1 membership, you will not reenter TRS Plan 1 unless you requalify for membership or repay withdrawn contributions as a dual member. If you were a Plan 1 member and have terminated your membership, you can reestablish your membership and be eligible to participate in the system again only if you:

(a) Become reemployed as a teacher in a position or positions meeting the membership eligibility criteria under RCW 41.32.240 and WAC 415-112-125(1); or

(b) Repaid withdrawn contributions as a dual member under portability. See RCW 41.54.020(2).

(3) If you have service credit in TRS Plan 2, you will only reestablish membership if you work as a teacher in an eligible position. If you were a Plan 2 member who separated from service, you will reestablish membership and be eligible to participate in the system again only if you:

(a) Become reemployed as a teacher; and

(b) Render service in a position or positions meeting the membership eligibility criteria under WAC 415-112-125(1) or 415-112-140(1).

(4) If you have service credit in TRS Plan 3, you will only reestablish membership if you work as a teacher in an eligible position. If you were a Plan 3 member who separated from service, you will reestablish membership and be eligible to participate in the system again only if you:

(a) Become reemployed as a teacher; and

(b) Render service in a position or positions meeting the membership eligibility criteria under WAC 415-112-125(1) or 415-112-140(1).

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member" - RCW 41.54.010 and WAC 415-113-041.

(b) "Eligible position" - RCW 41.32.010.

(c) "Employer" - RCW 41.32.010.

(d) "Member" - RCW 41.32.010.

(e) "Service" - RCW 41.32.010.

(f) "Service in an administrative or supervisory capacity" - WAC ((415-112-0162)) 415-112-015.

(g) "Service in an instructional capacity" - WAC 415-112-0163.

(h) "Teacher" - RCW 41.32.010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-112-130, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 95-16-053, 415-112-130, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-112-135   Can I be a member if I work as an educational staff associate?   (1) You are eligible for membership if you are certificated and employed as an educational staff associate. You are a teacher for purposes of TRS membership if you:

(a) Possess a valid educational staff associate certificate issued by the office of the superintendent of public instruction under WAC 180-75-055(3); and

(b) Serve in an educational staff associate position.

(2) Positions which qualify as an educational staff associate. "Educational staff associate," includes but is not limited to a person employed by a public school in any of the following positions: Communications disorder specialist, occupational therapist, physical therapist, reading resource technician, school counselor, school nurse, school psychologist, school social worker and school librarian.

(3) If you were enrolled in PERS before June 7, 1984, based on your employment as an educational staff associate, you may remain in PERS. If you were enrolled in the PERS prior to June 7, 1984, based on employment as an educational staff associate, you will remain in PERS unless you choose either to:

(a) Transfer your membership to TRS within the time limits established in RCW 41.32.032; or

(b) Terminate your membership in PERS by withdrawing your accumulated contributions.

(4) If you were enrolled in PERS prior to June 7, 1984, based on employment as an educational staff associate and converted to SERS you may maintain your SERS membership. If you were enrolled in the PERS prior to June 7, 1984, based on employment as an educational staff associate, and were converted to SERS membership under RCW 41.40.750, you will remain in SERS unless you choose either to:

(a) Transfer your membership to TRS within the time limits established in RCW 41.32.032; or

(b) Terminate your membership in SERS Plan 2 by withdrawing your accumulated contributions.

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Member" - RCW 41.32.010.

(b) "Employer" - RCW 41.32.010.

(c) "Public school" - RCW 41.32.010 and WAC ((415-112-0158)) 415-112-015.

(d) "Service" - RCW 41.32.010.

(e) "Teacher" - RCW 41.32.010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-112-135, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 95-16-053, 415-112-135, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-112-155   If I work in both a TRS position and PERS position during the same school year, which system will I be in?   (1) If you work in both a TRS and PERS position during the same school year, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either TRS or PERS according to the following tables:

Former TRS Plan 1 Members 1/

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
A substitute or less than full-time teaching position and a PERS-eligible position Same employer PERS - for both positions.
Separate TRS employers PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in PERS will be transferred to TRS.

A TRS employer and non-TRS employer PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, you must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions;

or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

A full-time teaching position and an eligible PERS position Same employer
TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer You must elect to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions;

or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

TRS Plan 1 Members

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
A full-time or less than full-time TRS position and an eligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer You must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions;

or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

A full-time or less than full-time TRS position and an ineligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions.
A TRS employer and non-TRS employer TRS - for the TRS position only; your ineligible PERS position is not reportable.

TRS Plan 2 Members

Type of

Employment 2/

Type of

Employer(s)


System You Will Be Reported In
An eligible TRS position and an ineligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for TRS position only; your ineligible PERS position is not reported.
A TRS employer and non-TRS employer TRS - for TRS position only; your ineligible PERS position is not reported.
An eligible TRS position and an eligible PERS position Same employer TRS - for both positions.
Separate TRS employers TRS - for both positions. 3/
A TRS employer and non-TRS employer You must elect either to:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions;

or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

PERS Members

Type of

Employment 2/

Type of

Employer(s)


System You Will Be Reported In
An eligible PERS position and an ineligible TRS or substitute position Same employer PERS - for both positions.
Separate TRS employers PERS - for the PERS position only, unless you qualify for and elect to establish membership in TRS at the end of the school year under WAC 415-112-125 (1).


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in PERS will be transferred to TRS.

A TRS employer and non-TRS employer PERS - for the PERS position only. You will not be reported for the TRS position unless you elect to either:


1. Have your TRS service reported in PERS and receive service credit in PERS for both positions: or

2. Have your TRS service reported in TRS and not receive service credit for the PERS position.

Neither TRS Nor PERS Member

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
An ineligible TRS and an ineligible PERS position Same employer TRS - for both positions if the positions combined, qualify as an eligible position.
Separate employers, TRS or non-TRS
Neither position reported.
A substitute teaching position and an ineligible PERS position Same employer Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.
Separate employers, TRS or non-TRS Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.

1/ "Former TRS 1 member", as used here, means you terminate your membership by withdrawing your contributions.

2/ Means during the same school year.

3/ EXAMPLE: A TRS 2 member teaches in an eligible position and during the summer, she works for a state agency in an eligible position under PERS. Because the member has established membership in TRS 2 through employment as a teacher, her state agency employer must report her service and compensation from the PERS position to the Department in TRS 2.

EXAMPLE: A TRS 2 member is employed concurrently by School District A in an eligible TRS position and by School District B in an eligible PERS position. Because he is a TRS 2 member, School District B employer must report his service and compensation from the PERS position to the Department in TRS 2. If the member terminates his employment in the TRS position with School District A, School District B will report him in PERS for the PERS position.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.32.010 (TRS); RCW 41.40.010 (PERS).

(b) "Employer" - RCW 41.40.010 (PERS); RCW 41.32.010 (TRS).

(c) "Full time" - RCW 41.32.240.

(d) "Ineligible position" - WAC ((415-112-0154)) 415-112-015 (TRS); RCW 41.40.010 (PERS).

(e) "Member" - RCW 41.40.010.

(f) "Membership" - RCW 41.40.023.

(g) "Report" - WAC 415-108-0104.

(h) "Service" - RCW 41.40.010.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-112-155, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 00-10-015, 415-112-155, filed 4/21/00, effective 5/22/00; 95-16-053, 415-112-155, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-112-156   If I work in both a TRS position and SERS position during the same school year, which system will I be in?   (1) If you work in both a TRS and SERS position during the same year, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either TRS and SERS according to the following table:

Former TRS Plan 1 Members 1/

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
A substitute or less than full-time teaching position and a SERS-eligible position Same SERS employer SERS - for both positions.
Separate SERS employers SERS - for SERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240.


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in SERS will be transferred to TRS.

A full-time teaching position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.

TRS Plan 1 Members

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
A full-time or less than full-time TRS position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.
A full-time or less than full-time TRS position and an ineligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions.

TRS Plan 2 or 3 Members

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
An eligible TRS position and an ineligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for TRS position only; your ineligible SERS position is not reported.
An eligible TRS position and an eligible SERS position Same employer TRS - for both positions.
Separate SERS employers TRS - for both positions. 3/

SERS Members

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
An eligible SERS position and an ineligible TRS or substitute position Same employer SERS - for both positions.
Separate SERS employers SERS - for the SERS position only, unless you qualify for and elect to establish membership in TRS at the end of the school year under WAC 415-112-125 (1).


If you elect to establish TRS membership, your employers will report you in TRS for both positions. Any previously reported service credit and compensation in SERS will be transferred to TRS.

Neither TRS Nor SERS Member

Type of

Employment 2/

Type of

Employer(s)

System You Will Be Reported In
An ineligible TRS and an ineligible SERS position Same employer TRS - for both positions if the positions combined, qualify as an eligible position.
Separate SERS employers Neither position reported.
A substitute teaching position and an ineligible SERS position Same employer Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.
Separate SERS employers Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140.

1/ "Former TRS 1 member," as used here, means you terminate your membership by withdrawing your contributions.

2/ Means during the same school year.

3/ EXAMPLE: A TRS 2 member is employed concurrently by School District A in an eligible TRS position and by School District B in an eligible SERS position. Because he is a TRS 2 member, School District B employer must report his service and compensation from the SERS position to the department in TRS 2. If the member terminates his employment in the TRS position with School District A, School District B will report him in SERS for the SERS position.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Eligible position" - RCW 41.35.010(SERS); RCW 41.32.010 (TRS).

(b) "Employer" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(c) "Ineligible position" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(d) "Member" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

(e) "Membership" - RCW 41.35.030 (SERS).

(f) "Report" - WAC ((415-110-0104)) 415-110-010 (SERS).

(g) "Service" - RCW 41.35.010 (SERS); RCW 41.32.010 (TRS).

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-112-156, filed 12/12/00, effective 1/12/01.]


AMENDATORY SECTION(Amending WSR 02-02-060, filed 12/28/01, effective 1/1/02)

WAC 415-112-541   How will returning to work affect my TRS Plan 1 monthly pension?   This section implements RCW 41.32.570, which limits employment for TRS Plan 1 retirees with public educational institutions to fifteen hundred hours regardless of the nature of service.

(1) You may return to any type of service with a public education institution for up to fifteen hundred hours per school year as defined in WAC ((415-112-0161)) 415-112-015 without affecting your TRS Plan 1 monthly pension under RCW 41.32.570, provided you have been retired from service for one full calendar month (see WAC 415-112-520 and 415-112-525 for more information).

(a) Your employer must notify the department when you return to work. Your employer must report hours and compensation.

(b) If you are a TRS Plan 1 retiree and you work more than fifteen hundred hours during a fiscal year, the department will suspend your monthly pension. The pension is suspended until the first of the next fiscal year or termination of your employment, whichever comes first.

(c) The TRS Plan 1 limits will be applied to retirees from both TRS Plan 1 and a Plan 2 or 3 in another pension plan.

(d) The TRS Plan 1 limits will be applied to retirees from both TRS Plan 1 and PERS Plan 1.

(e) If you are a TRS Plan 1 retiree working for a public education institution as a bona fide independent contractor as determined under WAC 415-02-110, you are not considered an employee of the institution and are not subject to the work limitations.

(2) If the department suspends your benefit because of your reemployment, the department will reinstate the original amount of your pension, less deductions to recover any overpayment, effective the day following your termination of employment, or at the beginning of the next fiscal year, whichever comes first.

(3) You must repay any monthly pension payment that you receive in excess of the amounts allowed under this section.

(4) You may choose to return to membership if you are employed by a public education institution and are otherwise eligible. Membership will be prospective from the month in which you opt into membership.

(5) Defined terms used. Definitions for the following term used in this section may be found in the section listed.

Public educational institution: WAC ((415-112-0157)) 415-112-015.

[Statutory Authority: RCW 41.50.050(5), 41.04.270, 41.26.030, 41.32.010, 41.32.025, 41.32.480, 41.32.500, 41.32.570, 41.32.765, 41.32.795, 41.32.802, 41.32.855, 41.32.860, 41.32.862, 41.35.010, 41.35.030, 41.35.060, 41.35.450, 41.35.640, 41.40.010, 41.40.023, 41.40.037, 41.40.150, 41.40.193, 41.40.680, 41.40.750, 41.40.801. 02-02-060, 415-112-541, filed 12/28/01, effective 1/1/02.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 415-112-0151 Contract period -- Definition.
WAC 415-112-0154 Ineligible position -- Definition.
WAC 415-112-0156 Pension benefit -- Definition.
WAC 415-112-0157 Public educational institution -- Definition.
WAC 415-112-0158 Public school -- Definition.
WAC 415-112-0159 Qualified to teach -- Definition.
WAC 415-112-0160 Reportable compensation -- Definition.
WAC 415-112-0161 School year -- Definition.
WAC 415-112-0162 Service in an administrative or supervisory capacity -- Definition.
WAC 415-112-0163 Service in an instructional capacity -- Definition.
WAC 415-112-0165 Spousal consent -- Definition.
WAC 415-112-0167 System acronyms -- Definition.

OTS-5516.5


AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-113-030   Definitions for purposes of ((WAC 415-113-035 through 415-113-200)) chapter 415-113 WAC.   (1) All definitions in RCW 41.54.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.54 RCW are defined in this chapter ((at WAC 415-113-0301 through 415-113-0310)).

(2) Average compensation means the compensation used by a particular retirement system to calculate a dual member's service retirement allowance. The actual meaning of the term varies depending upon the retirement system. With respect to each dual member system, "average compensation" means:

(a) First class city retirement systems: Final compensation as defined in RCW 41.28.010;

(b) LEOFF Plan 2: Final average salary as defined in RCW 41.26.030 (12)(b);

(c) PERS: Average final compensation as defined in RCW 41.40.010(17);

(d) SERS: Average final compensation as defined in RCW 41.35.010(14);

(e) Statewide cities retirement systems: Final compensation as defined in 41.44.030(14).

(f) TRS:

(i) Plan 1: Average earnable compensation as defined in RCW 41.32.497 and 41.32.498;

(ii) Plans 2 and 3: Average final compensation as defined in RCW 41.32.010(30); and

(g) WSPRS: Average final salary as defined in RCW 43.43.120(15).

(3) Dual member system refers to the state and city retirement systems admitted to participate under chapter 41.54 RCW. These systems include:

(a) First class city retirement systems of Seattle, Tacoma and Spokane;

(b) Law enforcement officers' and fire fighters' retirement system (LEOFF) Plan 2;

(c) Public employees' retirement system (PERS) Plans 1, 2 and 3;

(d) School employees' retirement system (SERS) Plans 2 and 3;

(e) Statewide cities employees' retirement system (SCERS);

(f) Teachers' retirement system (TRS) Plans 1, 2 and 3; and

(g) Washington state patrol retirement system (WSPRS) Plans 1 and 2.

(4) First class city retirement systems means the retirement systems for the non-LEOFF member employees of the cities of Seattle, Spokane and Tacoma authorized by chapter 41.28 RCW.

(5) Member participant.

(a) For all dual member systems administered by the department other than TRS Plan 1, "member participant" means a person who is employed for compensation in a dual member system qualifying position and is admitted into the membership of the system.

(b) For TRS Plan 1, "member participant" includes persons meeting the definition of (a) of this subsection and also includes members who are not employed for compensation but have accumulated contributions standing to their credit with TRS.

(c) This definition may not apply to first class city systems. See RCW 41.54.061 and WAC 415-113-005. If you have a question, you should contact the appropriate first class city system.

(6) Multiple system benefit means retirement allowances from two or more dual member systems calculated under chapter 41.54 RCW.

(7) Multiple system participant means a person who is a participant in two or more dual member systems.

(8) Multiple system retiree means a person who chooses to retire under the provisions of chapter 41.54 RCW.

(9)(a) Nonmember participant means a person who is no longer employed in a dual member system qualifying position but has not withdrawn his or her accumulated employee contributions.

(b) This definition does not apply to TRS Plan 1. A TRS Plan 1 member who meets the criteria of (a) of this subsection is a member participant.

(c) This subsection applies only to the retirement systems listed in RCW 41.50.030.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-113-030, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 95-03-001, 415-113-030, filed 1/4/95, effective 2/4/95. Statutory Authority: RCW 34.05.350 and 1990 c 192 5(4). 90-22-038, 415-113-030, filed 11/1/90, effective 12/2/90.]


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-113-041   Am I a dual member?   You must meet all of the following criteria to be a dual member:

(1) You must be a participating member of a dual member system. You must be a current member participant in at least one of the systems listed in WAC 415-113-030 to be a dual member. You may have established dual member status if you are or were a member participant in one of those systems on or after:

(a) July 1, 1988, for current or former members of all plans of PERS, SERS, TRS, SCERS or WSPRS;

(b) July 25, 1993, for current or former members of LEOFF Plan 2; or

(c) January 1, 1994, for current or former members of a first class city retirement system;

(2) You must also be a former or current member of at least one other system listed in WAC ((415-113-0303)) 415-113-030.

(3) You must not have been retired for service from a retirement system. You are not a dual member if you have ever been retired for service from any retirement system administered by the department of retirement systems or a first class city retirement system.

(4) If you are receiving a disability retirement allowance or disability leave benefits from a dual member system or LEOFF Plan 1, you cannot be a dual member.

(a) If you have received a lump sum disability benefit from PERS Plan 2 or 3, SERS Plan 2 or 3, TRS Plan 2 or 3 or LEOFF Plan 2 you are in receipt of a disability benefit unless the department has found that you are no longer disabled.

(b) You are not receiving a disability retirement allowance or disability leave benefits if you:

(i) Previously received disability benefits and the department has subsequently found that you are no longer disabled, and has terminated your disability benefit; or

(ii) Retired for disability from service from WSPRS Plan 1 or 2.


Example 1: A former PERS Plan 1 member who has never been retired and becomes a member participant in TRS Plan 2 through employment with a TRS employer becomes a dual member.

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member" - RCW 41.54.010(4).

(b) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(c) "Member participant" - WAC ((415-113-0305)) 415-113-030.

[Statutory Authority: RCW 41.50.050(5), 41.54.010, 41.54.061. 02-03-120, 415-113-041, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-113-041, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-041, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-041, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-113-042   What can terminate my status as a dual member?   (1) If you terminate your status as a participating member, you also terminate your status as a dual member. If you are no longer a member participant in any dual member system, you are no longer a dual member. If you later become a member of a dual member system, you again become a dual member.


Example 2: Upon separation from TRS Plan 2 eligible employment, the person in Example 1 (see WAC 415-113-041) is no longer a member of TRS Plan 2 nor a dual member.

(2) If you retire, you are no longer a dual member. When you retire from any or all dual member systems, you are no longer a dual member except for the purpose of receiving a deferred retirement allowance under RCW 41.54.030(3) and WAC 415-113-070.

(3) If you terminate dual membership, you may still be eligible to receive a multiple system benefit if otherwise eligible. The accrual date of your retirement allowance will vary depending upon the provisions of the particular system. You can find the accrual dates of different dual member systems in the following provisions:

(a) LEOFF 2: RCW 41.26.490;

(b) PERS 1: RCW 41.40.193;

(c) PERS 2: RCW 41.40.680;

(d) PERS 3: RCW 41.40.801;

(e) SERS 2; RCW 41.35.450;

(f) SERS 3: RCW 41.35.640;

(g) TRS 1: WAC 415-112-520;

(h) TRS 2: RCW 41.32.795;

(i) TRS 3: RCW 41.32.855.

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member" - RCW 41.54.010(4), WAC 415-113-041.

(b) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(c) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(d) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

[Statutory Authority: RCW 41.50.050(5), 41.54.010, 41.54.030. 02-03-120, 415-113-042, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-113-042, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-042, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-042, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 99-22-043, filed 10/29/99, effective 11/29/99)

WAC 415-113-045   Can I reestablish service credit in a prior system?   (1) You may reestablish service credit terminated by a withdrawal of contributions from a prior system. If you repay contributions you withdrew from a prior dual member system plus interest from the date of withdrawal you will recover the service terminated by the withdrawal. To qualify, you must repay the contributions plus interest within twenty-four consecutive months from the date you became a dual member.

(a) The twenty-four-month restoration period continues to run even if you terminate dual member status.

(b) If you terminate your dual member status but later become a dual member again, you have twenty-four consecutive months from the date you regain dual member status to repay withdrawn contributions.


Example 3: A person becomes a dual member on January 1, 1994. She has until December 31, 1995, to restore any previously withdrawn contributions for service credit in a prior system regardless of whether she subsequently loses her status as a dual member.
Example 4: A person becomes a dual member on January 1, 1994, separates from membership on January 1, 1995, and then reenters membership on January 1, 1996. He has until December 31, 1997, twenty-four consecutive months from the date he regained dual member status, to restore withdrawn contributions in any prior system.

(c) If you have previous service in LEOFF Plan 2 or a first class city system:

(i) If you were a dual member on July 25, 1993, and you used to be a member of LEOFF Plan 2, you have until July 24, 1995, to repay your withdrawn contributions.

(ii) If you were a dual member on January 1, 1994, and you used to be a member of a first class city retirement system, you have until December 31, 1995, to repay your withdrawn contributions.


Example 5: A person is a member participant in PERS Plan 2 and has previous service in LEOFF Plan 2. LEOFF Plan 2 was newly admitted to participate under the portability provisions of chapter 41.54 RCW on July 25, 1993. Therefore, the person has until July 24, 1995, to restore her prior LEOFF Plan 2 service.

(2) You may reestablish TRS Plan 1 membership. If a PERS member restores withdrawn TRS Plan 1 contributions under this section he or she:

(a) Reestablishes membership in TRS Plan 1; and

(b) Will participate prospectively in TRS Plan 1 if employed by a state agency, school district or other TRS employer.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member" - RCW 41.54.010(4), WAC 415-113-041.

(b) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(c) "First class city retirement system" - WAC ((415-113-0304)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-045, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-045, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 96-20-004, filed 9/19/96, effective 10/20/96)

WAC 415-113-055   Am I eligible for a multiple system benefit?   To be eligible for a multiple system benefit, you must meet the criteria listed in this section.

(1) You may retire for service or disability. You may retire with a multiple system benefit if you retire from all systems for service. You may also retire with a disability retirement from your current system, other than a benefit provided by RCW 41.40.220 or WSPRS, and a service retirement from your prior system.

(2) You must retire from all systems. You may only retire with a multiple system benefit if you retire from all dual member systems that you participate in.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Accumulated contributions" - WAC ((415-113-0301)) 415-113-030.

(b) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(c) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 96-20-004, 415-113-055, filed 9/19/96, effective 10/20/96; 95-03-001, 415-113-055, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 95-03-001, filed 1/4/95, effective 2/4/95)

WAC 415-113-057   Am I required to retire with a multiple system benefit?   You are not required to retire with a multiple system benefit. You may elect to retire from a system or systems without the benefits or restrictions of chapter 41.54 RCW. If you choose to retire from more than one system without receiving a multiple system benefit, you are not subject to the maximum benefit limitation of RCW 41.54.070 and WAC 415-113-090(1).

(1) Waiver of benefits. If you decide not to receive a multiple system benefit, you waive the right to:

(a) Substitute your base salary between retirement systems for purposes of calculating a retirement allowance; or

(b) Combining your service from each system for purposes of determining retirement eligibility.

(2) You are not required to retire with a multiple system benefit even if you repaid contributions as a dual member. If you repaid previously withdrawn contributions from a prior dual member system under RCW 41.54.020, you may still elect to retire from one or more systems without receiving a multiple system benefit.

(3) If you decline a multiple system benefit, you may withdraw your contributions. If you elect to retire without receiving a multiple system benefit, you may withdraw your accumulated contributions from a system in lieu of receiving a retirement allowance, provided that withdrawal is otherwise permissible under the systems' provisions.

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Accumulated contributions" - WAC ((415-113-0301)) 415-113-030.

(b) "Base salary" - RCW 41.54.010(1).

(c) "Dual member" - RCW 41.54.010(4), WAC ((415-113-0303)) 415-113-030.

(d) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(e) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 95-03-001, 415-113-057, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-113-065   Can I substitute salary from one system to another?   (1) You can substitute base salary between systems.

(a) If you choose to retire with a multiple system benefit, you may substitute your base salary under one dual member system for your includable compensation in a second dual member system for purposes of computing a retirement allowance from the second system. Using the substituted salary, the department will compute your average compensation under each system's own requirements.


Example 6: At retirement, Sandy is a member participant in PERS Plan 2 and has prior creditable service in TRS Plan 1. She earned her highest compensation during her PERS Plan 2 service. Sandy's PERS Plan 2 retirement allowance will be based on her PERS Plan 2 average compensation. For purposes of computing her TRS average compensation and retirement allowance, Sandy may substitute her PERS Plan 2 base salary earned over two consecutive fiscal years for her earnable compensation in TRS.
Example 7: At retirement, Pat is a member participant in TRS Plan 1 and has prior creditable service in PERS Plan 1. He earned his highest compensation during his membership in TRS Plan 1 and received a sick-leave cashout. Pat may substitute his base salary earned while a member in TRS Plan 1 for his PERS Plan 1 compensation earnable. However, because Pat may substitute only his base salary from TRS Plan 1 for his compensation earnable in PERS, his PERS average compensation will not include the cashout payments from his TRS employer.

(b) If you do not have sufficient service credit months in one dual member system to complete an average compensation period under that system, the department will substitute the appropriate number of months of base salary from another system to complete the average compensation period.


Example 8: Tim has creditable service in TRS Plan 1 and PERS Plan 2. He retires at age sixty-five after accruing twenty-four months of service in PERS Plan 2. Under PERS Plan 2, a member's average compensation period is the member's highest consecutive sixty-month period of compensation. To compute Tim's PERS Plan 2 retirement allowance, the department will substitute his highest consecutive thirty-six service credit months of TRS base salary to complete the PERS sixty-month average compensation period.

(2) Adjusted full-time salary is not base salary. A multiple system retiree's adjusted full-time salary under RCW 41.32.345 shall not constitute base salary for purposes of computing the retiree's multiple system benefit.

(3) Includable compensation defined. For purposes of this chapter, "includable compensation" means:

(a) Earnable compensation under TRS Plan 1, 2 or 3 as defined in RCW 41.32.010(10);

(b) Compensation earnable under PERS Plan 1, 2 or 3 as defined in RCW 41.40.010(8);

(c) Basic salary under LEOFF Plan 2 as defined in RCW 41.26.030 (13)(b);

(d) Monthly salary under WSPRS Plan 1 or 2 as defined in RCW 43.43.120(23) ((and WAC 415-103-010)); and

(e) Compensation earnable under SERS Plan 2 or 3 as defined in RCW 41.35.010(6).

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Average compensation" - WAC ((415-113-0302)) 415-113-030.

(b) "Base salary" - RCW 41.54.010(1).

(c) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(d) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(e) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

(f) "Multiple system retiree" - WAC ((415-113-0308)) 415-113-030.

[Statutory Authority: RCW 41.50.050(5) and 41.54.030. 02-03-120, 415-113-065, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-113-065, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-065, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-065, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-113-070   If I retire as a dual member, must I receive benefits from both systems immediately?   (1) If you qualify to retire in one system but not the second system, you may nonetheless choose to retire from both systems and receive a multiple system benefit.

(2) If you retire with a multiple system benefit, before you have become eligible in a second system(s), you must either:

(a) Take an actuarial reduction in the retirement allowance you receive from the second system(s); or

(b) Defer receipt of your retirement allowance in the second system(s) under RCW ((41.554.030)) 41.54.030(3).

(3) If you take an actuarial reduction under subsection (2)(a) of this section, the reduction will account for the difference between your age at the time you begin to receive the retirement allowance and the earliest age when you would be fully eligible based on your combined service. You are "fully eligible" when you meet the age and service qualifications for retirement for each system.

(4) If you defer receipt of your retirement allowance under subsection (2)(b) of this section:

(a) You will retain dual member status for the sole purpose of receiving a deferred retirement allowance from the second system(s); and

(b) You may not subsequently withdraw accumulated contributions from the second system(s).


Example 9: A sixty-two year old dual member of PERS Plan 1 and TRS Plan 2 retires. He chooses to receive PERS Plan 1 benefits but defers receipt of a TRS Plan 2 retirement allowance. If he becomes reemployed in a TRS Plan 2 eligible position, he will reenter TRS Plan 2 membership if otherwise eligible and terminate his dual member status, but he will continue to receive his PERS Plan 1 retirement allowance until he works more than the work-limit in a calendar year under WAC 415-108-710. The member's eligibility to retire from TRS Plan 2 will be based solely on his accrued service credit in TRS Plan 2 and his TRS Plan 2 retirement allowance will be based solely on his compensation while he was a member participant in TRS Plan 2.
Example 10: Assume the retiree in Example 9 above became reemployed in a PERS position rather than a TRS Plan 2 position. He could work in this position up to the work-limit in a calendar year under WAC 415-108-710 without having his PERS retirement allowance suspended. If the retiree works over the work-limit:
The department would suspend his retirement allowance until the next calendar year. He would remain a dual member. He would be able to retire in TRS 2 if otherwise eligible;
The retiree could choose to reenter PERS Plan 1 membership at any time, if otherwise eligible, and terminate his dual member status. His choice for membership is not retroactive. The effect on the person's right to a TRS Plan 2 benefit is the same as in Example 9. See WAC 415-108-710.

(5) If you defer your retirement allowance and die before you begin receiving the allowance, your survivor may receive a continuing benefit. If you defer receipt of your retirement allowance from a system and die before you choose to begin receiving the allowance:

(a) Your surviving spouse, if any, must choose to receive either:

(i) A joint and one hundred percent survivor option from the deferred system. If your surviving spouse selects this option, your base salary under one system may be substituted for your includable compensation in the deferred system to compute the survivor retirement allowance from the deferred system; or

(ii) A refund of your accumulated contributions from the deferred system.

(b) If you do not have a surviving spouse, the department will pay your accumulated contributions from the deferred system to:

(i) Your designated beneficiary or beneficiaries; or

(ii) Your estate, if there are no living beneficiaries.

(6) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(b) "Includable compensation" - WAC 415-113-065(3).

(c) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(d) "Multiple system participant" - WAC ((415-113-0307)) 415-113-030.

(e) "Nonmember participant" - WAC ((415-113-0309)) 415-113-030.

(f) "System" - RCW 41.54.010(6).

[Statutory Authority: RCW 41.50.050(5) and 41.54.030. 02-03-120, 415-113-070, filed 1/23/02, effective 3/1/02. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-113-070, filed 12/12/00, effective 1/12/01. Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-070, filed 10/29/99, effective 11/29/99; 96-20-004, 415-113-070, filed 9/19/96, effective 10/20/96; 95-03-001, 415-113-070, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 99-22-043, filed 10/29/99, effective 11/29/99)

WAC 415-113-080   Can I retire retroactively?   You may retire retroactively. If you retire from all dual member systems, your retirement allowance from a prior system will be retroactive back to your accrual date under the prior system.

(1) Accrual date determined. The department will determine your accrual date in each system by combining your total service and applying the statute or rule designating accrual dates in the particular system. Your accrual date for purposes of this section is the date that your combined service first makes you eligible for an unreduced benefit.


Example 11: A person is a fifty-five year old member participant in PERS Plan 2 and a nonmember participant in LEOFF Plan 2. The person decides not to retire from LEOFF Plan 2 until he is eligible to retire with full benefits from PERS Plan 2 at age sixty-five. Upon retirement, he will be entitled to a LEOFF Plan 2 retirement allowance effective on his accrual date under LEOFF Plan 2 (i.e., age fifty-five).
Example 12: A person with twenty years of prior service in TRS Plan 1 becomes a member participant in PERS Plan 2 on her fifty-fourth birthday. By combining her service in both systems under chapter 41.54 RCW, she will become eligible to retire under TRS Plan 1 at age fifty-nine with twenty-five total years of service. Assume she retires from both systems at age sixty-five. Her TRS Plan 1 retirement allowance will be effective back to the date it accrued under TRS Plan 1 (i.e., the first of month following the month she turns fifty-nine).

(2) You cannot use salary earned after your accrual date in calculating your retroactive benefit. If you retire retroactively from a prior system, the department will not use any of the salary you earned after your accrual date to compute your benefit from the prior system.


Example 13: A PERS Plan 1 member receives a salary of $3,000 per month. She has 30 years of service credit at age 50 and is eligible to retire with an unreduced (full) benefit.

Subsequently, she is offered a TRS Plan 3 covered position at a monthly salary of $3,500. If she accepts the TRS Plan 3 position, will she be able to use its higher monthly salary of $3,500 as base salary to calculate her PERS Plan 1 retirement benefit when she does retire? No, she will not. The TRS Plan 3 salary would have been earned after the PERS Plan 1 accrual date: The date that she first became eligible to retire with an unreduced benefit under PERS Plan 1 rules.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(b) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(c) "Nonmember participant" - WAC ((415-113-0309)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-080, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-080, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 99-22-043, filed 10/29/99, effective 11/29/99)

WAC 415-113-082   Could retroactive retirement cancel my membership in a subsequent system?   (1) If you retire retroactively from a prior system, you could cancel your membership in a subsequent system. If your membership in a subsequent system would have been prohibited under RCW 41.04.270 but for your status as a dual member, and you retire retroactively from a prior system, the department will cancel your membership and refund your contributions in the subsequent system under RCW 41.54.020(1). Your retroactive retirement from a prior system may cancel your membership in a subsequent system according to the following table:



How much service did you earn in your prior system?

Were you eligible to retire in the prior system before you became a member of your subsequent system?

Will retroactive retirement from your prior system cancel your membership in subsequent system?

15 years or more

No

No (See Example 13)

15 years or more

Yes

Yes, unless you retire from both the prior and subsequent system under RCW 41.54.030(2). (See Example 14)

Less than 15 years

No

No (See Example 15)

Less than 15 years

Yes

No (See Example 15)
See RCW 41.54.020(1) and RCW 41.04.270.


Example

14:

A nonmember participant in LEOFF Plan 2 who has accrued sixteen years of service in LEOFF Plan 2 became a member of PERS Plan 2 at age fifty-four. Because she became a member participant of PERS Plan 2 at age fifty-four, prior to attaining retirement eligibility under LEOFF Plan 2 (i.e., age fifty-five), she may later retire retroactively from LEOFF Plan 2, subject to LEOFF Plan 2 criteria, while continuing membership in PERS Plan 2.
Example

15:

A nonmember participant in LEOFF Plan 2 with sixteen years of accrued service became a member of PERS Plan 2 at age fifty-five. If he attempts to retire from LEOFF Plan 2 while continuing membership in PERS Plan 2, the department will cancel his PERS Plan 2 membership and refund his PERS contributions. However, if he retires from both systems, he is entitled to retain the benefits of his PERS Plan 2 membership.
Example

16:

Assume either of the retirees in Examples 13 and 14 above had accrued less than fifteen years of service in LEOFF Plan 2. In this case, RCW 41.04.270 would not apply to prevent the retirees from establishing PERS Plan 2 membership. Either person could retire retroactively from the LEOFF Plan 2 without canceling membership and participation in PERS Plan 2.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Dual member" - RCW 41.54.010(4), WAC 415-113-041.

(b) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(c) "Nonmember participant" - WAC ((415-113-0309)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-082, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-082, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 99-22-043, filed 10/29/99, effective 11/29/99)

WAC 415-113-084   How will my benefit be computed if I retire retroactively from LEOFF Plan 2?   (1) Computation of your retroactive LEOFF Plan 2 retirement allowance. If you retire with a multiple system benefit and one of your retirement allowances is a retroactive LEOFF Plan 2 allowance, the department will compute your LEOFF Plan 2 allowance based upon the greater of:

(a) Your LEOFF Plan 2 final average salary, substituting some or all of your base salary under the second system which you earned prior to the date your LEOFF Plan 2 retirement allowance began to accrue (i.e., age fifty-five); or

(b) An indexed retirement allowance under RCW 41.26.530(2) using your LEOFF Plan 2 average compensation.


Example

17:

A person who is a nonmember participant of LEOFF Plan 2 and a member participant of PERS Plan 2 retires from both systems at age sixty-five. If he had accrued twenty-one years of creditable service in LEOFF Plan 2, the multiple system retiree's LEOFF Plan 2 retirement allowance may be based upon either: His substituted PERS Plan 2 base salary which he earned prior to attaining retirement eligibility in LEOFF at age fifty-five; or the LEOFF Plan 2 indexed retirement allowance under RCW 41.26.530(2) using his LEOFF Plan 2 average compensation. The department will use the method which results in the largest retirement allowance.

(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(b) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

(c) "Multiple system retiree" - WAC ((415-113-0308)) 415-113-030.

(d) "Nonmember participant" - WAC ((415-113-0309)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-084, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-084, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-113-090   What is the maximum retirement benefit that I may receive under chapter 41.54 RCW?   (1) Your multiple system benefit may not exceed the highest maximum benefit which you would be permitted to receive under any one of the dual member systems from which you are retiring if all of your service had been provided in one system. See RCW 41.54.070.

(2) The department will compute your maximum multiple system benefit in the following order:

(a) Calculate the maximum benefit you could receive under each system. The department will compute your maximum benefit according to the benefit limitation provisions of each system as if you had earned your total career service and compensation in that system. In computing your maximum benefit under each system, the department will:

(i) Apply the provisions of each system governing the calculation of your average compensation in that system; and

(ii) Assume you earned all of your career service with your last employer for purposes of determining any limitations on the inclusion of leave cashouts in your average compensation.


Example 18: A multiple system retiree retires from TRS Plan 1 state employment with prior creditable PERS Plan 1 service. His PERS employer pays him an accrued sick leave cashout at termination. Because a sick leave cashout from a state agency employer is not includable as TRS earnable compensation, the department will not include the cashout in the retiree's average compensation for purposes of computing either his PERS Plan 1 or TRS Plan 1 maximum benefit.
Example 19: A multiple system retiree retires from PERS Plan 1 local government employment and receives a sick leave cashout. Because a sick leave cashout from a local government employer may be included as earnable compensation, the department will include the sick leave cashout to compute the retiree's maximum benefits under both PERS Plan 1 and TRS Plan 1.

(b) Determine your retirement allowances from each system. After computing your maximum benefit, the department will determine the retirement allowances to which you are entitled from each system under chapter 41.54 RCW before making any reduction under RCW 41.54.070. If applicable, the department will then reduce the amount of your retirement allowances provided by either of the dual member systems for:

(i) Your status as a nonmember participant of WSPRS Plan 1 or 2 pursuant to RCW 43.43.280(2); or

(ii) Your choice to retire early from a Plan 2 system under RCW 41.40.630(2), 41.32.765(2), 41.35.420(2), and 41.26.430(2) or Plan 3 system under RCW 41.32.875(2), 41.35.680(2), and 41.40.820(2).

(c) Compute your total multiple system benefit. Upon computing your retirement allowances from each system and making any applicable reductions under (b) of this subsection, the department will add the systems' allowances to compute your total multiple system benefit.

(d) Compare your total multiple system benefit with your maximum benefit and, if necessary, proportionately reduce your retirement allowances. The department will then compare your total multiple system benefit with your maximum benefit calculated in (a) of this subsection. If your total multiple system benefit exceeds your maximum benefit, the department will proportionately reduce your retirement allowances provided by each system as follows:

(i) Calculate what proportion your total multiple system benefit is provided by each system separately; and

(ii) Proportionately reduce the benefit provided by each system to account for the excess of your total multiple system benefit over your maximum benefit.


Example 20: A person with twenty-nine years of prior service in TRS Plan 1 and one year of subsequent service in PERS Plan 2 retires from both systems at age sixty-five. The retiree's TRS Plan 1 average compensation is thirty thousand dollars. The TRS Plan 1 maximum benefit is sixty percent of average compensation. The retiree's maximum TRS benefit is eighteen thousand dollars or one thousand five hundred dollars per month. The retiree's PERS Plan 2 average compensation is twenty-eight thousand dollars. The retiree's maximum PERS 2 benefit is sixteen thousand eight hundred dollars or one thousand four hundred dollars per month. The retiree's maximum benefit is the higher of the two amounts, one thousand five hundred dollars per month.
Assume the retiree's accrued service is such that her actual TRS Plan 1 monthly benefit is one thousand four hundred fifty dollars and her PERS Plan 2 monthly benefit is one hundred dollars. The retiree's total multiple system benefit is the sum of her TRS Plan 1 and PERS Plan 2 benefits, or one thousand five hundred fifty dollars. Because the retiree's total multiple system benefit exceeds her maximum benefit by fifty dollars, the department would proportionately reduce her TRS Plan 1 and PERS Plan 2 benefits. Her TRS Plan 1 benefit is 29/30 of her total service or ninety-seven percent, and her PERS Plan 2 benefit is 1/30 of total service, or three percent. The department would reduce her TRS Plan 1 benefit by ninety-seven percent of the overage, or forty-eight dollars and fifty cents (50 x.97) and her PERS Plan 2 benefit by three percent of the overage, or one dollar and fifty cents (50 x.03).

(3) If you select a benefit payment option, the department will reduce your multiple system benefit to account as appropriate. After making any applicable maximum benefit reductions, the department will further reduce your benefit if you choose:

(a) To withdraw your accumulated contributions at the time you retire from TRS Plan 1;

(b) A survivor benefit option; or

(c) A cost-of-living adjustment (COLA) option.

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Average compensation" - WAC ((415-113-0302)) 415-113-030.

(b) "Dual member" - RCW 41.54.010(4), WAC 415-113-041.

(c) "Dual member system" - WAC ((415-113-0303)) 415-113-030.

(d) "First class city system" - WAC ((415-113-0304)) 415-113-030.

(e) "Member participant" - WAC ((415-113-0305)) 415-113-030.

(f) "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

(g) "Multiple system retiree" - WAC ((415-113-0308)) 415-113-030.

(h) "Nonmember participant" - WAC ((415-113-0309)) 415-113-030.

[Statutory Authority: RCW 41.50.050(5) and 41.54.070. 02-03-120, 415-113-090, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-090, filed 10/29/99, effective 11/29/99; 96-20-004, 415-113-090, filed 9/19/96, effective 10/20/96; 95-03-001, 415-113-090, filed 1/4/95, effective 2/4/95.]


AMENDATORY SECTION(Amending WSR 99-22-043, filed 10/29/99, effective 11/29/99)

WAC 415-113-100   Am I eligible for a lump sum retirement allowance?   (1) If you retire with a multiple system benefit and one of your retirement allowances is less than fifty dollars per month, you may receive a lump sum payment as allowed under RCW 41.54.090.

(2) Unless you are retiring from TRS Plan 1, the department will use your standard retirement allowance to determine your eligibility for lump sum cashouts under RCW 41.54.090.

(3) If you are retiring from TRS Plan 1, the department will use your maximum retirement allowance under TRS Plan 1 to determine your eligibility for lump sum cashouts under RCW 41.54.090.

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed: "Multiple system benefit" - WAC ((415-113-0306)) 415-113-030.

[Statutory Authority: RCW 41.50.050. 99-22-043, 415-113-100, filed 10/29/99, effective 11/29/99; 95-03-001, 415-113-100, filed 1/4/95, effective 2/4/95.]


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 415-113-0301 Accumulated contributions -- Definition.
WAC 415-113-0302 Average compensation -- Definition.
WAC 415-113-0303 Dual member system -- Definition and system acronyms.
WAC 415-113-0304 First class city retirement systems -- Definition.
WAC 415-113-0305 Member participant -- Definition.
WAC 415-113-0306 Multiple system benefit -- Definition.
WAC 415-113-0307 Multiple system participant -- Definition.
WAC 415-113-0308 Multiple system retiree -- Definition.
WAC 415-113-0309 Nonmember participant -- Definition.

Washington State Code Reviser's Office