PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 03-07-062.
Title of Rule and Other Identifying Information: WAC 415-108-990 May I waive my Plan 3 one percent retirement benefit?, 415-110-817 May I waive my Pan 3 one percent retirement benefit?, and 415-112-150 May I waive my Plan 3 one percent retirement benefit?
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on July 27, 2004, at 10:00 a.m.
Date of Intended Adoption: No sooner than July 28, 2004.
Submit Written Comments to: Leslie L. Saeger, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail leslies@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on July 27, 2004.
Assistance for Persons with Disabilities: Contact Leslie Saeger by seven days before the date of the hearing, TDD (360) 664-7291, TTY (360) 586-5450.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: These rules implement 2003 HB 2286, which gives members of the public employees retirement system (PERS) Plan 3, school employees' retirement system (SERS) Plan 3, and teachers' retirement system (TRS) Plan 3, the right to irrevocably waive their 1% defined benefit. A member may choose to waive this benefit in order to qualify to purchase service credit from another state retirement system.
Explanation of Rule, its Purpose, and Anticipated Effects: This rule outlines the eligibility requirements, process, and reason for a member of PERS, SERS and TRS Plan 3 to waive their Plan 3 1% defined benefit; and the ramifications of doing so.
Reasons Supporting Proposal: 2003 HB 2286.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: RCW 41.32.837 (TRS), 41.35.612 (SERS), 41.40.787 (PERS).
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of Retirement Systems, governmental.
Name of Agency Personnel Responsible for Drafting: Leslie Saeger, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dorothy Bailey, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7069.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules have no effect on businesses.
RCW does not apply to this rule adoption. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.
June 7, 2004
Leslie Saeger
Rules Coordinator
OTS-7302.1
NEW SECTION
WAC 415-108-990
May I waive my Plan 3 one percent
retirement benefit?
(1) Why would I want to waive my Plan 3
one percent retirement benefit? Some state retirement systems
have provisions that allow members to purchase service credit
earned elsewhere. If you are employed by one of these states
and wish to purchase service credit for time worked in
Washington, you may be required by that state to show proof
that you have waived all of your rights to retirement benefits
from Washington as a condition for purchasing the service
credit.
(2) Do I qualify to waive my Plan 3 one percent retirement benefit? You may irrevocably waive your Plan 3 one percent retirement benefit if:
(a) You are separated from all Plan 3 eligible employment;
(b) You withdrew your funds in your Plan 3 member account or are receiving distributions from your Plan 3 member account;
(c) Your spouse consents to the waiver if you are married;
(d) There is not a court order or administrative order that affects your right to waive your benefits; and
(e) You have not received, or are not receiving, a defined benefit payment.
(3) How do I waive my one percent retirement benefit? You may waive your right to this benefit by submitting a properly completed form, available through the department. The date of the waiver will be the date the department receives your form.
(4) Will I get service credit for eligible time if it is discovered after I sign a waiver? If periods of employment, prior to or within the waived time period, are discovered after you sign a waiver, you will not be credited for the service. However, your employer will be billed for employer contributions for any such period.
(5) May I retract or withdraw my waiver in the future? No. You irrevocably give up all rights to any retirement benefits when you submit your signed waiver.
(6) What are my retirement options if I return to work in a (PERS/SERS/TRS) eligible position? You will be a member of Plan 3 and will begin accumulating service credit from your new date of hire. You will not be entitled to purchase back any of the Plan 3 service credit you waived.
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OTS-7303.1
NEW SECTION
WAC 415-110-817
May I waive my Plan 3 one percent
retirement benefit?
(1) Why would I want to waive my Plan 3
one percent retirement benefit? Some state retirement systems
have provisions that allow members to purchase service credit
earned elsewhere. If you are employed by one of these states
and wish to purchase service credit for time worked in
Washington, you may be required by that state to show proof
that you have waived all of your rights to retirement benefits
from Washington as a condition for purchasing the service
credit.
(2) Do I qualify to waive my Plan 3 one percent retirement benefit? You may irrevocably waive your Plan 3 one percent retirement benefit if:
(a) You are separated from all Plan 3 eligible employment;
(b) You withdrew your funds in your Plan 3 member account or are receiving distributions from your Plan 3 member account;
(c) Your spouse consents to the waiver if you are married;
(d) There is not a court order or administrative order that affects your right to waive your benefits; and
(e) You have not received, or are not receiving, a defined benefit payment.
(3) How do I waive my one percent retirement benefit? You may waive your right to this benefit by submitting a properly completed form, available through the department. The date of the waiver will be the date the department receives your form.
(4) Will I get service credit for eligible time if it is discovered after I sign a waiver? If periods of employment, prior to or within the waived time period, are discovered after you sign a waiver, you will not be credited for the service. However, your employer will be billed for employer contributions for any such period.
(5) May I retract or withdraw my waiver in the future? No. You irrevocably give up all rights to any retirement benefits when you submit your signed waiver.
(6) What are my retirement options if I return to work in a (PERS/SERS/TRS) eligible position? You will be a member of Plan 3 and will begin accumulating service credit from your new date of hire. You will not be entitled to purchase back any of the Plan 3 service credit you waived.
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OTS-7304.1
NEW SECTION
WAC 415-112-150
May I waive my Plan 3 one percent
retirement benefit?
(1) Why would I want to waive my Plan 3
one percent retirement benefit? Some state retirement systems
have provisions that allow members to purchase service credit
earned elsewhere. If you are employed by one of these states
and wish to purchase service credit for time worked in
Washington, you may be required by that state to show proof
that you have waived all of your rights to retirement benefits
from Washington as a condition for purchasing the service
credit.
(2) Do I qualify to waive my Plan 3 one percent retirement benefit? You may irrevocably waive your Plan 3 one percent retirement benefit if:
(a) You are separated from all Plan 3 eligible employment;
(b) You withdrew your funds in your Plan 3 member account or are receiving distributions from your Plan 3 member account;
(c) Your spouse consents to the waiver if you are married;
(d) There is not a court order or administrative order that affects your right to waive your benefits; and
(e) You have not received, or are not receiving, a defined benefit payment.
(3) How do I waive my one percent retirement benefit? You may waive your right to this benefit by submitting a properly completed form, available through the department. The date of the waiver will be the date the department receives your form.
(4) Will I get service credit for eligible time if it is discovered after I sign a waiver? If periods of employment, prior to or within the waived time period, are discovered after you sign a waiver, you will not be credited for the service. However, your employer will be billed for employer contributions for any such period.
(5) May I retract or withdraw my waiver in the future? No. You irrevocably give up all rights to any retirement benefits when you submit your signed waiver.
(6) What are my retirement options if I return to work in a (PERS/SERS/TRS) eligible position? You will be a member of Plan 3 and will begin accumulating service credit from your new date of hire. You will not be entitled to purchase back any of the Plan 3 service credit you waived.
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