WSR 03-06-042

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed February 27, 2003, 3:36 p.m. , effective April 1, 2003 ]

     Date of Adoption: February 27, 2003.

     Purpose: WACs in some programs are being amended to clarify that earnable compensation (or compensation earnable) does not include the amount that an employer pays for health benefits for the member. At the same time, the Department of Retirement Systems attempted to make these rules easier to understand.

     Citation of Existing Rules Affected by this Order: Amending WAC 415-104-299, 415-104-3402, 415-104-385, 415-108-443, 415-108-475, 415-110-443, 415-110-475, 415-112-445, and 415-112-480.

     Statutory Authority for Adoption: RCW 41.50.050(5).

     Other Authority: For WAC 415-104-299, 415-104-3402, and 415-104-385 is chapter 41.26 RCW; for WAC 415-108-443 and 415-108-475 is chapter 41.40 RCW; for WAC 415-110-443 and 415-110-475 is chapter 41.35 RCW; and for WAC 415-112-445 and 415-112-480 is chapter 41.32 RCW.

      Adopted under notice filed as WSR 03-01-051 on December 11, 2002.

     Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

     Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 9, Repealed 0.

     Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0;      Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
     Effective Date of Rule: April 1, 2003.

February 27, 2003

John Charles

Director

OTS-5879.4


AMENDATORY SECTION(Amending WSR 99-16-075, filed 8/3/99, effective 9/3/99)

WAC 415-104-299   Basic salary table.   The following table ((is provided as a quick reference guide to help you characterize payments under LEOFF Plan I and LEOFF Plan II)) will help you determine whether certain types of payments are basic salary under LEOFF Plan 1 or 2. Be sure to ((turn to)) read the referenced rule to ensure that you have correctly identified the payment in question. The department determines basic salary based upon the nature of the payment, not the name applied to it. See WAC 415-104-311 (Plan 1) and WAC 415-104-360 (Plan 2).


Type of Payment LEOFF ((I)) 1 Basic Salary? LEOFF ((II)) 2 Basic Salary?
Additional Duty Pay Yes - WAC 415-104-3205 Yes - WAC 415-104-360
Allowances (i.e. uniform) No - WAC 415-104-3404 No - WAC 415-104-390
Basic Monthly Rate Yes - WAC 415-104-3200 Yes - WAC 415-104-360
Cafeteria Plans No - WAC 415-104-3303 Yes - WAC 415-104-367
Deferred Wages Attached to Position Yes - WAC 415-104-3201(1) Yes - WAC 415-104-363(1)
Deferred Wages not attached to a Position No - WAC 415-104-3306 No - WAC 415-104-363(2)
Disability Payments No - WAC 415-104-340 No - WAC 415-104-380
Education Attainment Pay No - WAC 415-104-3301 Yes - WAC 415-104-375
Employer taxes/contributions No - WAC 415-104-3401 No - WAC 415-104-383
Fringe Benefits, including insurance No - WAC 415-104-3402 No - WAC 415-104-385
Illegal Payments No - WAC 415-104-3403 No - WAC 415-104-387
Leave Cash Outs/Severance No - WAC 415-104-3304 No - WAC 415-104-401
Longevity Yes - WAC 415-104-311 Yes - WAC 415-104-375
Overtime No - WAC 415-104-3305 Yes - WAC 415-104-370
Paid Leave Yes - WAC 415-104-3203 Yes - WAC 415-104-373
Payments in Lieu of Excluded Items No - WAC 415-104-350 No - WAC 415-104-405
Performance Bonuses No - WAC 415-104-3302 Yes - WAC 415-104-377
Retroactive Salary Increase Yes - WAC 415-104-3202 Yes - WAC 415-104-365
Reimbursements No - WAC 415-104-3404 No - WAC 415-104-390
Retirement or Termination Bonuses No - WAC 415-104-3406 No - WAC 415-104-395
Shift Differential Yes - WAC 415-104-3204 Yes - WAC 415-104-379
Special Salary or Wages No - WAC 415-104-330 Yes - WAC 415-104-375
Standby Pay No - WAC 415-104-3405 No - WAC 415-104-393
Tuition/Fee Reimbursement No - WAC 415-104-3404 No - WAC 415-104-390
((Worker's)) Workers' Compensation Not Applicable No - WAC 415-104-380

[Statutory Authority: RCW 41.50.050. 99-16-075, § 415-104-299, filed 8/3/99, effective 9/3/99. Statutory Authority: RCW 41.50.050 and 41.50.055. 97-01-016, § 415-104-299, filed 12/6/96, effective 1/6/97.]


AMENDATORY SECTION(Amending WSR 97-01-016, filed 12/6/96, effective 1/6/97)

WAC 415-104-3402   Fringe benefits are not LEOFF Plan ((I)) 1 basic salary.   Fringe benefits provided by an employer are not a salary or wage, and therefore do not qualify as basic salary for LEOFF Plan ((I)) 1. Fringe benefits include but are not limited to:

     (1) Employer retirement contributions;

     (2) Any type of insurance such as medical, dental, or life insurance; (((2))) and any employer contribution ((by an employer)) to meet the premium or charge for ((such plan or)) the insurance; or

     (3) Any payments by the employer into a private fund to provide health or welfare benefits for members and/or their dependents.

[Statutory Authority: RCW 41.50.050 and 41.50.055. 97-01-016, § 415-104-3402, filed 12/6/96, effective 1/6/97.]


AMENDATORY SECTION(Amending WSR 97-01-016, filed 12/6/96, effective 1/6/97)

WAC 415-104-385   Fringe benefits are not LEOFF Plan ((II)) 2 basic salary.   Fringe benefits provided by an employer are not a salary or wage and therefore do not qualify as basic salary for LEOFF Plan ((II)) 2. Fringe benefits include, but are not limited to:

     (1) Employer retirement contributions;

     (2) Any type of insurance such as medical, dental or life insurance; (((2))) and any employer contribution to meet the premium or charge for ((such plan or)) the insurance; or

     (3) Any ((payments by the)) employer payments into a private fund to provide health or welfare benefits for the member (or the member and the member's dependents), ((except for)) with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-104-367.

[Statutory Authority: RCW 41.50.050 and 41.50.055. 97-01-016, § 415-104-385, filed 12/6/96, effective 1/6/97.]

OTS-5876.3


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

WAC 415-108-443   PERS reportable compensation table.   The following table will help you determine whether certain types of payments are reportable compensation under PERS Plans 1, 2, or 3. Be sure to read the referenced rule to ensure that you have correctly identified the payment in question. The department determines reportable compensation ((earnable)) based upon the nature of the payment, not the name applied to it. See WAC 415-108-445.


Type of Payment PERS 1 Reportable

Compensation?

 PERS 2 or 3 Reportable

Compensation?
Annual Leave Cash Outs Yes - WAC 415-108-456 No - WAC 415-108-456
Assault Pay (State Emp.) Yes - WAC 415-108-468 Yes - WAC 415-108-468
Base Rate Yes - WAC 415-108-451 Yes - WAC 415-108-451
Car Allowances No - WAC 415-108-4851 No - WAC 415-108-485
Cafeteria Plans Yes - WAC 415-108-455 Yes - WAC 415-108-455
Deferred Wages Yes - WAC 415-108-459 Yes - WAC 415-108-459
Disability Payments No - WAC 415-108-477 No - WAC 415-108-477
Disability: Salary lost while on disability leave Yes - WAC 415-108-468 Yes - WAC 415-108-468
RCW 41.40.038 RCW 41.40.038
Employer Provided Vehicle No - WAC 415-108-4802 No - WAC 415-108-480
Employer taxes/contributions No - WAC 415-108-459 No - WAC 415-108-459
Fringe Benefits, including insurance No - WAC 415-108-475 No - WAC 415-108-475
Illegal Payments No - WAC 415-108-482 No - WAC 415-108-482
Legislative Leave Yes - WAC 415-108-464 Yes - WAC 415-108-464
Longevity/Education

Attainment Pay

 Yes - WAC 415-108-451 Yes - WAC 415-108-451
Nonmoney Maintenance Yes - WAC 415-108-4703 No - WAC 415-108-470
Optional Payments No - WAC 415-108-483 No - WAC 415-108-483
Payments in Lieu of

Excluded Items

 No - WAC 415-108-463 No - WAC 415-108-463
Performance Bonuses Yes - WAC 415-108-453 Yes - WAC 415-108-453

     1A portion of the value of an employer car allowance may be reportable((,)). See WAC 415-108-485.


     2A portion of the value of an employer provided vehicle may be reportable in Plan ((I)) 1 only((,)). See WAC 415-108-480.


     3A portion of the value of nonmoney maintenance provided may be reportable in Plan ((I)) 1 only((,)). See WAC 415-108-470.


Type of Payment PERS 1 Reportable

Compensation?

 PERS 2 or 3 Reportable

Compensation?
Retroactive Salary Increase Yes - WAC 415-108-457 Yes - WAC 415-108-457
Reimbursements No - WAC 415-108-484 No - WAC 415-108-484
Reinstatement Payments Yes - WAC 415-108-467 Yes - WAC 415-108-467
Retirement or Termination

Bonuses

 No - WAC 415-108-487 No - WAC 415-108-487
Severance Pay - Earned

Over Time

 Yes - WAC 415-108-458 No - WAC 415-108-458
Severance Pay - Not Earned

Over Time

 No - WAC 415-108-488 No - WAC 415-108-488
Shared Leave - State Emp. Yes - WAC 415-108-468 Yes - WAC 415-108-468
Shared Leave - Local

Government Employees

 No - WAC 415-108-468 No - WAC 415-108-468
Sick Leave Cash Outs - State

Employees

 No - WAC 415-108-456 No - WAC 415-108-456
Sick Leave Cash Out - Local

Government Employees

 Yes - WAC 415-108-456 No - WAC 415-108-456
Standby Pay Yes - WAC 415-108-469 Yes - WAC 415-108-469
Time Off with Pay Yes - WAC 415-108-456 Yes - WAC 415-108-456
WAC 415-108-465 WAC 415-108-465
Union Leave4 Yes - WAC 415-108-466 Yes - WAC 415-108-466
((Worker's)) Workers' Compensation No - WAC 415-108-479 No - WAC 415-108-479

     4Only specific types of union leave are reportable((,)). See WAC 415-108-466.

[Statutory Authority: RCW 41.50.050(5), 41.40.010(8), chapter 41.40 RCW. 02-03-120, § 415-108-443, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. 98-09-059, § 415-108-443, filed 4/17/98, effective 5/18/98.]


AMENDATORY SECTION(Amending WSR 99-14-008, filed 6/24/99, effective 7/25/99)

WAC 415-108-475   Fringe benefits.   ((Payments made by an employer to a third party to provide benefits for an employee are not part of the employee's salary or wage. Those payments are not reportable compensation. Examples of these types of payments are insurance premiums (other than those made under bona fide cafeteria plans, see WAC 415-108-455) and matching and nonmatching employer contributions to a benefit plan.


Note: Mandatory salary deferrals are salary, not benefits. Such payments are reportable see WAC 415-108-459.

Example: An employer makes matching payments to employees who participate in a deferred compensation plan. This is not a mandatory salary deferral for purposes of PERS reportable compensation. Since the employer matching payment (employer match) is made contingent upon employee plan participation, it is not payment for services rendered. Therefore, it is a fringe benefit that is not reportable compensation under PERS.))
     Fringe benefits provided by an employer are not a salary or wage, and therefore are not reportable compensation. Fringe benefits include, but are not limited to:

     (1) Employer retirement contributions;

     (2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; or

     (3) Any employer payments into a private fund to provide health or welfare benefits for the member (or the member and the member's dependents), with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-108-459.

[Statutory Authority: RCW 41.50.050. 99-14-008, § 415-108-475, filed 6/24/99, effective 7/25/99; 98-09-059, § 415-108-475, filed 4/17/98, effective 5/18/98.]

OTS-5877.4


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

WAC 415-110-443   SERS reportable compensation table.   The following table ((is provided as a quick reference guide to help you characterize payments under SERS Plan 2 and SERS Plan 3)) will help you determine whether certain types of payments are reportable compensation under SERS Plan 2 or 3. Be sure to ((turn to)) read the referenced rule to ensure that you have correctly identified the payment in question. The department determines reportable compensation ((earnable)) based upon the nature of the payment, not the name applied to it. See WAC 415-110-445.


Type of Payment SERS Plan 2 and Plan 3 Reportable

Compensation?
Annual Leave Cash Outs No - WAC 415-110-456
Assault Pay No - WAC 415-110-468
Base Rate Yes - WAC 415-110-451
Car Allowances No - WAC 415-110-485
Cafeteria Plans Yes - WAC 415-110-455
Deferred Wages Yes - WAC 415-110-459
Disability Payments No - WAC 415-110-477
Disability Retirees No - RCW 41.35.440/ RCW 41.35.690 (until requirements are met)
Disability: Salary lost while on disability leave Yes - WAC 415-110-468
     RCW 41.35.070
Employer Provided Vehicle No - WAC 415-110-480
Employer Contributions No - WAC 415-110-459
Fringe Benefits, including insurance No - WAC 415-110-475
Illegal Payments No - WAC 415-110-482
Legislative Leave Yes - WAC 415-110-464
Longevity/Education

Attainment Pay

 Yes - WAC 415-110-451
Nonmoney Maintenance No - WAC 415-110-470
Optional Payments No - WAC 415-110-483
Payments in Lieu of

Excluded Items

 No - WAC 415-110-463
Performance Bonuses Yes - WAC 415-110-453
Retroactive Salary Increase Yes - WAC 415-110-457
Reimbursements No - WAC 415-110-484
Reinstatement Payments Yes - WAC 415-110-467
Retirement or Termination Bonuses No - WAC 415-110-487
Severance Pay - Earned Over Time No - WAC 415-110-458
Severance Pay - Not Earned Over Time No - WAC 415-110-488
Shared Leave - School/ ESD Employees Yes - WAC 415-110-468
Sick Leave Cash Outs - School/ESD Employees No - WAC 415-110-456
Standby Pay Yes - WAC 415-110-469
Time Off With Pay Yes - WAC 415-110-456

     WAC 415-110-465
Union Leave Yes - WAC 415-110-4661/
((Worker's)) Workers' Compensation No - WAC 415-110-479

          1/ Only specific types of union leave are reportable. See WAC 415-110-466.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, § 415-110-443, filed 12/12/00, effective 1/12/01.]


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

WAC 415-110-475   Fringe benefits.   ((Payments made by an employer to a third party to provide benefits for an employee are not part of the employee's salary or wage. Those payments are not reportable compensation. Examples of these types of payments are insurance premiums (other than those made under bona fide cafeteria plans, see WAC 415-110-455) and matching and nonmatching employer contributions to a benefit plan.

Note: Mandatory salary deferrals are salary, not benefits. Such payments are reportable, see WAC 415-110-459.

Example: An employer makes matching payments to employees who participate in a deferred compensation plan. This is not a mandatory salary deferral for purposes of SERS reportable compensation. Since the employer matching payment (employer match) is made contingent upon employee plan participation, it is not payment for services rendered. Therefore, it is a fringe benefit that is not reportable compensation under SERS.))
     Fringe benefits provided by an employer are not a salary or wage, and therefore are not reportable compensation. Fringe benefits include, but are not limited to:

     (1) Employer retirement contributions;

     (2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; or

     (3) Any employer payments into a private fund to provide health or welfare benefits for the member (or the member and the member's dependents), with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-110-455.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, § 415-110-475, filed 12/12/00, effective 1/12/01.]

OTS-5878.4


AMENDATORY SECTION(Amending WSR 98-09-059, filed 4/17/98, effective 5/18/98)

WAC 415-112-445   TRS reportable compensation table.   The following table ((is provided as a quick reference guide to help you characterize payments under Plan I, Plan II and Plan III)) will help you determine whether certain types of payments are reportable compensation under TRS Plan 1, 2, or 3. Be sure to ((turn to)) read the referenced rule to ensure that you have correctly identified the payment in question. The department determines ((earnable)) reportable compensation based upon the nature of the payment, not the name applied to it((,)). See WAC 415-112-450.


Type of Payment TRS ((I)) 1 Reportable

Compensation?

 TRS ((II/III)) 2/3 Reportable

Compensation?
Annual Leave Cash Outs Yes - WAC 415-112-4605 No - WAC 415-112-4605
Base Contract Yes - WAC 415-112-4601 Yes - WAC 415-112-4601
Car Allowances No - WAC 415-112-413011 No - WAC 415-112-41301
Cafeteria Plans Yes - WAC 415-112-4604 Yes - WAC 415-112-4604
Deferred Wages Yes - WAC 415-112-4609 Yes - WAC 415-112-4609
Disability Payments No - WAC 415-112-482 No - WAC 415-112-482
Employer Provided Vehicle No - WAC 415-112-4132 No - WAC 415-112-413
Evening/Summer School Yes - WAC 415-112-4601 Yes - WAC 415-112-4601
Extracurricular Contracts Yes - WAC 415-112-4601 Yes - WAC 415-112-4601
Employer taxes/contributions No - WAC 415-112-4609 No - WAC 415-112-4609
Fringe Benefits, including insurance No - WAC 415-112-480 No - WAC 415-112-480
Illegal Payments No - WAC 415-112-485 No - WAC 415-112-485
Legislative Leave Yes - WAC 415-112-471 Yes - WAC 415-112-471
Longevity/Education

Attainment Pay

 Yes - WAC 415-112-4601 Yes - WAC 415-112-4601
Nonmoney Maintenance Yes - WAC 415-112-4123 No - WAC 415-112-412
Optional Payments No - WAC 415-112-487 No - WAC 415-112-487
Payments in Lieu of

Excluded Items

 No - WAC 415-112-470 No - WAC 415-112-470
Performance Bonuses Yes - WAC 415-112-4603 Yes - WAC 415-112-4603
Retroactive Salary Increase Yes - WAC 415-112-4607 Yes - WAC 415-112-4607


     1A portion of the value of an employer car allowance may be reportable in Plan ((I)) 1 only((,)). See WAC 415-112-41301.


     2A portion of the value of an employer provided vehicle may be reportable in Plan ((I)) 1 only((,)). See WAC 415-112-413.


     3A portion of the value of nonmoney maintenance provided may be reportable in Plan ((I)) 1 only((,)). See WAC 415-112-412.

Type of Payment TRS ((I)) 1 Reportable

Compensation?

 TRS ((II/III)) 2/3 Reportable

Compensation?
Reimbursements No - WAC 415-112-489 No - WAC 415-112-489
Reinstatement Payments Yes - WAC 415-112-477 Yes - WAC 415-112-477
Retirement or Termination

Bonuses

 No - WAC 415-112-490 No - WAC 415-112-490
Severance Pay - Earned Over

Time

 Yes - WAC 415-112-4608 No - WAC 415-112-4608
Severance Pay - Not Earned

Over Time

 No - WAC 415-112-491 No - WAC 415-112-491
Sick Leave Cash Outs No - WAC 415-112-4605 No - WAC 415-112-4605
Supplemental Contracts Yes - WAC 415-112-4601 Yes - WAC 415-112-46014
Time Off with Pay Yes - WAC 415-112-473

     WAC 415-112-4605

 Yes - WAC 415-112-473

     WAC 415-112-4605
Union Leave5 Yes - WAC 415-112-475 Yes - WAC 415-112-475
((Worker's)) Workers' Compensation No - WAC 415-112-483 No - WAC 415-112-483


     4 Reportable only if member is employed in an eligible position.

     5 Only specific types of union leave are reportable((,)). See WAC 415-112-475.

[Statutory Authority: RCW 41.50.050. 98-09-059, § 415-112-445, filed 4/17/98, effective 5/18/98; 97-03-016, § 415-112-445, filed 1/6/97, effective 2/6/97.]


AMENDATORY SECTION(Amending WSR 97-03-016, filed 1/6/97, effective 2/6/97)

WAC 415-112-480   Fringe benefits.   ((Payments made by an employer to a third party to provide benefits for an employee are not part of the employee's salary or wage. Those payments are not reportable compensation. Examples of these types of payments are insurance premiums (other than those made under bona fide cafeteria plans, see WAC 415-112-4604) and employer retirement contributions.)) Fringe benefits provided by an employer are not a salary or wage, and therefore are not reportable compensation. Fringe benefits include, but are not limited to:

     (1) Employer retirement contributions;

     (2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; or

     (3) Any employer payments into a private fund to provide health or welfare benefits for the member (or the member and the member's dependents), with the exception of compensation paid pursuant to a bona fide cafeteria plan, flexible benefit plan or similar arrangement as described in WAC 415-112-4604.

[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-480, filed 1/6/97, effective 2/6/97.]

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