WSR 03-21-098

PROPOSED RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed October 17, 2003, 10:02 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-15-045.

Title of Rule: WAC 415-02-345 TRS 1 Option 1 benefit factors.

Purpose: At the time of retirement, a TRS Plan 1 member may choose to receive an Option 1, Standard Allowance, which is a slightly reduced lifetime monthly benefit. This option allows the final unpaid monthly benefit and any remaining balance of contributions to be paid in a lump sum to the retiree's estate or named beneficiary at the time of the retiree's death. The reduction to the monthly benefit is based on an Option 1 factor and is applied against the annuity portion of the monthly benefit. The factor that is used is determined by the age of the member at the time of retirement.

Statutory Authority for Adoption: RCW 41.50.050(5).

Statute Being Implemented: RCW 41.32.530.

Summary: TRS 1 Option 1 benefit factors.

Reasons Supporting Proposal: This WAC explains the option and provides the benefit factors that the Department of Retirement Systems (DRS) uses.

Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Margaret Wimmer, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7044.

Name of Proponent: Department of Retirement Systems, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: See Purpose above.

Proposal does not change existing rules.

No small business economic impact statement has been prepared under chapter 19.85 RCW. These amendments have no effect on businesses.

RCW 34.05.328 does not apply to this rule adoption. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.

Hearing Location: Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on November 25, 2003, at 9:00 a.m.

Assistance for Persons with Disabilities: Contact the rules coordinator by seven days before the hearing, if possible, phone (360) 664-7291, TTY (360) 586-5450, e-mail merryk@drs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail Merryk@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on November 25, 2003.

Date of Intended Adoption: No sooner than November 26, 2003.

October 16, 2003

Merry A. Kogut

Rules Coordinator

OTS-6721.2


NEW SECTION
WAC 415-02-345   TRS Plan 1 Option 1 benefit factors.   (1) What is a TRS Plan 1 Option 1 benefit factor? At the time of retirement, a TRS Plan 1 member may choose to receive an Option 1, standard allowance, which is a slightly reduced lifetime monthly benefit. This option allows the final unpaid monthly benefit and any remaining balance of contributions to be paid in a lump sum to the retiree's estate or named beneficiary at the time of the retiree's death. The reduction to the monthly benefit is based on an Option 1 factor and is applied against the annuity portion of the monthly benefit. The factor that is used is determined by the age of the member at the time of retirement. For more information about the Option 1, standard allowance, see RCW 41.32.530 (1)(a).

(2) Option 1 benefit factor table.


Age Factor Reduction Age Factor Reduction
20 99.8876% 0.1% 50 99.1060% 0.9%
21 99.8851% 0.1% 51 99.0237% 1.0%
22 99.8825% 0.1% 52 98.9288% 1.1%
23 99.8794% 0.1% 53 98.8184% 1.2%
24 99.8757% 0.1% 54 98.6970% 1.3%
25 99.8710% 0.1% 55 98.5566% 1.4%
26 99.8650% 0.1% 56 98.3876% 1.6%
27 99.8575% 0.1% 57 98.1977% 1.8%
28 99.8480% 0.2% 58 97.9853% 2.0%
29 99.8362% 0.2% 59 97.7388% 2.3%
30 99.8220% 0.2% 60 97.4759% 2.5%
31 99.8053% 0.2% 61 97.1849% 2.8%
32 99.7858% 0.2% 62 96.8657% 3.1%
33 99.7638% 0.2% 63 96.5199% 3.5%
34 99.7413% 0.3% 64 96.1340% 3.9%
35 99.7184% 0.3% 65 95.7405% 4.3%
36 99.6951% 0.3% 66 95.3342% 4.7%
37 99.6712% 0.3% 67 94.8664% 5.1%
38 99.6461% 0.4% 68 94.4041% 5.6%
39 99.6195% 0.4% 69 93.9285% 6.1%
40 99.5908% 0.4% 70 93.3893% 6.6%
41 99.5597% 0.4% 71 92.8393% 7.2%
42 99.5255% 0.5% 72 92.2534% 7.7%
43 99.4881% 0.5% 73 91.5922% 8.4%
44 99.4474% 0.6% 74 90.9422% 9.1%
45 99.4018% 0.6% 75 90.2102% 9.8%
46 99.3542% 0.6% 76 89.4917% 10.5%
47 99.2994% 0.7% 77 88.7582% 11.2%
48 99.2421% 0.8% 78 85.9377% 14.1%
49 99.1781% 0.8% 79 85.8097% 14.2%
80 86.1255% 13.9%

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