Date Adopted: December 24, 2003.
Purpose: Current WAC provides information about defined contribution rates. Amendment clarifies that TRS members can change contribution rate choice every January. Amendment also includes a clarification regarding changing employers.
Citation of Existing Rules Affected by this Order: Amending WAC 415-111-220.
Statutory Authority for Adoption: RCW 41.50.050(5).
Other Authority: RCW 41.34.040.
Adopted under notice filed as WSR 03-23-054 on November 14, 2003.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Other Findings Required by Other Provisions of Law as Precondition to Adoption or Effectiveness of Rule: Under the
legislature's amendment of RCW 41.34.040 in chapter 156, Laws
of 2003 (HB 1206), this WAC must go into effect by January 1,
2004, RCW 34.05.380 (3)(a).
Effective Date of Rule: January 1, 2004.
December 24, 2003
AMENDATORY SECTION(Amending WSR 01-15-038, filed 7/13/01, effective 7/26/01)
WAC 415-111-220 How do I choose a defined contribution rate? (1) Contribution rates: If you are a member of the Teachers' Retirement System (TRS) Plan 3, the School Employees' Retirement System (SERS) Plan 3, or the Public Employees' Retirement System (PERS) Plan 3, you are required to contribute from your compensation according to one of the following rate structures:
|Base Rate||Additional Rate||Total Contribution Rate|
|Up to age 35||5.0%||0.0%||5.0%|
|Age 35 to 44||5.0%||1.0%||6.0%|
|Age 45 and above||5.0%||2.5%||7.5%|
|Up to age 35||5.0%||1.0%||6.0%|
|Age 35 to 44||5.0%||2.5%||7.5%|
|Age 45 and above||5.0%||3.5%||8.5%|
(3) Where do I get the form to make my choice? Your employer must provide the appropriate form to choose a contribution rate if you are enrolling in Plan 3 or transferring from Plan 2 to Plan 3.
(4) When do I have to choose? You must ((
choose a contribution rate within ninety calendar days from
your date of hire in an eligible position. However, if you
are transferring from Plan 2 to Plan 3, you must choose a
contribution rate at the same time you transfer. The
ninety-day period does not apply to a member transferring from
Plan 2 to Plan 3.
(5) When do contributions begin?
(a) Once you choose a contribution rate, contributions will begin the first day of the pay cycle in which you make the choice.
(b) If the employer advises the department that you should be reported into Plan 3 membership retroactively, the ninety-day period starts from the date it is discovered that you should have been reported. The department will decide which date to use.
(6) What if I work for more than one employer? If you are a Plan 3 member working in eligible positions for more than one employer, you may select a different contribution rate with each employer.
(7) What happens if I do not make a choice? Under RCW 41.34.040, you will be ((
irrevocably)) assigned (( to)) a base
rate of 5% (Option A) if:
(a) You are a new employee or changing your employer, and do not choose a contribution rate within the ninety-day election period described in subsection (4) of this section; or
(b) You are transferring from Plan 2 to Plan 3 and do not choose a contribution rate at the time of transfer. Contributions required under subsection (a) or (b) will begin the first day of the pay cycle in which you are assigned to Option A.
(8) Can I change my contribution rate?
(a) Except as provided in (c) of this subsection, once
elect)) choose a contribution rate or are (( defaulted
into)) assigned the base rate of 5% (Option A), you cannot
change your contribution rate unless you change employers.
(b) Each time you change employers, you ((
will be allowed
the ninety-day period described in subsection (4) of this
section to choose a new contribution rate)) must choose a new
contribution rate within ninety days or you will be assigned a
base rate of 5% (Option A). No contributions will be taken
until you choose a rate or until the ninety-day period has
elapsed, whichever occurs first.
(c) Each January, TRS Plan 3 members may change their contribution rate option by providing written notification to their employer as described in WAC 415-111-110(1).
[Statutory Authority: RCW 41.34.040, 41.50.050(5). 01-15-038, § 415-111-220, filed 7/13/01, effective 7/26/01. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, § 415-111-220, filed 12/12/00, effective 1/12/01.]