WSR 04-05-063

PROPOSED RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed February 17, 2004, 10:52 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 03-07-062.

Title of Rule: WAC 415-112-430 How is average final compensation calculated?

Purpose: To update WAC to conform with chapter 31, Laws of 2003 (SB 5096). At the same time, the Department of Retirement Systems (DRS) is revising the rule into "Plain English" to conform with regulatory reform goals.

Statutory Authority for Adoption: RCW 41.50.050(5).

Statute Being Implemented: RCW 41.32.010 (10)(a).

Summary: See Purpose above.

Reasons Supporting Proposal: See Purpose above.

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 Changes the Following Existing Rules: See Purpose above.

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, Boardroom 3rd Floor, Tumwater, WA, on April 6, 2004, at 3:00 p.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 joeo@drs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail joeo@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on April 6, 2004.

Date of Intended Adoption: No sooner than April 7, 2004.

February 12, 2004

Merry A. Kogut

Rules Coordinator

OTS-6981.2


AMENDATORY SECTION(Amending Order IV, filed 2/15/78)

WAC 415-112-430   ((Computing the average earnable compensation.)) How is average final compensation calculated?   ((In computing a member's average earnable compensation, the computations shall include only the service during which a member was employed for salary or wages by a state of Washington employer and for which he established Washington membership service credit with the teachers' retirement system. This excludes out-of-state service, military service and professional preparation or other service for which credit may have been established but for which no salary or wages were paid to the member by a state of Washington employer. Contributions based on sabbatical leave, paid sick leave, or other leave paid for by a state of Washington employer and for which credit has been established with the teachers' retirement system shall be included in computing the earnable compensation.)) (1) Plan 1.

(a) To calculate average final compensation for a TRS Plan 1 member, the department will:

(i) Except as provided in (b) of this subsection, determine the two consecutive fiscal years in which the member's total earnable compensation is the highest.

(ii) Divide the total earnable compensation for this period by twenty-four to determine the member's average monthly compensation during this period.

(b) A teacher who works two consecutive complete (extended) year contracts may use these two consecutive contract periods, instead of two consecutive fiscal years, to calculate average final compensation. The two consecutive contract periods will be used only if they yield a higher total earnable compensation than any period of two consecutive fiscal years.

(2) Plans 2 and 3. To calculate average final compensation for a member of TRS Plans 2 or 3, the department will:

(a) Determine the five consecutive school years in which the member's total earnable compensation is the highest.

(b) Divide the total earnable compensation for this period by sixty to determine the member's average monthly compensation during this period.

[Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), 415-112-430, filed 2/15/78. Formerly WAC 462-24-040.]

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