PERMANENT RULES
RETIREMENT SYSTEMS
Date of Adoption: May 24, 2004.
Purpose: To amend provisions for calculating final average compensation for Teachers Retirement System, Plan 1 and 2 members who teach in extended school year programs. To rewrite the rule in clear language to comply with regulatory reform goals.
Citation of Existing Rules Affected by this Order: Amending WAC 415-112-430.
Statutory Authority for Adoption: RCW 41.50.050(5).
Other Authority: RCW 41.32.010.
Adopted under notice filed as WSR 04-05-063 on February 17, 2004.
Changes Other than Editing from Proposed to Adopted Version: The proposed rule provided that final average compensation could be based on compensation earned during "two consecutive complete (extended) year contract periods," or two consecutive fiscal years, whichever provides the greater benefit. The adopted version provides that members may use any "two-year period ending on the last day of service in the official school calendar" (which may include: One extended school year and one fiscal year, two fiscal years; or two extended school years). The option that provides the greatest benefit to the member will be used.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 1, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.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Repealed 0;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Repealed 0;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Repealed 0.
Effective Date of Rule:
Thirty-one days after filing.
May 24, 2004
John F. Charles
Director
OTS-6981.4
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. Except as provided in subsection
(2) of this section, to calculate average final compensation
for a member of TRS Plan 1, the department will:
(a) Determine the two consecutive fiscal years in which the member's total earnable compensation is the highest.
(b) Divide the total earnable compensation for this period by twenty-four to determine the member's average monthly compensation during this period.
(2) Plan 1 alternative. Certain members of TRS who have taught in an extended school year program may use an alternate two-year period for the calculation of average final compensation. An alternate period may be used only if a TRS member has rendered service under contract in an extended school year program at any time during the member's career, and under such contract, the member rendered some service in the extended school year program after June 30. The following process is used to determine whether the alternate period is advantageous to the member:
(a) If a member rendered contracted service in an extended school year program after June 30, the department will identify the last day of required service in the district's official calendar for the extended school year.
(b) The alternate period is a two-year period ending on the last day of service in the official calendar.
(c) The department will total the member's compensation for services rendered during the alternate period.
(d) The department will repeat steps (a) through (c) of this subsection for all alternate periods.
(e) To calculate the member's average final compensation, the department will use the member's highest two-year period, as calculated in either subsection (1)(a) or (2)(c) of this section.
(3) Plans 2 and 3. To calculate average final compensation for a member of TRS Plans 2 or 3, the department will:
(a) Determine the sixty consecutive service creditable months 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.]