PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 06-08-081.
Title of Rule and Other Identifying Information: New WAC 415-110-605 Do I qualify for retirement from Plan 3? and amending WAC 415-112-502 Do I qualify for retirement from Plan 3?
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on July 11, 2006, at 11:00 a.m.
Date of Intended Adoption: July 12, 2006.
Submit Written Comments to: Leslie L. Saeger, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail leslies@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m., on July 11, 2006.
Assistance for Persons with Disabilities: Contact Leslie L. Saeger, Rules Coordinator, by June 30, 2006, TDD (360) 664-7291, TTY (360) 586-5450, phone (360) 664-7291.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department is implementing SHB 2684. Currently Plan 3 members may retire with an unreduced benefit at age sixty-five with at least five service credit years, including twelve service credit months after attaining age fifty-four. SHB 2684 changed the age threshold for earning twelve service credit months to age forty-four.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: For WAC 415-110-605 is RCW 41.35.680 and for WAC 415-112-502 is RCW 41.32.875.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of retirement systems, governmental.
Name of Agency Personnel Responsible for Drafting: Leslie Saeger, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dave Nelsen, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules have no effect on businesses.
A cost-benefit analysis is not required under RCW 34.05.328. The department of retirement systems is not one of the named departments in RCW 34.05.328.
June 5, 2006
Leslie Saeger
Rules Coordinator
OTS-8880.3
NEW SECTION
WAC 415-110-605
Do I qualify for retirement from Plan 3?
(1) You may retire from Plan 3:
(a) At age sixty-five with an unreduced defined benefit with the following amounts of service credit:
(i) Ten years of service credit;
(ii) Five years of service credit, including at least twelve service credit months after attaining age forty-four; or
(iii) Five years of Plan 2 service credit earned prior to September 1, 2000, before transferring to Plan 3 under RCW 41.35.510;
(b) At age fifty-five with a minimum of ten years of service credit; however, your defined benefit will be actuarially reduced to reflect the difference in the number of years between your age at retirement and age sixty-five; or
(c) At age fifty-five with a minimum of thirty years of service credit. Your defined benefit will be reduced by three percent per year for each year between your age at retirement and age sixty-five.
(2) Under RCW 41.35.010 (7)(c), you may use up to forty-five days of unused sick leave to meet service credit requirements.
(a) Forty-five days of unused sick leave is equal to two service credit months. Less than forty-five days is creditable as specified in RCW 41.35.010 (7)(c).
(b) Unused sick leave may not be used to meet age requirements.
(c) The sick leave used is forfeited, and may not be cashed out.
(d) The value of the sick leave will not be included in your AFC or used to determine the amount of your retirement benefit.
| Example: | On December 31, 2005, John is age sixty-five and has four years and ten months of service credit. John has forty-five days of sick leave. John may use the forty-five days of sick leave to qualify for retirement effective January 1, 2006. |
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The following section of the Washington Administrative Code is repealed:
| WAC 415-110-320 | Determining SERS Plan 3 defined benefit retirement eligibility. |
OTS-8881.1
AMENDATORY SECTION(Amending WSR 05-12-108, filed 5/27/05,
effective 6/27/05)
WAC 415-112-502
Do I qualify for retirement from Plan 3?
You may retire from Plan 3:
(1) At age sixty-five with the following amounts of service credit to retire with an unreduced defined benefit:
(a) Ten years of service credit; or
(b) Five years of service credit, including at least
twelve service credit months after attaining age
((fifty-four)) forty-four; or
(c) Five years of TRS Plan 2 service credit earned prior to July 1, 1996, before transferring to Plan 3 under RCW 41.40.750.
(2) At age fifty-five with a minimum of ten years of service credit, however, your defined benefit will be actuarially reduced to reflect the difference in the number of years between your age at retirement and age sixty-five.
(3) At age fifty-five with a minimum of thirty years of service credit. Your defined benefit will be reduced by three percent per year to reflect the difference in the number of years between your age at retirement and age sixty-five.
See RCW 41.32.875.
[Statutory Authority: RCW 41.50.050(5) and 41.32.875. 05-12-108, § 415-112-502, filed 5/27/05, effective 6/27/05.]