PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 08-11-026.
Title of Rule and Other Identifying Information: WAC 415-112-401 What types of payments are considered earnable compensation? and 415-112-4602 Are bonuses for National Board for Professional Teaching Standards certification earnable compensation?
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on September 9, 2008, at 9:00 a.m.
Date of Intended Adoption: September 10, 2008.
Submit Written Comments to: Sarah Monaly, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail rules@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on September 9, 2008.
Assistance for Persons with Disabilities: Contact Sarah Monaly, rules coordinator, by September 2, 2008, 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 purpose of this proposal is to implement SB 6657, passed by the 2008 legislature, which made bonuses for attaining certification by the National Board for Professional Teaching Standards includable as earnable compensation for members of the teachers' retirement system (TRS).
Reasons Supporting Proposal: SB 6657 took effect on June 12, 2008. The department needs to update its rules to assist plan members, employers, and department staff.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: For WAC 415-112-401 is chapter 41.32 RCW; and for WAC 415-112-4601 is RCW 41.32.010(10).
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: Sarah Monaly, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Michelle Hardesty, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7193.
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.
August 5, 2008
Sarah Monaly
Rules Coordinator
OTS-1817.1
AMENDATORY SECTION(Amending WSR 05-12-042, filed 5/25/05,
effective 6/25/05)
WAC 415-112-401
What types of payments are considered
earnable compensation?
The following table indicates whether
certain types of payments are earnable compensation under TRS
Plan 1, 2 or 3 and provides a cross-reference to the specific
WAC.
| Type of Payment | TRS 1 Earnable Compensation? | TRS 2/3 Earnable Compensation? |
| Annual Leave Cash Outs | Yes - WAC 415-112-415 | No - WAC 415-112-415 |
| Base Contract | Yes - WAC 415-112-4601 | Yes - WAC 415-112-4601 |
| Car Allowances | No - WAC 415-112-413011 | No - WAC 415-112-41301 |
| Cafeteria Plans | Yes - WAC 415-112-4604 | Yes - WAC 415-112-4604 |
| Deferred Wages | Yes - WAC 415-112-4609 | Yes - WAC 415-112-4609 |
| Disability Payments | No - WAC 415-112-482 | No - WAC 415-112-482 |
| Employer Provided Vehicle | No - WAC 415-112-4132 | No - WAC 415-112-413 |
| Employer Taxes/Contributions | No - WAC 415-112-4609 | No - WAC 415-112-4609 |
| Evening/Summer School | Yes - WAC 415-112-4601 | Yes - WAC 415-112-4601 |
| Extracurricular Contracts | Yes - WAC 415-112-4601 | Yes - WAC 415-112-4601 |
| Fringe Benefits, including insurance | No - WAC 415-112-480 | No - WAC 415-112-480 |
| Illegal Payments | No - WAC 415-112-485 | No - WAC 415-112-485 |
| Legislative Leave | Yes - WAC 415-112-471 | Yes - WAC 415-112-471 |
| Longevity/Education Attainment Pay | Yes - WAC 415-112-4601 | Yes - WAC 415-112-4601 |
| National Board of Professional Teaching Standards Certification Bonus | (( |
(( |
| Nonmoney Maintenance | Yes - WAC 415-112-4123 | No - WAC 415-112-412 |
| Optional Payments | No - WAC 415-112-487 | No - WAC 415-112-487 |
| Performance Bonuses | Yes - WAC 415-112-4603 | Yes - WAC 415-112-4603 |
| Retroactive Salary Increase | Yes - WAC 415-112-4607 | Yes - WAC 415-112-4607 |
| Reimbursements | No - WAC 415-112-489 | No - WAC 415-112-489 |
| Reinstatement Payments | Yes - WAC 415-112-477 | Yes - WAC 415-112-477 |
| Retirement or Termination Bonuses | No - WAC 415-112-490 | No - WAC 415-112-490 |
| Severance Pay - Earned Over Time | Yes - WAC 415-112-4608 | No - WAC 415-112-4608 |
| Severance Pay - Not Earned Over Time | No - WAC 415-112-4608 | No - WAC 415-112-4608 |
| Sick Leave Cash Outs | No - WAC 415-112-417 | No - WAC 415-112-417 |
| Supplemental Contracts | Yes - WAC 415-112-4601 | Yes - WAC 415-112-4601 |
| Time Off with Pay | Yes - WAC 415-112-473 | Yes - WAC 415-112-473 |
| Union Leave4 | Yes - WAC 415-112-475 | Yes - WAC 415-112-475 |
| Workers' Compensation | No - WAC 415-112-482 | No - WAC 415-112-482 |
2A portion of the value of an employer provided vehicle may be reportable in Plan 1 only. See WAC 415-112-413.
3A portion of the value of nonmoney maintenance provided may be reportable in Plan 1 only. See WAC 415-112-412.
4Only specific types of union leave are reportable. See WAC 415-112-475.
[Statutory Authority: RCW 41.50.050(5) and chapter 41.32 RCW. 05-12-042, § 415-112-401, filed 5/25/05, effective 6/25/05.]
[Statutory Authority: RCW 41.50.050(5) and 41.32.010(10). 05-12-108, § 415-112-4602, filed 5/27/05, effective 6/27/05.]