WSR 08-16-115

PROPOSED RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed August 5, 2008, 2:08 p.m. ]

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 ((No)) Yes - WAC 415-112-4602 ((No)) Yes - WAC 415-112-4602
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

1A portion of the value of an employer car allowance may be reportable in Plan 1 only. See WAC 415-112-41301.

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.]


AMENDATORY SECTION(Amending WSR 05-12-108, filed 5/27/05, effective 6/27/05)

WAC 415-112-4602   Are bonuses for National Board for Professional Teaching Standards certification earnable compensation?   Bonuses you receive for attaining National Board for Professional Teaching Standards certification are ((not)) earnable compensation.

[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.]

Washington State Code Reviser's Office