PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 08-13-065.
Title of Rule and Other Identifying Information: WAC 415-104-111 How is my LEOFF Plan 2 retirement allowance affected if I return to work after retirement?
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on November 4, 2008, at 2:30 p.m.
Date of Intended Adoption: November 5, 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 November 4, 2008.
Assistance for Persons with Disabilities: Contact Sarah Monaly, rules coordinator, by October 28, 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] clarify language in WAC 415-104-111 regarding the benefit options available to retirees of the law enforcement officers' and fire fighters' retirement system (LEOFF) Plan 2 who return to work in a department of retirement systems (DRS) covered position and subsequently reretire.
Reasons Supporting Proposal: The department received a request to clarify this rule with regard to the benefit options available to LEOFF Plan 2 retirees who reretire after working in a DRS covered position subsequent to their LEOFF retirement. Specifically, DRS will clarify language describing the actuarial calculation that occurs for a LEOFF Plan 2 retiree's benefit upon separation from post-retirement employment. DRS has updated this rule to assist plan members, retirees, employers, and department staff.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: RCW 41.26.500.
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.
September 23, 2008
Sarah Monaly
Rules Coordinator
OTS-1931.1
AMENDATORY SECTION(Amending WSR 08-02-048, filed 12/27/07,
effective 1/27/08)
WAC 415-104-111
How is my LEOFF Plan 2 retirement
allowance affected if I return to work after retirement?
This
rule applies to you if you are a LEOFF 2 retiree who returns
to work in an eligible LEOFF, public employees' retirement
system (PERS), public safety employees' retirement system
(PSERS), school employees' retirement system (SERS), or
teachers' retirement system (TRS) position.
(1) If you return to employment in a LEOFF eligible position, you must reenter membership and your retirement allowance will stop. When you separate from service, the department will calculate your retirement allowance according to this subsection.
(a) If you previously retired before age fifty-three, the department will:
(i) Calculate your retirement allowance pursuant to RCW 41.26.420 using:
(A) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and
(B) Any increase in your final average salary resulting from your reentry into membership; and
(ii) Actuarially reduce your retirement allowance:
(A) Based on the present value of the retirement allowance payments you received during your initial retirement;
(B) To reflect the difference in the number of years between your current age and the attainment of age fifty-three, if you are not yet fifty-three; and
(C) To offset the cost of your benefit option if it includes a survivor feature. See WAC 415-104-215.
(b) If you previously retired at or after age fifty-three, the department will:
(i) Calculate your retirement allowance pursuant to RCW 41.26.420 using:
(A) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and
(B) Any increase in your final average salary resulting from your reentry into membership; and
(ii) Actuarially reduce your retirement allowance to offset the cost of your benefit option if it includes a survivor feature. See WAC 415-104-215.
(c) Under no circumstances will you receive a retirement allowance creditable to a month during which you earned service credit.
(2) If you enter employment in a PERS, PSERS, SERS, or TRS eligible position, you have two options:
(a) You may ((choose not to become a member of)) decline
membership in the PERS, PSERS, SERS, or TRS retirement system
((and)). Under this option, you will continue to receive your
monthly LEOFF Plan 2 retirement allowance; or
(b) You may choose to become a member of the PERS, PSERS,
SERS, or TRS retirement system. Under this option, your LEOFF
Plan 2 retirement allowance will be suspended while you earn
((service credit and make contributions toward another)) a
retirement benefit in the other system. When you ((leave))
terminate employment in the PERS, PSERS, SERS, or TRS eligible
position, you will resume receiving your LEOFF Plan 2
retirement allowance, along with a retroactive payment((s)) of
your LEOFF Plan 2 retirement allowance for the time you were
employed. ((You may choose to have your retroactive payments
in a lump sum or actuarially computed into your LEOFF Plan 2
retirement allowance.))
(i) Your ongoing LEOFF Plan 2 retirement allowance will include any cost of living adjustments (COLAs) that you would have received if your LEOFF allowance had not been suspended during the period of non-LEOFF employment.
(ii) Your retroactive payment will equal the sum of your suspended LEOFF Plan 2 retirement allowances, including COLAs, during the period of non-LEOFF employment. You may choose to receive your retroactive payment in either of the following forms:
(A) A lump sum; or
(B) An increase in your ongoing LEOFF Plan 2 retirement allowance on an actuarial basis. The amount of the increase is calculated by taking the lump sum amount and multiplying it by an actuarial factor that is determined by your age at the time your retirement allowance is resumed. See the table in WAC 415-02-340 for the actuarial factors.
[Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. 08-02-048, § 415-104-111, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 41.50.050(5) and 41.26.500. 06-03-096, § 415-104-111, filed 1/17/06, effective 2/17/06; 05-12-043, § 415-104-111, filed 5/25/05, effective 6/25/05. Statutory Authority: RCW 41.50.050(5), 41.26.470, 2001 c 261. 02-14-072, § 415-104-111, filed 6/28/02, effective 7/29/02. Statutory Authority: RCW 41.50.050. 94-09-040, § 415-104-111, filed 4/19/94, effective 5/20/94.]