WSR 10-16-086

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed July 30, 2010, 11:32 a.m. , effective September 1, 2010 ]


Effective Date of Rule: September 1, 2010.

Purpose: The purpose of this proposal is to update the department's administrative rules with new administrative factors provided by the state actuary.

Citation of Existing Rules Affected by this Order: Amending WAC 415-02-177, 415-02-300, 415-02-310, 415-02-320, 415-02-340, 415-02-345, 415-02-350, 415-02-360, 415-02-380, 415-103-215, and 415-111-320.

Statutory Authority for Adoption: RCW 41.50.050(5).

Adopted under notice filed as WSR 10-13-149, 10-13-150, 10-13-151, 10-13-152, 10-13-154, and 10-13-155 on June 23, 2010.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 11, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 11, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 11, Repealed 0.

Date Adopted: July 30, 2010.

Steve Hill

Director

OTS-3436.2


AMENDATORY SECTION(Amending WSR 06-16-043, filed 7/26/06, effective 8/26/06)

WAC 415-02-177   May I purchase additional service credit?   (1) What is the option for purchasing additional service credit? The following statutes provide an option for eligible members to purchase additional service credit that provides a guaranteed, lifetime increase to their monthly retirement ((allowance)) benefit:

(a) ((Section 5, chapter 214, Laws of 2006)) RCW 41.26.199 for LEOFF Plan 1 members;

(b) RCW 41.26.432 for LEOFF Plan 2 members;

(c) ((Section 1, chapter 214, Laws of 2006)) RCW 41.40.034 for PERS Plan 1, 2, and 3 members;

(d) ((Section 4, chapter 214, Laws of 2006)) RCW 41.37.265 for PSERS Plan 2 members;

(e) ((Section 3, chapter 214, Laws of 2006)) RCW 41.35.183 for SERS Plan 2 and 3 members;

(f) ((Section 2, chapter 214, Laws of 2006)) RCW 41.32.066 for TRS Plan 1, 2, and 3 members; and

(g) ((Section 6, chapter 214, Laws of 2006)) RCW 43.43.233 for WSPRS Plan 1 and 2 members.

(2) Am I eligible to purchase additional service credit?

(a) You may purchase additional service credit if you are eligible to retire from one or more of the following plans and you ((take your benefit as)) elect a monthly ((allowance)) benefit rather than a lump sum payment:

(i) LEOFF Plan 1 or 2 under RCW 41.26.090 or 41.26.430;

(ii) PERS Plan 1, 2 or 3 under RCW 41.40.180, 41.40.630, or 41.40.820;

(iii) PSERS Plan 2 under RCW 41.37.210;

(iv) SERS Plan 2 or 3 under RCW 41.35.420 or 41.35.680;

(v) TRS Plan 1, 2, or 3 under RCW 41.32.480, 41.32.765, or 41.32.875; or

(vi) WSPRS Plan 1 or 2 under RCW 43.43.250.

(b) If you retire as a result of a disability, you may purchase additional service credit if you meet the requirements in (a) of this section.

(3) How much additional service credit may I purchase? If you are eligible, you may purchase from one to sixty months of additional service credit in whole month increments.

(4) May I use the additional purchased service credit to qualify for normal retirement((, or to qualify for the three percent reduction instead of the actuarial reduction for)) or an early retirement? No. You may not use the purchased service credit to qualify for normal retirement or to qualify for ((a three percent reduction factor instead of an actuarial reduction for)) an early retirement.

(5) When must I apply to purchase additional service credit? You must submit your request to purchase additional service credit to the department at the same time you submit your application for retirement.

(6) How much will my monthly retirement ((allowance)) benefit increase if I purchase additional service credit? The increase in your monthly retirement ((allowance)) benefit will be calculated using the benefit formula for your system and plan, with a reduction for early retirement, if applicable. ((If your monthly allowance will be reduced for early retirement, the same early reduction factor will be used to calculate the increase due to the additional service credit.

PERS Plan 2)) Example 1 (PERS Plan 2): John is a member of PERS Plan 2. He applies for retirement, effective the first month after his 62nd birthday. His AFC is $4000 per month. If he purchases sixty months of additional service credit, his monthly retirement ((allowance)) benefit will increase by (($292)) $289.60 per month, calculated as follows:


Additional service credit: 60 months 12 = 5 yearsEarly retirement factor (WAC 415-02-320(5)): ((.7300000)) .7240000
Amount of increase = 2% x additional service credit years x AFC x early retirement factor
= 2% x 5 years x $4000 x ((.7300000)) .7240000
= (($292)) $289.60

((TRS Plan 3)) Example 2 (TRS Plan 3): Jane is a member of TRS Plan 3. She applies for retirement, effective the first month after her 62nd birthday. Her AFC is $4000 per month. If she purchases sixty months of additional service credit, her monthly retirement ((allowance)) benefit will increase by (($146)) $144.80 per month, calculated as follows:

Additional service credit: 60 months 12 = 5 yearsEarly retirement factor (WAC 415-02-320(5)): ((.7300000)) .7240000
Amount of increase = 1% x additional service credit years x AFC x early retirement factor
= 1% x 5 years x $4000 x ((.7300000)) .7240000
= (($146)) $144.80

((LEOFF Plan 2)) Example 3 (LEOFF Plan 2): Jim is a member of LEOFF Plan 2. He applies for retirement, effective the first month after his 53rd birthday. His FAS is $4000 per month. If he purchases sixty months of additional service credit, his monthly retirement ((allowance)) benefit will increase by $400 per month, calculated as follows:


Additional service credit: 60 months 12 = 5 years
Amount of increase = 2% x additional service credit years x FAS
= 2% x 5 years x $4000
= $400

(7) How is the cost of the additional purchased service credit calculated? The cost to purchase additional service credit is calculated by dividing the amount of the increase in subsection (6) of this section by the age-based annuity factor in WAC 415-02-340.

Example. In subsection (6) of this section, Example 1, it was determined that John's retirement ((allowance)) benefit would increase by (($292)) $289.60 per month. The cost to purchase the five years of additional service credit would be (($43,558.68)) $44,542.88, calculated as follows:


Age-based annuity factor (WAC 415-02-340): .0065016
Cost = Amount of increase age-based annuity factor
= (($292)) $289.60 ((.0067036)) .0065016
= (($43,558.68)) $44,542.88

(8) How and when do I pay for the additional service credit? The department will generate a bill to you for the cost of the additional service credit.

(a) Payment may be made with an eligible rollover, a direct rollover or a trustee-to-trustee transfer, if allowed by the transferring plan. ((You)) Payment may also ((use)) be made with after-tax dollars, such as ((those)) money from a personal savings account((;)). However, IRS regulations limit the amount of after-tax dollars you ((can use for this type of purchase)) may use to purchase additional service credit.

(b) Payment must be made in full within ninety days after the bill issue date.

(9) If I choose a benefit option with a survivor feature, will my survivor beneficiary's monthly ((allowance)) benefit reflect the additional purchased service credit? Yes. Depending upon the rules for your retirement system and plan and the benefit option you choose at retirement, your survivor beneficiary's monthly ((allowance)) benefit will be a percentage of the gross monthly retirement ((allowance)) benefit you were receiving at the time of your death. If you choose a benefit option with a survivor feature and your survivor beneficiary dies before you, your monthly retirement ((allowance)) benefit will increase to the amount it would have been had you not selected a survivor option.

(10) Will I receive a cost of living adjustment (COLA) on the portion of my ((allowance)) benefit that is based on the additional purchased service credit?

(a) For all systems and plans, except ((PERS Plan 1 and TRS Plan 1)) as noted in (b) of this subsection, your COLA will be based on your gross monthly retirement ((allowance)) benefit, including the increase due to the purchased service credit.

(b) If you ((retired)) retire from PERS Plan 1 or TRS Plan 1 and you ((did not elect the COLA option)) do not elect the optional auto COLA, you will not receive a COLA on the additional purchased service credit amount.

(11) If I purchase additional service credit and then return to work, how will my retirement ((allowance)) benefit be affected?

(a) If you return to work ((and)) with an employer that participates with the department:

(i) Elect to return to membership - Your entire retirement ((allowance)) benefit is suspended, including the portion of your retirement ((allowance)) benefit attributable to service credit purchased under this section ((will also be suspended. When your retirement allowance resumes, the portion attributable to service credit purchased under this section will also resume)).

(ii) Do not elect to return to membership - If your retirement benefit is suspended due to working over the hours allowed annually, the portion of your retirement benefit attributable to service credit purchased under this section will not be suspended.

(b) If you return to work with an employer that does not participate with the department, your retirement benefit and the portion of your retirement benefit attributable to service credit purchased under this section will not be suspended.

(12) If I retire and purchase less than sixty months of additional service credit, may I purchase more at a later time? If you retire and purchase less than sixty months of additional service credit, you may not purchase additional months of service credit from the same plan unless you return to membership and reretire from the same system and plan. You must meet the eligibility requirements provided in subsection (2) of this section at the time you reretire. You may not purchase more than a total of sixty months of service credit regardless of how many times you reretire from the same system and plan.

(13) May I purchase service credit from more than one retirement plan?

(a) If you are a dual member under chapter 415-113 WAC, Portability of public employment benefits, and you combine service credit to retire ((from two retirement plans)) as a dual member, you may purchase up to sixty months of additional service credit from each of your dual member plans.

(b) If you retire from more than one plan, but are not a dual member under chapter 415-113 WAC, you may purchase up to sixty months of additional service credit from each plan in which you meet the eligibility requirements in subsection (2) of this section.

(14) ((Will the money I paid to purchase the additional service credit be distributed to my beneficiary or estate if I die?

(a) If you have a survivor beneficiary at the time of your death, your survivor beneficiary will receive a monthly allowance according to subsection (9) of this section.

(b) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement allowance paid equals the amount of your accumulated contributions at the time of retirement (including the money you paid for additional service credit):

(i) Plan 1 members: The balance will be distributed according to RCW 41.26.160 and 41.26.161 (LEOFF), 41.40.188 (PERS), 41.32.530 (TRS), or WAC 415-103-215 (WSPRS).

(ii) Plan 2 members and PSERS: The balance will be distributed according to RCW 41.26.460 (LEOFF), 41.40.660 (PERS), 41.35.220 (SERS), 41.37.170 (PSERS), 41.32.785 or 41.32.790 (TRS), or 43.43.271 (WSPRS).

(iii) Plan 3 members: The balance will be retained by the Plan 3 trust fund. Money paid for additional service credit is posted directly to the Plan 3 trust fund to cover the increased cost of defined benefits, and is not distributable.)) How are the funds I paid to purchase the additional service credit treated upon my death (and the death of my survivor beneficiary, if applicable)?

(a) Plans 1 and 2. The amount paid to purchase the additional service credit is credited to your individual account as part of your accumulated contributions. Distribution of accumulated contributions after your death (and the death of your survivor beneficiary, if any) is governed by the statutes and rules applicable to your plan. See:

(i) WAC 415-108-326 for PERS Plan 1 and 2;

(ii) WAC 415-112-504(8) for TRS Plan 1;

(iii) WAC 415-112-505(7) for TRS Plan 2;

(iv) WAC 415-110-610(7) for SERS Plan 2;

(v) WAC 415-106-600(7) for PSERS Plan 2;

(vi) WAC 415-103-215 for WSPRS Plan 1;

(vii) WAC 415-103-225(7) for WSPRS Plan 2;

(viii) WAC 415-104-202 for LEOFF Plan 1; or

(ix) WAC 415-104-215(7) for LEOFF Plan 2.

(b) Plan 3. The amount paid to purchase the additional service credit is credited to the Plan 3 trust fund and not to your member account. There are no circumstances under which the amount will be distributed upon your death.

[Statutory Authority: RCW 41.50.050(5), 2006 c 214, and RCW 41.26.432. 06-16-043, 415-02-177, filed 7/26/06, effective 8/26/06.]

OTS-3437.1


AMENDATORY SECTION(Amending WSR 02-18-048, filed 8/28/02, effective 9/1/02)

WAC 415-02-300   How does the department use actuarial tables, schedules, and factors?   (1) The department uses actuarial tables, schedules, and factors ((to calculate optional retirement allowances)) for, but not limited to, benefit calculations, annuitizing benefits, and calculating cost to purchase service credit for members, retirees, and beneficiaries.

(2) The department adopted ((these)) tables, schedules, and factors upon the office of the state actuary's (OSA) recommendation, following OSA's investigation into the mortality, service, compensation, and other experience of retirement plan members, retirees, and beneficiaries.

(3) ((These)) The tables, schedules, and factors may be amended from time to time, based upon subsequent actuarial investigation.

(4) The department uses the tables, schedules, and factors:

(a) In effect at the time of the member's effective retirement date to calculate the member's retirement ((allowance)) benefit.

(((5) The department will use these tables, schedules, and factors to process any payments when there is a death in service.

(6) The tables, schedules, and factors in this chapter apply to the calculation of retirement allowances for those who retire on or after September 1, 2002, (until subsequent amendment).))

(b) In effect at the time of the annuitizing to calculate an annuitized benefit.

(c) In effect at the time of purchase to determine a member's cost to purchase service credit.

[Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 02-18-048, 415-02-300, filed 8/28/02, effective 9/1/02.]

OTS-3458.2


AMENDATORY SECTION(Amending WSR 08-20-068, filed 9/25/08, effective 10/26/08)

WAC 415-02-310   How does the department use my age in calculating benefits?   This section provides an overview of the several different ways in which the department uses age in calculating benefits. The department may use your age to determine your retirement date, early retirement factors to apply, survivor factors, or ((cost of living)) cost-of-living (COLA) adjustment factors.

(1) Present value: The department uses a rounding method to determine your age when calculating what your future lifetime monthly benefit is worth in present-day dollars. If the number of months in your age is under six months, the department will round down. If the number is six months or more, the department will round up. See WAC 415-02-340 for more information about the present value calculations.


Example 1:


At the time that the department is calculating Sharon's age in making a present value calculation, Sharon is 55 years, 5 months and 26 days old. The department will round down and use 55 as Sharon's age.


Example 2:


At the time that the department is calculating Donna's age in making a present value calculation, Donna is 54 years and 7 months old. The department will round up and use 55 as Donna's age.


(2) Early retirement: The department uses the difference between ((your "fully eligible retirement date" and your actual retirement date in calculating any actuarial reductions to your benefits)) the date you are eligible for normal retirement and your date of actual retirement to calculate any actuarial reduction to your benefit. See WAC 415-02-320 for more information about early retirement.

(a) Step 1: ((Determine the fully eligible retirement date.)) The department determines the date you are eligible for normal retirement.

(i) ((The department first calculates the date on which you would have been fully eligible to retire.

(ii))) All plans (except for LEOFF Plan 1, TRS Plan 1, WSPRS Plans 1 and 2, JRF and JRS): You can retire the first day of the month following your meeting the age requirement for retirement if you are otherwise eligible.


Example: Jake was born on May 12, ((1934)) 1941. On May 12, ((1999)) 2006, Jake ((reaches)) reached age 65 and ((has)) met the age requirement for retirement. Provided that he is otherwise eligible, Jake's retirement date is June 1, ((1999)) 2006.

(((iii))) (ii) LEOFF Plan 1, TRS Plan 1, WSPRS Plans 1 and 2, JRF, and JRS: If a retirement date other than the first of the month is allowed, you can retire on the day you meet the age requirement, or the following day (depending on the plan).


Example: If Jake is a member of this type of plan, he could retire May 12th or 13th, ((1999)) 2006 (his birthday or the day after his birthday).

(b) Step 2: ((Determine the difference. The department next calculates the difference between your fully eligible retirement date and your actual retirement date by subtracting the actual retirement year and month from the fully eligible retirement year and month. (Days are not used in the calculation.)

(i) Example:

((Fully eligible date: 06/01/99
Minus actual retirement date: 08/01/95
Difference: 3 years, 10 months))
(ii) Example:

((Fully eligible date: 05/25/99
Minus actual retirement date: 08/01/95
Difference: 3 years, 9 months))

The department determines the difference between the date you are eligible for normal retirement and your date of actual retirement as follows:

(i) Example 1:

Date of eligibility for normal retirement 06/01/06
Date of actual retirement 08/01/02
Determination of full years: 08/01/02 to 07/31/05 is 3 years
Determination of full months: 08/01/05 to 05/31/06 is 10 months
Difference is: 3 years, 10 months

(ii) Example 2:

Date of eligibility for normal retirement 05/13/06
Date of actual retirement 08/01/02
Determination of full years: 08/01/02 to 07/31/05 is 3 years
Determination of full months: 08/01/05 to 04/30/06 is 9 months
Additional days are not considered: 05/01/06 to 05/13/06 are not considered
Difference is: 3 years, 9 months

(c) Step 3: Determine the early retirement factor. The department uses the difference calculated in step 2 to determine the early retirement factor (((ERF))) used to calculate your benefit as described in WAC 415-02-320.

(3) Optional COLA factor for PERS Plan 1 and TRS Plan 1. The department uses the rounding method described in the "present value" subsection in this section to calculate your age when determining the optional COLA factor. See WAC 415-02-360 for a description of the optional COLA factor calculation.

(4) Calculating age to use in determining the survivor option factor. At retirement, if you select a survivor option, the department must calculate the difference between your age and your survivor beneficiary's age. See WAC 415-02-380 for more information about survivor options.

(a) Step 1: The department calculates your age and your survivor beneficiary's age at the time of your retirement.

(b) Step 2: The department rounds the ages, using the same method described in the "present value" subsection in this section.

(c) Step 3: The department subtracts your survivor beneficiary's age from your age.

Example:

Member's age: 60
Minus survivor beneficiary's age: 49
11
Result: The department will use the survivor option factor for a survivor beneficiary who is 11 years younger than the member.

Example:

Member's age: 65
Minus survivor beneficiary's age: 67
-2
Result: The department will use the survivor option factor for a survivor beneficiary who is two years older than the member.

(5) Terms used

(a) JRF - Judicial retirement fund.

(b) JRS - Judicial retirement system.

(c) LEOFF - Law enforcement officers' and firefighters' retirement system.

(d) PERS - Public employees' retirement system.

(e) SERS - School employees' retirement system.

(f) TRS - Teachers' retirement system.

(g) WSPRS - Washington state patrol retirement system.

[Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 08-20-068, 415-02-310, filed 9/25/08, effective 10/26/08; 03-06-044, 415-02-310, filed 2/27/03, effective 4/1/03.]

OTS-3355.1


AMENDATORY SECTION(Amending WSR 06-18-009, filed 8/24/06, effective 9/24/06)

WAC 415-02-320   Early retirement factors.   (1) What are early retirement factors (((ERF)))? ((The department uses an early retirement factor (ERF) to actuarially reduce a member's or beneficiary's monthly allowance if the monthly allowance begins before the member meets the age requirement for an unreduced retirement benefit. This reduction offsets the cost of paying the monthly allowance for a longer period of time.

(1))) Early retirement factors (ERFs) are used by the department to reduce a monthly retirement benefit when that payment begins before the member has qualified for normal retirement based on age and service. This reduction offsets the cost to the plan of paying the monthly benefit for a longer time.

(2) In what situations will the department use an ERF?

(a) The department will use an ERF to reduce a monthly ((allowance)) benefit in any of the following situations, subject to the law governing your plan, and subject to the exceptions in (b) of this subsection:

(i) You choose to retire early.

(ii) You retire due to a disability before you are eligible ((to retire with an unreduced retirement allowance)) for normal retirement.

(iii) You die before you are eligible ((to retire with an unreduced retirement allowance)) for normal retirement, and your beneficiary is eligible for a monthly ((allowance)) benefit.

(b) An ERF is not used in the following circumstances, although another method may be used to reduce benefits as required by the laws governing each plan:

(i) You meet your plan's requirements for "alternate early retirement";

(ii) You meet PSERS requirements for "early retirement";

(iii) You retire for service or due to a disability, from PERS Plan 1 or TRS Plan 1;

(iv) You are a member of LEOFF Plan 1;

(v) You retire due to a duty-related disability from LEOFF Plan 2;

(vi) You retire due to a disability or die before retirement from WSPRS Plan 1; or

(vii) You retire due to a disability from WSPRS Plan 2.

(c) The following table shows the law governing plans that use an ERF:


Early Retirement Disability Retirement Death Prior to Retirement
LEOFF Plan 1: N/A N/A N/A
LEOFF Plan 2: RCW 41.26.430 RCW 41.26.470 RCW 41.26.510
PERS Plan 1: N/A N/A RCW 41.40.270
PERS Plan 2: RCW 41.40.630 RCW 41.40.670 RCW 41.40.700
PERS Plan 3: RCW 41.40.820 RCW 41.40.825 RCW 41.40.835 ((and 41.34.070))
PSERS: N/A RCW 41.37.230 RCW 41.37.250
SERS Plan 2: RCW 41.35.420 RCW 41.35.440 RCW 41.35.460
SERS Plan 3: RCW 41.35.680 RCW 41.35.690 RCW 41.35.710
TRS Plan 1: N/A N/A RCW 41.32.520
TRS Plan 2: RCW 41.32.765 RCW 41.32.790 RCW 41.32.805
TRS Plan 3: RCW 41.32.875 RCW 41.32.880 RCW 41.32.895 ((and 41.34.070))
WSPRS Plan 1: RCW 43.43.280 N/A N/A
WSPRS Plan 2: RCW 43.43.280 N/A RCW 43.43.295

(((2))) (3) How does the department determine the number of years on which to base the ERF? The calculation varies among plans:

(a) ((TRS Plan 1 only: The ERF used to calculate your beneficiary's monthly allowance if you die before retirement is based on the number of years between the age at which you die and the age at which you would have first become eligible to retire under RCW 41.32.480. See RCW 41.32.520.)) ERFs are based on the number of years between the age at which you retire, or die, and the age at which you would have qualified for normal retirement based on age and service.

Example - early retirement: Sandy, a PERS Plan 2 member, applies for retirement at age 56 years and one month with a total of 21.11 years of service. Her average final compensation (AFC) is $3,500.00.

PERS Plan 2 provides for two percent (.02) of AFC per year of service. A PERS Plan 2 member must be age 65 to retire with an unreduced benefit (i.e., normal retirement), but is eligible to retire with an actuarially reduced benefit (i.e., early retirement) at age 55 with 20 years of service credit.

The difference between Sandy's age now (56) and the age at which she would have qualified for normal retirement (age 65) is 8 years and 11 months. The corresponding ERF is 0.3987. Therefore, the department will multiply Sandy's AFC of $3,500 x .02 x 21.11 (service credit years) x 0.3987 (ERF). Sandy's monthly retirement benefit will be $589.16.

(b) WSPRS Plan 2 only: The ERF used to calculate your ((beneficiary's)) survivor's monthly ((allowance)) benefit if you die before retirement is based on the number of years between the age at which you die and age fifty-five (55) or when you could have attained twenty-five (25) years of service, whichever is less. See RCW 43.43.295.

Example - early retirement: The survivor benefit, in this example, will also have a reduction applied for 100% joint and survivor option, based on the difference between John's age and his survivor's age.

John, a WSPRS Plan 2 member dies prior to retirement. John is age 40 and has 15 years of service at the time of his death. John's Average Final Salary (AFS) is $4,000. John's surviving spouse is also age 40.

Since John would have attained 25 years of service before he would have attained age 55, the ERF used to calculate his survivor's benefit will be based on the 10 years it would have taken him to reach 25 years of service. The corresponding ERF for 10 years early retirement is 0.403. The corresponding joint and survivor (J&S) factor that will also be applied to the benefit is 0.889.

Therefore, the department will multiply John's AFS of $4,000 x .02 x 15 (service credit years) x 0.403 (ERF) x 0.889 (J&S). John's survivor will receive a monthly benefit of $429.92.

(c) ((All other ERFs are based on number of years between the age at which you retire, or die, and the age at which you would have been eligible to retire with an unreduced retirement allowance.

(3) Examples.

(a) Early retirement:

Sandy, a PERS Plan 2 member, applies for retirement at age 56 years and one month with a total of 21.11 years of service. Her average final compensation (AFC) is $3,500.00.

PERS Plan 2 provides for two percent (.02) of AFC per year of service. A PERS Plan 2 member must be age 65 to retire with an unreduced benefit, but is eligible for an actuarially reduced monthly retirement allowance at age 55 with 20 years of service credit.

The difference between Sandy's age now (56) and the age at which she would receive an unreduced monthly allowance (65) is 8 years and 11 months. The corresponding ERF is .4025. Therefore, the department will multiply Sandy's AFC of $3,500 x .02 x 21.11 (service credit years) x .4025 (ERF). Sandy's monthly retirement allowance will be $594.77.

(b) Death before retirement (applies to TRS 1 only):

Robert, a 56-year-old TRS Plan 1 member, died April 1, 2006, with 23.17 years of service credit. His AFC is $3,171.74.

TRS Plan 1 provides an unreduced retirement allowance at age 55 with 25 years of service credit.

Robert's wife, Karen, will receive an actuarially reduced allowance based on the date Robert would have first qualified for an unreduced retirement allowance. If Robert had continued in service, he would have met eligibility requirements in one year and 10 months, when he earned 25 years of service credit. The ERF for one year and 10 months is .8530.

Karen's monthly allowance will be further reduced by the Option 2 survivor factor, which is based on the age difference between her and Robert. Karen is age 58, two years older than Robert. The Option 2 survivor factor for a beneficiary two years older is .913 (see WAC 415-02-380(11)).

The department will multiply 23.17 (Robert's service credit years) x .02 x $3,171.74 (AFC) x .8530 (ERF) x .913 (the Option 2 factor). Karen's monthly allowance will be $1,144.65.)) TRS Plan 1 only: The ERF used to calculate your survivor's monthly benefit if you die before retirement is based on the number of years between the age at which you die and the age at which you would have first become eligible to retire under RCW 41.32.480. See RCW 41.32.520.

Example - death before retirement: Robert, a 56 year-old TRS Plan 1 member, died April 1, 2006, with 23.17 years of service credit. His AFC is $3,171.74.

TRS Plan 1 provides an unreduced benefit (i.e., normal retirement) at age 55 with 25 years of service credit.

Robert's wife, Karen, will receive an actuarially reduced benefit based on the date Robert would have first qualified for an unreduced benefit (i.e., normal retirement). If Robert had continued in service, he would have met eligibility requirements in one year and 10 months, when he earned 25 years of service credit. The ERF for one year and 10 months is 0.8410.

Karen's monthly benefit will be further reduced by the Option 2 survivor factor, which is based on the age difference between her and Robert. Karen is age 58, two years older than Robert. The Option 2 survivor factor for a beneficiary two years older is 0.918 (see WAC 415-02-380(12)).

The department will multiply 23.17 (Robert's service credit years) x .02 x $3,171.74 (AFC) x 0.8410 (ERF) x 0.918 (the Option 2 factor). Karen's monthly benefit will be $1,134.73.

(4) Table - ((Early retirement factors (ERF) for LEOFF Plan 2, WSP Plan 2, PERS Plan 1, TRS Plan 1, and WSP Plan 1 and 2 vested/terminated members:)) This table contains the early retirement factors (ERFs) for members who retire from active service in PERS Plan 1, TRS Plan 1, and WSPRS Plan 2. The ERFs are effective September 1, 2010.

((Yrs Early Month

0

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

0 1.000 .9933 .9866 .9799 .9732 .9665 .9598 .9531 .9464 .9397 .9330 .9263
1 .9200 .9133 .9066 .8999 .8932 .8865 .8798 .8731 .8664 .8597 .8530 .8463
2 .8400 .8333 .8266 .8199 .8132 .8065 .7998 .7931 .7864 .7797 .7730 .7663
3 .7600 .7558 .7516 .7474 .7432 .7390 .7348 .7306 .7264 .7222 .7180 .7138
4 .7100 .7058 .7016 .6974 .6932 .6890 .6848 .6806 .6764 .6722 .6680 .6638
5 .6600 .6558 .6516 .6474 .6432 .6390 .6348 .6306 .6264 .6222 .6180 .6138
6 .6100 .6058 .6016 .5974 .5932 .5890 .5848 .5806 .5764 .5722 .5680 .5638
7 .5600 .5558 .5516 .5474 .5432 .5390 .5348 .5306 .5264 .5222 .5180 .5138
8 .5100 .5067 .5034 .5001 .4968 .4935 .4902 .4869 .4836 .4803 .4770 .4737
9 .4700 .4667 .4634 .4601 .4568 .4535 .4502 .4469 .4436 .4403 .4370 .4337
10 .4300 .4267 .4234 .4201 .4168 .4135 .4102 .4069 .4036 .4003 .3970 .3937
11 .3900 .3867 .3834 .3801 .3768 .3735 .3702 .3669 .3636 .3603 .3570 .3537
12 .3500 .3467 .3434 .3401 .3368 .3335 .3302 .3269 .3236 .3203 .3170 .3137
13 .3100 .3083 .3066 .3049 .3032 .3015 .2998 .2981 .2964 .2947 .2930 .2913
14 .2900 .2883 .2866 .2849 .2832 .2815 .2798 .2781 .2764 .2747 .2730 .2713
15 .2700 .2683 .2666 .2649 .2632 .2615 .2598 .2581 .2564 .2547 .2530 .2513
16 .2500 .2483 .2466 .2449 .2432 .2415 .2398 .2381 .2364 .2347 .2330 .2313
17 .2300 .2283 .2266 .2249 .2232 .2215 .2198 .2181 .2164 .2147 .2130 .2113
18 .2100 .2092 .2084 .2076 .2068 .2060 .2052 .2044 .2036 .2028 .2020 .2012
19 .2000 .1992 .1984 .1976 .1968 .1960 .1952 .1944 .1936 .1928 .1920 .1912
20 .1900 .1892 .1884 .1876 .1868 .1860 .1852 .1844 .1836 .1828 .1820 .1812
21 .1800 .1792 .1784 .1776 .1768 .1760 .1752 .1744 .1736 .1728 .1720 .1712
22 .1700 .1692 .1684 .1676 .1668 .1660 .1652 .1644 .1636 .1628 .1620 .1612
23 .1600 .1592 .1584 .1576 .1568 .1560 .1552 .1544 .1536 .1528 .1520 .1512
24 .1500 .1492 .1484 .1476 .1468 .1460 .1452 .1444 .1436 .1428 .1420 .1412
25 .1400 .1392 .1384 .1376 .1368 .1360 .1352 .1344 .1336 .1328 .1320 .1312
26 .1300 .1292 .1284 .1276 .1268 .1260 .1252 .1244 .1236 .1228 .1220 .1212
27 .1200 .1192 .1184 .1176 .1168 .1160 .1152 .1144 .1136 .1128 .1120 .1112
28 .1100 .1092 .1084 .1076 .1068 .1060 .1052 .1044 .1036 .1028 .1020 .1012
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
31 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
32 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
33 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
34 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
35 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
36 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
37 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
38 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
39 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
40 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000))

Yrs Early Month

0

Month

1

Month

2

Month

3

Month

4

Month

5

Month

6

Month

7

Month

8

Month

9

Month

10

Month

11

0 1.0000 .9924 .9848 .9772 .9696 .9620 .9544 .9468 .9392 .9316 .9240 .9164
1 .9090 .9022 .8954 .8886 .8818 .8750 .8682 .8614 .8546 .8478 .8410 .8342
2 .8270 .8209 .8148 .8087 .8026 .7965 .7904 .7843 .7782 .7721 .7660 .7599
3 .7540 .7485 .7430 .7375 .7320 .7265 .7210 .7155 .7100 .7045 .6990 .6935
4 .6880 .6830 .6780 .6730 .6680 .6630 .6580 .6530 .6480 .6430 .6380 .6330
5 .6280 .6235 .6190 .6145 .6100 .6055 .6010 .5965 .5920 .5875 .5830 .5785
6 .5740 .5698 .5656 .5614 .5572 .5530 .5488 .5446 .5404 .5362 .5320 .5278
7 .5240 .5203 .5166 .5129 .5092 .5055 .5018 .4981 .4944 .4907 .4870 .4833
8 .4800 .4767 .4734 .4701 .4668 .4635 .4602 .4569 .4536 .4503 .4470 .4437
9 .4400 .4369 .4338 .4307 .4276 .4245 .4214 .4183 .4152 .4121 .4090 .4059
10 .4030 .4002 .3974 .3946 .3918 .3890 .3862 .3834 .3806 .3778 .3750 .3722
11 .3690 .3665 .3640 .3615 .3590 .3565 .3540 .3515 .3490 .3465 .3440 .3415
12 .3390 .3367 .3344 .3321 .3298 .3275 .3252 .3229 .3206 .3183 .3160 .3137
13 .3110 .3088 .3066 .3044 .3022 .3000 .2978 .2956 .2934 .2912 .2890 .2868
14 .2850 .2831 .2812 .2793 .2774 .2755 .2736 .2717 .2698 .2679 .2660 .2641
15 .2620 .2603 .2586 .2569 .2552 .2535 .2518 .2501 .2484 .2467 .2450 .2433
16 .2410 .2393 .2376 .2359 .2342 .2325 .2308 .2291 .2274 .2257 .2240 .2223
17 .2210 .2195 .2180 .2165 .2150 .2135 .2120 .2105 .2090 .2075 .2060 .2045
18 .2030 .2017 .2004 .1991 .1978 .1965 .1952 .1939 .1926 .1913 .1900 .1887
19 .1870 .1857 .1844 .1831 .1818 .1805 .1792 .1779 .1766 .1753 .1740 .1727
20 .1710 .1699 .1688 .1677 .1666 .1655 .1644 .1633 .1622 .1611 .1600 .1589
21 .1580 .1569 .1558 .1547 .1536 .1525 .1514 .1503 .1492 .1481 .1470 .1459
22 .1450 .1440 .1430 .1420 .1410 .1400 .1390 .1380 .1370 .1360 .1350 .1340
23 .1330 .1322 .1314 .1306 .1298 .1290 .1282 .1274 .1266 .1258 .1250 .1242
24 .1230 .1222 .1214 .1206 .1198 .1190 .1182 .1174 .1166 .1158 .1150 .1142
25 .1130 .1123 .1116 .1109 .1102 .1095 .1088 .1081 .1074 .1067 .1060 .1053
26 .1040 .1037 .1034 .1031 .1028 .1025 .1022 .1019 .1016 .1013 .1010 .1007
27 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
28 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30+ .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000

(5) Table - ((Early retirement factors (ERF))) The following early retirement factors (ERFs) for PERS Plans 2 and 3, ((PSERS,)) SERS Plans 2 and 3, and TRS Plans 2 and 3((, and PERS Plan 1 vested/terminated members:)) are effective September 1, 2010.

((Yrs Early Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
0 1.000 .9925 .9850 .9775 .9700 .9625 .9550 .9475 .9400 .9325 .9250 .9175
1 .9100 .9025 .8950 .8875 .8800 .8725 .8650 .8575 .8500 .8425 .8350 .8275
2 .8200 .8125 .8050 .7975 .7900 .7825 .7750 .7675 .7600 .7525 .7450 .7375
3 .7300 .7250 .7200 .7150 .7100 .7050 .7000 .6950 .6900 .6850 .6800 .6750
4 .6700 .6650 .6600 .6550 .6500 .6450 .6400 .6350 .6300 .6250 .6200 .6150
5 .6100 .6050 .6000 .5950 .5900 .5850 .5800 .5750 .5700 .5650 .5600 .5550
6 .5500 .5450 .5400 .5350 .5300 .5250 .5200 .5150 .5100 .5050 .5000 .4950
7 .4900 .4850 .4800 .4750 .4700 .4650 .4600 .4550 .4500 .4450 .4400 .4350
8 .4300 .4275 .4250 .4225 .4200 .4175 .4150 .4125 .4100 .4075 .4050 .4025
9 .4000 .3975 .3950 .3925 .3900 .3875 .3850 .3825 .3800 .3775 .3750 .3725
10 .3700 .3675 .3650 .3625 .3600 .3575 .3550 .3525 .3500 .3475 .3450 .3425
11 .3400 .3375 .3350 .3325 .3300 .3275 .3250 .3225 .3200 .3175 .3150 .3125
12 .3100 .3075 .3050 .3025 .3000 .2975 .2950 .2925 .2900 .2875 .2850 .2825
13 .2800 .2783 .2766 .2749 .2732 .2715 .2698 .2681 .2664 .2647 .2630 .2613
14 .2600 .2583 .2566 .2549 .2532 .2515 .2498 .2481 .2464 .2447 .2430 .2413
15 .2400 .2383 .2366 .2349 .2332 .2315 .2298 .2281 .2264 .2247 .2230 .2213
16 .2200 .2183 .2166 .2149 .2132 .2115 .2098 .2081 .2064 .2047 .2030 .2013
17 .2000 .1983 .1966 .1949 .1932 .1915 .1898 .1881 .1864 .1847 .1830 .1813
18 .1800 .1792 .1784 .1776 .1768 .1760 .1752 .1744 .1736 .1728 .1720 .1712
19 .1700 .1692 .1684 .1676 .1668 .1660 .1652 .1644 .1636 .1628 .1620 .1612
20 .1600 .1592 .1584 .1576 .1568 .1560 .1552 .1544 .1536 .1528 .1520 .1512
21 .1500 .1492 .1484 .1476 .1468 .1460 .1452 .1444 .1436 .1428 .1420 .1412
22 .1400 .1392 .1384 .1376 .1368 .1360 .1352 .1344 .1336 .1328 .1320 .1312
23 .1300 .1292 .1284 .1276 .1268 .1260 .1252 .1244 .1236 .1228 .1220 .1212
24 .1200 .1192 .1184 .1176 .1168 .1160 .1152 .1144 .1136 .1128 .1120 .1112
25 .1100 .1092 .1084 .1076 .1068 .1060 .1052 .1044 .1036 .1028 .1020 .1012
26 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
27 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
28 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
31 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
32 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
33 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
34 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
35 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
36 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
37 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
38 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
39 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
40 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
41 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
42 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
43 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
44 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
45 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000))

Yrs Early Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
0 1.0000 .9913 .9826 .9739 .9652 .9565 .9478 .9391 .9304 .9217 .9130 .9043
1 .8960 .8884 .8808 .8732 .8656 .8580 .8504 .8428 .8352 .8276 .8200 .8124
2 .8050 .7983 .7916 .7849 .7782 .7715 .7648 .7581 .7514 .7447 .7380 .7313
3 .7240 .7180 .7120 .7060 .7000 .6940 .6880 .6820 .6760 .6700 .6640 .6580
4 .6520 .6467 .6414 .6361 .6308 .6255 .6202 .6149 .6096 .6043 .5990 .5937
5 .5880 .5833 .5786 .5739 .5692 .5645 .5598 .5551 .5504 .5457 .5410 .5363
6 .5310 .5268 .5226 .5184 .5142 .5100 .5058 .5016 .4974 .4932 .4890 .4848
7 .4810 .4772 .4734 .4696 .4658 .4620 .4582 .4544 .4506 .4468 .4430 .4392
8 .4350 .4317 .4284 .4251 .4218 .4185 .4152 .4119 .4086 .4053 .4020 .3987
9 .3950 .3919 .3888 .3857 .3826 .3795 .3764 .3733 .3702 .3671 .3640 .3609
10 .3580 .3553 .3526 .3499 .3472 .3445 .3418 .3391 .3364 .3337 .3310 .3283
11 .3260 .3235 .3210 .3185 .3160 .3135 .3110 .3085 .3060 .3035 .3010 .2985
12 .2960 .2938 .2916 .2894 .2872 .2850 .2828 .2806 .2784 .2762 .2740 .2718
13 .2690 .2670 .2650 .2630 .2610 .2590 .2570 .2550 .2530 .2510 .2490 .2470
14 .2450 .2432 .2414 .2396 .2378 .2360 .2342 .2324 .2306 .2288 .2270 .2252
15 .2230 .2214 .2198 .2182 .2166 .2150 .2134 .2118 .2102 .2086 .2070 .2054
16 .2040 .2025 .2010 .1995 .1980 .1965 .1950 .1935 .1920 .1905 .1890 .1875
17 .1860 .1846 .1832 .1818 .1804 .1790 .1776 .1762 .1748 .1734 .1720 .1706
18 .1690 .1678 .1666 .1654 .1642 .1630 .1618 .1606 .1594 .1582 .1570 .1558
19 .1550 .1538 .1526 .1514 .1502 .1490 .1478 .1466 .1454 .1442 .1430 .1418
20 .1410 .1400 .1390 .1380 .1370 .1360 .1350 .1340 .1330 .1320 .1310 .1300
21 .1290 .1281 .1272 .1263 .1254 .1245 .1236 .1227 .1218 .1209 .1200 .1191
22 .1180 .1172 .1164 .1156 .1148 .1140 .1132 .1124 .1116 .1108 .1100 .1092
23 .1080 .1074 .1068 .1062 .1056 .1050 .1044 .1038 .1032 .1026 .1020 .1014
24 .1010 .1009 .1008 .1007 .1006 .1005 .1004 .1003 .1002 .1001 .1000 .1000
25 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
26 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
27 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
28 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30+ .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000

(6) Table - The following table contains early retirement factors (ERFs) for members who do not retire from active service in PERS Plan 1, PSERS Plan 2, and WSPRS Plans 1 and 2. The ERFs are effective September 1, 2010.


Yrs Early Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
0 1.0000 .9918 .9836 .9754 .9672 .9590 .9508 .9426 .9344 .9262 .9180 .9098
1 .9010 .8938 .8866 .8794 .8722 .8650 .8578 .8506 .8434 .8362 .8290 .8218
2 .8140 .8075 .8010 .7945 .7880 .7815 .7750 .7685 .7620 .7555 .7490 .7425
3 .7360 .7302 .7244 .7186 .7128 .7070 .7012 .6954 .6896 .6838 .6780 .6722
4 .6660 .6608 .6556 .6504 .6452 .6400 .6348 .6296 .6244 .6192 .6140 .6088
5 .6040 .5994 .5948 .5902 .5856 .5810 .5764 .5718 .5672 .5626 .5580 .5534
6 .5490 .5448 .5406 .5364 .5322 .5280 .5238 .5196 .5154 .5112 .5070 .5028
7 .4990 .4953 .4916 .4879 .4842 .4805 .4768 .4731 .4694 .4657 .4620 .4583
8 .4540 .4506 .4472 .4438 .4404 .4370 .4336 .4302 .4268 .4234 .4200 .4166
9 .4130 .4100 .4070 .4040 .4010 .3980 .3950 .3920 .3890 .3860 .3830 .3800
10 .3770 .3743 .3716 .3689 .3662 .3635 .3608 .3581 .3554 .3527 .3500 .3473
11 .3440 .3415 .3390 .3365 .3340 .3315 .3290 .3265 .3240 .3215 .3190 .3165
12 .3140 .3118 .3096 .3074 .3052 .3030 .3008 .2986 .2964 .2942 .2920 .2898
13 .2870 .2849 .2828 .2807 .2786 .2765 .2744 .2723 .2702 .2681 .2660 .2639
14 .2620 .2602 .2584 .2566 .2548 .2530 .2512 .2494 .2476 .2458 .2440 .2422
15 .2400 .2383 .2366 .2349 .2332 .2315 .2298 .2281 .2264 .2247 .2230 .2213
16 .2190 .2175 .2160 .2145 .2130 .2115 .2100 .2085 .2070 .2055 .2040 .2025
17 .2010 .1996 .1982 .1968 .1954 .1940 .1926 .1912 .1898 .1884 .1870 .1856
18 .1840 .1828 .1816 .1804 .1792 .1780 .1768 .1756 .1744 .1732 .1720 .1708
19 .1690 .1678 .1666 .1654 .1642 .1630 .1618 .1606 .1594 .1582 .1570 .1558
20 .1550 .1539 .1528 .1517 .1506 .1495 .1484 .1473 .1462 .1451 .1440 .1429
21 .1420 .1410 .1400 .1390 .1380 .1370 .1360 .1350 .1340 .1330 .1320 .1310
22 .1300 .1291 .1282 .1273 .1264 .1255 .1246 .1237 .1228 .1219 .1210 .1201
23 .1190 .1183 .1176 .1169 .1162 .1155 .1148 .1141 .1134 .1127 .1120 .1113
24 .1100 .1093 .1086 .1079 .1072 .1065 .1058 .1051 .1044 .1037 .1030 .1023
25 .1020 .1018 .1016 .1014 .1012 .1010 .1008 .1006 .1004 .1002 .1000 .1000
26 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
27 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
28 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30+ .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000

(7) Table - This table contains the early retirement factors (ERFs) for members who retire from active service in LEOFF Plan 2. The ERFs are effective January 1, 2010.


Yrs Early Month 0 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11
0 1.0000 .9925 .9850 .9775 .9700 .9625 .9550 .9475 .9400 .9325 .9250 .9175
1 .9100 .9033 .8966 .8899 .8832 .8765 .8698 .8631 .8564 .8497 .8430 .8363
2 .8300 .8239 .8178 .8117 .8056 .7995 .7934 .7873 .7812 .7751 .7690 .7629
3 .7570 .7515 .7460 .7405 .7350 .7295 .7240 .7185 .7130 .7075 .7020 .6965
4 .6910 .6860 .6810 .6760 .6710 .6660 .6610 .6560 .6510 .6460 .6410 .6360
5 .6310 .6265 .6220 .6175 .6130 .6085 .6040 .5995 .5950 .5905 .5860 .5815
6 .5770 .5728 .5686 .5644 .5602 .5560 .5518 .5476 .5434 .5392 .5350 .5308
7 .5270 .5233 .5196 .5159 .5122 .5085 .5048 .5011 .4974 .4937 .4900 .4863
8 .4830 .4796 .4762 .4728 .4694 .4660 .4626 .4592 .4558 .4524 .4490 .4456
9 .4420 .4389 .4358 .4327 .4296 .4265 .4234 .4203 .4172 .4141 .4110 .4079
10 .4050 .4022 .3994 .3966 .3938 .3910 .3882 .3854 .3826 .3798 .3770 .3742
11 .3710 .3685 .3660 .3635 .3610 .3585 .3560 .3535 .3510 .3485 .3460 .3435
12 .3410 .3387 .3364 .3341 .3318 .3295 .3272 .3249 .3226 .3203 .3180 .3157
13 .3130 .3108 .3086 .3064 .3042 .3020 .2998 .2976 .2954 .2932 .2910 .2888
14 .2870 .2851 .2832 .2813 .2794 .2775 .2756 .2737 .2718 .2699 .2680 .2661
15 .2640 .2622 .2604 .2586 .2568 .2550 .2532 .2514 .2496 .2478 .2460 .2442
16 .2420 .2404 .2388 .2372 .2356 .2340 .2324 .2308 .2292 .2276 .2260 .2244
17 .2230 .2215 .2200 .2185 .2170 .2155 .2140 .2125 .2110 .2095 .2080 .2065
18 .2050 .2036 .2022 .2008 .1994 .1980 .1966 .1952 .1938 .1924 .1910 .1896
19 .1880 .1868 .1856 .1844 .1832 .1820 .1808 .1796 .1784 .1772 .1760 .1748
20 .1730 .1718 .1706 .1694 .1682 .1670 .1658 .1646 .1634 .1622 .1610 .1598
21 .1590 .1580 .1570 .1560 .1550 .1540 .1530 .1520 .1510 .1500 .1490 .1480
22 .1470 .1460 .1450 .1440 .1430 .1420 .1410 .1400 .1390 .1380 .1370 .1360
23 .1350 .1342 .1334 .1326 .1318 .1310 .1302 .1294 .1286 .1278 .1270 .1262
24 .1250 .1242 .1234 .1226 .1218 .1210 .1202 .1194 .1186 .1178 .1170 .1162
25 .1150 .1143 .1136 .1129 .1122 .1115 .1108 .1101 .1094 .1087 .1080 .1073
26 .1060 .1055 .1050 .1045 .1040 .1035 .1030 .1025 .1020 .1015 .1010 .1005
27 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
28 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
29 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000
30+ .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000 .1000

[Statutory Authority: RCW 41.50.050(5), chapter 41.45 RCW. 06-18-009, 415-02-320, filed 8/24/06, effective 9/24/06; 02-18-048, 415-02-320, filed 8/28/02, effective 9/1/02.]

OTS-3457.1


AMENDATORY SECTION(Amending WSR 06-18-009, filed 8/24/06, effective 9/24/06)

WAC 415-02-340   Monthly benefit per $1.00 of accumulation for defined benefit plans.   (1) How does the department use the information in the table called "monthly benefit per $1.00 of accumulation for defined benefit plans"? The department uses this information to:

(a) Determine what a future lifetime monthly benefit is worth in present-day dollars;

(b) Determine the equivalent value of a lump sum when compared with monthly payments; ((and))

(c) Determine the cost of purchasing additional service credit as described in WAC 415-02-177(7); and

(d) For TRS Plan 1 only: ((Reduce)) Determine the reduction in the monthly retirement ((allowance)) benefit if some or all of the ((funds)) accumulated contributions in a member's individual account are ((taken in a lump sum payment)) withdrawn at retirement pursuant to RCW 41.32.498.

(2) What type of information is in this table? The information in this table ((reflects)) is based on the expected duration of lifetime payments for recipients over a range of ages. These values differ by system and plan, and all reflect an assumed rate of return of 8.0%.((3

3 The younger a person is, the longer the anticipated lifetime of payments would be, and the greater the sum required to provide for these payments. The amount of monthly lifetime benefit that a present-day dollar buys increases as the remaining life expectancy of the recipient decreases.
(3))) The younger a person is at retirement, the longer the anticipated lifetime of payments would be, and the greater the sum required to provide for these payments. The amount of monthly lifetime benefit that a present-day dollar buys increases as the remaining life expectancy of the recipient decreases.

(a) Example:

Celina is a 65-year-old PERS Plan 2 member who is eligible to receive $45.00 per month. She wants to know how much money she would receive if she accepted a lump sum payment instead. Celina looks at the row in the table for age 65 in the PERS Plan 2 column and learns that (($0.0072458)) $.0069798 per month for life ((is equivalent to)) has a present day cash value of one dollar ((in cash)) ($1.00) for this system, plan, and age class. Celina divides $45.00 by ((0.0072458)) .0069798 and learns that her lump sum payment would be (($6,210.49)) $6,447.18.

(b) Example:

Fred is a 58-year-old TRS Plan 1 member. The balance in Fred's account is $124,934.00. Upon retirement, Fred chooses to withdraw the $124,934.00 (as only members of TRS Plan 1 can do and still receive a monthly ((allowance)) benefit). From the row in the table for age 58 in the TRS Plan 1 column, Fred learns that (($0.0077573)) $.0077298 per month for life ((is the equivalent to)) has a present day cash value of one dollar ((in cash)) ($1.00) for this system, plan, and age class. Fred multiplies $124,934.00 by ((0.0077573)) .0077298, and learns that his monthly retirement ((allowance)) benefit will be reduced by (($969.15)) $965.71 per month if he withdraws his account balance.

(((4))) (3) Table((1)) - Monthly benefit per $1.00 of accumulation for defined benefit plans. The rates contained in this table are effective:


((Age LEOFF 1 LEOFF 2 PERS 1 PERS 2/3 PSERS SERS 2/3 TRS 1 TRS 2/3 WSPRS 2
20 0.0039835 0.0043310 0.0065444 0.0043102 0.0043248 0.0042786 0.0065267 0.0042774 0.0043319
21 0.0039997 0.0043459 0.0065518 0.0043243 0.0043395 0.0042911 0.0065329 0.0042897 0.0043469
22 0.0040168 0.0043615 0.0065598 0.0043390 0.0043549 0.0043042 0.0065396 0.0043027 0.0043626
23 0.0040347 0.0043780 0.0065684 0.0043546 0.0043711 0.0043181 0.0065468 0.0043165 0.0043791
24 0.0040535 0.0043955 0.0065778 0.0043710 0.0043882 0.0043327 0.0065546 0.0043309 0.0043966
25 0.0040734 0.0044139 0.0065878 0.0043884 0.0044063 0.0043481 0.0065630 0.0043462 0.0044150
26 0.0040943 0.0044333 0.0065987 0.0044067 0.0044255 0.0043644 0.0065720 0.0043622 0.0044346
27 0.0041163 0.0044539 0.0066105 0.0044261 0.0044457 0.0043816 0.0065818 0.0043792 0.0044552
28 0.0041396 0.0044757 0.0066232 0.0044466 0.0044671 0.0043997 0.0065924 0.0043971 0.0044771
29 0.0041641 0.0044988 0.0066370 0.0044682 0.0044897 0.0044189 0.0066038 0.0044161 0.0045002
30 0.0041899 0.0045231 0.0066517 0.0044911 0.0045136 0.0044391 0.0066162 0.0044361 0.0045246
31 0.0042171 0.0045488 0.0066676 0.0045152 0.0045388 0.0044605 0.0066295 0.0044572 0.0045503
32 0.0042456 0.0045758 0.0066845 0.0045405 0.0045653 0.0044830 0.0066438 0.0044795 0.0045774
33 0.0042755 0.0046042 0.0067025 0.0045672 0.0045932 0.0045067 0.0066592 0.0045031 0.0046059
34 0.0043069 0.0046340 0.0067217 0.0045952 0.0046225 0.0045316 0.0066756 0.0045278 0.0046358
35 0.0043398 0.0046654 0.0067421 0.0046247 0.0046533 0.0045578 0.0066930 0.0045539 0.0046672
36 0.0043745 0.0046984 0.0067639 0.0046558 0.0046857 0.0045854 0.0067116 0.0045812 0.0047004
37 0.0044109 0.0047333 0.0067873 0.0046886 0.0047200 0.0046145 0.0067315 0.0046101 0.0047353
38 0.0044494 0.0047701 0.0068123 0.0047233 0.0047562 0.0046452 0.0067527 0.0046404 0.0047723
39 0.0044900 0.0048091 0.0068393 0.0047600 0.0047945 0.0046777 0.0067754 0.0046725 0.0048114
40 0.0045330 0.0048505 0.0068682 0.0047988 0.0048351 0.0047120 0.0067998 0.0047065 0.0048529
41 0.0045784 0.0048944 0.0068994 0.0048400 0.0048782 0.0047483 0.0068261 0.0047423 0.0048969
42 0.0046266 0.0049409 0.0069329 0.0048837 0.0049239 0.0047868 0.0068543 0.0047803 0.0049436
43 0.0046777 0.0049904 0.0069690 0.0049300 0.0049724 0.0048275 0.0068846 0.0048206 0.0049932
44 0.0047319 0.0050430 0.0070078 0.0049791 0.0050240 0.0048706 0.0069172 0.0048632 0.0050460
45 0.0047894 0.0050989 0.0070495 0.0050312 0.0050787 0.0049163 0.0069523 0.0049084 0.0051021
46 0.0048504 0.0051584 0.0070945 0.0050866 0.0051370 0.0049647 0.0069900 0.0049562 0.0051617
47 0.0049153 0.0052218 0.0071429 0.0051455 0.0051990 0.0050161 0.0070305 0.0050070 0.0052253
48 0.0049844 0.0052894 0.0071953 0.0052082 0.0052652 0.0050707 0.0070740 0.0050609 0.0052932
49 0.0050581 0.0053617 0.0072519 0.0052752 0.0053358 0.0051287 0.0071210 0.0051183 0.0053657
50 0.0051368 0.0054390 0.0073132 0.0053466 0.0054114 0.0051905 0.0071717 0.0051793 0.0054432
51 0.0052210 0.0055218 0.0073796 0.0054231 0.0054923 0.0052564 0.0072265 0.0052444 0.0055264
52 0.0053104 0.0056098 0.0074510 0.0055044 0.0055783 0.0053265 0.0072858 0.0053139 0.0056147
53 0.0054060 0.0057042 0.0075283 0.0055914 0.0056704 0.0054014 0.0073500 0.0053881 0.0057094
54 0.0055084 0.0058054 0.0076121 0.0056846 0.0057692 0.0054813 0.0074191 0.0054671 0.0058110
55 0.0056182 0.0059141 0.0077029 0.0057845 0.0058752 0.0055668 0.0074939 0.0055515 0.0059201
56 0.0057354 0.0060302 0.0078008 0.0058912 0.0059885 0.0056581 0.0075749 0.0056420 0.0060367
57 0.0058601 0.0061539 0.0079058 0.0060049 0.0061091 0.0057557 0.0076627 0.0057388 0.0061608
58 0.0059937 0.0062865 0.0080192 0.0061265 0.0062384 0.0058600 0.0077573 0.0058422 0.0062940
59 0.0061368 0.0064287 0.0081415 0.0062566 0.0063769 0.0059712 0.0078589 0.0059524 0.0064368
60 0.0062900 0.0065812 0.0082732 0.0063959 0.0065253 0.0060901 0.0079685 0.0060703 0.0065898
61 0.0064540 0.0067444 0.0084149 0.0065448 0.0066842 0.0062172 0.0080866 0.0061963 0.0067538
62 0.0066294 0.0069191 0.0085668 0.0067036 0.0068540 0.0063529 0.0082138 0.0063311 0.0069292
63 0.0068167 0.0071058 0.0087294 0.0068729 0.0070354 0.0064976 0.0083506 0.0064751 0.0071168
64 0.0070165 0.0073050 0.0089030 0.0070531 0.0072287 0.0066517 0.0084970 0.0066285 0.0073169
65 0.0072307 0.0075186 0.0090893 0.0072458 0.0074359 0.0068158 0.0086537 0.0067919 0.0075315
66 0.0074600 0.0077474 0.0092891 0.0074517 0.0076576 0.0069903 0.0088208 0.0069657 0.0077614
67 0.0077052 0.0079921 0.0095028 0.0076715 0.0078946 0.0071765 0.0090000 0.0071514 0.0080073
68 0.0079692 0.0082556 0.0097332 0.0079076 0.0081496 0.0073755 0.0091921 0.0073497 0.0082721
69 0.0082539 0.0085400 0.0099823 0.0081620 0.0084247 0.0075879 0.0093974 0.0075612 0.0085580
70 0.0085622 0.0088479 0.0102523 0.0084366 0.0087223 0.0078162 0.0096186 0.0077883 0.0088676
71 0.0088938 0.0091793 0.0105419 0.0087308 0.0090421 0.0080615 0.0098577 0.0080327 0.0092008
72 0.0092539 0.0095393 0.0108558 0.0090487 0.0093889 0.0083261 0.0101166 0.0082964 0.0095628
73 0.0096446 0.0099300 0.0111955 0.0093919 0.0097647 0.0086093 0.0103939 0.0085784 0.0099559
74 0.0100684 0.0103538 0.0115628 0.0097624 0.0101717 0.0089142 0.0106939 0.0088826 0.0103824
75 0.0105280 0.0108135 0.0119604 0.0101627 0.0106127 0.0092422 0.0110180 0.0092104 0.0108451
76 0.0110267 0.0113124 0.0123914 0.0105960 0.0110908 0.0095951 0.0113678 0.0095637 0.0113472
77 0.0115688 0.0118547 0.0128599 0.0110662 0.0116103 0.0099757 0.0117460 0.0099450 0.0118933
78 0.0121597 0.0124460 0.0133705 0.0115778 0.0121762 0.0103875 0.0121558 0.0103575 0.0124885
79 0.0128051 0.0130919 0.0139278 0.0121352 0.0127939 0.0108344 0.0126012 0.0108049 0.0131389
80 0.0135111 0.0137984 0.0145368 0.0127433 0.0134689 0.0113202 0.0130863 0.0112914 0.0138505
81 0.0142843 0.0145725 0.0152030 0.0134074 0.0142077 0.0118492 0.0136157 0.0118211 0.0146303
82 0.0151240 0.0154130 0.0159279 0.0141293 0.0150101 0.0124242 0.0141938 0.0123986 0.0154769
83 0.0160353 0.0163252 0.0167162 0.0149136 0.0158811 0.0130497 0.0148256 0.0130286 0.0163958
84 0.0170241 0.0173149 0.0175726 0.0157650 0.0168262 0.0137302 0.0155137 0.0137139 0.0173927
85 0.0180966 0.0183884 0.0185016 0.0166876 0.0178509 0.0144701 0.0162628 0.0144589 0.0184740
86 0.0192583 0.0195513 0.0195059 0.0176841 0.0189598 0.0152736 0.0170771 0.0152680 0.0196456
87 0.0205119 0.0208062 0.0205851 0.0187541 0.0201546 0.0161432 0.0179605 0.0161446 0.0209102
88 0.0218550 0.0221507 0.0217347 0.0198932 0.0214321 0.0170791 0.0189147 0.0170905 0.0222656
89 0.0232781 0.0235752 0.0229444 0.0210916 0.0227826 0.0180779 0.0199388 0.0181048 0.0237021
90 0.0247625 0.0250609 0.0241977 0.0223336 0.0241882 0.0191323 0.0210275 0.0191823 0.0252008
91 0.0262789 0.0265782 0.0254717 0.0235975 0.0256220 0.0202301 0.0221705 0.0203134 0.0267317
92 0.0278427 0.0281429 0.0267640 0.0248804 0.0270932 0.0213620 0.0233525 0.0214834 0.0283116
93 0.0294384 0.0297392 0.0280581 0.0261661 0.0285859 0.0225126 0.0245532 0.0226729 0.0299249
94 0.0310505 0.0313517 0.0293389 0.0274402 0.0300847 0.0236656 0.0257646 0.0238739 0.0315562
95 0.0326651 0.0329665 0.0305940 0.0286908 0.0315762 0.0248057 0.0269704 0.0250708 0.0331914
96 0.0342704 0.0345719 0.0318149 0.0299099 0.0330499 0.0259197 0.0281559 0.0262493 0.0348186
97 0.0358572 0.0361585 0.0329987 0.0310951 0.0344988 0.0269980 0.0293096 0.0273986 0.0364281
98 0.0374173 0.0377185 0.0341503 0.0322517 0.0359196 0.0280348 0.0304239 0.0285118 0.0380114
99 0.0389423 0.0392433 0.0352857 0.0333956 0.0373129 0.0290309 0.0314979 0.0295884 0.0395582))

1This table is based on the 1995-2000 actuarial experience study monthly benefit per $1.00 of accumulation defined benefit (DB) single life pension.)) (a) January 1, 2010, for LEOFF Plan 2.

(b) September 1, 2010, for LEOFF Plan 1, PSERS Plan 2, PERS Plans 1, 2, and 3, SERS Plans 2 and 3, TRS Plans 1, 2, and 3, and WSPRS Plans 1 and 2.


Age LEOFF 1 LEOFF 2 PERS 1 PERS 2/3 PSERS SERS 2/3 TRS 1 TRS 2/3 WSPRS

1/2

20 .0039630 .0042990 .0066256 .0044560 .0044926 .0043681 .0067741 .0043601 .0043122
21 .0039783 .0043125 .0066400 .0044786 .0045172 .0043857 .0067970 .0043765 .0043261
22 .0039944 .0043266 .0066556 .0045024 .0045432 .0044042 .0068200 .0043935 .0043409
23 .0040113 .0043414 .0066725 .0045277 .0045708 .0044238 .0068425 .0044110 .0043563
24 .0040290 .0043571 .0066909 .0045527 .0045970 .0044446 .0068636 .0044289 .0043727
25 .0040476 .0043735 .0067108 .0045775 .0046219 .0044665 .0068824 .0044471 .0043899
26 .0040672 .0043908 .0067323 .0046023 .0046458 .0044898 .0068973 .0044650 .0044081
27 .0040879 .0044091 .0067558 .0046271 .0046688 .0045144 .0069111 .0044835 .0044273
28 .0041096 .0044283 .0067812 .0046522 .0046911 .0045404 .0069240 .0045024 .0044475
29 .0041325 .0044486 .0068089 .0046765 .0047126 .0045658 .0069358 .0045218 .0044690
30 .0041567 .0044701 .0068389 .0047004 .0047338 .0045907 .0069464 .0045417 .0044917
31 .0041821 .0044927 .0068716 .0047243 .0047552 .0046155 .0069558 .0045622 .0045156
32 .0042089 .0045166 .0069070 .0047485 .0047771 .0046406 .0069647 .0045835 .0045409
33 .0042369 .0045416 .0069454 .0047740 .0048004 .0046662 .0069736 .0046056 .0045674
34 .0042663 .0045679 .0069870 .0048003 .0048250 .0046915 .0069837 .0046292 .0045953
35 .0042972 .0045956 .0070321 .0048278 .0048512 .0047169 .0069950 .0046542 .0046246
36 .0043296 .0046246 .0070452 .0048564 .0048790 .0047428 .0070072 .0046806 .0046555
37 .0043637 .0046552 .0070575 .0048864 .0049084 .0047694 .0070212 .0047088 .0046879
38 .0043996 .0046874 .0070688 .0049179 .0049396 .0047969 .0070369 .0047387 .0047222
39 .0044374 .0047214 .0070789 .0049517 .0049727 .0048272 .0070543 .0047705 .0047584
40 .0044774 .0047574 .0070877 .0049878 .0050077 .0048606 .0070735 .0048043 .0047968
41 .0045196 .0047956 .0070940 .0050264 .0050448 .0048971 .0070945 .0048402 .0048374
42 .0045644 .0048361 .0070990 .0050678 .0050842 .0049369 .0071156 .0048778 .0048805
43 .0046118 .0048791 .0070989 .0051123 .0051264 .0049803 .0071367 .0049171 .0049263
44 .0046620 .0049248 .0070984 .0051581 .0051690 .0050256 .0071581 .0049584 .0049750
45 .0047153 .0049733 .0070975 .0052058 .0052129 .0050731 .0071796 .0050016 .0050267
46 .0047719 .0050249 .0070965 .0052558 .0052584 .0051232 .0072015 .0050470 .0050817
47 .0048320 .0050797 .0070915 .0053071 .0053044 .0051753 .0072216 .0050943 .0051402
48 .0048959 .0051382 .0071400 .0053597 .0053509 .0052297 .0072393 .0051435 .0052026
49 .0049640 .0052005 .0071924 .0054123 .0053965 .0052834 .0072541 .0051948 .0052691
50 .0050366 .0052671 .0072490 .0054649 .0054413 .0053369 .0072655 .0052480 .0053403
51 .0051142 .0053389 .0073101 .0055179 .0054854 .0053893 .0072727 .0053034 .0054164
52 .0051972 .0054158 .0073762 .0055712 .0055289 .0054418 .0072741 .0053604 .0054980
53 .0052853 .0054978 .0074471 .0056258 .0055733 .0054938 .0073367 .0054189 .0055849
54 .0053797 .0055858 .0075233 .0056745 .0056596 .0055433 .0074042 .0054793 .0056779
55 .0054807 .0056802 .0076058 .0057184 .0057498 .0055902 .0074767 .0055411 .0057777
56 .0055889 .0057814 .0076921 .0058127 .0058440 .0056775 .0075550 .0056278 .0058848
57 .0057044 .0058893 .0077823 .0059112 .0059501 .0057690 .0076393 .0057206 .0059992
58 .0058273 .0060042 .0078773 .0060140 .0060619 .0058646 .0077298 .0058208 .0061211
59 .0059589 .0061272 .0079792 .0061247 .0061827 .0059661 .0078266 .0059269 .0062516
60 .0060997 .0062589 .0080922 .0062396 .0063106 .0060720 .0079310 .0060395 .0063915
61 .0062505 .0064002 .0082202 .0063666 .0064504 .0061903 .0080462 .0061608 .0065415
62 .0064118 .0065513 .0083578 .0065016 .0065977 .0063169 .0081703 .0062902 .0067019
63 .0065841 .0067129 .0085052 .0066506 .0067558 .0064550 .0083036 .0064296 .0068736
64 .0067682 .0068853 .0086629 .0068077 .0069257 .0066012 .0084463 .0065775 .0070570
65 .0069647 .0070694 .0088312 .0069798 .0071083 .0067597 .0085990 .0067357 .0072527
66 .0071751 .0072670 .0090119 .0071671 .0073064 .0069302 .0087617 .0069054 .0074626
67 .0074005 .0074781 .0092055 .0073673 .0075182 .0071120 .0089361 .0070866 .0076873
68 .0076417 .0077043 .0094125 .0075807 .0077444 .0073062 .0091231 .0072802 .0079279
69 .0079015 .0079491 .0096357 .0078101 .0079879 .0075136 .0093229 .0074865 .0081872
70 .0081820 .0082138 .0098771 .0080572 .0082505 .0077363 .0095381 .0077080 .0084672
71 .0084859 .0085025 .0101389 .0083241 .0085349 .0079758 .0097709 .0079465 .0087708
72 .0088138 .0088151 .0104201 .0086103 .0088406 .0082342 .0100231 .0082039 .0090984
73 .0091701 .0091561 .0107251 .0089197 .0091722 .0085108 .0102934 .0084793 .0094545
74 .0095574 .0095288 .0110556 .0092540 .0095316 .0088090 .0105863 .0087767 .0098417
75 .0099786 .0099363 .0114135 .0096154 .0099213 .0091299 .0109028 .0090974 .0102629
76 .0104363 .0103798 .0118015 .0100065 .0103437 .0094759 .0112453 .0094437 .0107207
77 .0109340 .0108658 .0122231 .0104305 .0108023 .0098495 .0116161 .0098178 .0112186
78 .0114761 .0113957 .0126816 .0108908 .0113009 .0102538 .0120181 .0102226 .0117609
79 .0120673 .0119743 .0131812 .0113914 .0118439 .0106928 .0124555 .0106622 .0123525
80 .0127133 .0126071 .0137267 .0119372 .0124365 .0111699 .0129318 .0111400 .0129990
81 .0134199 .0132991 .0143230 .0125327 .0130838 .0116897 .0134518 .0116607 .0137063
82 .0141935 .0140556 .0149754 .0131831 .0137915 .0122554 .0140201 .0122286 .0144806
83 .0150329 .0148749 .0156858 .0138907 .0145603 .0128713 .0146417 .0128485 .0153209
84 .0159449 .0157725 .0164602 .0146610 .0153963 .0135431 .0153203 .0135243 .0162339
85 .0169344 .0167437 .0173034 .0154990 .0163048 .0142750 .0160601 .0142601 .0172243
86 .0180074 .0178057 .0182194 .0164082 .0172909 .0150708 .0168660 .0150605 .0182984
87 .0191721 .0189719 .0192109 .0173915 .0183603 .0159338 .0177414 .0159287 .0194643
88 .0204278 .0202253 .0202755 .0184464 .0195120 .0168612 .0186859 .0168647 .0207214
89 .0217668 .0215551 .0214081 .0195682 .0207399 .0178513 .0197002 .0178688 .0220619
90 .0231832 .0229787 .0225995 .0207480 .0220372 .0188950 .0207759 .0189334 .0234798
91 .0246573 .0244483 .0238330 .0219700 .0233859 .0199836 .0219061 .0200515 .0249552
92 .0261621 .0259752 .0250904 .0232169 .0247641 .0211073 .0230763 .0212095 .0264610
93 .0277078 .0275207 .0263675 .0244841 .0261746 .0222518 .0242665 .0223884 .0280075
94 .0292794 .0291108 .0276431 .0257513 .0275992 .0233979 .0254667 .0235783 .0295796
95 .0308761 .0307651 .0289073 .0270087 .0290311 .0245376 .0266650 .0247675 .0311768
96 .0324718 .0323798 .0301473 .0282442 .0304507 .0256481 .0278402 .0259359 .0327726
97 .0340569 .0340193 .0313572 .0294522 .0318500 .0267305 .0289917 .0270827 .0343576
98 .0356440 .0357060 .0325325 .0306287 .0332303 .0277699 .0300994 .0281894 .0359444
99 .0372127 .0373073 .0336697 .0317712 .0345762 .0287711 .0311701 .0292630 .0375126

[Statutory Authority: RCW 41.50.050(5), chapter 41.45 RCW. 06-18-009, 415-02-340, filed 8/24/06, effective 9/24/06; 02-18-048, 415-02-340, filed 8/28/02, effective 9/1/02.]

OTS-3456.1


AMENDATORY SECTION(Amending WSR 03-24-051, filed 11/26/03, effective 1/1/04)

WAC 415-02-345   TRS Plan 1 Option 1 benefit factors.   (1) What is a TRS Plan 1 Option 1 benefit factor? At the time of retirement, a TRS Plan 1 member may choose to receive an Option 1, standard ((allowance)) benefit, which is a slightly reduced lifetime monthly benefit. This option allows the final unpaid monthly benefit and any remaining balance of contributions to be paid in a lump sum to the retiree's estate or named beneficiary at the time of the retiree's death. The reduction to the monthly benefit is based on an Option 1 factor and is applied against the annuity portion of the monthly benefit. The factor that is used is determined by the age of the member at the time of retirement. For more information about the Option 1, standard ((allowance)) benefit, see RCW 41.32.530 (1)(a).

(2) ((Option 1 benefit factor table.)) Table - The following Option 1 benefit factors are effective September 1, 2010.


((Age Factor Reduction Age Factor Reduction
20 99.8876% 0.1% 50 99.1060% 0.9%
21 99.8851% 0.1% 51 99.0237% 1.0%
22 99.8825% 0.1% 52 98.9288% 1.1%
23 99.8794% 0.1% 53 98.8184% 1.2%
24 99.8757% 0.1% 54 98.6970% 1.3%
25 99.8710% 0.1% 55 98.5566% 1.4%
26 99.8650% 0.1% 56 98.3876% 1.6%
27 99.8575% 0.1% 57 98.1977% 1.8%
28 99.8480% 0.2% 58 97.9853% 2.0%
29 99.8362% 0.2% 59 97.7388% 2.3%
30 99.8220% 0.2% 60 97.4759% 2.5%
31 99.8053% 0.2% 61 97.1849% 2.8%
32 99.7858% 0.2% 62 96.8657% 3.1%
33 99.7638% 0.2% 63 96.5199% 3.5%
34 99.7413% 0.3% 64 96.1340% 3.9%
35 99.7184% 0.3% 65 95.7405% 4.3%
36 99.6951% 0.3% 66 95.3342% 4.7%
37 99.6712% 0.3% 67 94.8664% 5.1%
38 99.6461% 0.4% 68 94.4041% 5.6%
39 99.6195% 0.4% 69 93.9285% 6.1%
40 99.5908% 0.4% 70 93.3893% 6.6%
41 99.5597% 0.4% 71 92.8393% 7.2%
42 99.5255% 0.5% 72 92.2534% 7.7%
43 99.4881% 0.5% 73 91.5922% 8.4%
44 99.4474% 0.6% 74 90.9422% 9.1%
45 99.4018% 0.6% 75 90.2102% 9.8%
46 99.3542% 0.6% 76 89.4917% 10.5%
47 99.2994% 0.7% 77 88.7582% 11.2%
48 99.2421% 0.8% 78 85.9377% 14.1%
49 99.1781% 0.8% 79 85.8097% 14.2%
80 86.1255% 13.9%))


Age Factor Reduction Age Factor Reduction
20 99.3233% 0.7% 50 98.5277% 1.5%
21 99.1906% 0.8% 51 98.8267% 1.2%
22 99.0506% 0.9% 52 99.2279% 0.8%
23 98.9113% 1.1% 53 99.1329% 0.9%
24 98.7803% 1.2% 54 99.0247% 1.0%
25 98.6679% 1.3% 55 98.9011% 1.1%
26 98.5907% 1.4% 56 98.7584% 1.2%
27 98.5248% 1.5% 57 98.5936% 1.4%
28 98.4698% 1.5% 58 98.4070% 1.6%
29 98.4281% 1.6% 59 98.1990% 1.8%
30 98.4011% 1.6% 60 97.9599% 2.0%
31 98.3898% 1.6% 61 98.0472% 2.0%
32 98.3880% 1.6% 62 97.7597% 2.2%
33 98.3919% 1.6% 63 97.4355% 2.6%
34 98.3889% 1.6% 64 97.0756% 2.9%
35 98.3802% 1.6% 65 96.6774% 3.3%
36 98.3656% 1.6% 66 96.2422% 3.8%
37 98.3360% 1.7% 67 96.1337% 3.9%
38 98.2896% 1.7% 68 96.0251% 4.0%
39 98.2246% 1.8% 69 95.5281% 4.5%
40 98.1380% 1.9% 70 94.9709% 5.0%
41 98.0401% 2.0% 71 94.3415% 5.7%
42 97.9596% 2.0% 72 94.2358% 5.8%
43 97.8978% 2.1% 73 94.1300% 5.9%
44 97.8557% 2.1% 74 93.3902% 6.6%
45 97.8346% 2.2% 75 92.5634% 7.4%
46 97.8359% 2.2% 76 92.5038% 7.5%
47 97.8815% 2.1% 77 92.4441% 7.6%
48 97.9786% 2.0% 78 91.4887% 8.5%
49 98.3106% 1.7% 79 90.4121% 9.6%
80 90.4374% 9.6%

[Statutory Authority: RCW 41.50.050(5). 03-24-051, 415-02-345, filed 11/26/03, effective 1/1/04.]

OTS-3455.2


AMENDATORY SECTION(Amending WSR 08-20-068, filed 9/25/08, effective 10/26/08)

WAC 415-02-350   What are cost-of-living adjustments (COLA) and how are they calculated?   (1) What is a cost-of-living adjustment (COLA)? The value of a retiree's, beneficiary's, or ex-spouse's monthly ((allowance)) benefit may change in the years after retirement because of inflation or other factors. A COLA automatically adjusts benefits based on the cost of living changes.

(2) What retirement plans include COLAs? With one exception, all retirement plans administered by the department provide one or more of the types of COLAs listed in subsection (3) of this section. The judges retirement fund (chapter 2.12 RCW) does not provide a COLA.


RETIREMENT SYSTEM PLAN COLA TYPE STATUTE
JUDICIAL Base RCW 2.10.170
LEOFF Plan 1 Base RCW 41.26.240
LEOFF Plan 2 Base RCW 41.26.440
PSERS Base RCW 41.37.160
PERS Plan 1 Uniform RCW 41.40.197
PERS Plan 1 Optional ((Auto)) RCW 41.40.188 (1)(c)
PERS Plan 2 Base RCW 41.40.640
PERS Plan 3 Base RCW 41.40.840
SERS Plans 2 and 3 Base RCW 41.35.210
TRS Plan 1 Uniform RCW 41.32.489
TRS Plan 1 Optional ((Auto)) RCW 41.32.530 (1)(d)
TRS Plan 2 Base RCW 41.32.770
TRS Plan 3 Base RCW 41.32.845
WSPRS Plans 1 and 2 Base RCW 43.43.260

(3) What are the types of COLAs?

(a) ((Auto)) Optional COLA

The ((auto)) optional COLA((, if offered under your plan,)) is an option you may select at retirement. If you choose this option, your monthly retirement ((allowance)) benefit will be actuarially reduced at retirement, and you will receive an automatic adjustment in your monthly retirement ((allowance)) benefit each year for the rest of your life. The ((auto)) optional COLA has no age requirement and is limited to a maximum of three percent of your monthly ((allowance)) benefit.

(b) Base COLA

The base COLA is applied in July (April for LEOFF Plan 1) of each year and adjusts the benefit based on the change in the Consumer Price Index for the Seattle-Tacoma-Bremerton, Washington area for all plans except the Judicial Retirement System which is based on the U.S. City Average. Base COLAs are limited to a maximum of three percent of the monthly ((allowance)) benefit for all affected plans except LEOFF Plan 1. During a calendar year, the base COLA is payable to:

(i) Retirees who have been retired for at least one year by July 1st of each year (April 1st for LEOFF Plan 1); and

(ii) Beneficiaries or eligible ex-spouses who receive benefit payments from an account that, by July 1st, has paid a monthly benefit for at least one year (April 1st for LEOFF Plan 1).

(c) Uniform COLA

The uniform COLA is an annual adjustment to the benefit, based on years of service. The annual adjustment for the uniform COLA is independent from any other COLA. During a calendar year, it is payable to:

(i) Retirees who, by July 1st, have received a retirement benefit for at least one year and who, by December 31st, will have reached age sixty-six or older;

(ii) Beneficiaries and eligible ex-spouses who receive benefit payments from an account that, by July 1st, has paid a monthly benefit for at least one year and who, by December 31st, will have reached age sixty-six or older; and

(iii) Retirees, beneficiaries, or eligible ex-spouses of any age whose retirement benefit is calculated under the minimum formula.

(4) Who is responsible for determining the amount of the COLA? The office of the state actuary (OSA) bases the percentages of the COLAs on the Consumer Price Index. The Index is based on wages earned by urban wage earners and clerical workers in the Seattle-Tacoma-Bremerton, Washington area. OSA provides this information to the department annually.

[Statutory Authority: RCW 41.50.050(5). 08-20-068, 415-02-350, filed 9/25/08, effective 10/26/08; 08-01-079, 415-02-350, filed 12/17/07, effective 1/17/08. Statutory Authority: RCW 41.50.050(5), 2.10.170, 41.26.240, 41.26.440, 41.37.160, 41.40.197, 41.40.188 (1)(c), 41.40.640, 41.40.840, 41.35.210, 41.32.489, 41.32.530 (1)(d), 41.32.770, 41.32.845, 43.43.260. 06-18-009, 415-02-350, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 03-06-044, 415-02-350, filed 2/27/03, effective 4/1/03.]

OTS-3430.2


AMENDATORY SECTION(Amending WSR 08-20-068, filed 9/25/08, effective 10/26/08)

WAC 415-02-360   What is the optional cost-of-living adjustment (COLA) for PERS Plan 1 and TRS Plan 1?   (1) ((At the time of retirement, if you are a PERS Plan 1 or TRS Plan 1 member, you can choose initially reduced retirement payment benefits that will provide you with annual cost of living adjustments in the future.)) PERS Plan 1 and TRS Plan 1 members can choose to receive an initially reduced retirement benefit in order to receive an annual cost-of-living adjustment in the future. With this optional COLA, the member's monthly retirement benefit is actuarially reduced at the time of retirement. Thereafter, the monthly benefit of the member (and subsequently their beneficiary) is adjusted annually, based on changes in the consumer price index (CPI) for the Seattle-Tacoma-Bremerton, Washington area, up to the statutory maximum. For more information, see:

PERS Plan 1: RCW 41.40.188 (1)(((e))) (c); WAC 415-108-326

TRS Plan 1: RCW 41.32.530 (1)(d); WAC 415-112-504

(2) ((By opting to receive a lower dollar amount at the beginning of your retirement, you will receive a progressively higher amount as the payments continue.

(3))) Examples

(a) ((Example (a):

Ernie, a TRS Plan 1 member, retires at age 55 with 30 years of service and chooses the COLA option. TRS Plan 1 provides two percent (.02) of average final compensation (AFC) per year of service. At the time he retires, Ernie's AFC is $4,295.33. As shown in the "Plan 1 Optional COLA" table below, Ernie would receive 0.7408 of his normal retirement benefit as the starting amount of the COLA-protected benefit. TRS would calculate the benefit as follows: 30.00 (years of service credit) x .02 x $4,295.33 (AFC) = $2,577.20 (monthly benefit without the COLA option). TRS would then multiply $2,577.20 x .7408 = $1,909.19 (the COLA-protected starting benefit Ernie would receive).

(b) Example (b):

Tina is a PERS Plan 1 member with 30 years of service credit at age 52 and eight months. Because she has reached 30 years of service, there is no reduction for an early retirement. However, Tina chooses the optional COLA. Tina would receive .7388 of her normal retirement benefit as the starting amount of the COLA-protected benefit. Her normal retirement benefit is $2,295.00; her COLA-reduced benefit will be $1,695.55.

(4))) Ernie is a member of TRS Plan 1. He retires at age 55 with 30 years of service and chooses the Single Life Option (no survivor beneficiary). His average final compensation (AFC) is $4,295.33 per month.

(i) If he does not choose the optional COLA, his monthly benefit will be $2,577.20 (2% x 30 x $4,295.33).

(ii) If he does choose the optional COLA, his initial monthly benefit will be reduced to $1,909.19, based on the factor in the table in subsection (3) of this section (.7396 x $2,577.20). This monthly amount may increase each year with changes in the CPI.

Regardless whether or not Ernie chooses the optional COLA, he will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.

(b) Tina is a member of PERS Plan 1. She retires with 30 years of service credit at age 52 and 8 months. Because she has 30 years of service, there is no reduction for an early retirement. Tina chooses the Single Life Option (no survivor beneficiary). Her average final compensation (AFC) is $3,825.00 per month.

(i) If she does not choose the optional COLA, her monthly benefit will be $2,295.00 (2% x 30 x $3,825.00).

(ii) If she does choose the optional COLA, her initial monthly benefit will be reduced to $1,692.56, based on the factor in the table in subsection (3) of this section (.7375 x $2,295.00). This monthly amount may increase each year with changes in the CPI.

Regardless whether or not Tina chooses the optional COLA, she will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.

(3) Table(( - The optional cost-of-living adjustment (COLA) table is based on the 1995-2000 actuarial experience study)).

Use these factors to convert ((from standard option)) monthly benefit payments (any retirement option) without ((a)) the optional COLA to the same retirement option with ((a)) the optional COLA. The following factors are effective September 1, 2010.

((Plan 1 Optional COLA

((Age PERS 1 Factor TRS 1 Factor Age PERS 1 Factor TRS 1 Factor
20 0.6586 0.6554 61 0.7778 0.7662
21 0.6600 0.6566 62 0.7825 0.7708
22 0.6615 0.6580 63 0.7873 0.7754
23 0.6630 0.6593 64 0.7922 0.7801
24 0.6645 0.6607 65 0.7972 0.7849
25 0.6661 0.6622 66 0.8022 0.7897
26 0.6678 0.6638 67 0.8073 0.7946
27 0.6696 0.6654 68 0.8124 0.7996
28 0.6714 0.6670 69 0.8176 0.8046
29 0.6732 0.6687 70 0.8229 0.8097
30 0.6752 0.6705 71 0.8282 0.8149
31 0.6772 0.6723 72 0.8335 0.8201
32 0.6793 0.6742 73 0.8389 0.8253
33 0.6814 0.6762 74 0.8443 0.8306
34 0.6836 0.6783 75 0.8497 0.8359
35 0.6859 0.6804 76 0.8551 0.8413
36 0.6883 0.6826 77 0.8605 0.8467
37 0.6908 0.6849 78 0.8659 0.8521
38 0.6933 0.6872 79 0.8713 0.8575
39 0.6960 0.6896 80 0.8766 0.8628
40 0.6987 0.6921 81 0.8819 0.8682
41 0.7015 0.6947 82 0.8871 0.8735
42 0.7044 0.6974 83 0.8922 0.8788
43 0.7074 0.7002 84 0.8971 0.8840
44 0.7105 0.7031 85 0.9020 0.8891
45 0.7137 0.7060 86 0.9066 0.8941
46 0.7170 0.7091 87 0.9111 0.8989
47 0.7204 0.7122 88 0.9153 0.9036
48 0.7238 0.7154 89 0.9192 0.9080
49 0.7274 0.7188 90 0.9230 0.9123
50 0.7311 0.7222 91 0.9264 0.9162
51 0.7349 0.7256 92 0.9296 0.9200
52 0.7388 0.7293 93 0.9326 0.9234
53 0.7427 0.7331 94 0.9353 0.9266
54 0.7468 0.7369 95 0.9378 0.9296
55 0.7510 0.7408 96 0.9401 0.9323
56 0.7552 0.7448 97 0.9423 0.9348
57 0.7595 0.7489 98 0.9444 0.9372
58 0.7640 0.7531 99 0.9464 0.9394
59 0.7685 0.7574
60 0.7731 0.7618))


Plan 1 Optional COLA Factors


Age PERS 1 TRS 1 Age PERS 1 TRS 1
20 .6636 .6664 61 .7713 .7648
21 .6650 .6675 62 .7760 .7693
22 .6665 .6687 63 .7807 .7739
23 .6680 .6698 64 .7855 .7786
24 .6695 .6710 65 .7904 .7833
25 .6711 .6722 66 .7953 .7881
26 .6727 .6734 67 .8003 .7930
27 .6743 .6746 68 .8054 .7980
28 .6760 .6759 69 .8105 .8030
29 .6777 .6772 70 .8157 .8081
30 .6794 .6786 71 .8210 .8133
31 .6811 .6800 72 .8263 .8185
32 .6828 .6815 73 .8317 .8238
33 .6845 .6831 74 .8370 .8291
34 .6862 .6847 75 .8425 .8344
35 .6879 .6864 76 .8479 .8398
36 .6897 .6881 77 .8533 .8452
37 .6915 .6900 78 .8588 .8506
38 .6934 .6918 79 .8642 .8560
39 .6954 .6938 80 .8696 .8614
40 .6975 .6959 81 .8750 .8668
41 .6997 .6980 82 .8803 .8722
42 .7020 .7002 83 .8856 .8775
43 .7045 .7024 84 .8907 .8828
44 .7071 .7048 85 .8957 .8879
45 .7099 .7073 86 .9006 .8929
46 .7129 .7098 87 .9053 .8978
47 .7161 .7125 88 .9098 .9025
48 .7194 .7153 89 .9141 .9070
49 .7229 .7183 90 .9181 .9113
50 .7264 .7214 91 .9218 .9153
51 .7300 .7247 92 .9253 .9191
52 .7337 .7282 93 .9286 .9226
53 .7375 .7319 94 .9316 .9258
54 .7414 .7357 95 .9343 .9288
55 .7454 .7396 96 .9369 .9316
56 .7494 .7435 97 .9392 .9342
57 .7536 .7476 98 .9415 .9365
58 .7579 .7518 99 .9436 .9388
59 .7623 .7560
60 .7668 .7604

[Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 08-20-068, 415-02-360, filed 9/25/08, effective 10/26/08; 02-18-048, 415-02-360, filed 8/28/02, effective 9/1/02.]

OTS-3351.2


AMENDATORY SECTION(Amending WSR 06-18-009, filed 8/24/06, effective 9/24/06)

WAC 415-02-380   How will my retirement ((allowance)) benefit be affected if I choose a benefit option with a survivor feature?   This section applies to LEOFF Plans 1 and 2; PERS Plans 1, 2, and 3; PSERS; SERS Plans 2 and 3; TRS Plans 1, 2, and 3; and WSPRS Plans 1 and 2. ((For information about WSPRS Plan 1, see RCW 43.43.278 and WAC 415-103-215.))

(1) What is a survivor feature? Some benefit options include a survivor feature, which provides a lifetime monthly ((allowance)) benefit for your survivor beneficiary after your death.

(2) What is a "survivor beneficiary"? The person you name at the time of retirement to receive a lifetime monthly ((allowance)) benefit after your death is referred to as your "survivor beneficiary."

(3) What benefit options include a survivor feature? Benefit options are described in detail for each system and plan in the following state law and regulations:

LEOFF Plan 1: RCW 41.26.164 WAC 415-104-202
LEOFF Plan 2: RCW 41.26.460 WAC 415-104-215
PERS Plan 1: RCW 41.40.188 WAC 415-108-326
PERS Plan 2: RCW 41.40.660 WAC 415-108-326
PERS Plan 3: RCW 41.40.845 WAC 415-108-326
PSERS: RCW 41.37.170 WAC 415-106-600
SERS Plans 2 and 3: RCW 41.35.220 WAC 415-110-610
TRS Plan 1: RCW 41.32.530 WAC 415-112-504
TRS Plan 2: RCW 41.32.785 WAC 415-112-505
TRS Plan 3: RCW 41.32.851 WAC 415-112-505
WSPRS Plan 1: RCW 43.43.278 WAC 415-103-215
WSPRS Plan 2: RCW 43.43.271 WAC 415-103-225

(4) Will selecting a benefit option with a survivor feature affect my monthly retirement ((allowance)) benefit? Yes. Your monthly retirement ((allowance)) benefit will be actuarially reduced to offset the cost of the survivor feature.

(5) Does my survivor beneficiary's age affect how much my monthly retirement ((allowance)) benefit will be reduced? Yes. Your survivor beneficiary's age is used in determining the amount of your monthly retirement ((allowance)) benefit and the ((allowance)) benefit of your survivor beneficiary. The younger the survivor beneficiary, the longer he or she is expected to receive ((an allowance)) a benefit. Your monthly ((allowance)) benefit will be reduced accordingly.

(a) Example:

Kendra, a PERS Plan 2 member, chooses Option 3 (joint and 50 percent survivorship) at retirement. She names her nephew, Steve, as her survivor beneficiary. This means, if Kendra dies before Steve, Steve will receive a monthly ((allowance)) benefit equal to half the amount Kendra was receiving. Steve is 30 years younger than Kendra. The department will calculate the adjustment to Kendra's monthly retirement ((allowance)) benefit by using the survivor option factor table ("member older") in subsection (6) of this section. With a 30-year age difference (member's age minus beneficiary's age), the value corresponding to PERS Plan 2 and Option 3 is ((0.753)) 0.776. This value, ((0.753)) 0.776, is multiplied against the amount Kendra would have received under Option 1 (no survivor feature). Kendra's monthly retirement ((allowance)) benefit will be reduced to about ((75%)) 77% of her Option 1 level.

(b) Example:

Mark, a LEOFF Plan 2 member, chooses Option 2 (joint and 100 percent survivorship) at retirement. He names his wife, Susan, as his survivor beneficiary. This means, if Mark dies before Susan, Susan will receive a monthly ((allowance)) benefit equal to the amount Mark was receiving. Mark is five years younger than Susan. The department will calculate the adjustment to Mark's monthly retirement ((allowance)) benefit by using the survivor option factor table ("member younger") in subsection (((9))) (11) of this section. With a 5-year age difference (member's age minus beneficiary's age), the value corresponding to LEOFF Plan 2 and Option 2 is ((0.894)) 0.898. This value, ((0.894)) 0.898, will be multiplied against the amount Mark would have received under Option 1 (no survivor feature). Mark's monthly retirement ((allowance)) benefit will be reduced to about ((89 percent)) 90% of his Option 1 level.

(6) Table - Member older (PERS and SERS). The following factors are effective September 1, 2010.


((Survivor option factor table: Member older than beneficiary


Age difference: Member's age minus beneficiary's age


((Age Difference PERS 1

Opt. 2

100%

PERS 1

Opt. 3

50%

PERS 1

Opt. 4

66 2/3%

PERS 2/3

Opt. 2

100%

PERS 2/3

Opt. 3

50%

PERS 2/3

Opt. 4

66 2/3%

SERS 2/3

Opt. 2

100%

SERS 2/3

Opt. 3

50%

SERS 2/3

Opt. 4

66 2/3%

0 .870 .930 .909 .791 .883 .850 .799 .888 .857
1 .862 .926 .904 .778 .875 .840 .773 .872 .836
2 .857 .923 .900 .767 .868 .832 .760 .864 .826
3 .844 .915 .890 .758 .863 .825 .748 .856 .816
4 .840 .913 .887 .751 .858 .819 .741 .851 .811
5 .836 .910 .884 .743 .853 .813 .734 .846 .805
6 .831 .908 .881 .736 .848 .807 .726 .841 .799
7 .818 .900 .871 .728 .843 .801 .719 .836 .793
8 .814 .897 .867 .721 .838 .795 .712 .832 .787
9 .809 .895 .864 .713 .833 .789 .705 .827 .782
10 .805 .892 .861 .706 .828 .783 .698 .822 .776
11 .802 .890 .858 .699 .823 .777 .692 .818 .771
12 .787 .881 .847 .693 .818 .772 .685 .813 .766
13 .784 .879 .845 .686 .814 .766 .679 .809 .760
14 .780 .876 .842 .680 .809 .761 .673 .805 .755
15 .777 .874 .839 .673 .805 .756 .667 .800 .750
16 .773 .872 .836 .667 .801 .751 .662 .796 .746
17 .770 .870 .834 .662 .796 .746 .656 .792 .741
18 .767 .868 .832 .656 .792 .741 .651 .789 .737
19 .764 .866 .829 .651 .788 .736 .646 .785 .732
20 .762 .865 .827 .645 .785 .732 .641 .781 .728
21 .759 .863 .825 .640 .781 .728 .637 .778 .724
22 .756 .861 .823 .636 .777 .724 .632 .775 .720
23 .754 .860 .821 .631 .774 .720 .628 .771 .717
24 .752 .858 .820 .627 .771 .716 .624 .768 .713
25 .750 .857 .818 .622 .767 .712 .620 .765 .710
26 .748 .856 .817 .618 .764 .709 .616 .762 .707
27 .746 .855 .815 .615 .761 .705 .613 .760 .703
28 .744 .853 .814 .611 .758 .702 .609 .757 .700
29 .743 .852 .812 .607 .756 .699 .606 .755 .697
30 .741 .851 .811 .604 .753 .696 .603 .752 .695
31 .740 .850 .810 .601 .751 .693 .600 .750 .692
32 .738 .849 .809 .598 .748 .690 .597 .748 .690
33 .737 .849 .808 .595 .746 .688 .594 .745 .687
34 .736 .848 .807 .592 .744 .685 .592 .743 .685
35 .735 .847 .806 .589 .742 .683 .589 .741 .683
36 .734 .846 .805 .587 .740 .680 .587 .740 .680
37 .733 .846 .804 .584 .738 .678 .585 .738 .678
38 .732 .845 .804 .582 .736 .676 .582 .736 .677
39 .731 .844 .803 .580 .734 .674 .580 .734 .675
40 .730 .844 .802 .578 .732 .672 .578 .733 .673))

(7) Table - Member younger (PERS and SERS)

Survivor option factor table: Member younger than beneficiary

Age difference: Member's age minus beneficiary's age

((Age Difference PERS 1

Opt. 2

100%

PERS 1

Opt. 3

50%

PERS 1

Opt. 4

66 2/3%

PERS 2/3

Opt. 2

100%

PERS 2/3

Opt. 3

50%

PERS 2/3

Opt. 4

66 2/3%

SERS 2/3

Opt. 2

100%

SERS 2/3

Opt. 3

50%

SERS 2/3

Opt. 4

66 2/3%

-20 .958 .978 .971 .939 .969 .959 .949 .974 .965
-19 .955 .977 .970 .935 .967 .956 .946 .972 .963
-18 .952 .976 .968 .931 .964 .953 .942 .970 .961
-17 .949 .974 .966 .927 .962 .950 .938 .968 .958
-16 .947 .973 .964 .922 .959 .947 .934 .966 .955
-15 .944 .971 .962 .917 .957 .943 .930 .964 .952
-14 .940 .969 .959 .912 .954 .940 .926 .961 .949
-13 .937 .968 .957 .907 .951 .936 .921 .959 .946
-12 .934 .966 .955 .902 .948 .932 .917 .956 .943
-11 .930 .964 .953 .896 .945 .928 .912 .954 .939
-10 .927 .962 .950 .890 .942 .924 .907 .951 .936
-9 .923 .960 .948 .884 .938 .919 .901 .948 .932
-8 .920 .958 .945 .878 .935 .915 .896 .945 .928
-7 .916 .956 .942 .871 .931 .910 .890 .942 .924
-6 .912 .954 .940 .865 .927 .905 .885 .939 .920
-5 .908 .952 .937 .858 .924 .901 .879 .935 .916
-4 .901 .948 .931 .848 .918 .893 .873 .932 .911
-3 .896 .945 .928 .840 .913 .887 .863 .927 .905
-2 .889 .941 .923 .826 .905 .877 .853 .920 .897
-1 .879 .935 .916 .805 .892 .861 .834 .909 .883
0 .870 .930 .909 .791 .883 .850 .799 .888 .857))

(8) Table - Member older (PSERS)

Survivor option factor table: Member older than beneficiary

Age difference: Member's age minus beneficiary's age


((Age Difference Option 2 100% Option 3 50% Option 4

66 2/3 %

0 0.832 0.908 0.881
1 0.825 0.904 0.876
2 0.819 0.9 0.872
3 0.812 0.897 0.867
4 0.806 0.893 0.862
5 0.8 0.889 0.857
6 0.793 0.885 0.852
7 0.787 0.881 0.847
8 0.787 0.877 0.842
9 0.775 0.873 0.838
10 0.769 0.869 0.833
11 0.763 0.865 0.828
12 0.757 0.862 0.824
13 0.751 0.858 0.819
14 0.746 0.855 0.815
15 0.741 0.851 0.811
16 0.736 0.848 0.807
17 0.731 0.844 0.803
18 0.726 0.841 0.799
19 0.721 0.838 0.795
20 0.717 0.835 0.791
21 0.712 0.832 0.788
22 0.708 0.829 0.784
23 0.704 0.826 0.781
24 0.7 0.824 0.778
25 0.696 0.821 0.775
26 0.693 0.819 0.772
27 0.689 0.816 0.769
28 0.686 0.814 0.766
29 0.683 0.812 0.764
30 0.68 0.81 0.761
31 0.677 0.807 0.759
32 0.674 0.806 0.756
33 0.672 0.804 0.754
34 0.669 0.802 0.752
35 0.667 0.8 0.75
36 0.664 0.798 0.748
37 0.662 0.797 0.746
38 0.66 0.795 0.745
39 0.658 0.794 0.743
40 0.656 0.792 0.741))

(9) Table - Member younger (PSERS)

Survivor option factor table: Member younger than beneficiary

Age difference: Member's age minus beneficiary's age


((Age Difference Option 2 100% Option 3 50% Option 4

66 2/3 %

-20 0.94 0.969 0.959
-19 0.936 0.967 0.956
-18 0.932 0.965 0.954
-17 0.928 0.962 0.951
-16 0.923 0.96 0.947
-15 0.919 0.958 0.944
-14 0.914 0.955 0.941
-13 0.909 0.952 0.937
-12 0.904 0.949 0.934
-11 0.899 0.947 0.93
-10 0.893 0.944 0.926
-9 0.887 0.94 0.922
-8 0.882 0.937 0.918
-7 0.876 0.934 0.914
-6 0.87 0.93 0.909
-5 0.864 0.927 0.905
-4 0.858 0.923 0.9
-3 0.851 0.92 0.896
-2 0.845 0.916 0.891
-1 0.838 0.912 0.886))

(10) Table - Member older (LEOFF Plan 2 and WSPRS Plan 2)

Survivor option factor table: Member older than beneficiary

Age difference: Member's age minus beneficiary's age

((Age Difference LEOFF 2

Option 2

100%

LEOFF 2

Option 3

50%

LEOFF 2

Option 4

66 2/3%

WSP 2

Option 2

100%

WSP 2

Option 3

50%

WSP 2

Option 4

66 2/3%

0 0.870 0.930 0.909 0.870 0.930 0.909
1 0.865 0.927 0.905 0.865 0.927 0.905
2 0.860 0.924 0.902 0.860 0.924 0.902
3 0.855 0.922 0.898 0.855 0.922 0.898
4 0.850 0.919 0.894 0.850 0.919 0.894
5 0.845 0.916 0.891 0.845 0.916 0.891
6 0.840 0.913 0.887 0.840 0.913 0.887
7 0.835 0.910 0.883 0.835 0.910 0.883
8 0.830 0.907 0.880 0.830 0.907 0.880
9 0.825 0.904 0.876 0.825 0.904 0.876
10 0.821 0.902 0.873 0.821 0.902 0.873
11 0.816 0.899 0.870 0.816 0.899 0.870
12 0.812 0.896 0.866 0.812 0.896 0.866
13 0.808 0.894 0.863 0.808 0.894 0.863
14 0.803 0.891 0.860 0.803 0.891 0.860
15 0.799 0.888 0.857 0.799 0.888 0.857
16 0.795 0.886 0.854 0.795 0.886 0.854
17 0.792 0.884 0.851 0.792 0.884 0.851
18 0.788 0.881 0.848 0.788 0.881 0.848
19 0.784 0.879 0.845 0.784 0.879 0.845
20 0.781 0.877 0.842 0.781 0.877 0.842
21 0.777 0.875 0.840 0.777 0.875 0.840
22 0.774 0.873 0.837 0.774 0.873 0.837
23 0.771 0.871 0.835 0.771 0.871 0.835
24 0.768 0.869 0.832 0.768 0.869 0.832
25 0.765 0.867 0.830 0.765 0.867 0.830
26 0.763 0.865 0.828 0.763 0.865 0.828
27 0.760 0.864 0.826 0.760 0.864 0.826
28 0.757 0.862 0.824 0.757 0.862 0.824
29 0.755 0.860 0.822 0.755 0.860 0.822
30 0.753 0.859 0.820 0.753 0.859 0.820
31 0.750 0.857 0.818 0.750 0.857 0.818
32 0.748 0.856 0.817 0.748 0.856 0.817
33 0.746 0.855 0.815 0.746 0.855 0.815
34 0.744 0.853 0.814 0.744 0.853 0.814
35 0.742 0.852 0.812 0.742 0.852 0.812
36 0.741 0.851 0.811 0.741 0.851 0.811
37 0.739 0.850 0.809 0.739 0.850 0.809
38 0.737 0.849 0.808 0.737 0.849 0.808
39 0.736 0.848 0.807 0.736 0.848 0.807
40 0.734 0.847 0.806 0.734 0.847 0.806))

(11) Table - Member younger (LEOFF Plan 2 and WSPRS Plan 2)

Survivor option factor table: Member younger than beneficiary

Age difference: Member's age minus beneficiary's age

((Age Difference LEOFF 2

Option 2

100%

LEOFF 2

Option 3

50%

LEOFF 2

Option 4

66 2/3%

WSP 2

Option 2

100%

WSP 2

Option 3

50%

WSP 2

Option 4

66 2/3%

-20 0.953 0.976 0.968 0.953 0.976 0.968
-19 0.950 0.974 0.966 0.950 0.974 0.966
-18 0.947 0.973 0.964 0.947 0.973 0.964
-17 0.944 0.971 0.962 0.944 0.971 0.962
-16 0.940 0.969 0.959 0.940 0.969 0.959
-15 0.937 0.967 0.957 0.937 0.967 0.957
-14 0.933 0.965 0.954 0.933 0.965 0.954
-13 0.929 0.963 0.952 0.929 0.963 0.952
-12 0.925 0.961 0.949 0.925 0.961 0.949
-11 0.921 0.959 0.946 0.921 0.959 0.946
-10 0.917 0.957 0.943 0.917 0.957 0.943
-9 0.913 0.954 0.940 0.913 0.954 0.940
-8 0.908 0.952 0.937 0.908 0.952 0.937
-7 0.904 0.949 0.934 0.904 0.949 0.934
-6 0.899 0.947 0.930 0.899 0.947 0.930
-5 0.894 0.944 0.927 0.894 0.944 0.927
-4 0.890 0.942 0.924 0.890 0.942 0.924
-3 0.885 0.939 0.920 0.885 0.939 0.920
-2 0.880 0.936 0.916 0.880 0.936 0.916
-1 0.875 0.933 0.913 0.875 0.933 0.913
0 0.870 0.930 0.909 0.870 0.930 0.909))

(12) Table - Member younger (TRS)

Survivor option factor table: Member younger than beneficiary

Age difference: Member's age minus beneficiary's age

((Age Difference TRS 1

Option 2

100%

TRS 1

Option 3

50%

TRS 1

Option 4

66 2/3%

TRS 2/3

Option 2

100%

TRS 2/3

Option 3

50%

TRS 2/3

Option 4

66 2/3%

-20 0.968 0.984 0.979 0.952 0.975 0.967
-19 0.966 0.983 0.977 0.949 0.974 0.965
-18 0.964 0.982 0.976 0.945 0.972 0.963
-17 0.962 0.981 0.974 0.942 0.970 0.960
-16 0.960 0.979 0.973 0.938 0.968 0.958
-15 0.957 0.978 0.971 0.934 0.966 0.955
-14 0.955 0.977 0.969 0.929 0.963 0.952
-13 0.952 0.976 0.968 0.925 0.961 0.949
-12 0.950 0.974 0.966 0.921 0.959 0.946
-11 0.947 0.973 0.964 0.916 0.956 0.942
-10 0.944 0.971 0.962 0.911 0.953 0.939
-9 0.942 0.970 0.960 0.906 0.951 0.935
-8 0.939 0.968 0.958 0.900 0.948 0.931
-7 0.936 0.967 0.956 0.895 0.945 0.927
-6 0.933 0.965 0.954 0.889 0.941 0.923
-5 0.927 0.962 0.950 0.884 0.938 0.919
-4 0.923 0.960 0.947 0.877 0.934 0.914
-3 0.918 0.957 0.944 0.865 0.928 0.906
-2 0.913 0.955 0.941 0.855 0.922 0.899
-1 0.907 0.951 0.936 0.839 0.912 0.887
0 0.898 0.946 0.930 0.815 0.898 0.869))

(13) Table - Member older (TRS)

Survivor option factor table: Member older than beneficiary

Age difference: Member's age minus beneficiary's age

((Age Difference TRS 1

Option 2

100%

TRS 1

Option 3

50%

TRS 1

Option 4

66 2/3%

TRS 2/3

Option 2

100%

TRS 2/3

Option 3

50%

TRS 2/3

Option 4

66 2/3%

0 0.898 0.946 0.930 0.815 0.898 0.869
1 0.892 0.943 0.925 0.801 0.889 0.858
2 0.888 0.941 0.922 0.790 0.883 0.849
3 0.877 0.935 0.915 0.781 0.877 0.842
4 0.873 0.932 0.912 0.772 0.871 0.835
5 0.869 0.930 0.909 0.765 0.867 0.830
6 0.858 0.924 0.901 0.758 0.862 0.824
7 0.855 0.922 0.898 0.751 0.858 0.819
8 0.851 0.920 0.896 0.744 0.853 0.813
9 0.848 0.918 0.893 0.737 0.849 0.808
10 0.845 0.916 0.891 0.730 0.844 0.802
11 0.842 0.914 0.889 0.724 0.840 0.797
12 0.839 0.912 0.887 0.717 0.835 0.792
13 0.836 0.911 0.884 0.711 0.831 0.787
14 0.824 0.904 0.875 0.705 0.827 0.782
15 0.821 0.902 0.873 0.699 0.823 0.777
16 0.819 0.900 0.871 0.694 0.819 0.773
17 0.816 0.899 0.869 0.688 0.815 0.768
18 0.814 0.897 0.868 0.683 0.812 0.764
19 0.812 0.896 0.866 0.678 0.808 0.760
20 0.809 0.895 0.864 0.673 0.805 0.755
21 0.807 0.893 0.863 0.668 0.801 0.751
22 0.805 0.892 0.861 0.664 0.798 0.748
23 0.803 0.891 0.860 0.660 0.795 0.744
24 0.802 0.890 0.858 0.655 0.792 0.740
25 0.800 0.889 0.857 0.651 0.789 0.737
26 0.798 0.888 0.856 0.648 0.786 0.734
27 0.797 0.887 0.855 0.644 0.783 0.731
28 0.796 0.886 0.854 0.640 0.781 0.728
29 0.794 0.885 0.853 0.637 0.778 0.725
30 0.793 0.885 0.852 0.634 0.776 0.722
31 0.792 0.884 0.851 0.631 0.774 0.719
32 0.791 0.883 0.850 0.628 0.771 0.717
33 0.790 0.882 0.849 0.625 0.769 0.714
34 0.789 0.882 0.848 0.622 0.767 0.712
35 0.788 0.881 0.848 0.620 0.765 0.710
36 0.787 0.881 0.847 0.617 0.763 0.708
37 0.786 0.880 0.846 0.615 0.762 0.706
38 0.785 0.880 0.846 0.613 0.760 0.704
39 0.785 0.879 0.845 0.611 0.758 0.702
40 0.784 0.879 0.845 0.609 0.757 0.700))

(14) Table - Member younger (LEOFF Plan 1)

Survivor option factor table: Member younger than beneficiary

Age difference: Member's age minus beneficiary's age


((Age Difference Option 2 100% Option 3 50% Option 4

66 2/3 %

-20 0.958 0.978 0.971
-19 0.955 0.977 0.969
-18 0.952