PERMANENT RULES
RETIREMENT SYSTEMS
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Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 1, Amended 11, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 1, Amended 11, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 11, Repealed 0.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 (( |
|
| = | (( |
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 (( |
|
| = | (( |
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 |
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 |
| = | (( |
|
| = | (( |
|
(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, (( |
| Example: | If Jake is a member of this type of plan, he
could retire May 12th or 13th, (( |
(i) Example:
| (( |
|
| (( |
|
(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 |
| 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 |
(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 | ||
Example:
| Member's age: | 65 | |
| Minus survivor beneficiary's age: | 67 | |
| -2 | ||
(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 (( |
| 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 (( |
| WSPRS Plan 1: | RCW 43.43.280 | N/A | N/A |
| WSPRS Plan 2: | RCW 43.43.280 | N/A | RCW 43.43.295 |
(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.
| (( |
0 |
1 |
2 |
3 |
4 |
5 |
6 |
7 |
8 |
9 |
10 |
11 |
| 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 |
| (( |
||||||||||||
| 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 |
| 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 |
| 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
(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:
| (( |
|||||||||
(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 | 99.3233% | 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 (( |
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 (( |
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 |
(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.
| (( |
||||||
| 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 |
(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
| (( |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Survivor option factor table: Member younger than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Opt. 2 100% |
Opt. 3 50% |
Opt. 4 66 2/3% |
Survivor option factor table: Member older than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
66 2/3 % |
|||||
Survivor option factor table: Member younger than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
66 2/3 % |
|||||
Survivor option factor table: Member older than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Survivor option factor table: Member younger than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Survivor option factor table: Member younger than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Survivor option factor table: Member older than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Option 2 100% |
Option 3 50% |
Option 4 66 2/3% |
Survivor option factor table: Member younger than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
66 2/3 % |
||
Survivor option factor table: Member older than beneficiary
Age difference: Member's age minus beneficiary's age
| (( |
66 2/3% |
||
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 | 0.882 | 0.937 | 0.918 | 0.807 | 0.893 | 0.862 | 0.802 | 0.890 | 0.859 |
| 1 | 0.875 | 0.933 | 0.913 | 0.793 | 0.885 | 0.852 | 0.780 | 0.877 | 0.842 |
| 2 | 0.870 | 0.930 | 0.909 | 0.783 | 0.878 | 0.844 | 0.761 | 0.864 | 0.827 |
| 3 | 0.866 | 0.928 | 0.906 | 0.775 | 0.873 | 0.838 | 0.753 | 0.859 | 0.821 |
| 4 | 0.862 | 0.926 | 0.903 | 0.767 | 0.868 | 0.832 | 0.746 | 0.854 | 0.815 |
| 5 | 0.858 | 0.924 | 0.901 | 0.760 | 0.863 | 0.826 | 0.738 | 0.849 | 0.809 |
| 6 | 0.854 | 0.922 | 0.898 | 0.752 | 0.859 | 0.820 | 0.731 | 0.845 | 0.803 |
| 7 | 0.851 | 0.919 | 0.895 | 0.745 | 0.854 | 0.814 | 0.724 | 0.840 | 0.797 |
| 8 | 0.848 | 0.917 | 0.893 | 0.738 | 0.849 | 0.809 | 0.717 | 0.835 | 0.792 |
| 9 | 0.844 | 0.916 | 0.890 | 0.732 | 0.845 | 0.803 | 0.710 | 0.831 | 0.786 |
| 10 | 0.841 | 0.914 | 0.888 | 0.725 | 0.840 | 0.798 | 0.704 | 0.826 | 0.781 |
| 11 | 0.838 | 0.912 | 0.886 | 0.718 | 0.836 | 0.793 | 0.697 | 0.822 | 0.776 |
| 12 | 0.835 | 0.910 | 0.883 | 0.712 | 0.832 | 0.788 | 0.691 | 0.817 | 0.771 |
| 13 | 0.832 | 0.908 | 0.881 | 0.706 | 0.828 | 0.783 | 0.686 | 0.813 | 0.766 |
| 14 | 0.829 | 0.907 | 0.879 | 0.700 | 0.824 | 0.778 | 0.680 | 0.809 | 0.761 |
| 15 | 0.826 | 0.905 | 0.877 | 0.695 | 0.820 | 0.774 | 0.675 | 0.806 | 0.757 |
| 16 | 0.824 | 0.904 | 0.875 | 0.690 | 0.816 | 0.769 | 0.670 | 0.802 | 0.752 |
| 17 | 0.822 | 0.902 | 0.874 | 0.684 | 0.813 | 0.765 | 0.665 | 0.799 | 0.748 |
| 18 | 0.820 | 0.901 | 0.872 | 0.680 | 0.809 | 0.761 | 0.660 | 0.795 | 0.744 |
| 19 | 0.818 | 0.900 | 0.871 | 0.675 | 0.806 | 0.757 | 0.655 | 0.792 | 0.740 |
| 20 | 0.816 | 0.898 | 0.869 | 0.670 | 0.803 | 0.753 | 0.651 | 0.789 | 0.737 |
| 21 | 0.814 | 0.897 | 0.868 | 0.666 | 0.799 | 0.749 | 0.647 | 0.786 | 0.733 |
| 22 | 0.812 | 0.896 | 0.867 | 0.662 | 0.796 | 0.746 | 0.643 | 0.783 | 0.730 |
| 23 | 0.811 | 0.895 | 0.865 | 0.658 | 0.793 | 0.742 | 0.639 | 0.780 | 0.726 |
| 24 | 0.809 | 0.895 | 0.864 | 0.654 | 0.791 | 0.739 | 0.635 | 0.777 | 0.723 |
| 25 | 0.808 | 0.894 | 0.863 | 0.650 | 0.788 | 0.736 | 0.632 | 0.774 | 0.720 |
| 26 | 0.807 | 0.893 | 0.862 | 0.646 | 0.785 | 0.733 | 0.628 | 0.772 | 0.717 |
| 27 | 0.806 | 0.892 | 0.861 | 0.643 | 0.783 | 0.730 | 0.625 | 0.769 | 0.714 |
| 28 | 0.804 | 0.892 | 0.860 | 0.640 | 0.780 | 0.727 | 0.622 | 0.767 | 0.711 |
| 29 | 0.803 | 0.891 | 0.860 | 0.637 | 0.778 | 0.724 | 0.619 | 0.764 | 0.709 |
| 30 | 0.802 | 0.890 | 0.859 | 0.634 | 0.776 | 0.722 | 0.616 | 0.762 | 0.706 |
| 31 | 0.801 | 0.890 | 0.858 | 0.631 | 0.773 | 0.719 | 0.613 | 0.760 | 0.704 |
| 32 | 0.800 | 0.889 | 0.857 | 0.628 | 0.771 | 0.717 | 0.611 | 0.758 | 0.702 |
| 33 | 0.799 | 0.888 | 0.856 | 0.625 | 0.769 | 0.714 | 0.608 | 0.756 | 0.699 |
| 34 | 0.798 | 0.888 | 0.856 | 0.623 | 0.767 | 0.712 | 0.606 | 0.754 | 0.697 |
| 35 | 0.797 | 0.887 | 0.855 | 0.620 | 0.766 | 0.710 | 0.603 | 0.752 | 0.695 |
| 36 | 0.796 | 0.887 | 0.854 | 0.618 | 0.764 | 0.708 | 0.601 | 0.751 | 0.693 |
| 37 | 0.796 | 0.886 | 0.854 | 0.616 | 0.762 | 0.706 | 0.599 | 0.749 | 0.691 |
| 38 | 0.795 | 0.886 | 0.853 | 0.613 | 0.760 | 0.704 | 0.597 | 0.747 | 0.689 |
| 39 | 0.794 | 0.885 | 0.853 | 0.611 | 0.759 | 0.702 | 0.595 | 0.746 | 0.687 |
| 40 | 0.793 | 0.885 | 0.852 | 0.609 | 0.757 | 0.700 | 0.593 | 0.744 | 0.686 |
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 | 0.961 | 0.980 | 0.974 | 0.945 | 0.972 | 0.963 | 0.953 | 0.976 | 0.968 |
| -19 | 0.959 | 0.979 | 0.972 | 0.942 | 0.970 | 0.960 | 0.950 | 0.974 | 0.966 |
| -18 | 0.956 | 0.978 | 0.971 | 0.938 | 0.968 | 0.958 | 0.947 | 0.973 | 0.964 |
| -17 | 0.954 | 0.976 | 0.969 | 0.934 | 0.966 | 0.955 | 0.943 | 0.971 | 0.962 |
| -16 | 0.951 | 0.975 | 0.967 | 0.929 | 0.963 | 0.952 | 0.940 | 0.969 | 0.959 |
| -15 | 0.948 | 0.973 | 0.965 | 0.925 | 0.961 | 0.949 | 0.936 | 0.967 | 0.956 |
| -14 | 0.945 | 0.972 | 0.963 | 0.920 | 0.959 | 0.945 | 0.932 | 0.965 | 0.953 |
| -13 | 0.942 | 0.970 | 0.961 | 0.916 | 0.956 | 0.942 | 0.927 | 0.962 | 0.950 |
| -12 | 0.939 | 0.969 | 0.959 | 0.910 | 0.953 | 0.938 | 0.923 | 0.960 | 0.947 |
| -11 | 0.936 | 0.967 | 0.957 | 0.905 | 0.950 | 0.935 | 0.918 | 0.957 | 0.944 |
| -10 | 0.933 | 0.965 | 0.954 | 0.900 | 0.947 | 0.931 | 0.914 | 0.955 | 0.941 |
| -9 | 0.930 | 0.964 | 0.952 | 0.894 | 0.944 | 0.927 | 0.909 | 0.952 | 0.937 |
| -8 | 0.926 | 0.962 | 0.950 | 0.888 | 0.941 | 0.923 | 0.903 | 0.949 | 0.933 |
| -7 | 0.923 | 0.960 | 0.947 | 0.882 | 0.937 | 0.918 | 0.898 | 0.946 | 0.930 |
| -6 | 0.919 | 0.958 | 0.945 | 0.876 | 0.934 | 0.914 | 0.893 | 0.943 | 0.926 |
| -5 | 0.916 | 0.956 | 0.942 | 0.870 | 0.930 | 0.909 | 0.887 | 0.940 | 0.922 |
| -4 | 0.912 | 0.954 | 0.940 | 0.864 | 0.927 | 0.905 | 0.880 | 0.936 | 0.917 |
| -3 | 0.907 | 0.951 | 0.936 | 0.853 | 0.921 | 0.897 | 0.868 | 0.929 | 0.908 |
| -2 | 0.901 | 0.948 | 0.932 | 0.843 | 0.915 | 0.890 | 0.862 | 0.926 | 0.903 |
| -1 | 0.892 | 0.943 | 0.925 | 0.826 | 0.905 | 0.877 | 0.841 | 0.913 | 0.888 |
| 0 | 0.882 | 0.937 | 0.918 | 0.807 | 0.893 | 0.862 | 0.802 | 0.890 | 0.859 |
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 | 0.813 | 0.897 | 0.867 | |||
| 1 | 0.806 | 0.892 | 0.861 | |||
| 2 | 0.798 | 0.888 | 0.856 | |||
| 3 | 0.791 | 0.883 | 0.850 | |||
| 4 | 0.784 | 0.879 | 0.845 | |||
| 5 | 0.776 | 0.874 | 0.839 | |||
| 6 | 0.769 | 0.870 | 0.833 | |||
| 7 | 0.762 | 0.865 | 0.828 | |||
| 8 | 0.755 | 0.861 | 0.822 | |||
| 9 | 0.748 | 0.856 | 0.817 | |||
| 10 | 0.742 | 0.852 | 0.812 | |||
| 11 | 0.735 | 0.847 | 0.806 | |||
| 12 | 0.729 | 0.843 | 0.801 | |||
| 13 | 0.723 | 0.839 | 0.796 | |||
| 14 | 0.717 | 0.835 | 0.791 | |||
| 15 | 0.711 | 0.831 | 0.787 | |||
| 16 | 0.706 | 0.827 | 0.782 | |||
| 17 | 0.700 | 0.824 | 0.778 | |||
| 18 | 0.695 | 0.820 | 0.774 | |||
| 19 | 0.690 | 0.817 | 0.770 | |||
| 20 | 0.686 | 0.814 | 0.766 | |||
| 21 | 0.681 | 0.810 | 0.762 | |||
| 22 | 0.677 | 0.807 | 0.759 | |||
| 23 | 0.673 | 0.804 | 0.755 | |||
| 24 | 0.669 | 0.802 | 0.752 | |||
| 25 | 0.665 | 0.799 | 0.749 | |||
| 26 | 0.662 | 0.796 | 0.746 | |||
| 27 | 0.658 | 0.794 | 0.743 | |||
| 28 | 0.655 | 0.791 | 0.740 | |||
| 29 | 0.652 | 0.789 | 0.737 | |||
| 30 | 0.649 | 0.787 | 0.735 | |||
| 31 | 0.646 | 0.785 | 0.732 | |||
| 32 | 0.643 | 0.783 | 0.730 | |||
| 33 | 0.641 | 0.781 | 0.728 | |||
| 34 | 0.638 | 0.779 | 0.726 | |||
| 35 | 0.636 | 0.777 | 0.724 | |||
| 36 | 0.633 | 0.776 | 0.722 | |||
| 37 | 0.631 | 0.774 | 0.720 | |||
| 38 | 0.629 | 0.772 | 0.718 | |||
| 39 | 0.627 | 0.771 | 0.716 | |||
| 40 | 0.625 | 0.769 | 0.714 | |||
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 | 0.934 | 0.966 | 0.955 | |||
| -19 | 0.930 | 0.963 | 0.952 | |||
| -18 | 0.925 | 0.961 | 0.949 | |||
| -17 | 0.921 | 0.959 | 0.946 | |||
| -16 | 0.916 | 0.956 | 0.942 | |||
| -15 | 0.911 | 0.953 | 0.939 | |||
| -14 | 0.905 | 0.950 | 0.935 | |||
| -13 | 0.900 | 0.947 | 0.931 | |||
| -12 | 0.894 | 0.944 | 0.927 | |||
| -11 | 0.888 | 0.941 | 0.922 | |||
| -10 | 0.882 | 0.937 | 0.918 | |||
| -9 | 0.876 | 0.934 | 0.913 | |||
| -8 | 0.869 | 0.930 | 0.909 | |||
| -7 | 0.862 | 0.926 | 0.904 | |||
| -6 | 0.856 | 0.922 | 0.899 | |||
| -5 | 0.849 | 0.918 | 0.894 | |||
| -4 | 0.842 | 0.914 | 0.889 | |||
| -3 | 0.835 | 0.910 | 0.883 | |||
| -2 | 0.827 | 0.906 | 0.878 | |||
| -1 | 0.820 | 0.901 | 0.872 | |||
| 0 | 0.813 | 0.897 | 0.867 | |||
Survivor option factor table: Member older than
beneficiary
Age difference: Member's age minus beneficiary's age
| Age Difference |
WSP 1 Option B 100% |
WSP 2 Option 2 100% |
WSP 2 Option 3 50% |
WSP 2 Option 4 66 2/3% |
LEOFF 2 Option 2 100% |
LEOFF 2 Option 3 50% |
LEOFF 2 Option 4 66 2/3% |
| 0 | 0.953 | 0.889 | 0.941 | 0.923 | 0.881 | 0.937 | 0.918 |
| 1 | 0.950 | 0.884 | 0.938 | 0.920 | 0.876 | 0.934 | 0.914 |
| 2 | 0.947 | 0.879 | 0.936 | 0.916 | 0.871 | 0.931 | 0.910 |
| 3 | 0.944 | 0.874 | 0.933 | 0.913 | 0.866 | 0.928 | 0.906 |
| 4 | 0.941 | 0.870 | 0.930 | 0.909 | 0.861 | 0.925 | 0.903 |
| 5 | 0.938 | 0.865 | 0.928 | 0.906 | 0.855 | 0.922 | 0.899 |
| 6 | 0.934 | 0.860 | 0.925 | 0.902 | 0.850 | 0.919 | 0.895 |
| 7 | 0.931 | 0.855 | 0.922 | 0.899 | 0.845 | 0.916 | 0.891 |
| 8 | 0.928 | 0.851 | 0.919 | 0.895 | 0.840 | 0.913 | 0.887 |
| 9 | 0.925 | 0.846 | 0.917 | 0.892 | 0.835 | 0.910 | 0.883 |
| 10 | 0.921 | 0.842 | 0.914 | 0.889 | 0.830 | 0.907 | 0.880 |
| 11 | 0.918 | 0.837 | 0.911 | 0.885 | 0.825 | 0.904 | 0.876 |
| 12 | 0.915 | 0.833 | 0.909 | 0.882 | 0.820 | 0.901 | 0.872 |
| 13 | 0.912 | 0.829 | 0.906 | 0.879 | 0.815 | 0.898 | 0.869 |
| 14 | 0.909 | 0.824 | 0.904 | 0.876 | 0.811 | 0.895 | 0.865 |
| 15 | 0.906 | 0.820 | 0.901 | 0.873 | 0.806 | 0.893 | 0.862 |
| 16 | 0.903 | 0.816 | 0.899 | 0.870 | 0.802 | 0.890 | 0.858 |
| 17 | 0.900 | 0.812 | 0.896 | 0.867 | 0.797 | 0.887 | 0.855 |
| 18 | 0.898 | 0.809 | 0.894 | 0.864 | 0.793 | 0.885 | 0.852 |
| 19 | 0.895 | 0.805 | 0.892 | 0.861 | 0.789 | 0.882 | 0.849 |
| 20 | 0.892 | 0.801 | 0.890 | 0.858 | 0.785 | 0.880 | 0.846 |
| 21 | 0.890 | 0.798 | 0.888 | 0.856 | 0.782 | 0.877 | 0.843 |
| 22 | 0.887 | 0.795 | 0.886 | 0.853 | 0.778 | 0.875 | 0.840 |
| 23 | 0.885 | 0.791 | 0.884 | 0.851 | 0.774 | 0.873 | 0.837 |
| 24 | 0.882 | 0.788 | 0.882 | 0.848 | 0.771 | 0.871 | 0.835 |
| 25 | 0.880 | 0.785 | 0.880 | 0.846 | 0.768 | 0.869 | 0.832 |
| 26 | 0.878 | 0.782 | 0.878 | 0.844 | 0.765 | 0.867 | 0.830 |
| 27 | 0.876 | 0.780 | 0.876 | 0.842 | 0.762 | 0.865 | 0.827 |
| 28 | 0.874 | 0.777 | 0.875 | 0.839 | 0.759 | 0.863 | 0.825 |
| 29 | 0.872 | 0.775 | 0.873 | 0.837 | 0.756 | 0.861 | 0.823 |
| 30 | 0.871 | 0.772 | 0.871 | 0.836 | 0.753 | 0.859 | 0.821 |
| 31 | 0.869 | 0.770 | 0.870 | 0.834 | 0.751 | 0.858 | 0.819 |
| 32 | 0.868 | 0.767 | 0.868 | 0.832 | 0.748 | 0.856 | 0.817 |
| 33 | 0.866 | 0.765 | 0.867 | 0.830 | 0.746 | 0.854 | 0.815 |
| 34 | 0.865 | 0.763 | 0.866 | 0.829 | 0.743 | 0.853 | 0.813 |
| 35 | 0.864 | 0.761 | 0.864 | 0.827 | 0.741 | 0.851 | 0.811 |
| 36 | 0.863 | 0.759 | 0.863 | 0.826 | 0.739 | 0.850 | 0.810 |
| 37 | 0.862 | 0.758 | 0.862 | 0.824 | 0.737 | 0.849 | 0.808 |
| 38 | 0.861 | 0.756 | 0.861 | 0.823 | 0.735 | 0.848 | 0.807 |
| 39 | 0.860 | 0.754 | 0.860 | 0.822 | 0.734 | 0.846 | 0.805 |
| 40 | 0.859 | 0.753 | 0.859 | 0.820 | 0.732 | 0.845 | 0.804 |
Survivor option factor table: Member younger than
beneficiary
Age difference: Member's age minus beneficiary's age
| Age Difference |
WSP 1 Option B 100% |
WSP 2 Option 2 100% |
WSP 2 Option 3 50% |
WSP 2 Option 4 66 2/3% |
LEOFF 2 Option 2 100% |
LEOFF 2 Option 3 50% |
LEOFF 2 Option 4 66 2/3% |
| -20 | 0.993 | 0.962 | 0.981 | 0.975 | 0.961 | 0.980 | 0.974 |
| -19 | 0.992 | 0.960 | 0.979 | 0.973 | 0.958 | 0.979 | 0.972 |
| -18 | 0.991 | 0.957 | 0.978 | 0.971 | 0.955 | 0.977 | 0.970 |
| -17 | 0.990 | 0.954 | 0.977 | 0.969 | 0.952 | 0.976 | 0.968 |
| -16 | 0.989 | 0.952 | 0.975 | 0.967 | 0.949 | 0.974 | 0.966 |
| -15 | 0.987 | 0.949 | 0.974 | 0.965 | 0.946 | 0.972 | 0.963 |
| -14 | 0.986 | 0.945 | 0.972 | 0.963 | 0.943 | 0.971 | 0.961 |
| -13 | 0.984 | 0.942 | 0.970 | 0.961 | 0.939 | 0.969 | 0.959 |
| -12 | 0.983 | 0.939 | 0.968 | 0.958 | 0.936 | 0.967 | 0.956 |
| -11 | 0.981 | 0.935 | 0.967 | 0.956 | 0.932 | 0.965 | 0.953 |
| -10 | 0.979 | 0.931 | 0.965 | 0.953 | 0.928 | 0.963 | 0.951 |
| -9 | 0.977 | 0.928 | 0.962 | 0.951 | 0.924 | 0.960 | 0.948 |
| -8 | 0.975 | 0.924 | 0.960 | 0.948 | 0.919 | 0.958 | 0.945 |
| -7 | 0.972 | 0.920 | 0.958 | 0.945 | 0.915 | 0.956 | 0.942 |
| -6 | 0.970 | 0.916 | 0.956 | 0.942 | 0.911 | 0.953 | 0.939 |
| -5 | 0.967 | 0.911 | 0.954 | 0.939 | 0.906 | 0.951 | 0.935 |
| -4 | 0.965 | 0.907 | 0.951 | 0.936 | 0.901 | 0.948 | 0.932 |
| -3 | 0.962 | 0.902 | 0.949 | 0.933 | 0.896 | 0.945 | 0.928 |
| -2 | 0.959 | 0.898 | 0.946 | 0.930 | 0.891 | 0.943 | 0.925 |
| -1 | 0.956 | 0.893 | 0.944 | 0.926 | 0.886 | 0.940 | 0.921 |
| 0 | 0.953 | 0.889 | 0.941 | 0.923 | 0.881 | 0.937 | 0.918 |
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 | 0.969 | 0.984 | 0.979 | 0.956 | 0.977 | 0.970 |
| -19 | 0.967 | 0.983 | 0.978 | 0.953 | 0.976 | 0.968 |
| -18 | 0.965 | 0.982 | 0.976 | 0.949 | 0.974 | 0.966 |
| -17 | 0.963 | 0.981 | 0.975 | 0.946 | 0.972 | 0.963 |
| -16 | 0.961 | 0.980 | 0.973 | 0.942 | 0.970 | 0.961 |
| -15 | 0.958 | 0.979 | 0.972 | 0.939 | 0.968 | 0.958 |
| -14 | 0.956 | 0.977 | 0.970 | 0.935 | 0.966 | 0.955 |
| -13 | 0.953 | 0.976 | 0.968 | 0.930 | 0.964 | 0.953 |
| -12 | 0.951 | 0.975 | 0.967 | 0.926 | 0.962 | 0.950 |
| -11 | 0.948 | 0.973 | 0.965 | 0.922 | 0.959 | 0.946 |
| -10 | 0.946 | 0.972 | 0.963 | 0.917 | 0.957 | 0.943 |
| -9 | 0.943 | 0.971 | 0.961 | 0.912 | 0.954 | 0.940 |
| -8 | 0.940 | 0.969 | 0.959 | 0.907 | 0.951 | 0.936 |
| -7 | 0.937 | 0.968 | 0.957 | 0.902 | 0.949 | 0.933 |
| -6 | 0.934 | 0.966 | 0.955 | 0.897 | 0.946 | 0.929 |
| -5 | 0.931 | 0.964 | 0.953 | 0.891 | 0.943 | 0.925 |
| -4 | 0.928 | 0.963 | 0.951 | 0.886 | 0.939 | 0.921 |
| -3 | 0.925 | 0.961 | 0.949 | 0.880 | 0.936 | 0.917 |
| -2 | 0.918 | 0.957 | 0.944 | 0.865 | 0.928 | 0.906 |
| -1 | 0.912 | 0.954 | 0.940 | 0.851 | 0.920 | 0.896 |
| 0 | 0.903 | 0.949 | 0.933 | 0.831 | 0.908 | 0.880 |
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 | 0.903 | 0.949 | 0.933 | 0.831 | 0.908 | 0.880 |
| 1 | 0.896 | 0.945 | 0.928 | 0.815 | 0.898 | 0.869 |
| 2 | 0.891 | 0.942 | 0.924 | 0.803 | 0.891 | 0.859 |
| 3 | 0.887 | 0.940 | 0.922 | 0.795 | 0.886 | 0.853 |
| 4 | 0.884 | 0.939 | 0.920 | 0.789 | 0.882 | 0.848 |
| 5 | 0.881 | 0.937 | 0.918 | 0.782 | 0.877 | 0.843 |
| 6 | 0.878 | 0.935 | 0.915 | 0.775 | 0.873 | 0.838 |
| 7 | 0.875 | 0.933 | 0.913 | 0.768 | 0.869 | 0.833 |
| 8 | 0.872 | 0.932 | 0.911 | 0.762 | 0.865 | 0.827 |
| 9 | 0.870 | 0.930 | 0.909 | 0.755 | 0.861 | 0.822 |
| 10 | 0.867 | 0.929 | 0.907 | 0.749 | 0.856 | 0.817 |
| 11 | 0.865 | 0.928 | 0.906 | 0.743 | 0.852 | 0.812 |
| 12 | 0.863 | 0.926 | 0.904 | 0.737 | 0.849 | 0.808 |
| 13 | 0.860 | 0.925 | 0.902 | 0.731 | 0.845 | 0.803 |
| 14 | 0.858 | 0.924 | 0.901 | 0.726 | 0.841 | 0.799 |
| 15 | 0.856 | 0.923 | 0.899 | 0.720 | 0.837 | 0.794 |
| 16 | 0.854 | 0.921 | 0.898 | 0.715 | 0.834 | 0.790 |
| 17 | 0.853 | 0.920 | 0.897 | 0.710 | 0.830 | 0.786 |
| 18 | 0.851 | 0.919 | 0.895 | 0.705 | 0.827 | 0.782 |
| 19 | 0.849 | 0.919 | 0.894 | 0.701 | 0.824 | 0.778 |
| 20 | 0.848 | 0.918 | 0.893 | 0.696 | 0.821 | 0.775 |
| 21 | 0.847 | 0.917 | 0.892 | 0.692 | 0.818 | 0.771 |
| 22 | 0.845 | 0.916 | 0.891 | 0.688 | 0.815 | 0.768 |
| 23 | 0.844 | 0.915 | 0.890 | 0.684 | 0.812 | 0.764 |
| 24 | 0.843 | 0.915 | 0.889 | 0.680 | 0.809 | 0.761 |
| 25 | 0.842 | 0.914 | 0.889 | 0.676 | 0.807 | 0.758 |
| 26 | 0.841 | 0.913 | 0.888 | 0.673 | 0.804 | 0.755 |
| 27 | 0.840 | 0.913 | 0.887 | 0.669 | 0.802 | 0.752 |
| 28 | 0.839 | 0.912 | 0.887 | 0.666 | 0.800 | 0.750 |
| 29 | 0.838 | 0.912 | 0.886 | 0.663 | 0.797 | 0.747 |
| 30 | 0.837 | 0.911 | 0.885 | 0.660 | 0.795 | 0.744 |
| 31 | 0.837 | 0.911 | 0.885 | 0.657 | 0.793 | 0.742 |
| 32 | 0.836 | 0.911 | 0.884 | 0.655 | 0.791 | 0.740 |
| 33 | 0.835 | 0.910 | 0.884 | 0.652 | 0.789 | 0.737 |
| 34 | 0.835 | 0.910 | 0.883 | 0.649 | 0.787 | 0.735 |
| 35 | 0.834 | 0.910 | 0.883 | 0.647 | 0.786 | 0.733 |
| 36 | 0.834 | 0.909 | 0.882 | 0.645 | 0.784 | 0.731 |
| 37 | 0.833 | 0.909 | 0.882 | 0.643 | 0.782 | 0.730 |
| 38 | 0.832 | 0.909 | 0.882 | 0.641 | 0.781 | 0.728 |
| 39 | 0.832 | 0.908 | 0.881 | 0.639 | 0.779 | 0.726 |
| 40 | 0.831 | 0.908 | 0.881 | 0.637 | 0.778 | 0.724 |
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 | 0.959 | 0.979 | 0.972 |
| -19 | 0.957 | 0.978 | 0.971 |
| -18 | 0.954 | 0.976 | 0.969 |
| -17 | 0.951 | 0.975 | 0.967 |
| -16 | 0.948 | 0.973 | 0.965 |
| -15 | 0.945 | 0.972 | 0.962 |
| -14 | 0.941 | 0.970 | 0.960 |
| -13 | 0.938 | 0.968 | 0.958 |
| -12 | 0.934 | 0.966 | 0.955 |
| -11 | 0.931 | 0.964 | 0.953 |
| -10 | 0.927 | 0.962 | 0.950 |
| -9 | 0.923 | 0.960 | 0.947 |
| -8 | 0.919 | 0.958 | 0.944 |
| -7 | 0.915 | 0.955 | 0.941 |
| -6 | 0.910 | 0.953 | 0.938 |
| -5 | 0.906 | 0.951 | 0.935 |
| -4 | 0.901 | 0.948 | 0.932 |
| -3 | 0.897 | 0.945 | 0.929 |
| -2 | 0.892 | 0.943 | 0.925 |
| -1 | 0.887 | 0.940 | 0.922 |
| 0 | 0.882 | 0.937 | 0.918 |
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 | 0.882 | 0.937 | 0.918 |
| 1 | 0.877 | 0.935 | 0.915 |
| 2 | 0.872 | 0.932 | 0.911 |
| 3 | 0.867 | 0.929 | 0.907 |
| 4 | 0.862 | 0.926 | 0.904 |
| 5 | 0.857 | 0.923 | 0.900 |
| 6 | 0.852 | 0.920 | 0.896 |
| 7 | 0.847 | 0.917 | 0.892 |
| 8 | 0.842 | 0.914 | 0.889 |
| 9 | 0.837 | 0.911 | 0.885 |
| 10 | 0.832 | 0.908 | 0.882 |
| 11 | 0.827 | 0.906 | 0.878 |
| 12 | 0.823 | 0.903 | 0.874 |
| 13 | 0.818 | 0.900 | 0.871 |
| 14 | 0.814 | 0.897 | 0.868 |
| 15 | 0.809 | 0.895 | 0.864 |
| 16 | 0.805 | 0.892 | 0.861 |
| 17 | 0.801 | 0.889 | 0.858 |
| 18 | 0.797 | 0.887 | 0.855 |
| 19 | 0.793 | 0.884 | 0.851 |
| 20 | 0.789 | 0.882 | 0.849 |
| 21 | 0.785 | 0.880 | 0.846 |
| 22 | 0.781 | 0.877 | 0.843 |
| 23 | 0.778 | 0.875 | 0.840 |
| 24 | 0.774 | 0.873 | 0.837 |
| 25 | 0.771 | 0.871 | 0.835 |
| 26 | 0.768 | 0.869 | 0.832 |
| 27 | 0.765 | 0.867 | 0.830 |
| 28 | 0.762 | 0.865 | 0.828 |
| 29 | 0.759 | 0.863 | 0.825 |
| 30 | 0.756 | 0.861 | 0.823 |
| 31 | 0.754 | 0.860 | 0.821 |
| 32 | 0.751 | 0.858 | 0.819 |
| 33 | 0.749 | 0.856 | 0.817 |
| 34 | 0.746 | 0.855 | 0.815 |
| 35 | 0.744 | 0.853 | 0.814 |
| 36 | 0.742 | 0.852 | 0.812 |
| 37 | 0.740 | 0.851 | 0.810 |
| 38 | 0.738 | 0.849 | 0.809 |
| 39 | 0.736 | 0.848 | 0.807 |
| 40 | 0.734 | 0.847 | 0.806 |
[Statutory Authority: RCW 41.50.050(5), 41.26.164, 41.26.460, 41.40.188, 41.40.660, 41.40.845, 41.37.170, 41.35.220, 41.32.530, 41.32.785, 41.32.851, 43.43.271. 06-18-009, § 415-02-380, filed 8/24/06, effective 9/24/06. Statutory Authority: RCW 41.50.050(5). 05-23-062, § 415-02-380, filed 11/14/05, effective 12/15/05. Statutory Authority: RCW 41.50.050(5), 41.26.162, 41.26.164, chapter 41.45 RCW. 03-12-014, § 415-02-380, filed 5/27/03, effective 7/1/03. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 03-02-087, § 415-02-380, filed 12/31/02, effective 2/1/03; 02-18-048, § 415-02-380, filed 8/28/02, effective 9/1/02.]
OTS-3429.1
NEW SECTION
WAC 415-02-390
Total allocation portfolio (TAP) annuity
factors.
If you are a Plan 3 member of the public employees'
retirement system (PERS), school employees' retirement system
(SERS) or teachers' retirement system (TRS) and you have funds
in the Washington state investment board (WSIB) investment
program, you may use those funds to purchase a life annuity
that is administered by the state of Washington when you
become eligible to withdraw funds from your Plan 3 account.
See WAC 415-111-320 for more information about purchasing a
TAP annuity.
(1) How is the monthly TAP annuity payment determined? Your single life annuity payment amount is based on the original purchase price and the annuity factor for your age at the time of purchase.
| Original Purchase Price | x | Factor | = | Single Life Annuity Payment Amount |
| Age | PERS Plan 3 | SERS Plan 3 | TRS Plan 3 |
| 20 | .0042981 | .0042752 | .0042735 |
| 21 | .0043115 | .0042875 | .0042857 |
| 22 | .0043255 | .0043004 | .0042985 |
| 23 | .0043403 | .0043140 | .0043119 |
| 24 | .0043559 | .0043283 | .0043260 |
| 25 | .0043722 | .0043433 | .0043409 |
| 26 | .0043894 | .0043591 | .0043565 |
| 27 | .0044074 | .0043758 | .0043729 |
| 28 | .0044264 | .0043932 | .0043901 |
| 29 | .0044464 | .0044116 | .0044083 |
| 30 | .0044674 | .0044309 | .0044273 |
| 31 | .0044894 | .0044512 | .0044473 |
| 32 | .0045144 | .0044726 | .0044683 |
| 33 | .0045389 | .0044966 | .0044921 |
| 34 | .0045646 | .0045203 | .0045154 |
| 35 | .0045915 | .0045451 | .0045398 |
| 36 | .0046197 | .0045712 | .0045655 |
| 37 | .0046492 | .0045986 | .0045923 |
| 38 | .0046800 | .0046274 | .0046205 |
| 39 | .0047124 | .0046576 | .0046501 |
| 40 | .0047507 | .0046893 | .0046812 |
| 41 | .0047868 | .0047226 | .0047139 |
| 42 | .0048246 | .0047618 | .0047524 |
| 43 | .0048641 | .0047989 | .0047890 |
| 44 | .0049054 | .0048379 | .0048274 |
| 45 | .0049486 | .0048787 | .0048677 |
| 46 | .0050025 | .0049215 | .0049101 |
| 47 | .0050508 | .0049664 | .0049545 |
| 48 | .0051015 | .0050216 | .0050086 |
| 49 | .0051544 | .0050719 | .0050584 |
| 50 | .0052099 | .0051246 | .0051107 |
| 51 | .0052819 | .0051798 | .0051654 |
| 52 | .0053441 | .0052375 | .0052227 |
| 53 | .0054090 | .0053119 | .0052956 |
| 54 | .0054761 | .0053765 | .0053597 |
| 55 | .0055453 | .0054440 | .0054263 |
| 56 | .0056425 | .0055148 | .0054972 |
| 57 | .0057222 | .0056100 | .0055713 |
| 58 | .0058050 | .0056893 | .0056717 |
| 59 | .0058914 | .0057719 | .0057554 |
| 60 | .0060024 | .0058574 | .0058425 |
| 61 | .0061134 | .0059677 | .0059332 |
| 62 | .0062157 | .0060779 | .0060501 |
| 63 | .0063231 | .0061801 | .0061669 |
| 64 | .0064666 | .0062857 | .0062734 |
| 65 | .0066102 | .0064271 | .0064146 |
| 66 | .0067381 | .0065685 | .0065558 |
| 67 | .0069142 | .0066932 | .0066812 |
| 68 | .0070904 | .0068650 | .0068527 |
| 69 | .0072409 | .0070367 | .0070243 |
| 70 | .0074580 | .0071836 | .0071720 |
| 71 | .0076750 | .0073948 | .0073831 |
| 72 | .0078537 | .0076060 | .0075943 |
| 73 | .0081241 | .0077801 | .0077698 |
| 74 | .0083945 | .0080424 | .0080323 |
| 75 | .0086079 | .0083046 | .0082949 |
| 76 | .0089494 | .0085123 | .0085049 |
| 77 | .0092910 | .0088426 | .0088361 |
| 78 | .0095472 | .0091729 | .0091674 |
| 79 | .0099864 | .0094231 | .0094204 |
| 80 | .0104255 | .0098473 | .0098460 |
| 81 | .0107358 | .0102714 | .0102716 |
| 82 | .0113112 | .0105753 | .0105794 |
| 83 | .0118866 | .0111296 | .0111364 |
| 84 | .0122633 | .0116840 | .0116935 |
| 85 | .0130303 | .0120540 | .0120687 |
| 86 | .0137973 | .0124197 | .0124401 |
| 87 | .0142547 | .0131966 | .0132228 |
| 88 | .0146958 | .0139735 | .0140056 |
| 89 | .0157858 | .0144064 | .0144471 |
| 90 | .0168759 | .0154392 | .0154931 |
| 91 | .0173946 | .0164719 | .0165391 |
| 92 | .0178765 | .0169752 | .0170558 |
| 93 | .0194101 | .0174443 | .0175370 |
| 94 | .0209437 | .0178745 | .0179796 |
| 95 | .0215135 | .0193483 | .0194888 |
| 96 | .0220376 | .0208221 | .0209980 |
| 97 | .0225187 | .0213149 | 0.215118 |
| 98 | .0229620 | .0217660 | .0219824 |
| 99 | .0233764 | .0221845 | .0224187 |
[]
OTS-3353.1
AMENDATORY SECTION(Amending WSR 02-23-037, filed 11/13/02,
effective 1/1/03)
WAC 415-103-215
What are the WSPRS Plan 1 retirement
benefit options?
This section only applies to members
commissioned before January 1, 2003 (((WSPRS Plan 1))).
(1) When retiring for service, a married member can
choose either Option A (historic retirement option) under RCW 43.43.260 and 43.43.270 or Option B under RCW 43.43.278. Both
options include a survivor feature that entitles the eligible
surviving spouse and any eligible children to receive a
monthly ((allowance)) benefit after the retiree dies.
(2) Option A (historic retirement option and survivor
benefit). The department pays the retiree a monthly
retirement ((allowance)) benefit in accordance with RCW 43.43.260 (Benefits). The department pays survivor benefits
in accordance with RCW 43.43.270 (Retirement allowances).
(a) Surviving spouse. When the retiree dies, the
department pays the retiree's surviving spouse a monthly
retirement ((allowance)) benefit equal to the gross monthly
((allowance)) benefit then payable to the retiree, or ((an
allowance)) a benefit equal to fifty percent of the average
final salary (AFS) used to determine the retiree's benefit,
whichever is less.
(b) Surviving children when there is a surviving spouse. If the retiree has a surviving spouse and surviving unmarried children under the age of eighteen years, each child shall be entitled to a benefit equal to five percent of the retiree's average final salary (AFS) at retirement. The combined benefits to the surviving spouse and all children cannot exceed sixty percent of the retiree's AFS.
(3) Option B (actuarially equivalent retirement option
and survivor benefit). The department pays the retiree a
monthly retirement ((allowance)) benefit that is actuarially
reduced ((by three percent)) from the benefit calculated under
Option A. The department pays survivor benefits in accordance
with RCW 43.43.278 using actuarial factors in WAC 415-02-380
(10) and (11).
(a) Surviving spouse. When the retiree dies, the
department pays the retiree's surviving spouse a monthly
retirement ((allowance)) benefit equal to the gross monthly
((allowance)) benefit then payable to the retiree.
(b) Surviving children when there is a surviving spouse. If the retiree has a surviving spouse and surviving unmarried children under the age of eighteen years, each surviving unmarried child under the age of eighteen years shall be entitled to a benefit equal to five percent of the retiree's average final salary (AFS) at retirement.
(4) Benefits included in Option A and Option B.
(a) Cost-of-living adjustment. The retiree's annual
adjustment every July is based upon the provisions in RCW 43.43.260(5). The annual adjustment applies to the eligible
surviving spouse and any eligible children, who receive a
monthly ((allowance)) benefit after the retiree dies.
(b) Surviving spouse eligibility. To be eligible for
((an allowance)) a benefit, the surviving spouse of a retiree
must either:
(i) Have been married to the retiree prior to his or her retirement and continuously thereafter until the retiree's death; or
(ii) Have been married to the retiree for at least two years prior to the retiree's death.
(c) Remarriage of surviving spouse. If a surviving
spouse who is receiving benefits under this subsection marries
another member of WSPRS and that retiree dies before the
spouse, the spouse will receive only the higher of the two
survivors' ((allowances)) benefits for which he or she
qualifies. The surviving spouse cannot receive more than one
survivor ((allowance)) benefit at a time under this
subsection.
(d) Surviving children when there is no surviving spouse. If there is no surviving spouse or the surviving spouse dies, the unmarried child or children under the age of eighteen years shall be entitled to a benefit equal to thirty percent of the retiree's AFS for one child and an additional ten percent of AFS for each additional child. The combined benefits to the surviving children cannot exceed sixty percent of the retiree's AFS. Benefit payments under this subsection will be divided equally among the children.
(e) End of benefits. All benefits end when the surviving spouse dies or the youngest unmarried child reaches age eighteen, whichever occurs last.
(f) Distribution of remaining contributions. Any remaining balance of the retiree's accumulated contributions will be paid to:
(i) The person(s), trust, organization, or retiree's estate specified by the retiree on the appropriate department designated form, duly executed and properly on file with the department on or before the retiree's death; or
(ii) To the retiree's legal representative, if no person or entity designated in (f)(i) of this subsection is living or in existence at the time of the retiree's death.
(5) Pop-up provision.
(a) This subsection only applies to members retiring on or after July 1, 2000, who select Option B.
(b) If the retiree and spouse divorce, or if the spouse
dies before the retiree, the retiree's monthly retirement
((allowance)) benefit increases, effective the first day of
the following month, to:
(i) The amount that the retiree would have received had the retiree chosen Option A at retirement; plus
(ii) Any cost of living adjustments (COLA) the retiree received prior to the divorce or the spouse's death.
(c) Pop-up recalculation example:
Option B: Bob ((retired)) retires on ((August 1, 2000))
September 1, 2010. His Option A monthly benefit ((would have
been)) is $3,000. He ((selected)) selects Option B so that
his spouse, Linda, will receive his monthly ((allowance))
benefit and COLA after he dies. Bob is 5 years younger than
Linda. As a result, ((his monthly allowance was reduced by
three percent from $3,000, the Option A, historic retirement
and survivor benefit, to $2,910. Bob's COLA for 2001 was
$87.30 (three percent of $2,910) and for 2002 was $89.92
(three percent of $2,997.30))) the department will calculate
the adjustment to Bob's monthly retirement benefit by using
the survivor option factor found in WAC 415-02-380(11). With
a -5 year age difference, the value corresponding to WSP Plan
1 Option B is 0.967. This value, 0.967, will be multiplied
against the $3,000 Option A benefit amount. Bob's Option B
monthly benefit amount will be $2,901. Bob receives his first
COLA on July 1, 2012, in the amount of $87.03. Bob's monthly
benefit amount with the COLA is $2,988.03.
Linda ((died)) dies in September ((2002)) 2012. Under
the "pop-up" provision, Bob's monthly benefit increased in
October ((2002)) 2012 to a total of (($3,177.22)) $3,087.03. His new benefit amount includes the $3,000 he would have
received had he originally chosen Option A, plus the ((total
of the COLAs)) COLA he received in ((2001 ($87.30) and 2002
($89.92). On July 1, 2003, Bob's COLA will be based on the
average consumer price index to a maximum of three percent. See RCW 43.43.260(5))) 2012 ($87.03).
(d) If a retiree whose benefit increases under this subsection dies and there is no eligible child, all benefit payments end. Any remaining balance of the retiree's accumulated contributions will be paid to:
(i) The person(s), trust, organization, or retiree's estate specified by the retiree on the appropriate department designated form, duly executed and properly on file with the department on or before the retiree's death; or
(ii) To the retiree's legal representative, if no person or entity designated in (d)(i) of this subsection is living or in existence at the time of the retiree's death.
(6) For more information see chapter 415-02 WAC starting
with WAC 415-02-300 for the tables, schedules, and factors the
department uses for calculating retirement ((allowances))
benefits.
(7) Terms used in this section:
"Pop-up" - see WAC 415-02-030.
[Statutory Authority: RCW 41.50.050(5), 43.43.260, [43.43.]270, [43.43.]278, [43.43.]280(1). 02-23-037, § 415-103-215, filed 11/13/02, effective 1/1/03. Statutory Authority: RCW 41.50.050(5), 43.43.142, 43.43.278, 43.43.280. 01-13-010, § 415-103-215, filed 6/8/01, effective 7/9/01. Statutory Authority: RCW 43.43.278 and 41.50.050. 00-11-103, § 415-103-215, filed 5/18/00, effective 6/18/00.]
OTS-3459.1
AMENDATORY SECTION(Amending WSR 05-24-050, filed 12/1/05,
effective 1/1/06)
WAC 415-111-320
May I purchase a life annuity with my
Plan 3 defined contribution account?
Any time after you
become eligible to withdraw funds from your Plan 3 account,
you may use part or all of your funds to purchase a life
annuity according to this section. To purchase a Total
Allocation Portfolio (TAP) Annuity that is administered by the
state of Washington you must use funds that are in the
Washington state investment board (WSIB) investment program.
To purchase an annuity through an insurance company that is
offered by the self-directed investment program, you must use
funds that are in the self-directed investment program.
(1) What is a life annuity? A life annuity is a contract that provides a guaranteed income for the rest of your life in exchange for a lump-sum dollar amount you pay up front. The contract specifies the amount you pay to purchase the annuity, the amount you will receive each month, and any other terms and conditions.
(a) A single life annuity is based on your lifetime. It provides guaranteed payments for as long as you live. The payments stop upon your death.
(b) A joint life annuity is based on two lifetimes, yours
and another person that you choose (referred to as your joint
annuitant). It provides guaranteed payments ((for as long as
you live, and then for as long as your joint annuitant lives))
to you during your lifetime, and then, if your joint annuitant
survives you, to your joint annuitant for the remainder of
his/her lifetime. The payments stop when both you and your
joint annuitant die.
(c) A ((term certain)) term-certain -- Single life annuity
is based on your lifetime. It provides you with regular
payments for as long as you live. It also guarantees the
payments for a specific, predetermined period of time (((term
certain)) term-certain). If you die before the specified
period of time, payments will continue to your beneficiary for
the balance of the specified period.
(d) A ((term certain)) term-certain -- Joint life annuity
is based on two lifetimes, yours and your joint annuitant's. It provides regular payments for as long as you or your joint
annuitant lives. It also guarantees those payments for a
specific, predetermined period of time (((term certain))
term-certain). If you and your joint annuitant should both
die before the specified period of time, payments will
continue to your beneficiary for the balance of the specified
period.
Example (((Term certain)) term-certain -- Joint life
annuity):
John purchased a 20-year ((term certain)) term-certain
joint life annuity. He received monthly payments until his
death 10 years later. Upon John's death, Mary, John's joint
annuitant, will receive payments for the duration of her life.
| • | If Mary lives for 5 years after John's death, upon her death the annuity will make payments to John's beneficiary for 5 years, the remainder of the 20-year term. |
| • | If Mary lives for 15 years after John's death, upon her death the annuity will cease. The annuity will have paid benefits for 25 years, five years beyond the 20-year guaranteed period. |
(3) How is the original purchase price of the life annuity determined? You will choose how much of your defined contribution funds to use as your original purchase price. The minimum purchase price depends on the type of annuity you purchase: The minimum purchase price for a TAP annuity is twenty-five thousand dollars and the minimum purchase price for an annuity through a self-directed investment program insurance company is five thousand dollars.
The minimum purchase price for a life annuity is subject to change.
(4) How are the monthly annuity payments calculated? The
amount of your monthly annuity payment ((amount)) is based on
various actuarial assumptions, including without limitation,
assumptions about life expectancy and anticipated investment
returns. The amount of your monthly annuity payment will vary
depending on:
(a) The original purchase price;
(b) Your age;
(c) The age of your joint annuitant((,)) (if any);
(d) ((Assumptions about life expectancy;
(e))) The survivorship percentage you select on a joint annuity (if any); and
(((f) Anticipated investment returns; and
(g) The specific features of the annuity you select, such as, but not limited to, COLAs or refunds of any undistributed balance upon death.
(4))) (e) Other features of your specific annuity, including, but not limited to, COLAs or refunds of undistributed balances upon your death.
For more information about the factors used in calculating a TAP annuity, see WAC 415-02-390. For more information about the factors used in calculating an annuity through a self-directed investment program insurance company, contact the Plan 3 record keeper.
(5) May I ((change my mind after I purchase an annuity))
cancel my purchase of an annuity contract? Your contract will
specify a period of time in which you can ((rescind)) cancel
your decision to purchase the annuity. Once the rescission
period expires, your decision is irrevocable.
(((5) May I change the terms of the annuity)) (6) Can the
terms of the annuity be changed after the rescission period
expires? You may not make any changes after the rescission
period unless your annuity contract explicitly states
otherwise. Some ((policies)) contracts allow you to make
changes in specific circumstances. For instance, you may make
changes to an annuity purchased through the Washington state
investment board investment program only as follows:
(a) If you name someone other than your spouse as the joint annuitant, you may convert to a single life annuity at any time after your payments begin. This option may only be used once and is irrevocable.
(b) If you marry after purchasing a single life annuity,
you may convert to a joint life annuity and name your new
spouse as ((survivor)) joint annuitant, provided that:
(i) Your monthly ((benefit)) annuity payment is not
subject to ((a)) property ((settlement agreement from a court
decree of dissolution or)) division pursuant to a dissolution
order (definition of dissolution order in RCW 41.50.500
includes orders of legal separation);
(ii) The selection is made during a one-year window on or after the date of the first anniversary and before the second anniversary of your marriage; and
(iii) You provide satisfactory proof of your new marriage
and your new spouse's birth date. ((This option may only be
used once and is irrevocable.
(6))) (7) What are the tax consequences of a life annuity?
(a) You, your joint annuitant or your beneficiary may be liable for federal and/or state taxes on payments from your annuity in the year in which they are received. You will receive an annual statement indicating the taxable portion of your annuity payments.
(b) For a TAP annuity, if you do not submit a tax withholding Form W-4P to the department before your first payment, taxes will be withheld according to Internal Revenue Service requirements, using a filing status of married with three exemptions.
(c) The department does not:
(i) Guarantee that payments should or should not be designated as exempt from federal income tax;
(ii) Guarantee that it was correct in withholding or not withholding taxes from benefit payments to you;
(iii) Represent or guarantee ((that)) any particular
federal or state income, payroll, personal property or other
tax consequence ((will occur)) because of ((its nontaxable))
the department's determination of the taxable status of a
distribution; or
(iv) Assume any liability for your compliance with the Internal Revenue Code.
(((7))) (8) How do I purchase a life annuity?
(a) The forms required to purchase an annuity and the applicable directions are available on the department's web site or upon request from the department, and include:
(i) Plan 3 Request for Payment of Defined Contributions Funds Form;
(ii) Plan 3 Annuity Payment Request Form;
(iii) Spousal consent form, if married;
(iv) Proof of your birth date;
(v) Proof of your joint annuitant's birth date, if applicable; and
(vi) Tax withholding Form W-4P.
(b) You may transfer funds from one investment program to the other in order to have sufficient funds in the appropriate investment program to cover the cost of the annuity purchase.
(((8))) (9) What if there is an error in my contract?
Carefully examine your contract upon receipt. If there is an
error or omission, you must report the error or omission
immediately according to the instructions in your contract.
[Statutory Authority: RCW 41.50.050(5) and 41.50.088. 05-24-050, § 415-111-320, filed 12/1/05, effective 1/1/06.]