WSR 13-08-055

PERMANENT RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed March 29, 2013, 1:45 p.m. , effective May 1, 2013 ]


Effective Date of Rule: May 1, 2013.

Purpose: Implements the provisions of 2ESB 6378 related to changing the retirement allowance reductions for members who begin membership in PERS, SERS or TRS on or after May 1, 2013, and subsequently retie after reaching age fifty-five and completing thirty or more years of service. These changes are necessary to clarify when membership begins for substitutes who establish membership by purchasing service credit on or after May 1, 2013.

Citation of Existing Rules Affected by this Order: Repealing WAC 415-110-605, 415-112-501 and 415-112-502; and amending WAC 415-110-685 and 415-112-140.

Statutory Authority for Adoption: RCW 41.50.050(5).

Adopted under notice filed as WSR 13-05-080 on February 20, 2013.

Changes Other than Editing from Proposed to Adopted Version: The text being adopted reflects minor revisions from the text proposed in WSR 13-05-080. The changes relate to eligibility for membership based on work performed in prior periods.

Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 2, Repealed 3.

Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.

Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.

Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.

Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.

Date Adopted: March 29, 2013.

Marcie Frost

Director

OTS-5282.3


AMENDATORY SECTION(Amending WSR 04-04-041, filed 1/29/04, effective 3/1/04)

WAC 415-110-685   Am I eligible for membership and service credit as a classified substitute employee?   (((1) You may establish or reestablish membership by purchasing service credit in SERS as a classified substitute if you meet eligibility criteria.

(a) SERS Plan 2.

You may apply to the department for membership in Plan 2 if you work at least seventy hours for five or more months during a school year and:

(i) Were previously a member of SERS Plan 2 and withdrew; or

(ii) Are or were a member of PERS Plan 2.

(b) SERS Plan 3.

You may apply to the department for membership in Plan 3 if you work at least seventy hours for five or more months during a school year and:

(i) You have never been a member of SERS Plan 2;

(ii) You have never been a member of PERS Plan 2; or

(iii) You were a member of PERS Plan 2 who transferred to PERS Plan 3.

(2) As an established member you may purchase any amount of service credit as a classified substitute.

SERS Plan 2 or 3.

(a) You must purchase all of the service you rendered during the school year.

(b) You do not have a minimum amount of service you must have worked.

(3) To apply, you must submit your application to the department at the end of the school year.

To apply for membership and service credit as a classified substitute, you must submit the correct application form (Plan 2 or Plan 3) and your employer's quarterly reports to the department, if applicable, no earlier than August 31 of the school year for which you are applying for service credit.

(4) You must make payments within six months of the end of the school year to avoid recovery interest charges.

(a) You have six months following the end of the school year in which the service was provided to purchase the service credit by paying the appropriate member contributions in full to avoid interest charges.

(b) After the six-month period, recovery interest shall be charged prospectively (March 1 forward) on the contributions due.

(i) SERS Plan 2 members: Interest is charged on both employer and member contributions.

(ii) SERS Plan 3 members: Interest is charged on employer contributions only.

(5) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Classified employee" - RCW 41.35.010(37).

(b) "Member" - RCW 41.35.010(5).

(c) "Service" - RCW 41.35.010(7).

(d) "Substitute employee" - RCW 41.35.010(38).)) You may be eligible to apply for membership and receive service credit for time worked as a classified substitute employee that occurred on or after July 27, 2003.

(1) If you have never been a member of the school employees' retirement system (SERS), you may establish membership in Plan 2 or Plan 3 if you worked as a classified substitute employee for seventy or more hours per month during at least five months within a single school year period of September 1st through August 31st. Your membership will begin when your first optional bill to purchase substitute teaching service credit is paid in full.

(2) If you have already established membership in SERS Plan 3, or if you have established membership in SERS Plan 2 and have not withdrawn your contributions, you may apply to the department for service credit as described in subsection (4) of this section, for any compensated employment as a classified substitute employee that occurs after your first month of established service credit. You may apply for service credit for compensated employment as a classified substitute employee that occurred prior to your first month of established service credit if it meets the requirements for membership as described in subsection (1) of this section.

(3) If you previously established membership in SERS Plan 2 and withdrew your contributions, you may reestablish your membership by purchasing service credit if you worked as a classified substitute employee for seventy or more hours per month during at least five months within a single school year period of September 1st through August 31st.

(4) To apply, you must submit a classified substitute's application for service credit.

(a) Applications must be submitted no earlier than September 1st following the end of the school year in which you worked.

(b) If you are establishing membership in SERS for the first time, you must also submit a member information form to indicate your selection of Plan 2 or Plan 3.

(c) If you are an established Plan 3 member, you must also submit a member information form to indicate your contribution rate and investment options.

(d) If you are purchasing service credit for the 2003-04 school year, you must also submit quarterly reports to DRS along with your application for service credit. Quarterly reports must show the exact hours worked and compensation earned each month, and must be signed by the employer.

(5) To receive classified substitute employee's service credit, you must pay the appropriate member contributions.

(a) Upon receipt of your application materials, the department will determine the amount of service credit you are eligible to purchase and will provide an optional bill for the amount due. Your service credit will be applied when the bill is paid in full.

(b) You have six months following the end of the school year in which you worked to pay the member contributions interest-free. Interest will begin to accrue on the first day of the seventh month following the end of the school year. The school year ends on August 31st for Plans 2 and 3.

(i) SERS Plan 2. If payment is received after the six month interest-free period, the amount due will include interest on both the member and employer contributions.

(ii) SERS Plan 3. If payment is received after the six month interest-free period, the amount due will include interest on the Plan 3 employer contributions.

(6) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Classified employee" - RCW 41.35.010(7).

(b) "Member" - RCW 41.35.010(20).

(c) "Service" - RCW 41.35.010(32).

(d) "Substitute employee" - RCW 41.35.010(38).

[Statutory Authority: RCW 41.50.050(5), 41.35.010, 41.35.030, 41.35.033. 04-04-041, 415-110-685, filed 1/29/04, effective 3/1/04.]

OTS-5283.3


AMENDATORY SECTION(Amending WSR 04-21-080, filed 10/20/04, effective 11/20/04)

WAC 415-112-140   Am I eligible for membership and service credit as a substitute teacher?   (((1) You may apply for membership and service credit in TRS as a substitute teacher if you meet eligibility criteria.

(a) TRS Plan 1.

(i) If you are a former Plan 1 member, you may apply to reestablish Plan 1 membership if you work ninety or more full-time days during a fiscal year as a teacher.

(ii) If you are a Plan 1 member, you may apply to the department for service credit in Plan 1 as a substitute teacher if you work a minimum of twenty full-time days during a fiscal year.

(b) TRS Plan 2.

(i) You may apply to the department for membership in Plan 2 if you:

(A) Work at least seventy hours for five or more months during an annual period September through August; or

(B) Worked at least ninety hours for two consecutive months during the period of September 1, 1990, through August 31, 1991.

(ii) If you have previously established membership in Plan 2 and have not withdrawn your contributions, you may apply to the department for service credit based on any compensated employment you earn as a substitute teacher.

(c) TRS Plan 3.

(i) You may apply to the department for membership in Plan 3 if you:

(A) Began employment after July 1, 1996; and

(B) Work at least seventy hours for five or more months during an annual period September through August.

(ii) If you have established membership in Plan 3, either by transferring from Plan 2 or establishing membership after July 1, 1996, you may apply to the department for service credit based on any compensated employment you earn as a substitute teacher.

(2) To apply, you must submit your employer's quarterly reports to the department at the end of a year.

(a) To apply for membership and service credit as a substitute teacher, you must submit your employer's quarterly reports to the department no earlier than:

(i) June 30 of the year for which you are applying for Plan 1 service credit; or

(ii) August 31 of the year for which you are applying for Plan 2 or Plan 3 service credit.

(b) Your employer cannot report your service and earnings history as a substitute teacher to the department through the retirement system monthly reporting system unless you are also employed in a separate, eligible position with the same employer.

(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Member" - RCW 41.32.010.

(b) "Service" - RCW 41.32.010.

(c) "Substitute teacher" - RCW 41.32.010.

(d) "Teacher" - RCW 41.32.010.)) (1) If you have never been a member of the teachers' retirement system (TRS), you may establish membership in Plan 2 or Plan 3 if you worked as a substitute teacher for seventy or more hours per month during at least five months within a single school year period of September 1st through August 31st, during the 1991-92 school year or later. You may apply for membership for work prior to the 1991-92 school year if it meets the membership requirements in effect when the work was performed. Your membership will begin when your first optional bill to purchase substitute teaching service credit is paid in full.

(2) If you have already established membership and have not withdrawn your contributions, you may be eligible to purchase service credit for working as a substitute teacher.

(a) TRS Plan 1. If you are a Plan 1 member, you may apply to the department for service credit as a substitute teacher for any school year during which you worked a minimum of twenty full-time days between July 1st and June 30th.

(b) TRS Plan 2 or Plan 3. If you are a Plan 2 or Plan 3 member, you may apply to the department for service credit as described in subsection (4) of this section, for any compensated employment as a substitute teacher that occurs after your first month of established service credit. You may apply for service credit for compensated employment as a substitute teacher that occurred prior to your first month of established service credit if it meets the requirements for membership as described in subsection (1) of this section.

(3) If you previously established membership and withdrew your contributions, you may purchase service credit as a substitute teacher if you meet the criteria in this subsection.

(a) TRS Plan 1. You may reestablish membership in TRS Plan 1 if you worked as a substitute teacher for the equivalent of ninety full-time days within a single school year period of July 1st through June 30th.

(b) TRS Plan 2. You may reestablish membership in TRS Plan 2 if you worked as a substitute teacher as described in subsection (1) of this section.

(c) TRS Plan 3. If you are a Plan 3 member and withdrew your contributions, you may apply to the department for service credit for any compensated employment as a substitute teacher that occurred after your first month of established service credit. You may apply for service credit for compensated employment as a substitute teacher that occurred prior to your first month of established service credit if it meets the requirements for membership as described in subsection (1) of this section.

(4) To apply, you must submit a substitute teacher's application for service credit.

(a) Applications must be submitted no earlier than the end of your plan's school year in which you worked. The school year ends on June 30th for Plan 1, and August 31st for Plans 2 and 3.

(b) If you are establishing membership in TRS for the first time, you must also submit a member information form to indicate your selection of Plan 2 or Plan 3.

(c) If you are an established Plan 3 member, you must also submit a member information form to indicate your contribution rate and investment options.

(d) If you are purchasing service credit for a period prior to the 2004-05 school year, or for work performed for a higher education employer or for the Washington state center for childhood deafness and hearing loss or the school for the blind, you must also submit quarterly reports to DRS along with your application for service credit. Quarterly reports must show the exact hours worked and compensation earned each month, and must be signed by the employer.

(5) To receive substitute teacher's service credit, you must pay the appropriate member contributions.

(a) Upon receipt of your application materials, the department will determine the amount of service credit you are eligible to purchase and will provide an optional bill for the amount due. Your service credit will be applied when the bill is paid in full.

(b) You have six months following the end of the school year in which you worked to pay the member contributions interest-free. Interest will begin to accrue on the first day of the seventh month following the end of the school year. The school year ends on June 30th for Plan 1, and August 31st for Plans 2 and 3.

(i) TRS Plan 1 or Plan 2. If payment is received after the six month interest-free period, the amount due will include interest on both the Plan 1 or Plan 2 member and employer contributions.

(ii) TRS Plan 3. If payment is received after the six month interest-free period, the amount due will include interest on the Plan 3 employer contributions.

(6) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Member" - RCW 41.32.010(25).

(b) "Service" - RCW 41.32.010(43).

(c) "Substitute teacher" - RCW 41.32.010(48).

[Statutory Authority: RCW 41.50.050(5). 04-21-080, 415-112-140, filed 10/20/04, effective 11/20/04. Statutory Authority: RCW 41.50.050. 00-10-015, 415-112-140, filed 4/21/00, effective 5/22/00; 95-16-053, 415-112-140, filed 7/25/95, effective 8/25/95.]

OTS-5299.1


REPEALER

     The following section of the Washington Administrative Code is repealed:
WAC 415-110-605 Do I qualify for retirement from Plan 3?

OTS-5300.1


REPEALER

     The following sections of the Washington Administrative Code are repealed:
WAC 415-112-501 Do I qualify for retirement from Plan 2?
WAC 415-112-502 Do I qualify for retirement from Plan 3?