WSR 17-02-033
PERMANENT RULES
DEPARTMENT OF
RETIREMENT SYSTEMS
[Filed December 28, 2016, 1:48 p.m., effective January 28, 2017]
Effective Date of Rule: Thirty-one days after filing.
Purpose: Law enforcement officers' and firefighters' (LEOFF) Plan 1 flexible survivor options - this amendment implements ESB 5873, which provided a new window of time for qualified LEOFF Plan 1 retirees to select a survivor option for a postretirement spouse or registered domestic partner. The amendment also corrects WAC 415-104-202 to reflect that more than one postretirement survivor option may be permitted.
Citation of Existing Rules Affected by this Order: Amending WAC 415-104-202.
Statutory Authority for Adoption: RCW 41.50.050(5).
Adopted under notice filed as WSR 16-23-070 on November 15, 2016.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 1, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.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: December 28, 2016.
Tracy Guerin
Director
AMENDATORY SECTION (Amending WSR 13-18-034, filed 8/28/13, effective 10/1/13)
WAC 415-104-202 Survivor benefit optionsLEOFF Plan 1.
(1) To whom does this section apply? This section applies to you if you are a retiree of LEOFF Plan 1.
(2) What are flexible survivor benefit options? RCW 41.26.164 allows a retiree to provide a survivor option for a spouse who is not eligible for survivor benefits under RCW 41.26.160 or 41.26.161. The survivor option will provide a lifetime benefit for the spouse after the retiree's death.
(3) How will my monthly retirement ((allowance)) benefit be affected by selecting a flexible survivor option? Your monthly retirement ((allowance)) benefit will be actuarially reduced beginning the first month following the month in which the department receives the completed form.
(4) What are the flexible survivor option choices?
(a) Joint and whole ((allowance)) benefit option. The department will pay you a reduced monthly retirement ((allowance)) benefit throughout your lifetime. After your death, the department will pay your surviving spouse a monthly ((allowance)) benefit equal to the gross monthly retirement ((allowance)) benefit you were receiving.
(b) Joint and one-half ((allowance)) benefit option. The department will pay you a reduced monthly retirement ((allowance)) benefit throughout your lifetime. After your death, the department will pay your surviving spouse a monthly ((allowance)) benefit equal to one-half of the gross monthly retirement ((allowance)) benefit you were receiving.
(c) Joint and two-thirds ((allowance)) benefit option. The department will pay you a reduced monthly retirement ((allowance)) benefit throughout your lifetime. After your death, the department will pay your surviving spouse a monthly ((allowance)) benefit equal to two-thirds (66.667%) of the gross monthly retirement ((allowance)) benefit you were receiving.
(5) Do I qualify to add a flexible survivor option? You may select a flexible survivor option if:
(a) Your current spouse is not eligible for survivor benefits under RCW 41.26.160 or 41.26.161;
(b) Some portion of your monthly retirement ((allowance)) benefit is payable to you, after any reduction pursuant to a property division obligation under RCW 41.50.670; and
(c) ((You have not previously selected a flexible survivor option; and
(d))) You meet the deadline and application requirements in subsection (6) of this section.
(6) How do I add a flexible survivor option? You may select a flexible survivor option and name your current spouse as your survivor beneficiary, provided that:
(a) The selection is made((:
(i))) during a one-year window, on or after the date of the first anniversary and before the second anniversary of the marriage((; or
(ii) No later than June 30, 2006, if you cannot comply with (a)(i) of this subsection because you were married prior to July 1, 2005)), or as otherwise authorized by law;
(b) You provide a copy of your certified marriage certificate to the department;
(c) You provide proof, satisfactory to the department, of your current spouse's birth date; and
(d) You file the properly completed forms with the department in a timely manner.
(7) May I remove the flexible survivor option in the future? Your choice of a flexible survivor option is irrevocable with the following exceptions:
(a) Your spouse dies before you; or
(b) You and your spouse divorce.
See subsection (8) of this section.
(8) What happens if my spouse dies before me, or if we divorce? If your spouse dies before you, or if you divorce, your monthly retirement ((allowance)) benefit will increase, effective the first day of the following month. Your increased monthly ((allowance)) benefit will be the amount you would have received had you not chosen a flexible survivor option plus any cost-of-living adjustments (COLA) you received prior to your spouse's death.
(9) What happens to my eligible surviving children's share if I select a flexible survivor option? There is no impact to the benefit provided under RCW 41.26.160 or 41.26.161 to surviving children if you select a flexible survivor option.
(10) Actuarial information. See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses actuarial factors and schedules to calculate retirement ((allowances)) benefits.
Terms used in this section:
(a) Child or children - RCW 41.26.030(7).
(b) Eligible surviving child - RCW 41.26.160 and 41.26.161.
(c) Eligible surviving spouse - RCW 41.26.161 and 41.26.162.
(d) Surviving spouse - RCW 41.26.030(6).