[Filed October 22, 2019, 3:12 p.m.]
Administrative Factor Change Notification
The department of retirement systems uses administrative factors to calculate retirement benefits. Some of the ways factors are used include calculating the actuarial equivalent for early retirement and joint retirement options to provide approximately the same lifetime benefit as a normal single-life retirement. Optional costs are also based on factors when restoring withdrawn and optional service credit past the deadline, and when purchasing additional service or an annuity.
These administrative factors are periodically reviewed by the office of the state actuary (OSA). OSA recommends that the administrative factors be updated, if necessary, when the underlying demographic or economic assumptions change.
As a result of changes to the economic assumptions adopted by the pension funding council and the law enforcement officers' and firefighters' [plan] 2 board during the 2017 interim, OSA has recommended revisions to the actuarial factors used by the department. The proposed actuarial factors are available for review at http://www.drs.wa.gov/administration/administrative-factors/default.htm.
There will be a thirty day review period and a public hearing to allow stakeholders to comment on the proposed factors. Comments may be submitted by email to firstname.lastname@example.org by 8:00 a.m., December 10, 2019, or in person at the hearing.
Hearing date, time and location: December 10, 2019, 9:00 a.m., at the Department of Retirement Systems, 6835 Capitol Boulevard, Room 115, Tumwater, WA 98501.
The department anticipates adopting the proposed factors on December 11, 2019. If adopted, the new factors will go into effect on October 1, 2020.
For additional information, contact the rules coordinator at email@example.com or 360-664-7291.