(1) Your multiple system benefit may not exceed the highest maximum benefit which you would be permitted to receive under any one of the dual member systems from which you are retiring if all of your service had been provided in one system. See RCW
41.54.070.
(2) The department will compute your maximum multiple system benefit in the following order:
(a) Calculate the maximum benefit you could receive under each system. The department will compute your maximum benefit according to the benefit limitation provisions of each system as if you had earned your total career service and compensation in that system. In computing your maximum benefit under each system, the department will:
(i) Apply the provisions of each system governing the calculation of your average compensation in that system; and
(ii) Assume you earned all of your career service with your last employer for purposes of determining any limitations on the inclusion of leave cashouts in your average compensation.
Example 18: | A multiple system retiree retires from TRS Plan 1 state employment with prior creditable PERS Plan 1 service. His PERS employer pays him an accrued sick leave cashout at termination. Because a sick leave cashout from a state agency employer is not includable as TRS earnable compensation, the department will not include the cashout in the retiree's average compensation for purposes of computing either his PERS Plan 1 or TRS Plan 1 maximum benefit. |
Example 19: | A multiple system retiree retires from PERS Plan 1 local government employment and receives a sick leave cashout. Because a sick leave cashout from a local government employer may be included as earnable compensation, the department will include the sick leave cashout to compute the retiree's maximum benefits under both PERS Plan 1 and TRS Plan 1. |
(b)
Determine your retirement allowances from each system. After computing your maximum benefit, the department will determine the retirement allowances to which you are entitled from each system under chapter
41.54 RCW before making any reduction under RCW
41.54.070. If applicable, the department will then reduce the amount of your retirement allowances provided by either of the dual member systems for:
(i) Your status as a nonmember participant of WSPRS Plan 1 or 2 pursuant to RCW
43.43.280(2); or
(c) Compute your total multiple system benefit. Upon computing your retirement allowances from each system and making any applicable reductions under (b) of this subsection, the department will add the systems' allowances to compute your total multiple system benefit.
(d) Compare your total multiple system benefit with your maximum benefit and, if necessary, proportionately reduce your retirement allowances. The department will then compare your total multiple system benefit with your maximum benefit calculated in (a) of this subsection. If your total multiple system benefit exceeds your maximum benefit, the department will proportionately reduce your retirement allowances provided by each system as follows:
(i) Calculate what proportion your total multiple system benefit is provided by each system separately; and
(ii) Proportionately reduce the benefit provided by each system to account for the excess of your total multiple system benefit over your maximum benefit.
Example 20: | A person with twenty-nine years of prior service in TRS Plan 1 and one year of subsequent service in PERS Plan 2 retires from both systems at age sixty-five. The retiree's TRS Plan 1 average compensation is thirty thousand dollars. The TRS Plan 1 maximum benefit is sixty percent of average compensation. The retiree's maximum TRS benefit is eighteen thousand dollars or one thousand five hundred dollars per month. The retiree's PERS Plan 2 average compensation is twenty-eight thousand dollars. The retiree's maximum PERS 2 benefit is sixteen thousand eight hundred dollars or one thousand four hundred dollars per month. The retiree's maximum benefit is the higher of the two amounts, one thousand five hundred dollars per month. |
| Assume the retiree's accrued service is such that her actual TRS Plan 1 monthly benefit is one thousand four hundred fifty dollars and her PERS Plan 2 monthly benefit is one hundred dollars. The retiree's total multiple system benefit is the sum of her TRS Plan 1 and PERS Plan 2 benefits, or one thousand five hundred fifty dollars. Because the retiree's total multiple system benefit exceeds her maximum benefit by fifty dollars, the department would proportionately reduce her TRS Plan 1 and PERS Plan 2 benefits. Her TRS Plan 1 benefit is 29/30 of her total service or ninety-seven percent, and her PERS Plan 2 benefit is 1/30 of total service, or three percent. The department would reduce her TRS Plan 1 benefit by ninety-seven percent of the overage, or forty-eight dollars and fifty cents (50 x.97) and her PERS Plan 2 benefit by three percent of the overage, or one dollar and fifty cents (50 x.03). |
(3) If you select a benefit payment option, the department will reduce your multiple system benefit to account as appropriate. After making any applicable maximum benefit reductions, the department will further reduce your benefit if you choose:
(a) To withdraw your accumulated contributions at the time you retire from TRS Plan 1;
(b) A survivor benefit option; or
(c) A cost-of-living adjustment (COLA) option.
(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.
[Statutory Authority: RCW
41.50.050(5) and
41.37.210(3). WSR 08-02-048, § 415-113-090, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW
41.50.050(5) and chapter
41.54 RCW. WSR 02-18-046, § 415-113-090, filed 8/28/02, effective 9/30/02. Statutory Authority: RCW
41.50.050(5) and
41.54.070. WSR 02-03-120, § 415-113-090, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW
41.50.050. WSR 99-22-043, § 415-113-090, filed 10/29/99, effective 11/29/99; WSR 96-20-004, § 415-113-090, filed 9/19/96, effective 10/20/96; WSR 95-03-001, § 415-113-090, filed 1/4/95, effective 2/4/95.]