PDFWAC 415-104-111

How is my LEOFF Plan 2 retirement allowance affected if I return to work after retirement?

This rule applies to you if you are a LEOFF 2 retiree who returns to work in an eligible LEOFF, public employees' retirement system (PERS), public safety employees' retirement system (PSERS), school employees' retirement system (SERS), or teachers' retirement system (TRS) position.
(1) If you return to employment in a LEOFF eligible position, you must reenter membershipand your retirement allowance will stop. When you separate from service, the department will calculate your retirement allowance according to this subsection.
(a) If you previously retired before age fifty-three, the department will:
(i) Calculate your retirement allowance pursuant to RCW 41.26.420 using:
(A) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and
(B) Any increase in your final average salary resulting from your reentry into membership; and
(ii) Actuarially reduce your retirement allowance:
(A) Based on the present value of the retirement allowance payments you received during your initial retirement;
(B) To reflect the difference in the number of years between your current age and the attainment of age fifty-three, if you are not yet fifty-three; and
(C) To offset the cost of your benefit option if it includes a survivor feature. See WAC 415-104-215.
(b) If you previously retired at or after age fifty-three, the department will:
(i) Calculate your retirement allowance pursuant to RCW 41.26.420 using:
(A) Your total years of career service, including service earned prior to your initial retirement and service earned after reentering membership; and
(B) Any increase in your final average salary resulting from your reentry into membership; and
(ii) Actuarially reduce your retirement allowance to offset the cost of your benefit option if it includes a survivor feature. See WAC 415-104-215.
(c) Under no circumstances will you receive a retirement allowance creditable to a month during which you earned service credit.
(2) If you enter employment in a PERS, PSERS, SERS, or TRS eligible position, you have two options:
(a) You may decline membership in the PERS, PSERS, SERS, or TRS retirement system. Under this option, you will continue to receive your monthly LEOFF Plan 2 retirement allowance; or
(b) You may choose to become a member of the PERS, PSERS, SERS, or TRS retirement system. Under this option, your LEOFF Plan 2 retirement allowance will be suspended while you earn a retirement benefit in the other system. When you terminate employment in the PERS, PSERS, SERS, or TRS eligible position, you will resume receiving your LEOFF Plan 2 retirement allowance, along with a retroactive payment of your LEOFF Plan 2 retirement allowance for the time you were employed.
(i) Your ongoing LEOFF Plan 2 retirement allowance will include any cost of living adjustments (COLAs) that you would have received if your LEOFF allowance had not been suspended during the period of non-LEOFF employment.
(ii) Your retroactive payment will equal the sum of your suspended LEOFF Plan 2 retirement allowances, including COLAs, during the period of non-LEOFF employment. You may choose to receive your retroactive payment in either of the following forms:
(A) A lump sum; or
(B) An increase in your ongoing LEOFF Plan 2 retirement allowance on an actuarial basis. The amount of the increase is calculated by taking the lump sum amount and multiplying it by an actuarial factor that is determined by your age at the time your retirement allowance is resumed. See WAC 415-02-340 for more information on how the department uses actuarial factors to determine the equivalent value of a lump sum amount when compared with monthly payments.
[Statutory Authority: RCW 41.50.050(5). WSR 13-18-034, § 415-104-111, filed 8/28/13, effective 10/1/13. Statutory Authority: RCW 41.50.050(5) and 41.26.500. WSR 08-23-071, § 415-104-111, filed 11/18/08, effective 12/19/08. Statutory Authority: RCW 41.50.050(5) and chapter 41.37 RCW. WSR 08-02-048, § 415-104-111, filed 12/27/07, effective 1/27/08. Statutory Authority: RCW 41.50.050(5) and 41.26.500. WSR 06-03-096, § 415-104-111, filed 1/17/06, effective 2/17/06; WSR 05-12-043, § 415-104-111, filed 5/25/05, effective 6/25/05. Statutory Authority: RCW 41.50.050(5), 41.26.470, 2001 c 261. WSR 02-14-072, § 415-104-111, filed 6/28/02, effective 7/29/02. Statutory Authority: RCW 41.50.050. WSR 94-09-040, § 415-104-111, filed 4/19/94, effective 5/20/94.]