PERMANENT RULES
RETIREMENT SYSTEMS
Date of Adoption: April 21, 2000.
Purpose: To amend the department's rules implementing the law codified in chapters 41.32 and 41.34 RCW in order to make those rules consistent with TRS Plan 3 which became effective July 1, 1996, and with clear rule-writing principles.
Amend chapters 415-108 and 415-112 WAC to:
| • | Accommodate a recent change in the law that allows TRS and PERS members to designate a trust as a death benefit beneficiary; |
| • | Advise TRS and PERS members how to fill out forms so that their intended beneficiaries receive the preretirement death benefit. |
Citation of Existing Rules Affected by this Order: Repealing WAC 415-112-510; and amending WAC 415-112-125, 415-112-140, 415-112-145, 415-112-155, 415-112-330, 415-112-460, 415-112-4605, 415-112-4608, 415-112-471, 415-112-473, 415-112-475, and 415-112-477.
Statutory Authority for Adoption: RCW 41.50.050.
Adopted under notice filed as WSR 00-04-024 on January 24, 2000.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 4, Amended 12, Repealed 1.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 4, Amended 12, Repealed 1.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 4, Amended 12, Repealed 1.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
April 21, 2000
John Charles
Director
OTS-3678.1
AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95,
effective 8/25/95)
WAC 415-112-125
If I am eligible, how can I establish
membership?
(1) If you met the conditions in the following table, you established TRS membership. Your plan status depends upon the date you established membership, as indicated in the following table:
Period of Service |
Type of Employment |
Plan |
Prior to 10/01/771/ |
If you were contracted to teach full-time you were mandated into membership. If you were employed under a less than full-time contract and you exercised
your option to establish membership prior to 10/01/77, you had the option to
apply for membership under RCW 41.32.240, if you worked 90 or more
full-time days 2/ during a fiscal year. |
Plan (( |
10/01/77 through 06/06/90 |
If you were contracted to teach full-time you were required to be a member. If you were employed as a substitute teacher or under a less than full-time
contract, you have the option to apply for membership under RCW 41.32.240 if
you worked a minimum of 90 full-time days 2/ during a school year, provided 1
month had at least 90 hours. |
Plan (( |
6/07/90 through 08/31/91 |
You must have been employed in an eligible position as defined in Section 2, Chapter 274, Laws of 1990, (requiring two or more consecutive months of at least 90 hours of compensated employment each month during a school year). For substitute teachers: If you met the above criteria, you may apply for
membership and service credit under RCW 41.32.013 and WAC 415-112-140. |
Plan (( |
9/01/91 forward |
You must be employed in an eligible position (requiring at least 5 months of 70 hours or more of compensated employment each month during a school year). For substitute teachers: If you meet the above criteria, you may apply for membership/service credit
under RCW 41.32.013 and WAC 415-112-140. |
Plan (( |
| 7/01/96 | You must be employed in an eligible position (requiring at least 5 months of 70
hours or more of compensated employment each month during the school year).
|
Plan 3 |
2/ "Ninety days of employment,” under RCW 41.32.240 and this section means either:
(a) Ninety full-time calendar days, or the equivalent, during a school year if you were employed as a teacher under a contract; or
(b) Ninety full-time days of actual, compensated service, or the equivalent, during a school year if you were employed as a substitute teacher.
(c) The "equivalent” of a full-time day of employment under (a) and (b) of this subsection is the sum of partial days which, when added together, equals one full-time day.
(2) 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) "Eligible position" - RCW 41.32.010.
(c) "Employer" - RCW 41.32.010.
(d) "Full-time" - RCW 41.32.240
(e) "Service" - RCW 41.32.010.
(f) "Substitute teacher" - RCW 41.32.010.
(g) "Teacher" - RCW 41.32.010.
(h) "School year" - WAC 415-112-0161.
[Statutory Authority: RCW 41.50.050. 95-16-053, § 415-112-125, filed 7/25/95, effective 8/25/95.]
(1) You may apply for membership and service credit in TRS as a substitute teacher if you meet eligibility criteria.
(a) TRS Plan ((I)) 1.
(i) If you are a former Plan ((I)) 1 member, you may apply
to reestablish Plan ((I)) 1 membership if you work ninety or more
full-time days during a school year as a teacher.
(ii) If you are a Plan ((I)) 1 member, you may apply to the
department for service credit in Plan ((I)) 1 as a substitute
teacher if you work a minimum of twenty full-time days during a
school year.
(b) TRS Plan ((II)) 2.
(i) You may apply to the department for membership in Plan
((II)) 2 if you:
(A) Work at least seventy hours for five or more months during a school year; or
(B) Worked at least ninety hours for two consecutive months during the school year of September 1, 1990, through August 31, 1991.
(ii) If you have previously established membership in Plan
((II)) 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 during a school year.
(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 a school year.
(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 during a school year.
(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
((I)) 1 service credit; or
(ii) August 31 of the year for which you are applying for
Plan ((II)) 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.
[Statutory Authority: RCW 41.50.050. 95-16-053, § 415-112-140, filed 7/25/95, effective 8/25/95.]
(1)
If you are a TRS Plan ((I)) 1 member, you will remain a member
until you:
(a) Die;
(b) Retire for service or disability; or
(c) Withdraw your accumulated contributions.
(2) If you are a TRS Plan ((II)) 2 member, you will remain a
member until you:
(a) Die;
(b) Retire for service or disability; or
(c) Separate from service as a teacher in an eligible position.
(3) If you are a TRS Plan 3 member, you will remain a member until you:
(a) Die; or
(b) Retire for service or disability.
(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.
(a) "Eligible position" - RCW 41.32.010.
(b) "Member" - RCW 41.32.010.
(c) "Service" - RCW 41.32.010.
(d) "Teacher" - RCW 41.32.010.
[Statutory Authority: RCW 41.50.050. 95-16-053, § 415-112-145, filed 7/25/95, effective 8/25/95.]
OTS-3766.2
AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95,
effective 8/25/95)
WAC 415-112-155
If I work in both a TRS position and PERS
position during the same school year, which system will I be in?
(1) If you work in both a TRS and PERS position during the same school year, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either TRS or PERS according to the following tables:
Former TRS Plan I Members 1/
Type of Concurrent Employment 2/ |
Type of Employer(s) |
System You Will Be Reported In |
A substitute or less than full-time teaching position and a PERS-eligible position |
Same employer |
PERS - for both positions. |
Separate TRS employers |
PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240. If you elect to establish TRS membership, your employers will report
you in TRS for both positions. Any previously reported service credit
and compensation in PERS will be transferred to TRS. |
|
A TRS employer and non-TRS employer |
PERS - for PERS position only. Your substitute part-time position is not reported unless you qualify for and elect to establish TRS membership under RCW 41.32.240. If you elect to establish TRS membership, you must elect either to: 1.Have your TRS service reported in PERS and receive service credit in PERS for both positions; or 2.Have your TRS service reported in TRS and not receive service credit for the PERS position. |
|
A full-time teaching position and an eligible PERS position |
Same employer |
TRS - for both positions. |
Separate TRS employers |
TRS - for both positions. |
|
A TRS employer and non-TRS employer |
You must elect to: 1.Have your TRS service reported in PERS and receive service credit in PERS for both positions; or 2.Have your TRS service reported in TRS and not receive service credit for the PERS position. |
Type of Concurrent Employment 2/ |
Type of Employer(s) |
System You Will Be Reported In |
A full-time or less than full-time TRS position and an eligible PERS position |
Same employer |
TRS - for both positions. |
Separate TRS employers |
TRS - for both positions. |
|
A TRS employer and non-TRS employer |
You must elect either to: 1.Have your TRS service reported in PERS and receive service credit in PERS for both positions; or 2.Have your TRS service reported in TRS and not receive service credit for the PERS position. |
|
A full-time or less than full-time TRS position and an ineligible PERS position |
Same employer |
TRS - for both positions. |
Separate TRS employers |
TRS - for both positions. |
|
A TRS employer and non-TRS employer |
TRS - for the TRS position only; your ineligible PERS position is not reportable. |
Type of Concurrent Employment 2/ |
Type of Employer(s) |
System You Will Be Reported In |
An eligible TRS position and an ineligible PERS position |
Same employer |
TRS - for both positions. |
Separate TRS employers |
TRS - for TRS position only; your ineligible PERS position is not reported. |
|
A TRS employer and non-TRS employer |
TRS - for TRS position only; your ineligible PERS position is not reported. | |
An eligible TRS position and an (( |
Same employer |
TRS - for both positions. |
Separate TRS employers |
TRS - for both positions. 3/ |
|
A TRS employer and non-TRS employer |
You must elect either to: 1.Have your TRS service reported in PERS and receive service credit in PERS for both positions; or 2.Have your TRS service reported in TRS and not receive service credit for the PERS position. |
Type of Concurrent Employment 2/ |
Type of Employer(s) |
System You Will Be Reported In |
An eligible PERS position and an ineligible TRS or substitute position |
Same employer |
PERS - for both positions. |
Separate TRS employers |
PERS - for the PERS position only, unless you qualify for and elect to establish membership in TRS at the end of the school year under WAC 415-112-125 (1). If you elect to establish TRS membership, your employers will
report you in TRS for both positions. Any previously reported
service credit and compensation in PERS will be transferred to TRS. |
|
A TRS employer and non-TRS employer |
PERS - for the PERS position only. You will not be reported for the TRS position unless you elect to either: 1.Have your TRS service reported in PERS and receive service credit in PERS for both positions: or 2.Have your TRS service reported in TRS and not receive service credit for the PERS position. |
Type of Concurrent Employment 2/ |
Type of Employer(s) |
System You Will Be Reported In |
An ineligible TRS and an ineligible PERS position |
Same employer |
TRS - for both positions if the positions combined, qualify as an eligible position. |
Separate employers, TRS or non-TRS |
Neither position reported. |
|
A substitute teaching position and an ineligible PERS position |
Same employer |
Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140. |
Separate employers, TRS or non-TRS |
Neither position reported. However, if you qualify, you may elect to establish membership in TRS at the end of the school year for your substitute teaching position under RCW 41.32.013 and WAC 415-112-140. |
1/ "Former TRS ((I)) 1 member”, as used here, means you terminate
your membership by withdrawing your contributions.
2/ "Concurrently” means during the same school year.
3/ EXAMPLE: A TRS ((II)) 2 member teaches in an eligible position
and during the summer, she works for a state agency in an
eligible position under PERS. Because the member has established
membership in TRS ((II)) 2 through employment as a teacher, her
state agency employer must report her service and compensation
from the PERS position to the Department in TRS ((II)) 2.
EXAMPLE: A TRS ((II)) 2 member is employed concurrently by
School District A in an eligible TRS position and by School
District B in an eligible PERS position. Because he is a TRS
((II)) 2 member, School District B employer must report his
service and compensation from the PERS position to the Department
in TRS ((II)) 2. If the member terminates his employment in the
TRS position with School District A, School District B will
report him in PERS for the PERS position.
(2) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.
(a) "Eligible position" - RCW 41.32.010 (TRS); RCW 41.40.010 (PERS).
(b) "Employer" - RCW 41.40.010 (PERS); RCW 41.32.010 (TRS).
(c) "Full time" - RCW 41.32.240.
(d) "Ineligible position" - WAC 415-112-0154 (TRS); RCW 41.40.010 (PERS).
(e) "Member" - RCW 41.40.010.
(f) "Membership" - RCW 41.40.023.
(g) "Report" - WAC 415-108-0104.
(h) "Service" - RCW 41.40.010.
[Statutory Authority: RCW 41.50.050. 95-16-053, § 415-112-155, filed 7/25/95, effective 8/25/95.]
OTS-3584.1
AMENDATORY SECTION(Amending WSR 97-09-037, filed 4/14/97,
effective 5/15/97)
WAC 415-112-330
Calculating service credit for Plan ((I)) 1
K-12 employees.
For Plan ((I)) 1 members who are employed by a
school district, a school year ((shall)) will consist of one
hundred eighty days. One year of service credit ((shall)) will
be granted to a Plan ((I)) 1 member who is employed as a
classroom teacher for one hundred forty-four or more days during
a school year. A fractional year of credit ((shall)) will be
granted to a Plan ((I)) 1 member who is employed for at least
twenty days but less than one hundred forty-four days during a
school year. The fraction ((shall be that produced by using
the)) will use days employed as the numerator and one hundred
eighty as the denominator.
(1) If there is no contract, bargaining agreement or
employer policy indicating how many hours are in a work day, a
Plan ((I)) 1 classroom teacher ((shall)) will be granted one day
of credit for every seven hours of compensated employment.
(2) If there is no contract, bargaining agreement or
employer policy indicating how many hours are in a work day, Plan
((I)) 1 K-12 employees other than school district classroom
teachers will earn one day of credit for every eight hours of
compensated employment.
[Statutory Authority: RCW 41.50.050. 97-09-037, § 415-112-330, filed 4/14/97, effective 5/15/97. Statutory Authority: RCW 41.50.050 and 41.32.570. 91-21-084, § 415-112-330, filed 10/18/91, effective 11/18/91. Statutory Authority: RCW 41.32.270 and 41.32.010 (11)(a)(ii). 88-17-052 (Order 88-13), § 415-112-330, filed 8/17/88.]
WAC 415-112-4601 through 415-112-4609 discuss types of payments for
services rendered. Each of the payment types are reportable
compensation for TRS Plan ((I)) 1. Certain types of payments for
services rendered are excepted from reportable compensation for
TRS Plan ((II)) 2 and Plan ((III)) 3, see WAC 415-112-4605.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-460, filed 1/6/97, effective 2/6/97.]
(1) Sick, annual, and personal leave usage. Sick leave, annual leave, and personal leave is accumulated over time and paid to a person during a period of excused absence. Leave accrues at a prescribed rate, usually a certain number of hours per month. The employee earns a leave day by rendering service during the month the leave was accumulated. When the employee uses his or her accrued leave by taking a scheduled work day off with pay, the payment is deferred compensation for services previously rendered. The payment is a salary or wage earned for services rendered and is reportable.
(2) Annual leave cash outs. Annual leave and personal leave cash outs, like payments for leave usage, are deferred compensation earned for services previously rendered.
(a) Plan ((I)) 1. Annual leave and personal leave cash outs
are reportable for TRS Plan ((I)) 1.
(b) Plan ((II)) 2 and Plan ((III)) 3. Although the payments
are for services rendered, annual leave and personal leave cash
outs are excluded from the definition of reportable compensation
in TRS Plan ((II)) 2 and TRS Plan ((III)) 3, see RCW 41.32.010
(10)(b).
(3) Sick leave cash outs. Sick leave cash outs are deferred compensation for services previously rendered. However, these payments are statutorily excluded from reportable compensation for all TRS Plans. See RCW 41.32.010(10), 41.04.340, 28A.400.210 and 28A.310.490.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-4605, filed 1/6/97, effective 2/6/97.]
(1) Plan
((I)) 1. Severance pay must be earned over time in the same
manner as annual leave or sick leave in order to be deferred
compensation for services previously rendered and to be
reportable in Plan ((I)) 1. Severance pay is earned over time if
the employment contract(s) entered into at the beginning of the
period of employment specify that a certain amount of severance
pay will be earned in the coming year in consideration for
services rendered.
| Example: | Mr. Jones is a TRS Plan (( |
(2) Plans ((II)) 2 and ((III)) 3. All forms of severance
pay are excluded from earnable compensation for Plans ((II)) 2
and ((III)) 3 by RCW 41.32.010(10).
(3) Severance pay that is not earned over time is not earned
for services rendered and is not reportable in Plan ((I, II, or
III)) 1, 2, or 3, see WAC 415-112-491.
[Statutory Authority: RCW 41.50.050. 98-09-059, § 415-112-4608, filed 4/17/98, effective 5/18/98; 97-03-016, § 415-112-4608, filed 1/6/97, effective 2/6/97.]
If an employee takes a leave without pay to serve in the legislature, the member is entitled to service and reportable compensation credit for the period.
(1) Plan ((I)) 1. The salary the employee would have earned
is reportable compensation if the employee serves at least five
years in the legislature. Employer contributions are not
required on this imputed payment. Employee contributions are
required.
(2) Plan ((II)) 2 and Plan ((III)) 3. The employee may
choose between:
(a) The reportable compensation he or she would have earned had the member not served in the legislature; or
(b) The actual reportable compensation received for teaching plus the legislative reportable compensation.
If the employee selects option (a), he or she is responsible for paying the additional employer and employee contributions to the extent the reportable compensation reported is higher than it would have been under (b) of this subsection.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-471, filed 1/6/97, effective 2/6/97.]
If paid leave is not based upon earned leave accumulated over time, the payment is not a deferred payment for services previously rendered. Further, the member on leave is not currently rendering services in exchange for the payment. However, RCW 41.32.267, 41.32.810 and 41.32.865 identify payments received from the employer while on paid leave as reportable for TRS. Contributions are due on these payments to the extent they meet the following conditions:
(1) The payment is equal to the salary for the position that the person is on leave from;
(2) The payment is actually from the employer. Payments
from an employer that are conditioned upon reimbursement from a
third party are payments from the third party. Because the
payments are not from the employer, they are not reportable
compensation. The only exception is union leave paid by the
employer subject to reimbursement from the union under the
conditions specified in RCW 41.32.267 (Plan ((I)) 1), 41.32.810
(Plan ((II)) 2), 41.32.865 (Plan ((III)) 3), and WAC 415-112-475.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-473, filed 1/6/97, effective 2/6/97.]
If a member takes an
authorized leave of absence to serve as an elected official of a
labor organization and the employer pays the member on leave
subject to reimbursement from the union, the person's pay
qualifies as reportable compensation provided that all the
conditions of RCW 41.32.267 (Plan ((I)) 1), RCW 41.32.810 (Plan
((II)) 2), or RCW 41.32.865 (Plan ((III)) 3), as appropriate, are
met.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-475, filed 1/6/97, effective 2/6/97.]
OTS-3662.2
AMENDATORY SECTION(Amending WSR 97-03-016, filed 1/6/97,
effective 2/6/97)
WAC 415-112-477
Reinstatement or payment instead of
reinstatement.
(1) Payments to an employee are not earned for
services rendered if an employer makes ((payments to an
employee)) them for periods ((where)) during which the employee
was not employed and ((those)) the payments are made either upon
reinstatement ((of the employee)) or instead of reinstatement((,
the payments are not earned for services rendered)). ((However))
Nonetheless, RCW ((41.40.010)) 41.32.010(10) specifically
designates ((such)) these payments as reportable compensation. The payments are only reportable to the extent that they are
equivalent to the salary the employee would have earned had he or
she been working. ((Any such)) The payment will be prorated over
the entire period that the employee was suspended, terminated, or
otherwise absent from work.
(2) For purposes of subsection (1) of this section, "reinstatement" means that the employee is entitled to return to full employment rights by action of either:
(a) The employer; or
(b) A personnel board, personnel appeals board or court of law following a hearing.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-477, filed 1/6/97, effective 2/6/97.]
OTS-3763.2
NEW SECTION
WAC 415-112-705
Designation of beneficiaries -- Death benefit
if a member dies before retirement.
(1) As a member, you have the right to designate a beneficiary or beneficiaries to receive a benefit in the event of your death while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.
(2) As a member you may name:
(a) An organization or person, including your unborn or later adopted children. Unborn or later adopted children will not be included unless you specifically designate them as beneficiaries on the form. You must state the date of birth for any living person you name as a beneficiary;
(b) Your estate;
(c) A trust in existence at the time of death. Before making distribution to any trust the department must receive:
(i) A copy of the trust document;
(ii) The name, address, telephone number of the current trustee; and
(iii) The tax identification number;
(d) A trust to be established under your last will.
(3) You may name contingent beneficiaries in addition to primary beneficiaries.
Examples:
EXAMPLE ONE.
Facts
John, a member, completes a beneficiary designation form.
In the place on the form reserved for persons, he names his
daughter Ann. He checks the box to indicate that Ann is a
primary beneficiary.
In the place on the form reserved for trust/organizational
beneficiaries, he lists the "Barbara Trust." His daughter
Barbara is the trust beneficiary. He checks the box to indicate
that the trust is a primary beneficiary.
Result
Subject to applicable statute, at John's death, the
department will consider both the Barbara Trust and daughter Ann
as primary beneficiaries. The department will require the name
of the trustee, the tax identification number, a copy of the
trust and other information specified in this rule before
distribution to the trust.
EXAMPLE TWO.
Facts
John, a member, completes a beneficiary designation form.
In the place on the form reserved for persons, he names his
daughter Ann. He checks the box to indicate that Ann is a
primary beneficiary.
In the place on the form reserved for trust/organizational
beneficiaries, he lists his daughter Barbara personally (no trust
name is provided). He checks the box labeled "primary
beneficiary." John misunderstands the form and rather than
provide the names of the trustee or trust administrator, John
writes the word "both" in the blank provided.
Result
At John's death, the department learns that John has created
no trusts. Subject to existing statute, if the department
receives no notice of competing claims to John's death benefit,
the department will distribute the death benefit to Ann. If the
department receives notice of competing claims, a court
resolution may be required.
[]
OTS-3618.2
NEW SECTION
WAC 415-112-920
TRS Plan 3 defined benefit retirement
eligibility.
(1) Definition: Qualified service credit. Members may use only qualified service credit to receive a retirement benefit from the TRS Plan 3 defined benefit plan. The following types of service credit may be used to qualify for retirement:
(a) TRS Plan 3 service credit;
(b) Service credit earned in a dual member system, but only in combination with TRS Plan 3 service credit under chapter 41.54 RCW;
(c) Up to forty-five days of sick leave under RCW 41.32.010;
(d) Service earned in an out-of-state retirement system that covers public school teachers under RCW 41.32.065.
(2) Members must be age sixty-five to retire with an unreduced defined benefit if they have earned the following amounts of qualified service credit:
(a) Ten service credit years; or
(b) Five service credit years which must include twelve service credit months after attaining age fifty-four; or
(c) Five service credit years by July 1, 1996, earned as a TRS Plan 2 member.
(3) Members may retire at age fifty-five with an actuarially reduced defined benefit under RCW 41.32.875 if they have accumulated at least ten years of qualified service credit.
(4) TRS Plan 3 retirement application.
A member must:
(a) Meet the above-stated age and service credit requirements; and
(b) Submit a complete, signed and notarized TRS Plan 3 retirement application; and
(c) Terminate employment with all retirement system employers from which they are claiming service credit. Termination from non-TRS system employers is required if a member is using dual membership rules to qualify for retirement under chapter 41.54 RCW.
[]
A TRS Plan 3 member must select one of the ERBB approved Plan 3 investment programs at the time of enrollment.
(1) Members will be automatically enrolled in the investment program with the total allocation portfolio (TAP) of the Washington State Investment Board (WSIB) if they fail to select an investment program within ninety days of enrollment.
(2) The TRS Plan 3 enrollment form allows members to choose between the two investment programs. The choice must be made within ninety days of enrollment. A member may not split monthly contributions between the WSIB and the self-directed programs. The member sends the enrollment form(s) to the employer and the self-directed investment allocation and balance transfer form to the plan recordkeeper. If the member enrolls in the self-directed program but does not allocate contributions among investment options, contributions will automatically be invested in the money market fund option.
(3) Members must designate one hundred percent of their monthly contributions to a single investment program (self-directed or WSIB). However, they may allocate portions of their contributions to different investment options within the self-directed investment program.
(4) Members have the option to change investment programs and have future contributions posted to another approved investment program. The member must complete a change of investment program form and file it with their employer. Employers must notify the department when a member files for a change of investment form.
(5) Members may maintain accounts in more than one investment program, although they may contribute to only one program at a time. They may transfer funds between investment programs at any time.
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OTS-3762.2
NEW SECTION
WAC 415-108-315
Designation of beneficiaries -- Death benefit
if a member dies before retirement.
(1) As a member, you have the right to designate a beneficiary or beneficiaries to receive a benefit in the event of your death while you are an active member. You may change your beneficiary designation at any time by filing a change of beneficiary form with the department.
(2) As a member you may name:
(a) An organization or person, including your unborn or later adopted children. Unborn or later adopted children will not be included unless you specifically designate them as beneficiaries on the form. You must state the date of birth for any living person you name as a beneficiary;
(b) Your estate;
(c) A trust in existence at the time of death. Before making distribution to any trust the department must receive:
(i) A copy of the trust document;
(ii) The name, address, telephone number of the current trustee; and
(iii) The tax identification number;
(d) A trust to be established under your last will.
(3) You may name contingent beneficiaries in addition to primary beneficiaries.
Examples:
EXAMPLE ONE.
Facts
John, a member, completes a beneficiary designation form.
In the place on the form reserved for persons, he names his
daughter Ann. He checks the box to indicate that Ann is a
primary beneficiary.
In the place on the form reserved for trust/organizational
beneficiaries, he lists the "Barbara Trust." His daughter
Barbara is the trust beneficiary. He checks the box to indicate
that the trust is a primary beneficiary.
Result
Subject to applicable statute, at John's death, the
department will consider both the Barbara Trust and daughter Ann
as primary beneficiaries. The department will require the name
of the trustee, the tax identification number, a copy of the
trust and other information specified in this rule before
distribution to the trust.
EXAMPLE TWO.
Facts
John, a member, completes a beneficiary designation form.
In the place on the form reserved for persons, he names his
daughter Ann. He checks the box to indicate that Ann is a
primary beneficiary.
In the place on the form reserved for trust/organizational
beneficiaries, he lists his daughter Barbara personally (no trust
name is provided). He checks the box labeled "primary
beneficiary." John misunderstands the form and rather than
provide the names of the trustee or trust administrator, John
writes the word "both" in the blank provided.
Result
At John's death, the department learns that John has created
no trusts. Subject to existing statute, if the department
receives no notice of competing claims to John's death benefit,
the department will distribute the death benefit to Ann. If the
department receives notice of competing claims, a court
resolution may be required.
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