Preproposal statement of inquiry was filed as WSR 01-23-077.
Title of Rule: WAC 415-104-111 Actuarial recomputation of retirement allowance upon retirement following reemployment.
Purpose: This change is mandated by HB 1045 (chapter 261, Laws of 2001), which changed the retirement age in LEOFF Plan 2 from fifty-five to fifty-three years of age.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: RCW 41.26.470.
Summary: The actuarial recomputation WAC in LEOFF Plan 2 is being changed to reflect the age change in HB 1045.
Reasons Supporting Proposal: Mandated by change in statute.
Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Zan Johnston, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7049.
Name of Proponent: Department of Retirement Systems, governmental.
Rule is not necessitated by federal law, federal or state court decision.
Explanation of Rule, its Purpose, and Anticipated Effects: The actuarial recomputation WAC in LEOFF Plan 2 is being changed to reflect the age change in HB 1045.
Proposal Changes the Following Existing Rules: [NISBA].
No small business economic impact statement has been prepared under chapter 19.85 RCW. These amendments have no affect on businesses.
RCW 34.05.328 does not apply to this rule adoption. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.
Hearing Location: Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on June 4, 2002, at 9:00 a.m.
Assistance for Persons with Disabilities: Contact the rules coordinator by seven days before the hearing, if possible, phone (360) 664-7291, TTY (360) 586-5450, e-mail email@example.com.
Submit Written Comments to: Identify WAC Numbers, Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail Merryk@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on June 4, 2002.
Date of Intended Adoption: No sooner than the day after the hearing.
April 30, 2002
Merry A. Kogut
AMENDATORY SECTION(Amending WSR 94-09-040, filed 4/19/94, effective 5/20/94)
WAC 415-104-111 Actuarial recomputation of retirement allowance upon retirement following reemployment. (1) The purpose of this rule is to establish a method to actuarially recompute the retirement allowance of a Plan ((
II)) 2 member who
retires, reenters employment causing his or her retirement
allowance to be suspended, and then retires again. The
actuarially recomputed retirement allowance shall:
(a) Include service credit the member earned following reestablishment of membership if any; and
(b) Account for the actuarial reduction applied to the
member's initial retirement if the member initially retired prior
to age ((
(2) If a Plan ((
II)) 2 retiree reenters membership, upon the
individual's next retirement, the department shall reinstate and
actuarially recompute the individual's retirement allowance
pursuant to RCW 41.26.500 as follows:
(a) If the member first retired before age ((
fifty-three, the department shall:
(i) Calculate the retirement allowance pursuant to RCW 41.26.420 using the retiree's total years of career service, including service earned prior to initial retirement and service earned after reentering membership;
(ii) Actuarially reduce the member's retirement allowance based on the present value of the retirement allowance payments the individual received during the initial retirement; and
(iii) Calculate any survivor option selected by the retiree based upon the monthly retirement allowance calculated pursuant to (a)(i) and (ii) of this subsection.
(b) If the member initially retired at or after age
fifty-five)) fifty-three, the department shall recompute the
member's retirement allowance pursuant to RCW 41.26.500 and
include any additional service credit earned and any applicable
increase in the member's average final compensation resulting
from the member's reentry into membership. Under no
circumstances shall a retiree receive a retirement allowance
creditable to a month during which that individual earned service
(3) If a retiree's retirement allowance is suspended under RCW 41.26.500 due to reemployment but the retiree does not reenter membership, upon the retiree's separation from such employment, the retiree shall receive an actuarially recomputed retirement allowance equal to the sum of:
(a) The amount of the monthly suspended retirement allowance; plus
(b) An actuarially computed increase based upon the retirement allowance payment the member did not receive due to reemployment. The retiree may elect to receive the actuarially computed increase in either:
(i) An amount amortized over the expected term of the recomputed retirement allowance; or
(ii) A lump sum payment equal to the suspended retirement allowance plus interest.
[Statutory Authority: RCW 41.50.050. 94-09-040, § 415-104-111, filed 4/19/94, effective 5/20/94.]