PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 04-15-037.
Title of Rule and Other Identifying Information: Chapter 415-112 WAC, Teachers' retirement system, includes proposed new, amended and repealed rules from WAC 415-112-41301 through 415-112-920.
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on May 24, 2005, at 9:00 a.m.
Date of Intended Adoption: May 25, 2005.
Submit Written Comments to: Leslie L. Saeger, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail leslies@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on May 24, 2005.
Assistance for Persons with Disabilities: Contact Leslie L. Saeger, Rules Coordinator, by May 16, 2005, TDD (360) 664-7291, TTY (360) 586-5450, phone (360) 664-7291.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: The department has been reviewing and rewriting the teachers' retirement system rules to reflect current policy and clear writing standards. This is the second of three phases. Phase 1 is scheduled for a public rules hearing on May 12, 2005. Phase 3 will include topics, identified by staff in Phases 1 and 2, that they would like addressed or expanded upon in rule.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: WAC 415-112-41301, 415-112-415, 415-112-417, 415-112-4601, 415-112-4602, 415-112-4603, 415-112-4604, 415-112-4607, 415-112-4608, 415-112-4609, 415-112-471, 415-112-477, 415-112-480, 415-112-482, 415-112-485, 415-112-487, 415-112-489 and 415-112-490 implement RCW 41.32.010(10); WAC 415-112-473 and 415-112-475 implement RCW 41.32.267, 41.32.810, 41.32.865; WAC 415-112-500 implements RCW 41.32.480; WAC 415-112-501 implements RCW 41.32.765; WAC 415-112-502 implements RCW 41.32.875; WAC 415-112-507, 415-112-523, 415-112-610 and 415-112-620 implement chapter 41.32 RCW; WAC 415-112-630 implements RCW 41.32.570; and WAC 415-112-700 implements RCW 41.32.520.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of Retirement Systems, governmental.
Name of Agency Personnel Responsible for Drafting: Leslie Saeger, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dorothy Bailey, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules have no effect on businesses.
A cost-benefit analysis is not required under RCW 34.05.328. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.
April 19, 2005
Leslie Saeger
Rules and Contracts Coordinator
OTS-8015.2
AMENDATORY SECTION(Amending WSR 99-14-008, filed 6/24/99,
effective 7/25/99)
WAC 415-112-41301
((Vehicle allowances -- ))Are vehicle
allowances earnable compensation?
(((1) If your employer
provides you any payment or allowance in lieu of a
reimbursement for expenses you incur or expect to incur in
performing services for your employer, the payment or
allowance is not earnable compensation. Your vehicle allowance
does not qualify as earnable compensation if you receive the
allowance in lieu of reimbursement for expenses that you incur
or expect to incur in using your own vehicle for business
purposes.
(2) The department presumes that any vehicle allowance provided to you by your employer is a payment in lieu of reimbursement for expenses and is not earnable compensation. If the contract authorizing your vehicle allowance states that it is provided solely in lieu of reimbursement for expenses that you incur or expect to incur in using your own vehicle for business purposes, the department's presumption is not rebuttable.
(3) Your vehicle allowance may qualify as earnable compensation to the extent that it exceeds your actual expenses. If your employer documents that your vehicle allowance exceeds the actual expenses you incur in driving your own vehicle for business purposes, the excess amount is earnable compensation. Your employer must maintain monthly contemporaneous records documenting the following:
(a) The dates, if any, on which you used a privately owned vehicle in performing services for your employer;
(b) The miles you drove the vehicle on each of these trips; and
(c) Your itinerary for each of these trips.
(4) How to determine what amount of your vehicle allowance, if any, is reportable as earnable compensation. If your employer documents that your vehicle allowance exceeds the actual expenses you incur in using your own vehicle for business purposes, your employer must report to the department as earnable compensation:))
(b) "IRS rate" above means the Internal Revenue Service mileage rate for use by taxpayers computing the value of the use of a vehicle.
(5) Your vehicle allowance qualifies as earnable compensation if you also receive a separate reimbursement for each occasion you use your own vehicle for business purposes. If, in addition to your vehicle allowance, you receive a separate reimbursement for vehicle expenses for each occasion that you use a privately owned vehicle for business purposes, your vehicle allowance is earnable compensation.
(6) Any part of your vehicle allowance that qualifies as earnable compensation is excess compensation. If any part of your vehicle allowance is included in the calculation of your retirement allowance, your employer will be billed for excess compensation under RCW 41.50.150. Your employer's bill will equal the total estimated cost of the portion of your retirement allowance payment attributable to your vehicle allowance.)) (1)(a) Plan 1. Vehicle allowances may be earnable compensation for Plan 1 members according to this section.
(b) Plans 2 and 3. Vehicle allowances are not earnable compensation for members of Plans 2 and 3. Subsections (2) through (5) of this section apply to Plan 1 members only.
(2) For TRS Plan 1:
(a) A vehicle allowance is not earnable compensation if it is received in lieu of expenses you incur or expect to incur in using your own vehicle for business purposes.
(b) A vehicle allowance qualifies as earnable compensation to the extent that it exceeds your actual expenses. For instance, if you receive both a vehicle allowance and separate reimbursement for vehicle expenses each time you use a privately owned vehicle for business purposes, the vehicle allowance is earnable compensation.
(3) To prove that your vehicle allowance exceeded your actual expenses, your employer must maintain ongoing monthly records, documenting:
(a) The dates, if any, on which you used a privately owned vehicle in performing services for your employer;
(b) The miles you drove the vehicle on each of these trips;
(c) Your itinerary for each of these trips; and
(d) The amount of the allowance LESS the actual expenses, using IRS methodology. Under the IRS methodology, your actual expenses are the miles you drove multiplied by the IRS rate.
(i) The miles you drove are the number of miles you drove a privately owned vehicle for business purposes during the month.
(ii) "IRS rate" means the Internal Revenue Service mileage rate for use by taxpayers computing the value of the use of a vehicle.
(4) If a vehicle allowance exceeds your actual expenses, your employer must report the excess, calculated in subsection (3)(d) of this section.
(5) If any part of a vehicle allowance is included in the calculation of your retirement allowance, your employer will be billed for excess compensation under RCW 41.50.150.
[Statutory Authority: RCW 41.50.050. 99-14-008, § 415-112-41301, filed 6/24/99, effective 7/25/99; 95-22-006, § 415-112-41301, filed 10/18/95, effective 11/18/95.]
(2) When an employer provides cash compensation in lieu of unused annual leave, the department applies a first-in-first-out accounting method to determine when the compensated leave was earned and when or whether the leave was used or cashed out, unless the employer has in place a regulation, charter provision, ordinance, collective bargaining agreement, or other comparable written policy statement which clearly delineates when the cashed out leave was accrued, or a different method of accounting for the accrual and use of leave, and, if applicable, compensation for unused leave and the same such method is consistently applied in each instance and for all purposes.
Any employer's policy which is not consistent for all purposes which is contained in a regularly negotiated labor agreement in effect on the effective date of this section will be honored until the expiration date of the agreement not including any extensions at which time it will be brought into compliance with this section. Any employer's policy which is not consistent for all purposes which is established by the employer shall be brought into compliance within sixty days of the effective date of this section. In the event an employer fails to come into full compliance with this section by the dates established herein, the department will treat cashed out leave on the same basis as the employer has established for using leave.
(3) A cash out of leave which is not annual leave as defined under WAC 415-112-015, shall be treated by the department as "any other form of leave" under RCW 41.50.150(2). The department shall bill the employer for any such leave cash out as excess compensation under RCW 41.50.150.
(4) For purposes of determining average final compensation and excess compensation, hours of leave earned by a member shall be considered for all purposes in the form in which it was earned. The department shall disregard any conversion of leave by an employer of one form to another and bill the employer for the amount converted as excess compensation pursuant to RCW 41.50.150.)) (1)(a) Plan 1. Under RCW 41.32.010 (10)(a), cash-outs for up to two hundred forty hours of unused annual leave are included in earnable compensation1 for Plan 1 members according to this section.
(b) Plans 2 and 3. Under RCW 41.32.010 (10)(b), cash-outs for unused annual leave and personal leave are not earnable compensation in Plans 2 and 3, and are not includable in average final compensation. Subsections (2) through (4) of this section apply to Plan 1 members only.
(2) For Plan 1 members, cash-outs for unused annual leave and personal leave may be included in average final compensation only if the leave was earned during the two fiscal years used to calculate your average final compensation under WAC 415-112-430.
(3) The department determines when your cashed-out leave was earned as follows:
(a) You accrue annual leave and personal leave at a prescribed rate, often a certain number of hours per month. Your accrued leave is stored until you use it.
(b) Except as provided in (c) of this subsection, the department applies a "first-in-first-out (FIFO)" methodology to determine what personal leave and annual leave you have used.
| Example: | John has accrued ten days of annual leave. He earned five days in 2000 and five days in 2001. In 2002, John uses five days of annual leave. He is deemed to have used the five days earned in 2000. The five days earned in 2001 remain unused. |
(c) If the employer has a different methodology in place,
the department will use the employer's methodology, rather
than the FIFO methodology; provided that:
(i) The employer's methodology was clearly documented by a collective bargaining agreement, regulation, charter provision, ordinance, or other comparable written policy statement; and
(ii) The employer's methodology was applied consistently to all employees for all purposes.
(4) For purposes of determining average final compensation and excess compensation, the department will consider the hours of leave in the form in which the leave was earned. If an employer converts one form of leave to another form of leave, the department will disregard the conversion and bill the employer for the amount converted if it meets the definition of excess compensation in RCW 41.50.150.
| 1In certain cases, an employee may cash out personal leave and/or more than two hundred forty hours of annual leave. Although this cash-out is not earnable compensation, it may be used in the calculation of the employee's retirement allowance and the employer will be billed for the excess compensation. See WAC 415-02-140. |
[Statutory Authority: RCW 41.50.050 and 41.32.010(10). 00-13-001, § 415-112-415, filed 6/7/00, effective 7/8/00. Statutory Authority: RCW 41.50.050. 94-23-049, § 415-112-415, filed 11/10/94, effective 12/11/94. Statutory Authority: RCW 41.50.050 and Bowles v. Retirement Systems, 121 Wn.2d 52 (1993). 94-11-009, § 415-112-415, filed 5/5/94, effective 6/5/94. Statutory Authority: RCW 41.32.010(11) and 41.32.160. 87-17-060 (Order DRS 87-07), § 415-112-415, filed 8/19/87.]
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(2) Evening or summer school contracts. Evening or summer school payments are for additional time worked. These payments are often authorized in a supplemental contract. These payments are for services rendered and are reportable compensation.
(3) Supplemental or TRI contracts under RCW 28A.400.200. A school district may compensate an employee for additional time, responsibility or incentives with a supplemental contract.
(a) If the payment is for additional time, then it is for services rendered and qualifies as reportable compensation.
(b) If the payment is for additional responsibility (i.e., additional service which does not specifically require more time) within the regularly scheduled working day, then it is also for services rendered and is reportable. Examples of additional responsibility include payments linked to extra enrollment or additional duties outside the scope of the base contract.
(c) If the payment is made as an incentive, then it is also for services rendered and is reportable compensation. Incentive payments include payments for meeting performance goals specified by the employer.
(4) Longevity or educational attainment. Salaries for all teachers and most administrators are determined by looking at the individual's teaching experience and educational attainment.
(a) A member who receives a salary increase based upon longevity or educational attainment receives a higher salary without working more hours. The higher salary indicates a higher level of service due to greater experience or more education. The payment is therefore a payment for additional service and is reportable compensation.
(b) Simply attaching the label "longevity" to a payment does not guarantee that it will be reportable compensation. If a payment described as a longevity payment is actually based upon some other criteria, such as retirement or notification of intent to retire, the payment may not be reportable.)) Payments authorized under a base contract may be earnable compensation.
(a) Payments made to classroom teachers for the provision of educational services are earnable compensation.
(b) Payments made to administrators and principals for the provision of administrative services are earnable compensation.
(c) Even though salaries are derived from a salary schedule that incorporates experience and educational attainment, to the extent that the salaries are paid for services provided, they are earnable compensation. Both experience and educational attainment are deemed to increase the quality of the service performed. See RCW 28A.405.200.
(d) Payments pursuant to the base contract that are not made in exchange for services performed are not earnable compensation.
(2) Supplemental contract. Payments authorized under a supplemental time, responsibility or incentives (TRI) contract may be earnable compensation. RCW 28A.400.200 allows the use of supplemental TRI contracts to compensate an employee for additional time, additional responsibility, or the achievement of stated incentives.
(a) Payments authorized by a supplemental contract for services requiring additional time are earnable compensation. Examples include payments for the provision of educational services during evening or summer school.
(b) Payments authorized by a supplemental contract for services requiring additional responsibility within the regularly scheduled working day are earnable compensation. Examples include payments linked to over enrollment or additional duties.
(c) Payments authorized by a supplemental contract for the achievement of stated incentives are earnable compensation. Examples include meeting performance goals specified by the employer.
(3) Longevity or educational attainment. Payments for longevity or educational attainment must be analyzed to determine whether they are paid for services provided. Salaries for all teachers and most administrators are determined by looking at the individual's teaching experience and educational attainment.
(a) A member who receives a salary increase based upon longevity or educational attainment receives a higher salary without working more hours. The higher salary indicates a higher level of service due to greater experience or more education. The payment is therefore a payment for additional service and is earnable compensation.
(b) Simply attaching the label "longevity" to a payment does not guarantee that it will be earnable compensation. If a payment described as a longevity payment is actually based upon some other criteria, such as retirement or notification of intent to retire, the payment may not be reportable.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-4601, filed 1/6/97, effective 2/6/97.]
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[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-4603, filed 1/6/97, effective 2/6/97.]
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-4604, filed 1/6/97, effective 2/6/97.]
(a) An order or conciliation agreement of a court or administrative agency charged with enforcing federal, state, or local statutes, ordinances, or regulations protecting employment rights;
(b) A bona fide settlement of such a claim before a court or administrative agency; or
(c) A collective bargaining agreement.
(2) The payments will be deemed earned in the period in which the work was done.)) (1) A retroactive salary increase occurs when your rate of pay is increased and made retroactive to a prior date. You receive a lump sum payment for the increased amount earned during the earlier period.
| Example: | John's salary is $2000 per month. On April 10, his salary is increased to $2200 per month. The increase is made retroactive to January 1. On April 25, he receives a lump sum payment of $600, i.e., the $200 increase for January, February, and March. In April he also receives a paycheck at the new rate of $2200. |
(2) A lump sum payment received pursuant to certain
retroactive salary increases is earnable compensation. See
subsection (3) of this section. The payment will be deemed to
be earned in the period in which the work was done.
| Example: | When the $600 payment is reported to the department, John will receive an additional $200 of earnable compensation for each of January, February, and March. |
(3) To qualify as earnable compensation, the retroactive
salary increase must be made pursuant to:
(a) An order or conciliation agreement of a court or administrative agency charged with enforcing federal, state, or local statutes, ordinances, or regulations protecting employment rights;
(b) A bona fide settlement of a claim before a court or administrative agency for a retroactive salary increase;
(c) A collective bargaining agreement; or
(d) A legislative enactment.
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-4607, filed 1/6/97, effective 2/6/97.]
(a) Plan 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))
provided and to be reportable in Plan 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)) provided.
| Example: | Mr. Jones is a TRS Plan 1 member employed as a
school administrator. Since the beginning of
his term of employment with the district, his
contract has specified that he will earn one
week of severance pay for every year of his
employment. The earned severance pay will be
paid at the time of his separation. His
severance pay is (( |
(((2))) (b) Plans 2 and 3. All forms of severance pay
are excluded from earnable compensation for Plans 2 and 3 by
RCW 41.32.010(10).
(((3))) (2) Severance pay that is not earned over time
((is not earned for services rendered and is not reportable in
Plan 1, 2, or 3, see WAC 415-112-491)). Severance pay that is
not earned over time is not earned for services provided and
is not earnable compensation for Plan 1, 2 or 3.
| Example: | A school administrator and a school district negotiate a termination agreement. In the agreement, the school district agrees to pay the administrator a lump sum payment equal to two months salary as severance pay. The severance payment was not accrued over time in exchange for services provided, and therefore is not earnable compensation. |
[Statutory Authority: RCW 41.50.050. 00-10-015, § 415-112-4608, filed 4/21/00, effective 5/22/00; 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.]
(1) Retirement contributions. Payments deducted from employee compensation for employee retirement contributions are reportable. Employer contributions are a fringe benefit and are not reportable, see WAC 415-112-480.
(2) Tax withholding. Payments withheld to satisfy federal tax obligations qualify as reportable compensation.
(3) Voluntary deductions. Payments deducted voluntarily, such as 403(b) plan contributions or other authorized deductions, are reportable.)) Amounts withheld from your salary or wages are earnable compensation. Examples include:
(1) Your employee contributions to TRS (compare WAC 415-112-480 regarding employer contributions);
(2) Amounts withheld for federal income tax purposes; and
(3) Other authorized voluntary deductions, such as the deferred compensation plan or 403(b) plan deferrals.
[Statutory Authority: RCW 41.50.050. 98-09-059, § 415-112-4609, filed 4/17/98, effective 5/18/98; 97-03-016, § 415-112-4609, filed 1/6/97, effective 2/6/97.]
(1) Plan 1. The salary ((the employee)) you would have
earned in the position from which you took leave of absence is
((reportable)) earnable compensation if ((the employee)) you
serve((s)) at least five years in the legislature. Employer
contributions are not required on this imputed payment. Employee contributions are required.
(2) Plans 2 and ((Plan)) 3. ((The employee)) You may
choose between:
(a) The ((reportable)) earnable compensation ((he or
she)) you would have earned had ((the member)) you not served
in the legislature; or
(b) The actual ((reportable)) earnable compensation
received for ((teaching)) service plus the legislative
((reportable)) earnable compensation.
If ((the employee)) you select((s)) option (a), ((he or
she is)) you are responsible for paying the additional
employer and employee contributions to the extent the
((reportable)) earnable compensation reported is higher than
it would have been under (b) of this subsection.
[Statutory Authority: RCW 41.50.050. 00-10-015, § 415-112-471, filed 4/21/00, effective 5/22/00; 97-03-016, § 415-112-471, filed 1/6/97, effective 2/6/97.]
(1) The ((payment)) compensation reported is equal to the
salary for the position ((that the person is)) from which you
are on leave ((from)); and
(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
1), 41.32.810 (Plan 2), 41.32.865 (Plan 3), and WAC 415-112-475)) received from your employer, not from a third
party. Except as provided in WAC 415-112-475, if you receive
payment from your employer but your employer is reimbursed for
the payment by a third party, the payment is not earnable
compensation.
[Statutory Authority: RCW 41.50.050. 00-10-015, § 415-112-473, filed 4/21/00, effective 5/22/00; 97-03-016, § 415-112-473, filed 1/6/97, effective 2/6/97.]
[Statutory Authority: RCW 41.50.050. 00-10-015, § 415-112-475, filed 4/21/00, effective 5/22/00; 97-03-016, § 415-112-475, filed 1/6/97, effective 2/6/97.]
(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)) A
school district; or
(c) A court of law ((following a hearing)).
[Statutory Authority: RCW 41.50.050. 00-10-015, § 415-112-477, filed 4/21/00, effective 5/22/00; 97-03-016, § 415-112-477, filed 1/6/97, effective 2/6/97.]
(1) Employer retirement contributions;
(2) Any type of insurance such as medical, dental or life insurance; and any employer contribution to meet the premium or charge for the insurance; or
(3) Any employer payments into a private fund to provide
health or welfare benefits for ((the member (or the member and
the member's)) you or your dependents(())), with the exception
of compensation paid pursuant to a bona fide cafeteria plan,
flexible benefit plan or similar arrangement as described in
WAC 415-112-4604.
[Statutory Authority: RCW 41.50.050(5) and chapter 41.32 RCW. 03-06-042, § 415-112-480, filed 2/27/03, effective 4/1/03. Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-480, filed 1/6/97, effective 2/6/97.]
(2) Workers' compensation payments are not earnable compensation.
| Example: | Susan, an employee on unpaid disability leave, submits her workers' compensation payments to her employer. The employer then issues Susan a check for the same amount through the payroll system. Even though the payment may have the appearance of compensation from the employer, it is not a payment for services provided and it is not earnable compensation. |
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-482, filed 1/6/97, effective 2/6/97.]
| Example: | School districts are prohibited by RCW 28A.400.220 from increasing an employee's salary
(( |
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-485, filed 1/6/97, effective 2/6/97.]
| Example: | An employer offers to make a contribution to
(( |
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-487, filed 1/6/97, effective 2/6/97.]
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-489, filed 1/6/97, effective 2/6/97.]
| Example: | A collective bargaining agreement authorizes a
school district to pay employees a higher salary
during the last two years of employment if the
employee gives written notice of his or her
intent to retire. Because the payment is in
exchange for the agreement to retire and not for
services, the payment is not (( |
[Statutory Authority: RCW 41.50.050. 97-03-016, § 415-112-490, filed 1/6/97, effective 2/6/97.]
(1) At age sixty with a minimum of five years of service. You may not use service credit you purchased for professional preparation or military service to meet the five-year minimum;
(2) At age fifty-five with a minimum of twenty-five years of service; or
(3) At any age with a minimum of thirty years of service.
See RCW 41.32.480.
[Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), § 415-112-500, filed 2/15/78. Formerly WAC 462-28-005.]
(1) At age sixty-five with a minimum of five years of service;
(2) At age fifty-five with a minimum of twenty years of service, however, your retirement allowance will be actuarially reduced to reflect the difference in the number of years between your age at retirement and age sixty-five; or
(3) At age fifty-five with a minimum of thirty years of service credit. Your defined benefit will be reduced by three percent per year to reflect the difference in the number of years between your age at retirement and age sixty-five.
See RCW 41.32.765.
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(1) At age sixty-five with the following amounts of service credit to retire with an unreduced defined benefit:
(a) Ten years of service credit; or
(b) Five years of service credit, including at least twelve service credit months after attaining age fifty-four; or
(c) Five years of TRS Plan 2 service credit earned prior to July 1, 1996, before transferring to Plan 3 under RCW 41.40.750.
(2) At age fifty-five with a minimum of ten years of service credit, however, your defined benefit will be actuarially reduced to reflect the difference in the number of years between your age at retirement and age sixty-five.
(3) At age fifty-five with a minimum of thirty years of service credit. Your defined benefit will be reduced by three percent per year to reflect the difference in the number of years between your age at retirement and age sixty-five.
See RCW 41.32.875.
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(1) A completed, signed, and notarized retirement application, including:
(a) Your selection of one of the benefit options described in WAC 415-112-493.
(b) Designation of a survivor beneficiary if you selected a benefit option with a survivor feature.
(c) If you are married, your spouse's notarized signature indicating consent to the retirement option you selected. See WAC 415-112-015(10).
(i) If you are married and you do not provide spousal consent, the department will pay you a joint and one-half survivor benefit allowance and record your spouse as the survivor beneficiary as required by RCW 41.32.530(2), 41.32.785(2), and 41.32.851(2).
(ii) If you are married, but have had a prior dissolution decree on file with the department designating a survivor beneficiary under RCW 41.50.790, spousal consent is not required. The dissolution decree must have been filed at least thirty days prior to your retirement;
(2) Evidence of your birth date, such as a certified copy of your birth certificate, passport, naturalization certificate, certificate of armed services record U.S. DD 214, or other documentation acceptable to the department; and
(3) If you selected a benefit option with a survivor feature, acceptable evidence of your designated survivor beneficiary's birth date.
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(a) The department will calculate the provisional allowance based on:
(i) The data for service credit and earnable compensation in the department's system at the time it is calculated;
(ii) Projections of your salary for periods that have not yet been reported by your employer.
(b) The department will pay you the provisional allowance until your actual retirement allowance has been calculated.
(2) To compute your actual allowance, the department must receive a final compensation report from your employer.
The department may also require any of the following from your employer:
(a) Cash-out information (Plan 1 only).
(b) Earnings history.
(c) Copies of your employment contract(s).
(d) Copies of your employer's compensation policies.
(3) The department will make a final calculation of your actual retirement allowance by making a final determination of your service credit and average final compensation and by applying the correct formula to these values. Your actual retirement allowance may be higher or lower than your provisional allowance.
(4) If the amount of your actual allowance is different from your provisional allowance, the department will make the necessary adjustments.
(a) If you were underpaid, the department will pay you a lump sum payment equal to the difference of the total provisional payments you received and the total you would have received based on your actual allowance.
(b) If you were overpaid, the department will recover the overpayment either through a lump sum payment, monthly installment payments, or through an actuarial reduction of your actual allowance.
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[Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), § 415-112-610, filed 2/15/78. Formerly WAC 462-32-020.]
(2) If ((a member qualifies)) you qualify for a
disability retirement allowance after having first qualified
for TRS Plan 1 temporary disability benefits, ((the effective
date of his)) your disability retirement allowance ((shall
be)) will start the first of the month following termination
of ((his)) your temporary disability allowance, and ((shall))
will otherwise be consistent with WAC 415-112-520, which
governs service retirement.
[Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), § 415-112-620, filed 2/15/78. Formerly WAC 462-32-050.]
[Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), § 415-112-630, filed 2/15/78. Formerly WAC 462-32-060.]
(1) The beneficiary must receive one-half or more of their financial support from the deceased member. Such support must have been continuous prior to death and in effect at the time of the member's death.
(2) The term "financial support" shall include the cost of food, clothing, shelter, education, medical and dental expenses, and other similar expenses.)) (1) For purposes of TRS Plan 1 death benefits under RCW 41.32.520, a dependent must be a dependent as defined in 26 U.S.C. 152.
(2) The department must receive proof that the beneficiary stands in the necessary relationship to the member, and that either:
(a) The member had provided over half of the beneficiary's financial support continuously prior to death and at the time of the member's death; or
(b) The beneficiary otherwise meets the definition of beneficiary set forth in 26 U.S.C. 152.
(3) Financial support includes the cost of food, clothing, shelter, education, medical and dental expenses, and other similar expenses.
[Statutory Authority: RCW 41.50.050. 99-14-008, § 415-112-700, filed 6/24/99, effective 7/25/99. Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), § 415-112-700, filed 2/15/78. Formerly WAC 462-36-010.]
The following sections of the Washington Administrative Code are repealed:
| WAC 415-112-4605 | Leave payments earned over time. |
| WAC 415-112-483 | Workers' compensation. |
| WAC 415-112-491 | Severance pay not earned over time -- Contract buy out. |
| WAC 415-112-550 | Peace Corps volunteers not employed in public education. |
| WAC 415-112-710 | When are survivor benefits payable? |
| WAC 415-112-725 | Married member's benefit selection -- Spousal consent required. |
| WAC 415-112-800 | Scope. |
| WAC 415-112-850 | Interim retirement allowance -- Employer final compensation report -- Final computation of retirement allowance -- Adjustment of retirement allowance for errors. |
| WAC 415-112-920 | TRS Plan 3 defined benefit retirement eligibility. |