PERMANENT RULES
RETIREMENT SYSTEMS
Effective Date of Rule: Thirty-one days after filing.
Purpose: As a requirement for Plan 3 vesting, the current rules require Plan 3 members to attain twelve or more months of service credit after attaining age fifty-four. This adoption order implements SHB 2684 (chapter 33, Laws of 2006), by lowering the age threshold for earning twelve months of service credit to age forty-four.
Citation of Existing Rules Affected by this Order: Repealing WAC 415-110-320; and amending WAC 415-112-502.
Statutory Authority for Adoption: RCW 41.50.050(5).
Other Authority: RCW 41.35.680 (WAC 415-110-320 and 415-110-605); RCW 41.32.875 (WAC 415-112-502).
Adopted under notice filed as WSR 06-12-079 on June 6, 2006.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 1, Amended 1, Repealed 1.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 1, Amended 1, Repealed 1.
Date Adopted: July 12, 2006.
Sandra J. Matheson
Director
OTS-8880.3
NEW SECTION
WAC 415-110-605
Do I qualify for retirement from Plan 3?
(1) You may retire from Plan 3:
(a) At age sixty-five with an unreduced defined benefit with the following amounts of service credit:
(i) Ten years of service credit;
(ii) Five years of service credit, including at least twelve service credit months after attaining age forty-four; or
(iii) Five years of Plan 2 service credit earned prior to September 1, 2000, before transferring to Plan 3 under RCW 41.35.510;
(b) 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; or
(c) At age fifty-five with a minimum of thirty years of service credit. Your defined benefit will be reduced by three percent per year for each year between your age at retirement and age sixty-five.
(2) Under RCW 41.35.010 (7)(c), you may use up to forty-five days of unused sick leave to meet service credit requirements.
(a) Forty-five days of unused sick leave is equal to two service credit months. Less than forty-five days is creditable as specified in RCW 41.35.010 (7)(c).
(b) Unused sick leave may not be used to meet age requirements.
(c) The sick leave used is forfeited, and may not be cashed out.
(d) The value of the sick leave will not be included in your AFC or used to determine the amount of your retirement benefit.
| Example: | On December 31, 2005, John is age sixty-five and has four years and ten months of service credit. John has forty-five days of sick leave. John may use the forty-five days of sick leave to qualify for retirement effective January 1, 2006. |
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The following section of the Washington Administrative Code is repealed:
| WAC 415-110-320 | Determining SERS Plan 3 defined benefit retirement eligibility. |
OTS-8881.1
AMENDATORY SECTION(Amending WSR 05-12-108, filed 5/27/05,
effective 6/27/05)
WAC 415-112-502
Do I qualify for retirement from Plan 3?
You may retire from Plan 3:
(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)) forty-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.
[Statutory Authority: RCW 41.50.050(5) and 41.32.875. 05-12-108, § 415-112-502, filed 5/27/05, effective 6/27/05.]