WSR 20-09-010
EMERGENCY RULES
DEPARTMENT OF
RETIREMENT SYSTEMS
[Filed April 2, 2020, 4:08 p.m., effective April 2, 2020, 4:08 p.m.]
Effective Date of Rule: Immediately upon filing.
Purpose: To provide alternatives to requirements for a notarized signature in retirement applications, forms and documents.
Citation of Rules Affected by this Order: Amending WAC 415-100-051, 415-100-055, 415-103-225, 415-104-215, 415-106-600, 415-106-610, 415-108-326, 415-108-434, 415-110-610, 415-112-015, 415-112-504, 415-112-505, and 415-112-507.
Statutory Authority for Adoption: RCW
41.50.050.
Under RCW
34.05.350 the agency for good cause finds that immediate adoption, amendment, or repeal of a rule is necessary for the preservation of the public health, safety, or general welfare, and that observing the time requirements of notice and opportunity to comment upon adoption of a permanent rule would be contrary to the public interest.
Reasons for this Finding: Immediate adoption of these amendments will allow members of Washington state's retirement systems to submit verified documentation required by the department, while maintaining social distancing in response to the COVID-19 pandemic.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at the Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's own Initiative: New 0, Amended 13, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: April 2, 2020.
Tracy Guerin
Director
AMENDATORY SECTION(Amending WSR 96-01-047, filed 12/14/95, effective 1/14/96)
WAC 415-100-051Married member's benefit selection—Spousal consent required.
The member, if married, must provide the spouse's ((
written)) consent to the option selected under WAC 415-100-055
, verified by a notarized signature or other means acceptable to the department. If a married member does not provide ((
spousal))
verified consent, the department will pay the retired member a joint and one-half survivor benefit allowance and record the member's spouse as the survivor, in compliance with RCW
2.10.146(2). ((
"Spousal consent" means that the married member's spouse consents to the retirement option selected by the member. (The spouse's notarized signature on a completed retirement application constitutes spousal consent.)))
AMENDATORY SECTION(Amending WSR 01-13-009, filed 6/8/01, effective 7/9/01)
WAC 415-100-055Retirement benefit options.
RCW
2.10.146, enables the department to provide retiring members with four retirement benefit options. The member must choose an option when applying for service or disability retirement.
(1)
Option One: Benefit option without survivor features (standard allowance). The department pays the retiree a monthly retirement allowance based solely on the single life of the member, in accordance with RCW
2.10.146. When the retiree dies, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:
(a) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or
(b) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or
(c) The member's estate; or
(d) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.
(2) Benefit options with a survivor feature.
(a) A retiring member is allowed to select from several retirement options which create an actuarially equivalent benefit that includes a survivor feature. The survivor feature entitles the survivor to receive a monthly allowance after the retiree dies. If the member chooses one of the survivor options, the monthly benefit the member will receive is actuarially reduced to offset the cost of the survivor feature. After the retiree dies, the department pays the survivor an allowance for the duration of his or her life. If the retiree and the survivor both die before the retiree's accumulated contributions are exhausted, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:
(i) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or
(ii) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or
(iii) The member's estate; or
(iv) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.
(b) Option Two (joint and whole allowance). When the retiree dies, the department pays the survivor a monthly retirement allowance equal to the gross monthly allowance received by the retiree.
(c) Option Three (joint and one-half allowance). When the retiree dies, the department pays the survivor one-half of the amount of the retiree's gross monthly retirement allowance.
(d) Option Four (joint and two-thirds allowance).
(i) Option Four is available to members retiring on or after January 1, 1996.
(ii) When the retiree dies, the department pays the survivor two-thirds (66.667%) of the member's gross monthly retirement allowance.
(3) Benefit increases when survivor predeceases retiree (pop-up provision).
(a) This subsection applies to members retiring on or after January 1, 1996, who selected Option Two, Three, or Four.
(b) If the survivor dies before the retiree, the retiree's monthly retirement allowance will increase, effective the first day of the following month, to:
(i) The amount that would have been received had the retiree chosen Option One described in subsection (1) of this section; plus
(ii) Any cost-of-living adjustments received prior to the survivor's death based on original selection.
(c) Pop-up recalculation example.
Agnes retires in 1996 (Year 0). She would like Beatrice, her daughter, to receive a monthly allowance after Agnes dies. Therefore, Agnes selects a retirement benefit option with a survivor feature. As a result her monthly allowance is reduced from $2,000 (standard allowance) to $1,750. Unfortunately, Beatrice dies in January 2001 (Year 5). Under the pop-up provision, Agnes' monthly benefit will increase to the amount she would have received had she chosen Option One (standard allowance) plus her accumulated COLA's:
Year | Option One (Standard Allow.) | Survivor Option (2,3,4) plus COLAs | COLA incr. (3% max) | | $ Increase |
0 (1996) | 2,000.00 | 1,750.00 | | (ineligible) | | 0.00 | |
1 (1997) | | 1,750.00 | | .02 | | 35.00 | |
2 (1998) | | 1,785.00 | | .03 | | 53.55 | |
3 (1999) | | 1,838.55 | | .025 | | 45.96 | |
4 (2000) | | 1,884.51 | | .03 | | 56.54 | |
5 (2001) | 2,000.00 | 1,941.05 | | — | | — | |
| | | | Total COLAs | 191.05 | |
Original Option One Benefit Amount | + Total COLAs | | | | = New Benefit Amount |
$2000 | + $191.05 | | = $2,191.05* |
* | In the future (i.e., Year 5), Agnes' COLA will be based on the increased benefit amount ($2,191.05). |
(d) If the survivor dies and the retiree's benefit increases under this subsection, and thereafter the retiree also dies before all contributions are exhausted, all benefits cease. Any remaining balance of the retiree's accumulated contributions will be paid to:
(a) Such person or persons, trust, or organization as the judge has nominated by written designation duly executed and filed with the department of retirement systems; or
(b) If there is no such designated person or persons still living at the time of the judge's death, then to the surviving spouse; or
(c) The member's estate; or
(d) If there is neither such designated person or persons still living at the time of death nor a surviving spouse, then to the judge's legal representative.
(4) Survivor. For the purposes of this section, "survivor" means a person nominated by the member to receive a monthly benefit allowance after the member dies. A member nominates the survivor at the time of retirement by filing a completed ((and notarized)) form provided by the department, verified by a notarized signature or other means acceptable to the department.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-103-225What are my WSPRS Plan 2 retirement benefit options?
This section applies to WSPRS Plan 2 members. Upon retirement for service under RCW
43.43.250, you must choose to have your monthly retirement benefit paid to you by one of the options described in this section.
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section include a survivor option. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." Upon your death your survivor beneficiary will be entitled to receive a monthly benefit for the duration of his or her life. Your monthly retirement benefit will be actuarially reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit is affected by choosing a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your life. Your monthly benefit will cease upon your death.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirds survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667 percent) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must submit your spouse's ((
notarized)) consent
, verified by notarization or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
43.43.271(2).
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse,
verified spousal consent is required. If you do not provide ((
notarized)) spousal consent,
verified by notarization or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
43.43.271(2).
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What happens if I choose a benefit with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(6) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a) Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement.
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a benefit option with a survivor option and name your current spouse as survivor, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a benefit option with a survivor option and name a nonspouse as survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(7) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(ii) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.
(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.
(b) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.
(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-104-215What are my LEOFF Plan 2 retirement benefit options?
If you retire for service under RCW
41.26.430 or nonduty disability under RCW
41.26.470, or if you choose to receive a monthly benefit for duty disability under RCW
41.26.470, you must choose to have your monthly retirement benefit paid to you by one of the options described in this section.
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirds benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by notarization or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.26.460(2).
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse,
verified spousal consent is required. If you do not provide ((
notarized)) spousal consent,
verified by notarization or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.26.460(2).
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What happens if I choose a benefit option with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(6) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a) Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement.
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a benefit option with a survivor option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a benefit option with a survivor option and name a nonspouse as survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(7) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(ii) If you have not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your surviving spouse.
(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.
(b) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.
(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-106-600What are my retirement benefit options?
Upon retirement for service under RCW
41.37.210 or retirement for disability under RCW
41.37.230, you must choose to have your retirement benefit paid to you by one of the options described in this section.
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirds survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by a notarized signature or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.37.170(2).
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required. If you do not provide ((
notarized)) spousal consent
, verified by a notarized signature or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.37.170(2).
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What happens if I choose a benefit with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(6) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a)
Return to membership. If you retire and then return to membership for at least two years of uninterrupted service, you may choose a different retirement option upon your subsequent retirement. See RCW
41.37.050(3).
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a survivor benefit option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a survivor benefit option and name a nonspouse as your survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(7) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(ii) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.
(iii) If not paid according to (a)(i) or (ii) of this subsection, then to your estate.
(b) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(i) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(ii) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.
(iii) If not paid according to (b)(i) or (ii) of this subsection, then to your survivor beneficiary's estate. See RCW
41.37.170.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-106-610How do I apply for retirement benefits?
You should apply for retirement benefits at least thirty days before your intended retirement date. You can apply online at the department's website or by submitting to the department:
(1) A completed((,))and signed ((and notarized)) retirement application, verified by notarization or other means acceptable to the department, including:
(a) Your selection of one of the benefit options described in WAC 415-106-600.
(b) Designation of a survivor beneficiary if you selected a benefit option with a survivor feature.
(c) If you are married, your spouse's consent may be required as described in WAC 415-106-600.
(2) Evidence of your birth date, only if requested by the department, such as a photocopy of your birth certificate, passport or passport card, government-issued driver license or identification card, NEXUS card, naturalization certificate, certificate of armed services record U.S. DD-214, or other documentation acceptable to the department. If you are requested to submit evidence, the document you submit must include the month, day, and year of your birth.
(3) If you selected a benefit option with a survivor feature, acceptable evidence of your designated survivor beneficiary's birth date which includes the month, day, and year of birth.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-108-326What are my retirement benefit options?
Upon retirement for service under RCW
41.40.180,
41.40.630, or
41.40.820, or for disability under RCW
41.40.210,
41.40.230,
41.40.670, or
41.40.825, you must choose to have the defined benefit portion of your retirement benefit paid to you by one of the options described in this section. If you are a Plan 1 member, you may also select an optional supplemental cost of living adjustment (COLA).
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirds survivor benefit.1 The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by a notarized signature or other means acceptable to the department. If you do not provide spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.40.188,
41.40.660 and
41.40.845.
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required. If you do not provide ((
notarized)) spousal consent
, verified by a notarized signature or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.40.188,
41.40.660 and
41.40.845.
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What is the supplemental COLA option for Plan 1 members? If you are a Plan 1 member, in addition to choosing a retirement benefit option described in subsection (2) of this section, you may choose to receive a supplemental annual COLA. If you select this option, your monthly retirement benefit will be actuarially reduced to offset the cost of this benefit.
(6) What happens if I choose a benefit with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(7) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a)
Return to membership. If you retire and then return to membership for at least two years of uninterrupted service, you may choose a different retirement option upon your subsequent retirement. See RCW
41.40.037.
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a survivor benefit option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a survivor benefit option and name a nonspouse as your survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(8) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) Plan 1 and 2 members:
(i) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(B) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.
(C) If not paid according to (a)(i)(A) or (B) of this subsection, then to your estate.
(ii) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(B) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.
(C) If not paid according to (a)(ii)(A) or (B) of this subsection, then to your survivor beneficiary's estate.
(b) Plan 3 members: The defined benefit stops upon your death or upon the death of your survivor beneficiary, if applicable. As a Plan 3 member, you do not contribute to the defined benefit portion of your retirement benefit. The defined contribution portion of your benefit will be distributed according to WAC 415-111-310.
1 | Available to members retiring on or after January 1, 1996. |
AMENDATORY SECTION(Amending WSR 09-18-051, filed 8/27/09, effective 9/27/09)
WAC 415-108-434PERS Plan 1 nonduty disability benefits.
This section covers benefits provided in RCW
41.40.230 through
41.40.250 for PERS Plan 1 members who incur a disability outside the performance of duty. You may also be eligible for benefits from the Washington state departments of labor and industries and social and health services, the U.S. Social Security Administration, your employer, and other disability insurers.
(1) Am I eligible for a PERS Plan 1 nonduty disability benefit? You are eligible for a PERS Plan 1 nonduty disability benefit if the department determines that all of the following are true:
(a) You are a PERS Plan 1 member and have been employed with a PERS eligible employer for at least five years;
(b) You separate from PERS employment;
(c) At the time you separated from PERS employment, you were totally incapacitated to perform the duties of your job or any other position for which you are qualified by training or experience;
(d) Your disability is likely to be permanent;
(e) Your disability was not incurred during the performance of your job duties; and
(f) Your disability is not the result of your criminal conduct committed after April 21, 1997. See RCW
41.40.054.
(2)
What is the PERS Plan 1 nonduty disability benefit? If you qualify to receive a nonduty disability benefit, you will receive a benefit under RCW
41.40.235 or, if you were a PERS Plan 1 member on February 25, 1972, you may irrevocably choose to receive a benefit under RCW
41.40.250.
If you are eligible to receive a benefit under RCW
41.40.235, your benefit will equal two percent of your average final compensation for each year of service credit, reduced by two percent for every year or fraction of a year that your age is less than fifty-five. For example, if you are fifty years old, your monthly disability benefit will be reduced by ten percent.
(a) Your monthly disability benefit will not exceed sixty percent of your average final compensation.
(b) The degree of your disability or impairment will not affect the amount of your benefit.
(c) Your monthly disability benefit will be reduced by any amounts you receive for the same disability under workers' compensation or similar law. See RCW
41.40.300.
(d) Your monthly disability benefit will be actuarially reduced if you choose a benefit option with a survivor feature. See WAC 415-108-326.
(3) How do I apply? To apply for a nonduty disability benefit the following documents must be submitted to the department:
(a) A properly completed three-part disability retirement application, consisting of:
(i) Part 1: Application for disability retirement. You must complete and sign the application. If you are married, your spouse must sign consenting to the option you choose. Your signature(s) must be ((notarized))verified by notarization or other means acceptable to the department.
(ii) Part 2: Employer's statement and report. You must complete the member information portion. The remainder must be completed, signed, and returned directly to the department by your employer.
(iii) Part 3: Medical report. You must complete the member information portion. The remainder must be completed, signed, and returned directly to the department by a person licensed according to Washington state law to practice medicine and/or surgery (including osteopathic medicine and/or surgery), advanced nursing, or psychology.
(b) Additional information, such as vocational and/or occupational information, requested by the department; and
(c) Any other material you want the department to consider.
(4) Who is responsible for expenses related to my application? You are responsible for all costs associated with your application for benefits.
(5) What is the time limit for filing an application for a nonduty disability benefit? There is no time limit for filing an application for a nonduty disability benefit. However, you must prove that you were totally incapacitated at the time you separated from PERS employment.
(6) What information will the department use to determine whether I am entitled to a nonduty disability benefit? To determine your eligibility for a nonduty disability benefit, the department will consider any relevant information submitted by you, your employer, or your physician, or otherwise available, including:
(a) Information and determinations by the department of labor and industries or a self-insurer;
(b) Medical, vocational, and other information about your disability;
(c) Your job description;
(d) Your membership records, maintained by the department; and
(e) Any other relevant evidence.
(7)
If I am eligible for a service retirement under RCW 41.40.180, may I still apply for a disability retirement? Yes, if you are eligible for both you may elect a disability retirement or a service retirement. If you elect a service retirement, you may not later change to a disability retirement.
(8) When will the department evaluate my eligibility for benefits? The department will evaluate your eligibility for a nonduty disability benefit once it receives all three parts of your properly completed application, supporting documentation, and all other information requested by the department.
(9) If my application is approved, when will my benefit accrue? If your application for a nonduty disability benefit is approved, your benefit will accrue from the first day of the calendar month following the month you separate from service.
(a) If you separate from service before your application is approved, you will be eligible for a retroactive payment of the benefit that accrued between the month following your date of separation from service and the approval of your application.
(b) If you separate from service after your application is approved, your disability benefit will not begin to accrue until you separate from service. If you are on an approved leave of absence (either paid or unpaid) at the time of your application for a benefit, you have not separated from service.
(i) If you do not separate from service within ninety days of the department's approval of your application, the approval will lapse.
(ii) If your approval for a benefit lapses while you are still on an authorized leave of absence, you may request a reinstatement of approval. The department will reinstate its approval only if your employer verifies that you have been on an authorized leave of absence continuously from the time your application was first approved.
(10) What are my options if my application is denied?
(a) If your application is denied and you continue in or resume PERS employment, you may reapply for a nonduty disability benefit at a later time if your condition worsens. You must submit new information to the department that shows you meet the requirements in subsection (1) of this section.
(b) If your application is denied, you may petition for review of the department's decision under the provisions of chapter 415-04 WAC.
(11) What happens if I die within sixty days of applying for nonduty disability benefits? If you die within sixty days of the date the department receives your application for a nonduty disability benefit, the beneficiary you name on the application may choose to receive either:
(a) A lump sum amount equal to the contributions in your PERS account; or
(b) A monthly benefit calculated according to whichever of the following methods will give your beneficiary the greatest benefit:
(i) A benefit calculated according to subsection (2) of this section and the benefit option indicated on your application; or
(ii) If otherwise qualified, the benefit provided in RCW
41.40.270 (4)(a).
(12) What information must I provide to the department if I am receiving nonduty disability benefits? If you are receiving nonduty disability benefits, you must report the following to the department:
(a) Any compensation you are eligible to receive under workers' compensation or similar law for the same disability;
(b) Any improvement in your condition. Your doctor is also responsible to report any improvements; and
(c) If you resume employment, either public or private, the name of your employer and amount of compensation, regardless of the number of hours you work.
(13)
Is my medical condition monitored while I receive disability benefits? The department may require comprehensive medical examinations, pursuant to RCW
41.40.310, to reevaluate your eligibility for disability benefits. The department will pay the medical fees associated with these examinations.
(14) How long will I receive a monthly disability benefit? During your lifetime, you will receive a monthly disability benefit unless one of the following occurs:
(a) If you return to gainful employment, your monthly disability benefit will be recalculated, as set forth in subsection (15) of this section.
(b) If you return to active PERS membership, your disability benefit will be discontinued.
(c) If a doctor determines that you are no longer totally incapacitated, your disability benefit will be discontinued.
(d) If you refuse to submit to medical examinations required by RCW
41.40.310, your disability benefit will be discontinued.
(15) If I return to employment, how will my monthly disability benefit be recalculated? The recalculation of your disability benefit is based on whether your current compensation is greater than your allowable earnings. Your "allowable earnings" are the difference of your compensation at retirement, adjusted for inflation, and your monthly disability benefit.
(a) If your current compensation is greater than your allowable earnings your benefit will be reduced or discontinued.
Example of benefit being reduced:
Due to a nonduty-related disability, Joe separated from service and began receiving a disability benefit of $1,000 per month. Joe became gainfully employed earning $2,500 per month. Joe's compensation at the time of separation adjusted for inflation is $3,000. Because Joe's current compensation, $2,500, is greater than his allowable earnings ($3,000 - $1,000 = $2,000) by $500, his benefit will be reduced by $500. Joe's reduced disability benefit will be $500 per month ($1,000 - $500).
Example of benefit being discontinued:
Due to a nonduty-related disability, Heidi separated from service and began receiving a disability benefit of $1,000 per month. Heidi became gainfully employed earning $4,000 per month. Heidi's compensation at the time of separation adjusted for inflation is $3,000. Because Heidi's current compensation, $4,000, is greater than her allowable earnings ($3,000 - $1,000 = $2,000) by an amount ($2,000) that is greater than her disability benefit ($1,000), her benefit will be discontinued.
(b) If your current compensation is less than your allowable earnings, then your benefit will not be reduced or discontinued.
Example:
Due to a nonduty-related disability, you separated from service and began receiving a disability benefit of $1,000 per month. You become gainfully employed earning $1,000 per month. Your compensation at the time of separation adjusted for inflation is $3,000. Because your current compensation, $1,000, is less than your allowable earnings ($3,000 - $1,000 = $2,000), your disability benefit will not be reduced or discontinued.
(16) Is my PERS Plan 1 nonduty disability benefit taxable? You should consult with your tax advisor regarding all payments you receive from the department. The department reports disability benefits to the Internal Revenue Service as required by federal law and does not:
(a) Guarantee that payments are exempt from federal income tax;
(b) Guarantee that it was correct in withholding or not withholding taxes from disability payments;
(c) Represent or guarantee that any particular federal or state income, payroll, personal property, or other tax consequence will occur because of its determination; or
(d) Assume any liability for your compliance with the Internal Revenue Code.
(17)
Are disability benefits subject to court or administrative orders? Your nonduty disability benefit may be subject to court or administrative orders. For more information, see RCW
41.40.052(3) or contact the department.
(18)
If I am a member of more than one retirement system, does my eligibility for a PERS Plan 1 nonduty disability make me eligible for a benefit from the other system? If you are a member of more than one retirement system, you may be entitled to additional benefits under portability law. See chapters
41.54 RCW and 415-113 WAC.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-110-610What are my retirement benefit options?
Upon retirement for service under RCW
41.35.420 or
41.35.680, or for disability under RCW
41.35.440 or
41.35.690, you must choose to have the defined benefit portion of your retirement benefit paid to you by one of the options described in this section.
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b) through (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirds survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by a notarized signature or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.35.220.
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required
, verified by a notarized signature or other means acceptable to the department. If you do not provide ((
notarized))
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.35.220.
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (4) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What happens if I choose a benefit option with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(6) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a)
Return to membership. If you retire and then return to membership for at least two years of uninterrupted service, you may choose a different retirement option upon your subsequent retirement. See RCW
41.35.060.
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a survivor benefit option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-01-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a survivor benefit option and name a nonspouse as your survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(7) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) Plan 2 members:
(i) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(B) If you have not designated a beneficiary, or if your designated beneficiary is no longer living or in existence, then to your surviving spouse.
(C) If not paid according to (a)(i)(A) or (B) of this subsection, then to your estate.
(ii) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(B) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living or in existence, then to your survivor beneficiary's spouse.
(C) If not paid according to (a)(ii)(A) or (B) of this subsection, then to your survivor beneficiary's estate.
(b) Plan 3 members: The defined benefit stops upon your death or upon the death of your survivor beneficiary, if applicable. As a Plan 3 member, you do not contribute to the defined benefit portion of your retirement benefit. The defined contribution portion of your benefit will be distributed according to WAC 415-111-310.
AMENDATORY SECTION(Amending WSR 08-10-025, filed 4/25/08, effective 5/26/08)
WAC 415-112-015Definitions.
All definitions in RCW
41.32.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter
41.32 RCW are defined in this chapter.
(1)
Accrual date means the first date from which a member's or beneficiary's benefit is calculated. See WAC 415-112-520, RCW
41.32.795 and
41.32.855.
(2)
Annual leave means leave provided by an employer for the purpose of taking regularly scheduled work time off with pay. Annual leave does not usually include leave for illness, personal business if in addition to and different than vacation leave, or other paid time off from work. However, if an employer authorizes only one type of leave, covering paid leave for vacation, illness, and any other excused absence from work, such leave will be considered annual leave for purposes of RCW
41.50.150.
(3) Dual member means a person who:
(a) Is or becomes a member of a retirement system, as defined in RCW
41.50.030 or
41.54.010(6), on or after July 1, 1988;
(b) Has been a member of one or more other systems; and
(c) Has never been retired for service from a retirement system and is not receiving a disability retirement or disability leave benefit from any retirement system listed in RCW
41.50.030 or
41.54.010(6). See WAC 415-113-041.
(4)
Ineligible position means a position that does not meet the requirements of an eligible position as stated in RCW
41.32.010(37).
(5) Pension benefit means that portion of a retiree's monthly retirement allowance that is funded by the state of Washington and the retiree's former employer or employers.
(6) Public educational institution means a school district, the state school for the deaf, the state school for the blind, educational service districts, institutions of higher education, or community or technical colleges.
(7)(a)
Public school as defined in RCW
41.32.010 includes school districts, educational service districts, the state school for the deaf, and the state school for the blind but does not include the office of the superintendent of public instruction.
(b) As applied to TRS employers other than those listed in (a) of this subsection, "public school" means an institution, fifty percent or more of whose employees are "qualified to teach," whose primary function is to educate students. See subsection (8) of this section.
(8)
Qualified to teach as used under RCW
41.32.010(29) means:
(a) Having a valid certificate issued by the office of the superintendent of public instruction pursuant to WAC 181-79A-140;
(b) Having a valid permit to teach issued by a lawful authority of this state pursuant to WAC 181-79A-128; or
(c) Being employed under a contract to teach with an institution of higher education as defined in RCW
28B.10.016.
(9)
Service in an administrative or supervisory capacity as used under RCW
41.32.010 and in this chapter:
(a) Means:
(i) Service in a managerial role relating to the administration of a public school; or
(ii) Service involving the exercise of direction over employees of the public school.
(b) Includes, but is not limited to, service as: Principal, assistant principal, superintendent, assistant superintendent, personnel manager and business manager.
(10) Spousal consent requires verified written evidence that the married member's spouse consents to the retirement option selected by the member. The spouse's ((notarized)) signature on the retirement application filed with the department, duly executed and ((filed with))verified by notarization or other means acceptable to the department, constitutes "verified written evidence."
(11) System acronyms used in this chapter are defined as follows:
• "PERS" means the public employees' retirement system.
• "SERS" means the school employees' retirement system.
• "TRS" means the teachers' retirement system.
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-112-504What are my TRS Plan 1 retirement benefit options?
Upon retirement from Plan 1 for service under RCW
41.32.480 or disability under RCW
41.32.550 (1)(c), you must choose to have your retirement benefit paid to you by one of the options described in this section. You may also select an optional supplemental cost-of-living (COLA) adjustment.
(1) May I withdraw any of my contributions? You may withdraw some or all of your accumulated contributions as follows:
(a) If you retire according to the provisions of RCW
41.32.498, you may withdraw some or all of your accumulated contributions at the time of retirement. Your monthly retirement benefit will be reduced according to the amount you withdraw.
(b) If you terminate service due to a disability under the conditions of RCW
41.32.550 (1)(a), you may withdraw all your accumulated contributions in a lump sum payment. You will receive no monthly retirement benefit.
(2) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (3)(c) through (e) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(3) What are my benefit options?
(a) Maximum benefit (nonsurvivor option). The department will pay you the maximum benefit allowed by statute. Under this option you will receive a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death, and any remaining balance of accumulated contributions will be:
(i) Retained by the retirement fund if you retired for service under RCW
41.32.497 or
41.32.498; or
(ii) Paid according to subsection (9) of this section if you retired because of disability and were receiving a monthly retirement benefit under RCW
41.32.550 (1)(c).
(b) Option one: Standard benefit for service retirement (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death, and any remaining balance of accumulated contributions will be paid according to subsection (9) of this section.
(i) This benefit option has a lower monthly benefit than the maximum benefit in (a) of this subsection because, with this option, any remaining accumulated contributions will be paid to your beneficiaries upon your death.
(ii) If you are retiring because of disability under RCW
41.32.550 (1)(c), you will not benefit from this option because your beneficiaries will receive any remaining accumulated contributions under the maximum benefit in (a) of this subsection.
(c) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(d) Option three: Joint and fifty percent benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(e) Option four: Joint and two-thirds benefit.1 The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(4) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by a notarized signature or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.32.530(2).
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required. If you do not provide ((
notarized)) spousal consent
, verified by a notarized signature or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.32.530(2).
(d) If your survivor beneficiary has been designated by a dissolution order according to subsection (5) of this section, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(5)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(6) What is the supplemental COLA option? In addition to choosing a retirement benefit option described in subsection (3) of this section, you may choose a supplemental annual COLA. If you select this option, your monthly retirement benefit will be reduced to offset the cost of this benefit.
(7) What happens if I choose a benefit option with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(8) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a)
Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement. See RCW
41.32.044.
(b) Postretirement marriage option. If you select the maximum benefit option or the standard benefit option at the time of retirement and marry after retirement, you may select a benefit option with a survivor option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department; and
(iv) You provide proof of your current spouse's birth date.
(c) Removal of a nonspouse survivor option. If you select a survivor benefit option and name a nonspouse as survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(9) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid according to this subsection.
(i) Except as provided in (a)(ii) of this subsection, any remaining balance will be paid to the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(ii) If you retired for service and chose the maximum benefit option, any remaining balance will be retained by the retirement fund.
(b) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid to the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
| 1 Available to members retiring on or after January 1, 1996. |
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-112-505What are my TRS Plan 2 or Plan 3 retirement benefit options?
Upon retirement for service under RCW
41.32.765 or
41.32.875, or disability under RCW
41.32.790 or
41.32.880, you must choose to have the defined benefit portion of your retirement benefit paid to you by one of the options described in this section.
(1) Which option will pay my beneficiary a monthly benefit after my death? Options described in subsection (2)(b), (c), and (d) of this section will pay a monthly benefit to your survivor after your death. The person you name at the time of retirement to receive a monthly benefit after your death is referred to as your "survivor beneficiary." After your death, your survivor beneficiary will receive a monthly benefit for the duration of their life. Your monthly retirement benefit will be reduced to offset the cost of the survivor option. See WAC 415-02-380 for more information on how your monthly benefit will be affected if you choose a survivor option.
(2) What are my benefit options?
(a) Option one: Standard benefit for service retirement (nonsurvivor option). The department will pay you a monthly retirement benefit throughout your lifetime. Your monthly benefit will cease upon your death, and any remaining balance of accumulated contributions will be paid according to subsection (7) of this section.
(b) Option two: Joint and one hundred percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to your gross monthly benefit.
(c) Option three: Joint and fifty percent survivor benefit. The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to fifty percent of your gross monthly benefit.
(d) Option four: Joint and two-thirdssurvivor benefit.1 The department will pay you a reduced monthly retirement benefit throughout your lifetime. After your death, your survivor beneficiary will receive a gross monthly benefit equal to two-thirds (66.667%) of your gross monthly benefit.
(3) Do I need my spouse's consent on the option I choose? The option you select will determine whether spousal consent is required.
(a) If you are married and select a nonsurvivor benefit option, you must provide your spouse's ((
notarized)) consent
, verified by a notarized signature or other means acceptable to the department. If you do not provide
verified spousal consent, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.32.785(2) and
41.32.851(2).
(b) If you are married and select a survivor benefit option for your spouse, spousal consent is not required. The department will pay you a monthly benefit based on the option you selected.
(c) If you are married and select a survivor benefit option for someone other than your spouse, spousal consent is required. If you do not provide ((
notarized)) spousal consent
, verified by a notarized signature or other means acceptable to the department, the department will pay you a monthly retirement benefit based on option three (joint and fifty percent benefit) with your spouse as the survivor beneficiary as required by RCW
41.32.785(2) and
41.32.851(2).
(d) If your survivor beneficiary has been designated by a dissolution order under RCW
41.50.790, which was filed with the department at least thirty days before your retirement date, spousal consent is not required.
(4)
Can a dissolution order require that a former spouse be designated as a survivor beneficiary? Yes. A dissolution order may require that a former spouse be designated as a survivor beneficiary. The department is required to pay survivor benefits to a former spouse pursuant to a dissolution order that complies with RCW
41.50.790.
(5) What happens if I choose a benefit option with a survivor option and my survivor beneficiary dies before I do? If your survivor beneficiary dies before you do, you may request to have your benefit increased as described in WAC 415-02-380.
(6) May I change my benefit option after retirement? Your choice of a benefit option is irrevocable with the following three exceptions:
(a)
Return to membership. If you retire and then return to membership, you may choose a different retirement option upon your subsequent retirement. See RCW
41.32.044.
(b) Postretirement marriage option. If you select the standard benefit option at the time of retirement and marry after retirement, you may select a benefit option with a survivor option and name your current spouse as survivor beneficiary, provided that:
(i) Your benefit is not subject to a property division obligation pursuant to a dissolution order. See WAC 415-02-500;
(ii) The selection is made during a one-year window, on or after the date of the first anniversary and before the second anniversary of your postretirement marriage;
(iii) You provide a copy of your certified marriage certificate to the department;
(iv) You provide proof of your current spouse's birth date; and
(v) You exercise this option one time only.
(c) Removal of a nonspouse survivor option. If you select a benefit option with a survivor option and name a nonspouse as survivor beneficiary at the time of retirement, you may remove that survivor beneficiary designation and have your benefit adjusted to a standard benefit. You may exercise this option one time only.
(7) Who will receive the balance of my accumulated contributions, if any, after my death?
(a) Plan 2:
(i) If you do not have a survivor beneficiary at the time of your death, and you die before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) you have nominated by written designation, executed and filed with the department.
(B) If you have not designated a beneficiary, or if your designated beneficiary is no longer living, then to your surviving spouse.
(C) If not paid according to (a)(i)(A) or (B) of this subsection, then to your estate.
(ii) If you have a survivor beneficiary at the time of your death, and your survivor beneficiary dies before the total of the retirement benefit paid equals the amount of your accumulated contributions at the time of retirement, the balance will be paid:
(A) To the person or entity (i.e., trust, organization, or estate) your survivor beneficiary has nominated by written designation, executed and filed with the department.
(B) If your survivor beneficiary has not designated a beneficiary, or if the designated beneficiary is no longer living, then to your survivor beneficiary's spouse.
(C) If not paid according to (a)(ii)(A) or (B) of this subsection, then to your survivor beneficiary's estate.
(b) Plan 3: The defined benefit stops upon your death or upon the death of your survivor beneficiary, if applicable. As a Plan 3 member, you do not contribute to the defined benefit portion of your retirement benefit. The defined contribution portion of your benefit will be distributed according to WAC 415-111-310.
| 1 Available to members retiring on or after January 1, 1996. |
AMENDATORY SECTION(Amending WSR 20-06-040, filed 2/27/20, effective 3/29/20)
WAC 415-112-507How do I apply for TRS retirement benefits?
You should apply for retirement benefits at least thirty days before your intended retirement date. You can apply online at the department's website or by submitting to the department:
(1) A completed((,))and signed((, and notarized)) retirement application, verified by a notarized signature or other means acceptable to the department, 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 consent may be required as described in WAC 415-112-504 (Plan 1) or WAC 415-112-505 (Plan 2 or Plan 3).
(2) Evidence of your birth date, only if requested by the department, such as a photocopy of your birth certificate, passport or passport card, government-issued driver license or identification card, NEXUS card, naturalization certificate, certificate of armed services record U.S. DD-214, or other documentation acceptable to the department. If you are requested to submit evidence, the document you submit must include the month, day, and year of your birth.
(3) If you selected a benefit option with a survivor feature, acceptable evidence of your designated survivor beneficiary's birth date which includes the month, day, and year of birth.