Original Notice.

Preproposal statement of inquiry was filed as WSR 01-11-052.

Title of Rule: Definitions in the public employees' retirement system (PERS).

Purpose: Rearranges definitions into one section and puts them into plain English. Adds a definition that a public corporation formed under RCW 35.21.720 is an employer and may be admitted into PERS.

Statutory Authority for Adoption: RCW 41.50.050(5).

Statute Being Implemented: RCW 35.21.730, 41.40.010(4), chapter 41.40 WAC.

Summary: Rearranges definitions into one section and puts them into plain English. Adds a definition that a public corporation formed under RCW 35.21.720 is an employer and may be admitted into PERS.

Reasons Supporting Proposal: It is easier for customers to find definitions in alphabetical order, in one section, instead of in many sections. Plain English adds clarity. The public corporation definition responds to a question that has remained unresolved for many years.

Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Jack Bryant, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7193.

Name of Proponent: Department of Retirement Systems, governmental.

Rule is not necessitated by federal law, federal or state court decision.

Explanation of Rule, its Purpose, and Anticipated Effects: Rearranges definitions into one section and puts them into Plain English. Adds a definition that a public corporation formed under RCW 35.21.720 is an employer and may be admitted into PERS. The public corporation definition applies only to public corporations formed under RCW 35.21.720. The intent is to make admission voluntary. That is, the public corporation must request admission.

Proposal Changes the Following Existing Rules: See Explanation of Rule above.

No small business economic impact statement has been prepared under chapter 19.85 RCW. These amendments have no effect on businesses.

RCW 34.05.328 does not apply to this rule adoption. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.

Hearing Location: Department of Retirement Systems, 6835 Capitol Boulevard, Boardroom, 3rd Floor, Tumwater, WA, on September 28, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact the rules coordinator by seven days before the hearing, if possible, phone (360) 664-7291, TTY (360) 586-5450, e-mail merryk@drs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail Merryk@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on September 28, 2001.

Date of Intended Adoption: No sooner than October 1, 2001.

August 2, 2001

Merry A. Kogut

Rules Coordinator

OTS-4923.2

AMENDATORY SECTION(Amending WSR 98-09-059, filed 4/17/98, effective 5/18/98)

WAC 415-108-010   Definitions in the public employees' retirement system.   All definitions in RCW 41.40.010 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.40 RCW are defined in this chapter.

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 from 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.

Level of union organization means a union or a lodge or division of a union.

Normally as used in the definition of eligible position under RCW 41.40.010 means a position is eligible if it is expected to require at least five months of seventy or more hours of compensated service each month during each of two consecutive years. Once a position is determined to be eligible, it will continue to be eligible if it requires at least five months of seventy or more hours of compensated service during at least one year in any two-year period.

Project position means a position, established by an employer, which has a specific goal and end date.

Public corporation means a public corporation created under RCW 35.21.730. A public corporation may be admitted as an "employer" under the definition in RCW 41.40.010(4).

Report means an employer's reporting of an employee's hours of service, compensation and contributions to the department on the monthly transmittal report.

Reportable compensation means compensation earnable as that term is defined in RCW 41.40.010(8).

Retirement plan as used in RCW 41.40.023 and in this chapter, means any plan operated wholly or in part by the state or a political subdivision. This includes, but is not limited to:

The retirement systems listed under RCW 41.50.030;

The retirement systems of the cities of Seattle, Spokane and Tacoma; or

Any higher education plan authorized under RCW 28B.10.400.

System acronyms used in this chapter are defined as follows:

"PERS" means the public employees' retirement system.

"TRS" means the teachers' retirement system.

"SERS" means the school employees' retirement system.

Union means a labor guild, labor association, and/or labor organization.

Union employer means a union or a union lodge or other division of a union which has verified that it meets the definition of a Plan 1 employer in RCW 41.40.010.

Year means any twelve consecutive month period established and applied consistently by an employer to evaluate the eligibility of a specific position. The term may include, but is not limited to, a school year, calendar year or fiscal year.

Example: An employer has used the twelve consecutive month period from July 1 to June 30 to evaluate the eligibility of positions. When the employer hires a new employee to fill an existing position, the employer must continue to use the July 1 through June 30 period to define a year for the position. Example: If the same employer in the above example hires a person to work in a project position beginning in November, the employer will use the twelve-month period beginning in November to evaluate the eligibility of the new position. The employer must consistently apply this twelve-month period to evaluate the eligibility of this position.

[Statutory Authority: RCW 41.50.050. 98-09-059, 415-108-010, filed 4/17/98, effective 5/18/98; 95-16-053, 415-108-010, filed 7/25/95, effective 8/25/95. Statutory Authority: RCW 41.50.050 and Bowles v. Retirement Systems, 121 Wn.2d 52 (1993). 94-11-009, 415-108-010, filed 5/5/94, effective 6/5/94. Statutory Authority: RCW 41.50.050(5) and 41.40.010 (4)(a). 93-11-077, 415-108-010, filed 5/18/93, effective 6/18/93. Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), 415-108-010, filed 2/15/78. Formerly WAC 184-01-025 and 184-01-035.]

     The following sections of the Washington Administrative Code are repealed:

WAC 415-108-0101	Level of union organization -- Definition.
WAC 415-108-0102	Normally -- Definition.
WAC 415-108-0103	Project position -- Definition.
WAC 415-108-0104	Report -- Definition.
WAC 415-108-0105	Retirement plan -- Definition.
WAC 415-108-0106	Union -- Definition.
WAC 415-108-0107	Union employer -- Definition.
WAC 415-108-0108	Year -- Definition.
WAC 415-108-0109	System acronyms -- Definition.
WAC 415-108-0110	Reportable compensation -- Definition.
WAC 415-108-0111	Annual leave -- Definition.

Washington State Code Reviser's Office