WSR 02-15-073




[ Filed July 15, 2002, 9:30 a.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 01-23-077.

Title of Rule: WAC 415-108-445 What compensation can be reported? (PERS).

Purpose: This public employees' retirement system (PERS) WAC explains what compensation can be reported for retirement service credit. The purpose of this filing is to correct an error. At the same time, the Department of Retirement Systems (DRS) is making one grammatical change.

Statutory Authority for Adoption: RCW 41.50.050(5).

Statute Being Implemented: RCW 41.40.010(8).

Summary: This WAC is being updated to correct an error.

Reasons Supporting Proposal: The current WAC is incorrect.

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: See Purpose above.

Proposal Changes the Following Existing Rules: See Purpose above.

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

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

Hearing Location: Department of Retirement Systems, 6835 Capitol Boulevard, Boardroom, 3rd Floor, Tumwater, WA, on August 27, 2002, at 9:00 a.m.

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

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, fax (360) 753-3166, by 5:00 p.m. on August 27, 2002.

Date of Intended Adoption: No sooner than August 28, 2002.

July 12, 2002

Merry A. Kogut

Rules Coordinator


AMENDATORY SECTION(Amending WSR 02-03-120, filed 1/23/02, effective 3/1/02)

WAC 415-108-445   What compensation can be reported?   (1) Compensation earnable:

(a) Compensation earnable must meet the definition in RCW 41.40.010(8) and:

(i) Be earned as a salary or wage for personal services provided during a ((fiscal year)) payroll period and be paid by an employer to an employee; or

(ii) Qualify as compensation earnable under WAC 415-108-464 through 415-108-470.

(b) The department determines whether payments to an employee are compensation earnable based on the nature, not the name, of the payment. The department considers the reason for the payment and whether the reason brings the payment within the statutory definition of compensation earnable.

Example: "Longevity pay" conditioned on retirement is not for services provided and is therefore not compensation earnable.

(c) "Compensation earnable" is defined in very similar terms for all three PERS plans. Any differences among plans are specifically noted in WAC 415-108-443 through 415-108-488.

(2) Reportable compensation:

(a) Reportable compensation is the compensation paid by an employer to an employee that the employer must report to the department.

(b) An employer must report all of an employee's compensation earnable ((of an employee)), as defined by RCW 41.40.010(8) and WAC 415-108-445(1), to the department.

(c) An employer must report compensation for the month in which it was earned. Compensation is earned when the service is provided, rather than when payment is made.

Example: A member is paid in July for work performed during June. The employer must report the compensation to the department as "June earnings."

[Statutory Authority: RCW 41.50.050(5) and 41.40.010. 02-03-120, 415-108-445, filed 1/23/02, effective 3/1/02. Statutory Authority: RCW 41.50.050. 98-09-059, 415-108-445, filed 4/17/98, effective 5/18/98.]

Washington State Code Reviser's Office