PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 02-08-063.
Title of Rule: WAC 415-111-220 How do I choose a defined contribution rate?
Purpose: The current WAC provides information about defined contribution rates. The amendment clarifies that TRS members can change their contribution rate choice every January. Amendments also clarify rules regarding changing employers.
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: RCW 41.34.040.
Summary: Amendment provides clarification.
Reasons Supporting Proposal: The legislature provided authority for members of TRS, PERS, and SERS to change contribution rates every January. To date, the Internal Revenue Service has only provided authority for TRS members to make the changes in January.
Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dave Nelsen, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7069.
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: Please see Purpose, Summary, and Reasons Supporting Proposal above.
Proposal Changes the Following Existing Rules: Please see Purpose, Summary, and Reasons Supporting Proposal above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. This amendment has 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, Conference Room 115, Tumwater, WA, on December 23, 2003, 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 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 December 23, 2003.
Date of Intended Adoption: No sooner than December 24, 2003.
November 13, 2003
Merry A. Kogut
Rules Coordinator
OTS-6800.2
AMENDATORY SECTION(Amending WSR 01-15-038, filed 7/13/01,
effective 7/26/01)
WAC 415-111-220
How do I choose a defined contribution
rate?
(1) Contribution rates: If you are a member of the
Teachers' Retirement System (TRS) Plan 3, the School
Employees' Retirement System (SERS) Plan 3, or the Public
Employees' Retirement System (PERS) Plan 3, you are required
to contribute from your compensation according to one of the
following rate structures:
| (( |
|
| Base Rate | Additional Rate | Total Contribution Rate | |
| Option A | |||
| All ages | 5.0% | 0.0% | 5.0% |
| Option B | |||
| Up to age 35 | 5.0% | 0.0% | 5.0% |
| Age 35 to 44 | 5.0% | 1.0% | 6.0% |
| Age 45 and above | 5.0% | 2.5% | 7.5% |
| Option C | |||
| Up to age 35 | 5.0% | 1.0% | 6.0% |
| Age 35 to 44 | 5.0% | 2.5% | 7.5% |
| Age 45 and above | 5.0% | 3.5% | 8.5% |
| Option D | |||
| All ages | 5.0% | 2.0% | 7.0% |
| Option E | |||
| All ages | 5.0% | 5.0% | 10.0% |
| Option F | |||
| All ages | 5.0% | 10.0% | 15.0% |
(3) Where do I get the form to make my choice? Your employer must provide the appropriate form to choose a contribution rate if you are enrolling in Plan 3 or transferring from Plan 2 to Plan 3.
(4) When do I have to choose? You must ((irrevocably))
choose a contribution rate within ninety calendar days from
your date of hire in an eligible position. However, if you
are transferring from Plan 2 to Plan 3, you must choose a
contribution rate at the same time you transfer. The
ninety-day period does not apply to a member transferring from
Plan 2 to Plan 3.
(5) When do contributions begin?
(a) Once you choose a contribution rate, contributions will begin the first day of the pay cycle in which you make the choice.
(b) If the employer advises the department that you should be reported into Plan 3 membership retroactively, the ninety-day period starts from the date it is discovered that you should have been reported. The department will decide which date to use.
(6) What if I work for more than one employer? If you are a Plan 3 member working in eligible positions for more than one employer, you may select a different contribution rate with each employer.
(7) What happens if I do not make a choice? Under RCW 41.34.040, you will be ((irrevocably)) assigned ((to)) a base
rate of 5% (Option A) if:
(a) You are a new employee or changing your employer, and do not choose a contribution rate within the ninety-day election period described in subsection (4) of this section; or
(b) You are transferring from Plan 2 to Plan 3 and do not choose a contribution rate at the time of transfer. Contributions required under subsection (a) or (b) will begin the first day of the pay cycle in which you are assigned to Option A.
(8) Can I change my contribution rate?
(a) Except as provided in (c) of this subsection, once
you ((elect)) choose a contribution rate or are ((defaulted
into)) assigned the base rate of 5% (Option A), you cannot
change your contribution rate unless you change employers.
(b) Each time you change employers, you ((will be allowed
the ninety-day period described in subsection (4) of this
section to choose a new contribution rate)) must choose a new
contribution rate within ninety days or you will be assigned a
base rate of 5% (Option A). No contributions will be taken
until you choose a rate or until the ninety-day period has
elapsed, whichever occurs first.
(c) Each January, TRS Plan 3 members may change their contribution rate option by providing written notification to their employer as described in WAC 415-111-110(1).
[Statutory Authority: RCW 41.34.040, 41.50.050(5). 01-15-038, § 415-111-220, filed 7/13/01, effective 7/26/01. Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, § 415-111-220, filed 12/12/00, effective 1/12/01.]