PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 05-07-030.
Title of Rule and Other Identifying Information: WAC 415-501-110 Definitions, amending the definition of "eligible employee."
Hearing Location(s): Department of Retirement Systems, 6835 Capitol Boulevard, Conference Room 115, Tumwater, WA, on June 21, 2005, at 9:00 a.m.
Date of Intended Adoption: June 22, 2005.
Submit Written Comments to: Leslie L. Saeger, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail leslies@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m. on June 21, 2005.
Assistance for Persons with Disabilities: Contact Leslie Saeger, Rules Coordinator, by June 13, 2005, TDD (360) 664-7291, TTY (360) 586-5450, phone (360) 664-7291.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: This amendment brings the definition of "eligible employee" in line with the definition in RCW 41.50.770. As currently written the rule appears to limit the participation of employees who work less than half time.
Statutory Authority for Adoption: RCW 41.50.780(10).
Statute Being Implemented: RCW 41.50.770.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Department of Retirement Systems, governmental.
Name of Agency Personnel Responsible for Drafting: Leslie Saeger, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Dorothy Bailey, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These rules have no effect on businesses.
A cost-benefit analysis is not required under RCW 34.05.328. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.
May 9, 2005
Leslie Saeger
Rules and Contracts Coordinator
OTS-8000.1
AMENDATORY SECTION(Amending WSR 04-22-053, filed 10/29/04,
effective 11/29/04)
WAC 415-501-110
Definitions.
(1) Accumulated deferrals.
Compensation deferred under the plan, adjusted by income
received, increases or decreases in investment value, fees,
and any prior distributions made.
(2) Beneficiary. A beneficiary of a participant, a participant's estate, or any other person whose interest in the plan is derived from the participant.
(3) Compensation. All payments made to a public employee by the employer as remuneration for services rendered.
(4) Deferred compensation. The amount of the participant's compensation that is deferred under a participation agreement. See WAC 415-501-410.
(5) Deferred compensation plan or plan. A plan that allows employees of the state of Washington and approved political subdivisions of the state of Washington to defer a portion of their compensation according to the provisions of Section 457(b) of the Internal Revenue Code.
(6) Department. The department of retirement systems created by RCW 41.50.020 or its designee.
(7) Eligible employee. Any person who is employed by and
receives any type of compensation from ((an)) a participating
employer for whom services are provided, and who is:
(a) A full-time, ((permanent)) part-time ((working
half-time, or more)), or career seasonal employee of ((the
employer)) Washington state, a county, a municipality, or
other political subdivision of the state, whether or not
covered by civil service;
(b) An elected or appointed official of the executive
branch of the government, including ((any)) a full-time member
of a board, commission, or committee;
(c) A justice of the supreme court, or a judge of the court of appeals or of a superior or district court; or
(d) A member of the state legislature or of the legislative authority of a county, city, or town.
(8) Eligible rollover distribution. A distribution to a participant of any or all funds from an eligible retirement plan unless it is:
(a) One in a series of substantially equal annuity payments;
(b) One in a series of substantially equal installment payments payable over ten years or more;
(c) Required to meet minimum distribution requirements of the plan; or
(d) Distributed for hardship or unforeseeable emergency from a 457 plan.
(9) Employee retirement benefits board. The board created by RCW 41.50.086.
(10) Employer.
(a) The state of Washington; and
(b) Approved political subdivisions of the state of Washington.
(11) Normal retirement age. An age designated by the participant for purposes of the three-year catch-up provision described in WAC 415-501-430(2). The participant may choose a normal retirement age between:
(a) The earliest age at which an eligible participant has the right to receive retirement benefits without actuarial adjustment from his/her retirement plan with the same employer; and
(b) Age seventy and one-half.
(12) Participant. An eligible employee:
(a) Who has submitted a participation agreement that is approved by the department; and
(b) Who either:
(i) Is currently deferring compensation under the plan; or
(ii) Has previously deferred compensation and has not received a distribution of his/her entire benefit under the plan.
(13) Participation agreement. The agreement executed by an eligible employee pursuant to WAC 415-501-410, in which the eligible employee chooses to become a plan participant.
(14) You, as used in this chapter, means a participant as defined in subsection (12) of this section.
[Statutory Authority: RCW 41.50.050(5), 41.50.780(10), and 41.50.770. 04-22-053, § 415-501-110, filed 10/29/04, effective 11/29/04. Statutory Authority: RCW 41.50.050(5), 41.50.030(2), 41.50.088(2), 41.50.770, and 41.50.780, 26 U.S.C. (Internal Revenue Code) and related tax regulations. 02-01-121, § 415-501-110, filed 12/19/01, effective 1/1/02. Statutory Authority: RCW 41.50.770, [41.50.]780 and 41.50.050. 00-11-104, amended and recodified as § 415-501-110, filed 5/18/00, effective 6/18/00. Statutory Authority: RCW 41.50.050 and 41.50.780(11). 96-16-020, § 415-504-010, filed 7/29/96, effective 7/29/96.]