WSR 18-05-098

PROPOSED RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[Filed February 21, 2018, 11:04 a.m.]

Original Notice.

Preproposal statement of inquiry was filed as WSR 17-20-072.

Title of Rule and Other Identifying Information: WAC 415-106-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in PSERS?, 415-108-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in PERS?, 415-110-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in SERS?, and 415-112-546 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in TRS?

Hearing Location(s): On March 27, 2018, at 10:00 a.m., at the Department of Retirement Systems (DRS), Conference Room 115, 6835 Capitol Boulevard S.E., Tumwater, WA 98502.

Date of Intended Adoption: March 28, 2018.

Submit Written Comments to: Jilene Siegel, DRS, P.O. Box 48380, Olympia, WA 98504-8380, email Rules@drs.wa.gov, by March 26, 2018.

Assistance for Persons with Disabilities: Contact Jilene Siegel, phone 360-664-7291, TTY 711, email Rules@drs.wa.gov, by March 23, 2017 [2018].

Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: To clarify that eligibility for early retirement does not make a member ineligible to establish membership in another state retirement system.

Reasons Supporting Proposal: The department believes this interpretation reflects the legislative intent to accommodate career transitions within public service. The retirement statutes prohibit membership in one retirement plan after becoming eligible to retire from another plan, to prevent members from receiving a pension while also collecting wages for public employment. When that provision was enacted, early retirement with a reduced benefit was not available. However, a member may now be eligible for an early retirement benefit that would be reduced to a small fraction of its value at full retirement age. This rule allows the member to defer retirement from the first plan, while earning benefits in another plan related to subsequent public employment.

Statutory Authority for Adoption: RCW 41.50.050 Powers, duties, and functions of director.

Statute Being Implemented: RCW 41.04.270 Public retirement systems—Members or beneficiaries estopped from becoming a member or accruing rights in any other public retirement system—Exceptions.

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

Name of Proponent: DRS, governmental.

Name of Agency Personnel Responsible for Implementation: Seth Miller, DRS, P.O. Box 48380, Olympia, WA 98504, 360-664-7304.

A school district fiscal impact statement is not required under RCW 28A.305.135.

A cost-benefit analysis is not required under RCW 34.05.328. RCW 34.05.328 (5)(a)(i) does not apply to this proposed rule and is not voluntarily made applicable by the agency.

This rule proposal, or portions of the proposal, is exempt from requirements of the Regulatory Fairness Act because the proposal:

Is exempt under RCW 19.85.025(4).

Explanation of exemptions: This rule only impacts members of the state retirement systems and does not affect small businesses.

February 21, 2018

Jilene Siegel

Rules Coordinator

AMENDATORY SECTION (Amending WSR 09-19-046, filed 9/10/09, effective 10/11/09)

WAC 415-106-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in PSERS?

(1) If you have retired from another retirement system authorized by the laws of this state, you cannot participate in PSERS membership unless:

(a) You accrued less than fifteen years of service credit in the other retirement system; or

(b) You are a LEOFF Plan 2 retiree returning to work in a PSERS eligible position and choose to participate in PSERS membership. See WAC 415-104-111.

(2) If you are eligible ((to retire)) for normal retirement from another retirement system listed in RCW 41.50.030, you cannot participate in PSERS membership unless:

(a) You accrued less than fifteen years of service credit in the other retirement system; or

(b) You are a dual member as described in RCW 41.54.010.

(3) If you are receiving a disability allowance from another retirement system listed in RCW 41.50.030, you cannot participate in PSERS membership unless you are a LEOFF Plan 2 retiree returning to work in a PSERS eligible position and choose to participate in PSERS membership. See WAC 415-104-111.

(4) Defined terms used. Definitions for the following terms used in this section are:

(a) "Membership" - RCW 41.37.020.

(b) "Service" - RCW 41.37.010.

(c) "Normal retirement" – A member is eligible for normal retirement when they have met their plan's age and/or service credit requirements for a full retirement benefit. Normal retirement does not include early retirement with a reduced benefit, or early retirement with employment restrictions prior to full retirement age. See the following plan definitions of normal retirement:

Public Employees' Retirement System (PERS) Plan 1 – RCW 41.40.180;

Public Employees' Retirement System (PERS) Plan 2 – RCW 41.40.630(1);

Public Employees' Retirement System (PERS) Plan 3 – RCW 41.40.820(1);

Public Safety Employees' Retirement System (PSERS) – RCW 41.37.210 (1) and (2);

School Employees' Retirement System (SERS) Plan 2 – RCW 41.35.420(1);

School Employees' Retirement System (SERS) Plan 3 – RCW 41.35.680(1);

Teachers' Retirement System (TRS) Plan 1 – RCW 41.32.480(1);

Teachers' Retirement System (TRS) Plan 2 – RCW 41.32.765(1);

Teachers' Retirement System (TRS) Plan 3 – RCW 41.32.875(1);

Washington State Patrol Retirement System (WSPRS) – RCW 43.43.250(2).

AMENDATORY SECTION (Amending WSR 09-19-046, filed 9/10/09, effective 10/11/09)

WAC 415-108-725 If I have retired from another retirement system or am eligible to retire, am I excluded from participating in PERS?

(1) If you have retired from another retirement system authorized by the laws of this state you cannot participate in PERS membership unless:

(a) You established membership in PERS prior to March 19, 1976;

(b) You accrued less than fifteen years of service credit in the other retirement system; or

(c) You are a LEOFF Plan 2 retiree returning to work in a PERS eligible position and choose to participate in PERS membership. See WAC 415-104-111.

(2) If you are eligible ((to retire)) for normal retirement from another retirement system listed in RCW 41.50.030, you cannot participate in PERS membership unless:

(a) You established membership in PERS prior to March 19, 1976;

(b) You accrued less than fifteen years of service credit in the other retirement system; or

(3) If you are receiving a disability allowance from another retirement system listed in RCW 41.50.030, you cannot participate in PERS membership unless:

(a) You established membership in PERS prior to March 19, 1976; or

(b) You are a LEOFF Plan 2 retiree returning to work in a PERS eligible position and choose to participate in PERS membership. See WAC 415-104-111.

(4) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.

(a) "Membership" - RCW 41.40.023.

(b) "Service" - RCW 41.40.010.