WSR 19-19-065
PROPOSED RULES
EMPLOYMENT SECURITY DEPARTMENT
[Filed September 17, 2019, 7:58 a.m.]
Original Notice.
Preproposal statement of inquiry was filed as WSR 19-15-145.
Title of Rule and Other Identifying Information: Amending WAC 192-190-020 Are lump sum retirement payments deductible from my benefits (RCW
50.04.323)? and 192-190-025 How is the pension deduction calculated?, to clarify that any pension payments that an unemployment insurance benefits claimant receives should be deducted from the claimant's weekly benefit amount and not deducted from the claimant's maximum benefits payable.
Hearing Location(s): On October 24, 2019, at 8:00 – 9:00 a.m., at the Employment Security Department, 212 Maple Park, Commissioner's Conference Room, Olympia, WA 98501.
Date of Intended Adoption: December 6, 2019.
Submit Written Comments to: Joshua Dye, P.O. Box 9046, Olympia, WA 98507-9046, email rules@esd.wa.gov, fax 844-652-7096, by October 23, 2019.
Assistance for Persons with Disabilities: Contact Teresa Eckstein, phone 360-507-9890, fax 360-586-4600, TTY relay 711, email teckstein@es.wa.gov [teckstein@esd.wa.gov], by October 23, 2019.
Purpose of the Proposal and Its Anticipated Effects, Including Any Changes in Existing Rules: Under current rules, WAC 192-190-090 and 192-190-025, retirement payments are deducted from maximum benefits payable. The proposed rules will deduct retirement benefits from weekly benefit amounts. These rules are being amended to address circumstances when claimants are seeing delays in exhausting benefits. Unemployment insurance benefit claimants may be eligible for additional benefits once benefits are exhausted and these rules will eliminate those delays.
Reasons Supporting Proposal: The proposed rules ensure that claimants with pension deductions are able to exhaust unemployment benefits in a timely manner. By exhausting benefits, claimants may be eligible for additional benefits, including but not limited to federal Trade Act programs, emergency unemployment compensation, and state-funded training benefits. Timely access to other entitlements allows claimants to achieve greater financial stability. As of August 2019, there are one hundred twelve active claimants with pension deductions.
Rule is not necessitated by federal law, federal or state court decision.
Name of Proponent: Employment security department, governmental.
Name of Agency Personnel Responsible for Drafting: Scott Michael, Olympia, Washington, 360-890-3448; Implementation and Enforcement: Julie Lord, Olympia, Washington, 360-902-9579.
A school district fiscal impact statement is not required under RCW
28A.305.135.
A cost-benefit analysis is required under RCW
34.05.328. A preliminary cost-benefit analysis may be obtained by contacting Joshua Dye, P.O. Box 9046, Olympia, WA 98507-9046, phone 360-890-3472, fax 844-652-7096, email
Rules@esd.wa.gov,
https://esd.wa.gov/newsroom/ui-rule-making/.
The proposed rule does not impose more-than-minor costs on businesses. Following is a summary of the agency's analysis showing how costs were calculated. The proposed rules do not increase costs to employers as it does not expand access to benefits. Benefits available to claimants that have exhausted unemployment benefits include, but are not limited to, federal Trade Adjustment Assistance Reauthorization Act of 2015 benefits, emergency unemployment compensation, and state-funded extended benefits. These additional benefits are not charged to employers.
September 17, 2019
Dan Zeitlin
Employment Security Policy Director
AMENDATORY SECTION(Amending WSR 10-11-046, filed 5/12/10, effective 6/12/10)
WAC 192-190-020
Are lump sum retirement payments deductible from my benefits (RCW 50.04.323)?Lump sum retirement benefits are deductible from ((benefits))your weekly benefit amount as provided in this section.
(1) Lump sum retirement payments are prorated over ((the individual's))your life expectancy as determined by Title I in Regulation 1.72-9 of the Internal Revenue Code. The percentage contributed by the employer to the retirement will be prorated over ((the individual's))your life expectancy to determine the amount deducted from ((benefits))your weekly benefit amount.
(2) After a job separation, the withdrawal of only the funds and applicable interest contributed by ((the individual))you to a retirement pension is not deductible from ((benefits))your weekly benefit amount.
(3) The transfer or rollover of a lump sum retirement payment within sixty days of receipt to another long-term retirement plan, such as an individual retirement account (IRA), or 401K is not deductible from ((benefits))your weekly benefit amount.
AMENDATORY SECTION(Amending WSR 10-11-046, filed 5/12/10, effective 6/12/10)
WAC 192-190-025How is the pension deduction calculated?
(1) The share contributed by the employer to the pension is deductible from ((benefits))your weekly benefit amount. The amount of the deduction equals the percentage of the contribution(s) made by the base year employer as of the last pay period in the base year in which the contribution(s) was made. The department will prorate the employer's share to a weekly amount which will be deducted from your weekly benefit amount.
(a) The department will presume the services you provided to the employer in the base year affected eligibility for or increased the pension amount unless you provide verification from the employer or the pension fund administrator showing otherwise.
(b) The department will presume you made no contribution to the pension unless you provide evidence satisfactory to the department that such a contribution was made.
(2) A disability pension based entirely on the percentage of disability is not deductible. For example, disability payments paid by the Veterans Administration (VA) based on extent of injury are not deductible.
(3) Retirement benefits paid by the Social Security Administration are not deductible from benefits.
(4) For purposes of this section, "pension" includes retirement benefits or retired pay, annuity, or other similar periodic payment.