(1) PERS Plan 1 and TRS Plan 1 members can choose to receive an initially reduced retirement benefit in order to receive an annual cost-of-living adjustment in the future. With this optional COLA, the member's monthly retirement benefit is actuarially reduced at the time of retirement. Thereafter, the monthly benefit of the member (and subsequently their beneficiary) is adjusted annually, based on changes in the consumer price index (CPI) for the Seattle-Tacoma-Bremerton, Washington area, up to the statutory maximum. For more information, see:
PERS Plan 1: RCW
41.40.188 (1)(c); WAC
415-108-326 TRS Plan 1: RCW
41.32.530 (1)(d); WAC
415-112-504 (2)
Examples (a) Ernie is a member of TRS Plan 1. He retires at age 55 with 30 years of service and chooses the Single Life Option (no survivor beneficiary). His average final compensation (AFC) is $4,295.33 per month.
(i) If he
does not choose the optional COLA, his monthly benefit will be $2,577.20 (2% x 30 x $4,295.33).
(ii) If he
does choose the optional COLA, his initial monthly benefit will be reduced to $1,909.19, based on the factor in the table in subsection (3) of this section (.7396 x $2,577.20). This monthly amount may increase each year with changes in the CPI.
Regardless whether or not Ernie chooses the optional COLA, he will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.
(b) Tina is a member of PERS Plan 1. She retires with 30 years of service credit at age 52 and 8 months. Because she has 30 years of service, there is no reduction for an early retirement. Tina chooses the Single Life Option (no survivor beneficiary). Her average final compensation (AFC) is $3,825.00 per month.
(i) If she
does not choose the optional COLA, her monthly benefit will be $2,295.00 (2% x 30 x $3,825.00).
(ii) If she
does choose the optional COLA, her initial monthly benefit will be reduced to $1,692.56, based on the factor in the table in subsection (3) of this section (.7375 x $2,295.00). This monthly amount may increase each year with changes in the CPI.
Regardless whether or not Tina chooses the optional COLA, she will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.
(3)
Table. Use these factors to convert monthly benefit payments (any retirement option) without the optional COLA to the same retirement option with the optional COLA. The following factors are effective September 1, 2010.
Plan 1 Optional COLA Factors | Age | PERS 1 | TRS 1 | | Age | PERS 1 | TRS 1 |
| 20 | .6636 | .6664 | | 61 | .7713 | .7648 |
| 21 | .6650 | .6675 | | 62 | .7760 | .7693 |
| 22 | .6665 | .6687 | | 63 | .7807 | .7739 |
| 23 | .6680 | .6698 | | 64 | .7855 | .7786 |
| 24 | .6695 | .6710 | | 65 | .7904 | .7833 |
| 25 | .6711 | .6722 | | 66 | .7953 | .7881 |
| 26 | .6727 | .6734 | | 67 | .8003 | .7930 |
| 27 | .6743 | .6746 | | 68 | .8054 | .7980 |
| 28 | .6760 | .6759 | | 69 | .8105 | .8030 |
| 29 | .6777 | .6772 | | 70 | .8157 | .8081 |
| 30 | .6794 | .6786 | | 71 | .8210 | .8133 |
| 31 | .6811 | .6800 | | 72 | .8263 | .8185 |
| 32 | .6828 | .6815 | | 73 | .8317 | .8238 |
| 33 | .6845 | .6831 | | 74 | .8370 | .8291 |
| 34 | .6862 | .6847 | | 75 | .8425 | .8344 |
| 35 | .6879 | .6864 | | 76 | .8479 | .8398 |
| 36 | .6897 | .6881 | | 77 | .8533 | .8452 |
| 37 | .6915 | .6900 | | 78 | .8588 | .8506 |
| 38 | .6934 | .6918 | | 79 | .8642 | .8560 |
| 39 | .6954 | .6938 | | 80 | .8696 | .8614 |
| 40 | .6975 | .6959 | | 81 | .8750 | .8668 |
| 41 | .6997 | .6980 | | 82 | .8803 | .8722 |
| 42 | .7020 | .7002 | | 83 | .8856 | .8775 |
| 43 | .7045 | .7024 | | 84 | .8907 | .8828 |
| 44 | .7071 | .7048 | | 85 | .8957 | .8879 |
| 45 | .7099 | .7073 | | 86 | .9006 | .8929 |
| 46 | .7129 | .7098 | | 87 | .9053 | .8978 |
| 47 | .7161 | .7125 | | 88 | .9098 | .9025 |
| 48 | .7194 | .7153 | | 89 | .9141 | .9070 |
| 49 | .7229 | .7183 | | 90 | .9181 | .9113 |
| 50 | .7264 | .7214 | | 91 | .9218 | .9153 |
| 51 | .7300 | .7247 | | 92 | .9253 | .9191 |
| 52 | .7337 | .7282 | | 93 | .9286 | .9226 |
| 53 | .7375 | .7319 | | 94 | .9316 | .9258 |
| 54 | .7414 | .7357 | | 95 | .9343 | .9288 |
| 55 | .7454 | .7396 | | 96 | .9369 | .9316 |
| 56 | .7494 | .7435 | | 97 | .9392 | .9342 |
| 57 | .7536 | .7476 | | 98 | .9415 | .9365 |
| 58 | .7579 | .7518 | | 99 | .9436 | .9388 |
| 59 | .7623 | .7560 | | | | |
| 60 | .7668 | .7604 | | | | |
[Statutory Authority: RCW 41.50.050(5). 10-16-086, § 415-02-360, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. 08-20-068, § 415-02-360, filed 9/25/08, effective 10/26/08; 02-18-048, § 415-02-360, filed 8/28/02, effective 9/1/02.]