WSR 99-23-013

PROPOSED RULES

DEPARTMENT OF

RETIREMENT SYSTEMS

[ Filed November 5, 1999, 2:11 p.m. ]

Original Notice.

Preproposal statement of inquiry was filed as WSR 99-19-127.

Title of Rule: Changes to PERS and TRS chapters 415-108 and 415-112 WAC, to clarify and comply with amendments to chapters 41.32, 41.40 and 41.50 RCW.

Purpose: To amend the department's rules implementing the law codified in chapters 41.40, 41.32 and 41.50 RCW in order to make those rules consistent with 1997 and 1999 statutory amendments.

Statutory Authority for Adoption: RCW 41.50.050.

Statute Being Implemented: Chapters 41.32, 41.40, and 41.50 RCW.

Summary: The proposed rules amend the department's teacher retirement system and public retirement system rules so that they clarify and conform to RCW 41.32.010, 41.32.570, 41.32.800, 41.32.802, 41.32.860, 41.32.862, 41.40.010, 41.40.023 (4)(12), 41.40.037, 41.40.150(4), 41.40.690.

Reasons Supporting Proposal: To bring the department's rules into conformity with chapters 41.32 and 41.40 RCW as amended.

Name of Agency Personnel Responsible for Drafting: Elyette Weinstein, 6835 Capitol Boulevard, Tumwater, (360) 664-7307; Implementation: Margaret Wimmer, 6835 Capitol Boulevard, Tumwater, (360) 664-7044; and Enforcement: Jack Bryant, 6835 Capitol Boulevard, Tumwater, (360) 664-7193.

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: The proposed rule is an amendment to provisions of chapters 415-108 and 415-112 WAC governing the department's implementation of the teachers and public employee retirement systems codified in chapters 41.32, 41.40 and 41.50 RCW. The amendments are necessary to reflect the changes to these chapters enacted after the WACs went into effect. The purpose of the rules is to bring them into conformity with the statutes as amended to ensure that there are no conflicts between the rules and the authorizing statutes.

Proposal Changes the Following Existing Rules: WAC 415-108-710 and 415-108-720 are changed to conform to the requirements of RCW 41.40.023(12), 41.40.037, 41.40.150(4), 41.40.690 passed in 1997 and 1998; and WAC 415-112-540 and 415-112-545 are changed to conform to the requirements of RCW 41.32.570 passed in 1999.

New sections in chapter 415-112 WAC have been drafted to conform to the requirements of RCW 41.32.800, 41.32.802, 41.32.860, 41.32.862 which were passed in 1997 and 1998.

No small business economic impact statement has been prepared under chapter 19.85 RCW. The rules apply to public employers and employees participating in the retirement systems administered by DRS. No private business is affected by the rules, therefore, no small business impact statement is required.

Section 201, chapter 403, Laws of 1995, does not apply to this rule adoption. The Department of Retirement Systems (DRS) is not one of the agencies that RCW 34.05.328 applies to. DRS does not opt to voluntarily bring itself within the coverage of that statute.

Hearing Location: Boardroom, 3rd Floor, 6835 Capitol Boulevard, Tumwater, WA, on December 22, 1999, at 1:00 p.m.

Assistance for Persons with Disabilities: Contact Elyette Weinstein by December 22, 1999, 11:00 a.m., TDD (360) 586-5450, or (360) 664-7298.

Submit Written Comments to: Elyette Weinstein, P.O. Box 48380, Olympia, WA 98504-8380, fax (360) 664-3618, by June [December] 22, 1999.

Date of Intended Adoption: December 22, 1999.

November 5, 1999

Elyette M. Weinstein

Rules Coordinator

OTS-3562.1


AMENDATORY SECTION(Amending WSR 97-01-015, filed 12/6/96, effective 1/6/97)

WAC 415-112-540
How will returning to work affect my TRS ((I)) Plan 1 monthly pension?

This section implements RCW 41.32.570(((1))) which limits employment for TRS ((I)) Plan 1 retirees with public educational institutions to five hundred twenty-five hours regardless of the nature of service.  In certain circumstances RCW 41.32.570 (((2) and)) (3), (4) and (5) allow additional service without suspension of your TRS ((I)) Plan 1 pension.  Those limitations are discussed in WAC 415-112-545.

(1) You may return to any type of service with a public educational institution for up to five hundred twenty-five hours per school year without affecting your TRS ((I)) Plan 1 monthly pension((.)) under RCW 41.32.570(((1))).

(a) Your employer must notify the department when you return to work. Your employer must notify the department if you work more than five hundred twenty-five hours for a public educational institution during a school year, unless you qualify for additional service under RCW 41.32.570 (((2) or)) (3), (4) or (5), see WAC 415-112-545.

(b) If you are a TRS Plan ((I)) 1 retiree, you may elect to return to membership if you are employed by a public school.  If you ((so elect)) return to membership, the department will suspend your monthly pension effective from the first of the month during which you return to employment.

(c) If you are a TRS Plan ((I)) 1 retiree working for a public educational institution as a bona fide independent contractor as determined under WAC 415-02-110, you are not considered an employee of the institution and are not subject to the work limitations of RCW 41.32.570.

(2) If you work for more than five hundred twenty-five hours during a school year the department will suspend your monthly pension. In some cases you may be able to work an additional ((one hundred five)) three hundred fifteen hours, see WAC 415-112-545.

(a) If you return to any type of service with a public educational institution ((pursuant to)) under a written contract or ((other)) continuing employment relationship, and you work for more than five hundred twenty-five hours during a school year, the department will suspend your monthly pension beginning with the five hundred twenty-sixth hour of employment.

(b) If you serve as ((a)) an on-call substitute teacher for more than five hundred twenty-five hours during a school year, the department will reduce your monthly pension by five percent for each day you work beyond the five hundred twenty-five hour limit until your monthly pension is reduced to zero.

(3) You must repay any monthly pension payment that you receive in excess of the amounts allowed under this section or WAC 415-112-545.

(4) The department will reinstate your pension at the end of the school year or after you terminate your employment. If the department suspends or reduces your monthly pension due to your reemployment, the department will reinstate the original amount of your pension, less deductions to ((recapture)) recover any overpayment, effective the day following your termination of employment, or at the end of the school year, whichever comes first.

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

(a) (("Day"; "five hundred twenty-five hours" - WAC 415-112-0152.

(b))) "Public educational institution" - WAC 415-112-0157.

(((c))) (b) "School year" - WAC 415-112-0161.

(((d))) (c) "Substitute teacher" - RCW 41.32.010(36).

[Statutory Authority: RCW 41.50.050.  97-01-015, § 415-112-540, filed 12/6/96, effective 1/6/97.  Statutory Authority: RCW 41.50.050 and 41.32.570.  91-21-084, § 415-112-540, filed 10/18/91, effective 11/18/91.  Statutory Authority: RCW 41.50.050(6) and 41.50.090.  78-03-023 (Order IV), § 415-112-540, filed 2/15/78.  Formerly WAC 462-28-040.]


AMENDATORY SECTION(Amending WSR 97-01-015, filed 12/6/96, effective 1/6/97)

WAC 415-112-545
How can I qualify for an additional ((one hundred five)) three hundred fifteen hours of service without having my TRS ((I)) Plan 1 monthly pension reduced?

In addition to the five hundred twenty-five hours of service permitted for TRS ((I)) Plan 1 retirees under RCW 41.32.570(((1))) (2), you are eligible to also serve for up to ((one hundred five)) three hundred fifteen more hours as ((a)) an on-call substitute teacher or substitute ((administrator)) principal without affecting your pension if you meet each of the following criteria.  See RCW 41.32.570 (((2) and)) (3) and (5).

(1) You must be employed by a school district. The option for TRS ((I)) Plan 1 retirees to work an additional ((one hundred five)) three hundred fifteen hours during a school year without affecting their pension is only available to school district employees.  An employee of a school district participating in a multidistrict substitute cooperative is also covered.  An employee of an educational service district, the State Schools For the Deaf or Blind, or an institution of higher education is not covered.

(2) You must be employed as a substitute teacher or substitute ((administrator)) principal.

(((a))) The term "substitute teacher" as used in RCW 41.32.570(((2))) (3) is limited to classroom teachers serving on an on-call basis.  A person working under a contract with a guaranteed number of hours or days does not qualify as a substitute teacher, see RCW 41.32.010(36).


Example: A school district employs a retiree as a substitute teacher under a contract for ninety days.  Because the retiree is employed under a contract and not on an on-call basis, she may not serve for more than five hundred twenty-five hours as a substitute teacher without having her monthly pension suspended.
(3)(a) You may be employed as a substitute administrator other than a principal for an additional one hundred five hours of service in addition to the five hundred twenty-five hours, see RCW 41.32.570(4).

(b) A substitute administrator is a person who fills in for an absent administrator on a temporary basis.  A substitute administrator can be employed under a contract with a guaranteed number of hours.  Substitute administrator positions include but are not limited to:

(i) Principal and assistant principal;

(ii) Superintendent and assistant superintendent;

(iii) Personnel manager;

(iv) Business manager; and

(v) School librarian.

(((3))) (4) Your school district employer must adopt a resolution. Before a school district can employ a TRS Plan ((I)) 1 retiree for ((an)) additional ((one hundred five)) hours in a fiscal year without affecting ((his or her)) the retiree's TRS ((I)) Plan 1 pension, the district must adopt a resolution establishing the need for the additional employment.  Each resolution is valid only for the school year in which it is adopted.  The resolution authorizes additional employment only on or after the date it has been adopted and cannot be applied retroactively.

(a) Authorizing additional hours for substitute teachers: To authorize a TRS Plan ((I)) 1 retiree to work an additional ((one hundred five)) three hundred fifteen hours in a fiscal year as a substitute teacher, a school district must adopt a resolution stating that it has exhausted or can reasonably anticipate exhausting its list of qualified and available substitutes, and therefore, the services of retired teachers or administrators are necessary to address that shortage.

(i) If a school district is a member of a multidistrict cooperative, the board of each school district in the cooperative must adopt such a resolution.

(ii) After a resolution has been adopted, a school district may employ a TRS Plan ((I)) 1 retiree as a substitute teacher for up to an additional ((one hundred five)) three hundred fifteen hours once its list of other qualified and available substitutes has been exhausted.

(b) Authorizing additional hours for substitute administrators: To authorize a TRS Plan ((I)) 1 retiree to work an additional one hundred five hours in a fiscal year as a substitute administrator, a school district must adopt a resolution stating that an emergency exists and the services of a retired administrator or retired teacher are required because the school district cannot find a replacement administrator to fill a vacancy.

(((4))) (c) Authorizing additional hours for substitute principals: To authorize a TRS Plan 1 retiree to work an additional two hundred ten hours above the additional one hundred five hours in a fiscal year as a substitute principal, a school district must adopt a resolution stating that an emergency exists and the services of a retired principal or retired teacher are required because the school district cannot find a replacement principal to fill the vacancy.

(5) Your school district must provide information to the department. If your school district employer is not a member of a multidistrict substitute cooperative, the district must:

(a) Within thirty days after a resolution is adopted:

(i) Send a copy of the resolution; and

(ii) If the resolution is for substitute teaching, send a list of all TRS Plan ((I)) 1 retirees working for the school district as substitute teachers.

(b) During the fiscal year:

(i) Send a copy of any amendments to the resolution or to the list of TRS Plan ((I)) 1 retirees working as substitutes;

(ii) Send written notice immediately if any TRS Plan ((I)) 1 retiree works beyond ((six hundred thirty)) eight hundred forty hours.

(c) At the end of the fiscal year: Send a letter indicating the total number of hours worked by each TRS Plan ((I)) 1 retiree that exceeded the ((six hundred thirty)) eight hundred forty hours.

(((5))) (6) If your employer is a member of a multidistrict substitute cooperative, the cooperative must provide the information.

If you are employed by a school district which is a member of a multidistrict substitute cooperative, the cooperative must provide the information specified in subsection (((4))) (5) of this section on behalf of each participating school district.

(((6))) (7) If you serve as a substitute teacher or substitute administrator for the additional ((one hundred five)) hours but you are not eligible to do so, the department will reduce your monthly pension.

(a) If you and your school district employer do not meet each of the criteria under this section, you are not eligible to serve as a substitute teacher for the additional ((one hundred five)) three hundred fifteen hours under RCW 41.32.570 (((2) or)) (3).

(b) If you or your school district employer do not meet each of the criteria under this section, you are not eligible to serve as a substitute administrator for an additional one hundred five hours under RCW 41.32.570(4) or as a substitute principal for an additional two hundred ten hours for a total of three hundred fifteen hours under RCW 41.32.570(5).

(c) If you serve for more than five hundred twenty-five hours during a school year, the department will reduce your monthly pension as provided under WAC 415-112-540(((3))).

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

(a) (("Day"; "one hundred five hours"; "five hundred twenty-five hours" - WAC 415-112-0152.

(b))) "School year" - WAC 415-112-0161.

(((c))) (b) "Substitute teacher" - RCW 41.32.010(36).

[Statutory Authority: RCW 41.50.050.  97-01-015, § 415-112-545, filed 12/6/96, effective 1/6/97.]

OTS-3563.1


NEW SECTION
WAC 415-112-025
Report--Definition.

"Report" means an employer's reporting of an employee's hours of service, compensation and contributions to the department on the monthly transmittal report.

[]


NEW SECTION
WAC 415-112-548
If I work for an employer after I retire, will it affect my TRS Plan 2 retirement allowance or TRS Plan 3 defined benefit retirement allowance? (Effective until September 1, 2000.)

(1) You may work for an employer after retirement without having your retirement benefit suspended if:

(a) You are employed in an ineligible position; or

(b) You are an active member of TIAA-CREF; or

(c) You reenter employment:

(i) No sooner than one calendar month after your retirement benefit accrues; and

(ii) You are employed in an eligible position no more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year.

(2) What happens if I work over the work limit in a calendar year?

(a) If you work for more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year, your TRS retirement allowance will be suspended if:

(i) You work in an eligible position as defined by TRS or PERS; or

(ii) You work as a law enforcement officer or fire fighter as defined by LEOFF.

(b) If you work in a position referred to in (a) of this subsection over the work limit, your employer will report that you have worked over the limit to the department. Effective as of the eight hundred sixty-eighth hour or sixth month of your employment, whichever is greater, you will not be entitled to the retirement allowance, even if the hours or months worked are nonconsecutive or your employment is with one or more employers.

(c) If you exceed the work limit, the department will:

(i) Suspend your retirement allowance until the next calendar year, unless you separate from service. If you separate from service, your benefit will resume effective the first day immediately following the date of separation;

(ii) Pro rate your retirement allowance for the month during which you exceeded the eight hundred sixty-seven hour limit.

(iii) Collect any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.

(2) Can I become a TRS member?

(a) Yes, but not automatically. You must elect in writing to become a member and file your notice of election with either your employer or the department.

(b) By working in a TRS eligible position after retirement you may elect at any time to reestablish membership prospectively under RCW 41.32.044. Membership is not retroactive.

Your membership will become effective the first day of the month immediately following the date your employer or the department receives written notification of your election to become a member.

If you work over the work limit in a given month, the soonest your membership can be effective is the first day of the following month, if your employer or the department receives written notification of your election before that date.

(c) If you reenter membership in TRS and later elect to retire again, the department will recalculate your retirement benefits under the applicable statutes and regulations.


Example 1:


Hunter is a TRS Plan 2 retiree. He separates from service on October 31st. He retires, effective November 1st. He returns to work in a TRS eligible position on January 2nd of the following year. On June 1st he realizes that on or about July 8th, he is going to exceed his eight hundred sixty-seven-hour limit for the year. On July 3rd he elects in writing to reenter TRS membership, effective July 8th. He files the election with his employer on July 5th.

On July 12th, Hunter works his eight hundred sixty-eighth hour. He will no longer be eligible for a TRS Plan 2 retirement allowance as of July 12th. He will become a member of TRS Plan 2 effective August 1st.


Example 2:


Jeremy is a TRS Plan 2 retiree. He separated from service June 30, 1999. He begins working in a TRS eligible position on July 1, 2001. By October 31, 2001, he has worked eight hundred eighty total hours. Jeremy may work as many hours as he wants for another calendar month. If he works after November 30, 2001, he will exceed the five-month work limit until the next calendar year.


Example 3:


Holly Mae is a TRS Plan 2 retiree. She separated from service on June 30, 1999. She begins working in a TRS eligible position on March 1, 2001. By August 31, 2001, she has worked four hundred total hours. She has not exceeded the hour work limit. She may continue to work during the calendar year until she exceeds the eight hundred sixty-seven-hour work limit.


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

(a) "Eligible position" - RCW 41.32.010, 41.40.010.

(b) "Employer" - RCW 41.32.010.

(c) "Membership" - RCW 41.32.044, 41.32.780, 41.32.835.

(d) "Ineligible position" - WAC 415-112-015.

(e) "Report" - WAC 415-112-025.

(f) "Accrue" - RCW 41.32.795, 41.32.855.

(g) "Law enforcement officer" - RCW 41.26.030.

[]


NEW SECTION
WAC 415-112-548
If I work for an employer after I retire, will it affect my TRS Plan 2 retirement allowance or TRS Plan 3 defined benefit retirement allowance? (Effective September 1, 2000.)

(1) You may work for an employer after retirement without having your retirement benefit suspended if:

(a) You are employed in an ineligible position; or

(b) You are an active member of TIAA-CREF; or

(c) You reenter employment:

(i) No sooner than one calendar month after your retirement benefit accrues; and

(ii) You are employed in an eligible position no more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year.

(2) What happens if I work over the work limit in a calendar year?

(a) If you work for more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year, your TRS retirement allowance will be suspended if:

(i) You work in an eligible position as defined by TRS, SERS or PERS; or

(ii) You work as a law enforcement officer or fire fighter as defined by LEOFF.

(b) If you work in a position referred to in (a) of this subsection over the work limit, your employer will report that you have worked over the limit to the department. Effective as of the eight hundred sixty-eighth hour or sixth month of your employment, whichever is greater, you will not be entitled to the retirement allowance, even if the hours or months worked are nonconsecutive or your employment is with one or more employers.

(c) If you exceed the work limit, the department will:

(i) Suspend your retirement allowance until the next calendar year, unless you separate from service. If you separate from service, your benefit will resume effective the first day immediately following the date of separation;

(ii) Pro rate your retirement allowance for the month during which you exceeded the eight hundred sixty-seven-hour limit.

(iii) Collect any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.

(3) Can I become a TRS member?

(a) Yes, but not automatically. You must elect in writing to become a member and file your notice of election with either your employer or the department.

(b) By working in a TRS eligible position after retirement you may elect at any time to reestablish membership prospectively under RCW 41.32.044. Membership is not retroactive.

Your membership will become effective the first day of the month immediately following the date your employer or the department receives written notification of your election to become a member.

If you work over the work limit in a given month, the soonest your membership can be effective is the first day of the following month, if your employer or the department receives written notification of your election before that date.

(c) If you reenter membership in TRS and later elect to retire again, the department will recalculate your retirement benefits under the applicable statutes and regulations.


Example 1:


Hunter is a TRS Plan 2 retiree. He separates from service on October 31st. He retires, effective November 1st. He returns to work in a TRS eligible position on January 2nd of the following year. On June 1st he realizes that on or about July 8th, he is going to exceed his eight hundred sixty-seven-hour limit for the year. On July 3rd he elects in writing to reenter TRS membership, effective July 8th. He files the election with his employer on July 5th.

On July 12th, Hunter works his eight hundred sixty-eighth hour. He will no longer be eligible for a TRS Plan 2 retirement allowance as of July 12th. He will become a member of TRS Plan 2 effective August 1st.


Example 2:


Jeremy is a TRS Plan 2 retiree. He separated from service June 30, 1999. He begins working in a TRS eligible position on July 1, 2001. By October 31, 2001, he has worked eight hundred eighty total hours. Jeremy may work as many hours as he wants for another calendar month. If he works after November 30, 2001, he will exceed the five-month work limit until the next calendar year.


Example 3:


Holly Mae is a TRS Plan 2 retiree. She separated from service on June 30, 1999. She begins working in a TRS eligible position on March 1, 2001. By August 31, 2001, she has worked four hundred total hours. She has not exceeded the hour work limit. She may continue to work during the calendar year until she exceeds the eight hundred sixty-seven-hour work limit.


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

(a) "Eligible position" - RCW 41.32.010, 41.35.010, 41.40.010.

(b) "Employer" - RCW 41.32.010.

(c) "Membership" - RCW 41.32.044, 41.32.780, 41.32.835.

(d) "Ineligible position" - WAC 415-112-015.

(e) "Report" - WAC 415-112-025.

(f) "Accrue" - RCW 41.32.795, 41.32.855.

(g) "Law enforcement officer" - RCW 41.26.030.

[]

OTS-3564.1


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-710
If I work for an employer after I retire, will my retirement benefit be affected? (Effective until September 1, 2000.)

(1) ((If you reenter membership after retiring, the department will suspend payment of your benefit.

(2) You may work for an employer in some circumstances without reentering membership. You may enter employment with an employer after retirement without having to reenter membership if:

(a) You are employed in an ineligible position; or

(b) You are employed in an eligible position on a temporary basis for five months or less in a calendar year.

(i) If you enter compensated employment in an eligible position during a month, that month is counted as a month of employment in the calendar year regardless of the number of hours you worked in the month.

(ii) If you are employed in an eligible position for any five months during a calendar year, the department will count your employment as five months of employment, regardless of whether or not the months are consecutive or your employment is with one or more employers.

(3) You are required to reenter membership if you become reemployed in an eligible position on a temporary basis for more than five months in a calendar year. If you become reemployed in an eligible position on a temporary basis for more than five months in a calendar year you will reenter membership in the retirement system beginning with the sixth month of your employment.  Effective at the beginning of the sixth month of your employment:

(a) Your employer will report you to the department; and

(b) The department will suspend your retirement allowance.

(4) You are required to reenter membership if you become permanently reemployed in an eligible position.  If you become reemployed in an eligible position on a permanent basis you will immediately become a member.  Effective from the date of your reemployment in a permanent eligible position:

(a) Your employer will report you to the department; and

(b) The department will suspend your retirement allowance.

(5) Meaning of employment on a temporary or permanent basis.

(a) "Employed on a temporary basis" under subsection (2) of this section means your employer expects your employment to last for five months or less and not be on a recurring basis.

(b) "Employed on a permanent basis" under subsection (3) of this section means either:

(i) Your employer expects you to continue in your position for more than five months in any calendar year; or

(ii) Your employer expects you to continue in the same position for more than one year on a recurring basis and your employment is for five months or less during each year.

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

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Report" - WAC 415-108-0104.)) You may work for an employer after retirement without having your retirement benefit suspended if:

(a) You are employed in an ineligible position; or

(b) You are an active member of TIAA-CREF; or

(c) You are employed as an elected or appointed official directly by the governor under RCW 41.40.150(4) and do not reenter membership; or

(d) Your only employment is as an elected official of a city or town and you end your PERS membership under RCW 41.40.023 (3)(b)and 41.40.690. Your benefit will be discontinued if you receive more than fifteen thousand dollars in compensation per year for your services, adjusted annually for inflation by the director; or

(e) You reenter employment:

(i) No sooner than one calendar month after your retirement benefit accrues; and

(ii) You are employed in an eligible position no more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year.

(2) What happens if I work more than the work limit in a calendar year?

(a) If you work for more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year, your PERS retirement allowance will be suspended if:

(i) You work in an eligible position as defined by TRS, or PERS; or

(ii) You work as a law enforcement officer or fire fighter as defined by LEOFF.

(b) If you work in a position referred to in (a) of this subsection over the work limit, your employer will report that you have worked over the limit to the department. Effective as of the eight hundred sixty-eighth hour or sixth month of your employment, whichever is greater, you will not be entitled to the retirement allowance, even if the hours or months worked are nonconsecutive or your employment is with one or more employers.

(c) If you exceed the work limit, the department will:

(i) Suspend your retirement allowance until the next calendar year, unless you separate from service. If you separate from service, your benefit will resume effective the first day immediately following the date of separation.

(ii) Pro rate your retirement allowance for the month during which you exceeded the eight hundred sixty-seven-hour limit.

(iii) Collect any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.

(3) Can I become a PERS member?

(a) Yes, but not automatically. You must elect in writing to become a member and file your notice of election with either your employer or the department.

(b) By working in a PERS eligible position after retirement you may elect at any time to reestablish membership prospectively under RCW 41.40.023(12). Membership is not retroactive.

Your membership will become effective the first day of the month immediately following the date your employer or the department receives written notification of your election to become a member.

If you work more than the work limit in a given month, the soonest your membership can be effective is the first day of the following month, if your employer or the department receives written notification of your election before that date.

(c) If you reenter membership in PERS and later elect to retire again, the department will recalculate your retirement benefits under applicable statutes and regulations.


Example 1:


Phil is a PERS Plan 1 retiree. He separates from service on October 31st. He retires, effective November 1st. He returns to work in a PERS Plan 1 eligible position on January 2nd of the following year. On June 1 he realizes that on or about July 8th, he is going to exceed his eight hundred sixty-seven-hour limit for the year. On July 3rd he elects in writing to reenter TRS membership, effective July 8th. He files the election with his employer on July 5th.

On July 12th, Phil works his eight hundred sixty-eighth hour. He will no longer be eligible for a PERS Plan 1 retirement allowance as of July 12th. He will become a member of PERS Plan 1 effective August 1st.


Example 2:


Sara is a PERS Plan 2 retiree. She separated from service June 30, 1999. She begins working in a PERS eligible position on February 1, 2000. By May 31, 2000, she has worked eight hundred eighty total hours. Sara may work as many hours as she wants for another calendar month. If she works after June 30, 2000, she will exceed the five-month work limit.


Example 3:


Dixie is a PERS Plan 2 retiree. She separated from service on June 30, 1999. She begins working in a PERS eligible position on February 1, 2000. By September 30, 2000, she has worked four hundred total hours. She has not exceeded the hour work limit. She may continue to work during the calendar year until she exceeds the eight hundred sixty-seven-hour work limit.


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

(a) "Eligible position" - RCW 41.40.010, 41.32.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Report" - WAC 415-108-0104.

(f) "Accrue" - RCW 41.40.193, 41.40.680.

(g) "Law enforcement officer" - RCW 41.26.030.

[Statutory Authority: RCW 41.50.050.  95-16-053, § 415-108-710, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-710
If I work for an employer after I retire, will my retirement benefit be affected? (Effective September 1, 2000.)

(1) ((If you reenter membership after retiring, the department will suspend payment of your benefit.

(2) You may work for an employer in some circumstances without reentering membership. You may enter employment with an employer after retirement without having to reenter membership if:

(a) You are employed in an ineligible position; or

(b) You are employed in an eligible position on a temporary basis for five months or less in a calendar year.

(i) If you enter compensated employment in an eligible position during a month, that month is counted as a month of employment in the calendar year regardless of the number of hours you worked in the month.

(ii) If you are employed in an eligible position for any five months during a calendar year, the department will count your employment as five months of employment, regardless of whether or not the months are consecutive or your employment is with one or more employers.

(3) You are required to reenter membership if you become reemployed in an eligible position on a temporary basis for more than five months in a calendar year. If you become reemployed in an eligible position on a temporary basis for more than five months in a calendar year you will reenter membership in the retirement system beginning with the sixth month of your employment.  Effective at the beginning of the sixth month of your employment:

(a) Your employer will report you to the department; and

(b) The department will suspend your retirement allowance.

(4) You are required to reenter membership if you become permanently reemployed in an eligible position.  If you become reemployed in an eligible position on a permanent basis you will immediately become a member.  Effective from the date of your reemployment in a permanent eligible position:

(a) Your employer will report you to the department; and

(b) The department will suspend your retirement allowance.

(5) Meaning of employment on a temporary or permanent basis.

(a) "Employed on a temporary basis" under subsection (2) of this section means your employer expects your employment to last for five months or less and not be on a recurring basis.

(b) "Employed on a permanent basis" under subsection (3) of this section means either:

(i) Your employer expects you to continue in your position for more than five months in any calendar year; or

(ii) Your employer expects you to continue in the same position for more than one year on a recurring basis and your employment is for five months or less during each year.

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

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Report" - WAC 415-108-0104.)) You may work for an employer after retirement without having your retirement benefit suspended if:

(a) You are employed in an ineligible position; or

(b) You are an active member of TIAA-CREF; or

(c) You are employed as an elected or appointed official directly by the governor under RCW 41.40.150(4) and do not reenter membership; or

(d) Your only employment is as an elected official of a city or town and you end your PERS membership under RCW 41.40.023 (3)(b) and 41.40.690. Your benefit will be discontinued if you receive more than fifteen thousand dollars in compensation per year for your services, adjusted annually for inflation by the director; or

(e) You reenter employment:

(i) No sooner than one calendar month after your retirement benefit accrues; and

(ii) You are employed in an eligible position no more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year.

(2) What happens if I work more than the work limit in a calendar year?

(a) If you work for more than the greater of eight hundred sixty-seven hours or five calendar months (work limit) in a calendar year, your PERS retirement allowance will be suspended if:

(i) You work in an eligible position as defined by TRS, SERS or PERS; or

(ii) You work as a law enforcement officer or fire fighter as defined by LEOFF.

(b) If you work in a position referred to in (a) of this subsection over the work limit, your employer will report that you have worked over the limit to the department. Effective as of the eight hundred sixty-eighth hour or sixth month of your employment, whichever is greater, you will not be entitled to the retirement allowance, even if the hours or months worked are nonconsecutive or your employment is with one or more employers.

(c) If you exceed the work limit, the department will:

(i) Suspend your retirement allowance until the next calendar year, unless you separate from service. If you separate from service, your benefit will resume effective the first day immediately following the date of separation.

(ii) Pro rate your retirement allowance for the month during which you exceeded the eight hundred sixty-seven-hour limit.

(iii) Collect any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.

(3) Can I become a PERS member?

(a) Yes, but not automatically. You must elect in writing to become a member and file your notice of election with either your employer or the department.

(b) By working in a PERS eligible position after retirement you may elect at any time to reestablish membership prospectively under RCW 41.40.023(12). Membership is not retroactive.

Your membership will become effective the first day of the month immediately following the date your employer or the department receives written notification of your election to become a member.

If you work more than the work limit in a given month, the soonest your membership can be effective is the first day of the following month, if your employer or the department receives written notification of your election before that date.

(c) If you reenter membership in PERS and later elect to retire again, the department will recalculate your retirement benefits under applicable statutes and regulations.


Example 1:


Phil is a PERS Plan 1 retiree. He separates from service on October 31st. He retires, effective November 1st. He returns to work in a PERS Plan 1 eligible position on January 2nd of the following year. On June 1 he realizes that on or about July 8th, he is going to exceed his eight hundred sixty-seven-hour limit for the year. On July 3rd he elects in writing to reenter TRS membership, effective July 8th. He files the election with his employer on July 5th.

On July 12th, Phil works his eight hundred sixty-eighth hour. He will no longer be eligible for a PERS Plan 1 retirement allowance as of July 12th. He will become a member of PERS Plan 1 effective August 1st.


Example 2:


Sara is a PERS Plan 2 retiree. She separated from service June 30, 1999. She begins working in a PERS eligible position on February 1, 2000. By May 31, 2000, she has worked eight hundred eighty total hours. Sara may work as many hours as she wants for another calendar month. If she works after June 30, 2000, she will exceed the five-month work limit.


Example 3:


Dixie is a PERS Plan 2 retiree. She separated from service on June 30, 1999. She begins working in a PERS eligible position on February 1, 2000. By September 30, 2000, she has worked four hundred total hours. She has not exceeded the hour work limit. She may continue to work during the calendar year until she exceeds the eight hundred sixty-seven-hour work limit.


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

(a) "Eligible position" - RCW 41.40.010, 41.32.010, 41.35.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

(e) "Report" - WAC 415-108-0104.

(f) "Accrue" - RCW 41.40.193, 41.40.680.

(g) "Law enforcement officer" - RCW 41.26.030.

[Statutory Authority: RCW 41.50.050.  95-16-053, § 415-108-710, filed 7/25/95, effective 8/25/95.]


AMENDATORY SECTION(Amending WSR 95-16-053, filed 7/25/95, effective 8/25/95)

WAC 415-108-720
Participation -- Can I be excluded from participating in membership even if I am employed in an eligible position?

(1) You may be exempt from participating in membership even if you meet eligibility criteria.  Even if you are employed in an eligible position you are exempt from participating in PERS if your individual circumstances qualify you for one of the exceptions to membership under RCW 41.40.023.

(2) ((If you work for a PERS employer after you retire, you are subject to post-retirement employment restrictions even if you are excluded from participating in membership.  If you become employed in an eligible position after you retire, you are subject to the post-retirement employment restrictions under RCW 41.40.150 and 41.40.690 even if you are excluded from membership.

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

(a) "Eligible position" - RCW 41.40.010.

(b) "Employer" - RCW 41.40.010.

(c) "Ineligible position" - RCW 41.40.010.

(d) "Membership" - RCW 41.40.023.

[Statutory Authority: RCW 41.50.050.  95-16-053, § 415-108-720, filed 7/25/95, effective 8/25/95.]

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