Original Notice.

Preproposal statement of inquiry was filed as WSR 99-08-007A.

Title of Rule: WAC 415-108-467 (PERS) and 415-110-467 (SERS), Reinstatement or payment instead of reinstatement.

Purpose: The changes are being made to make these WACs consistent with WAC 415-112-477 (TRS).

Statutory Authority for Adoption: RCW 41.40.020, 41.50.050(5).

Statute Being Implemented: RCW 41.35.010(6), 41.40.010(8).

Summary: The changes are being made to make these WACs consistent with WAC 415-112-477 (TRS). The changes clarify how to report reinstatement or payments in lieu of reinstatement. In addition, DRS is adding a definition of "reinstatement" to these WACs.

Reasons Supporting Proposal: WAC 415-108-467 and 415-110-467 cover the same topic as the TRS version, but are not as clear.

Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Jack Bryant, P.O. Box 48380, Olympia, WA 98504-8380, (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: WAC 415-108-467 (PERS) and 415-110-467 (SERS), Reinstatement or payment instead of reinstatement, cover the same topic as the TRS version (WAC 415-112-477), but are not as clear. The changes are being made to make these three WACs consistent with one another.

Proposal Changes the Following Existing Rules: The changes clarify how to report reinstatement or payments in lieu of reinstatement. In addition, DRS is adding a definition of "reinstatement" to these WACs.

No small business economic impact statement has been prepared under chapter 19.85 RCW. These amendments have no effect on businesses.

RCW 34.05.328 does not apply to this rule adoption. The Department of Retirement Systems is not one of the named departments in RCW 34.05.328.

Hearing Location: Department of Retirement Systems, 6835 Capitol Boulevard, Boardroom, 3rd Floor, Tumwater, WA, on March 27, 2001, at 10:00 a.m.

Assistance for Persons with Disabilities: Contact rules coordinator by seven days before hearing, if possible, phone (360) 664-7291, TTY (360) 586-5450, e-mail merryk@drs.wa.gov.

Submit Written Comments to: Identify WAC Numbers, Merry A. Kogut, Rules Coordinator, Department of Retirement Systems, P.O. Box 48380, Olympia, WA 98504-8380, e-mail Merryk@drs.wa.gov, fax (360) 753-3166, by 5:00 p.m., March 27, 2001.

Date of Intended Adoption: No sooner than March 28, 2001.

February 16, 2001

Merry A. Kogut

Rules Coordinator

OTS-4629.2

AMENDATORY SECTION(Amending WSR 98-09-059, filed 4/17/98, effective 5/18/98)

WAC 415-108-467   Reinstatement or payment ((in lieu)) instead of reinstatement.   ((If an employer makes payments to an employee for periods where the employee was not employed and those payments are made upon reinstatement of the employee or in lieu of reinstatement, the payments are not earned for services rendered. However, RCW 41.40.010(8) specifically designates such payments as reportable compensation. The payments are only reportable to the extent that they are equivalent to the salary the employee would have earned had he or she been working.)) (1) Payments to an employee are not earned for services rendered if an employer makes them for periods during which the employee was not employed and the payments are made either upon reinstatement or instead of reinstatement. Nonetheless, RCW 41.40.010(8) specifically designates these payments as reportable compensation. The payments are only reportable to the extent that they are equivalent to the salary the employee would have earned had he or she been working. The payment will be prorated over the entire period that the employee was suspended, terminated, or otherwise absent from work.

(2) For purposes of subsection (1) of this section, "reinstatement" means that the employee is entitled to return to full employment rights by action of either:

(a) The employer; or

(b) A personnel board, personnel appeals board or court of law following a hearing.

[Statutory Authority: RCW 41.50.050. 98-09-059, 415-108-467, filed 4/17/98, effective 5/18/98.]

OTS-4630.2

AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00, effective 1/12/01)

WAC 415-110-467   Reinstatement or payment ((in lieu)) instead of reinstatement.   ((If an employer makes payments to an employee for periods where the employee was not employed and those payments are made upon reinstatement of the employee or in lieu of reinstatement, the payments are not earned for services rendered. However, RCW 41.35.010(6) specifically designates such payments as reportable compensation. The payments are only reportable to the extent that they are equivalent to the salary the employee would have earned had he or she been working.)) (1) Payments to an employee are not earned for services rendered if an employer makes them for periods during which the employee was not employed and the payments are made either upon reinstatement or instead of reinstatement. Nonetheless, RCW 41.35.010(6) specifically designates these payments as reportable compensation. The payments are only reportable to the extent that they are equivalent to the salary the employee would have earned had he or she been working. The payment will be prorated over the entire period that the employee was suspended, terminated, or otherwise absent from work.

(2) For purposes of subsection (1) of this section, "reinstatement" means that the employee is entitled to return to full employment rights by action of either:

(a) The employer; or

(b) A personnel board, personnel appeals board or court of law following a hearing.

[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-467, filed 12/12/00, effective 1/12/01.]

Washington State Code Reviser's Office