PERMANENT RULES
RETIREMENT SYSTEMS
Date of Adoption: March 29, 2001.
Purpose: The rule clarifies that members who request funds from a defined benefit plan will not receive interest on their funds once the department issues a warrant. The rule also clarifies that members who request funds from a defined contribution plan will have their investments sold and then transferred to a noninterest bearing account until their check is cashed. This rule also clarifies what happens when withdrawal checks and warrants are not cashed.
Citation of Existing Rules Affected by this Order: Amending WAC 415-02-060.
Statutory Authority for Adoption: RCW 41.50.050(5).
Other Authority: RCW 43.08.062, 41.50.055(5), 41.50.260.
Adopted under notice filed as WSR 01-05-096 on February 20, 2001.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 0, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 1, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0. Effective Date of Rule: Thirty-one days after filing.
March 29, 2001
John Charles
Director
OTS-4624.5
AMENDATORY SECTION(Amending WSR 00-10-016, filed 4/21/00,
effective 5/22/00)
WAC 415-02-060
((Refund of contributions -- Application.))
What happens if I do not cash a warrant or check?
((The
department will cancel a member's request for refund of defined
benefit plan member contributions if the refund warrant is not
cashed within one hundred eighty days of the date on the warrant.
There will be no earnings on returned contributions for the one
hundred eighty-day period that funds were held for distribution
to the member.
If the member does not cash a warrant for a distribution of defined contribution plan member contributions within one hundred eighty days of the date on the warrant, the contributions will be returned to the member's account with the same allocation as existed on the date of the warrant. There will be no earnings on returned contributions for the one hundred eighty-day period that funds were held for distribution to the member.)) (1) Warrant for defined benefit retirement allowance. A warrant for your monthly retirement allowance will be canceled if it is not cashed within the time frame set by RCW 43.08.062. If the warrant is canceled, the department will attempt to contact you for instructions. You will not earn interest on the warrant amount pending payment.
(2) Warrant for defined benefit withdrawal. When you request a withdrawal of some or all of your defined benefit accumulated contributions:
(a) Once the department issues the warrant you will stop receiving interest.
(b) Whether payable to you or to a qualified investment account, the warrant will be canceled if it is not cashed within the time frame set by RCW 43.08.062.
(c) After the department receives notice that the warrant has been canceled, the department will attempt to contact you and ask for further instructions.
(3) Check for defined contribution distribution. When you request a withdrawal of some or all of your defined contribution fund:
(a) The requested amount will be liquidated and the department's third-party recordkeeper will transfer the funds into a noninterest bearing account.
(b) You will not receive interest, earnings, or losses after the third-party recordkeeper processes your request.
(c) Whether you request that the refund check be sent directly to you or to a qualified investment account, the check will be canceled if it is not cashed within one hundred eighty days from the date on the check.
(d) If the check is canceled:
(i) The funds will continue to receive no interest, earnings, or losses while the recordkeeper waits to receive instructions from you; and
(ii) The department or the third-party recordkeeper will attempt to contact you and ask for further instructions.
[Statutory Authority: RCW 41.50.050. 00-10-016, 415-02-060, filed 4/21/00, effective 5/22/00. Statutory Authority: RCW 41.50.050(6) and 41.50.090. 78-03-023 (Order IV), 415-02-060, filed 2/15/78.]