PROPOSED RULES
RETIREMENT SYSTEMS
Original Notice.
Preproposal statement of inquiry was filed as WSR 01-05-095.
Title of Rule: Retire/rehire: WAC 415-108-710 and 415-110-710 (How will returning to work affect my PERS monthly benefit? for PERS and SERS), 415-108-800 and 415-110-800 (When does a member of the school employees' retirement systems (SERS)/(PERS) enter retirement status?), 415-112-515 (When does a member of the teachers' retirement system (TRS) enter retirement status?), 415-112-525 (How soon can I return to work as a retiree?), 415-112-541 (How will returning to work affect my TRS Plan 1 monthly pension?), 415-112-542 (How will returning to work affect my TRS Plan 2 or Plan 3 monthly retirement allowance?); and repealing WAC 415-112-540 and 415-112-545.
Purpose: Implement ESSB 5937 (2001), an act relating to postretirement employment, and HB 1213 (2001) (PERS and SERS technical corrections).
Statutory Authority for Adoption: RCW 41.50.050(5).
Statute Being Implemented: RCW 41.04.270, 41.32.570, 41.32.802, 41.32.860, 41.32.862, 41.35.060, 41.40.037, 41.40.750.
Summary: These rules implement the retire/rehire changes in ESSB 5937 and HB 1213.
Name of Agency Personnel Responsible for Drafting: Merry A. Kogut, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7291; Implementation and Enforcement: Lucille Christenson, P.O. Box 48380, Olympia, WA 98504-8380, (360) 664-7069.
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 415-108-710 and 415-110-710 (How will returning to work affect my PERS monthly benefit? for PERS and SERS), updating to comply with new bills, and making language more clear.
WAC 415-108-800 and 415-110-800 (When does a member of the school employees' retirement systems enter retirement status?), clarification, like TRS.
WAC 415-112-515 (When does a member of the teachers' retirement system (TRS) enter retirement status?), making language more clear.
WAC 415-112-525 (How soon can I return to work as a retiree?), clarifies provisions for TRS.
Repeal WAC 415-112-540 and 415-112-545 (being replaced by provisions in other WACs).
WAC 415-112-541 (How will returning to work affect my TRS Plan 1 monthly pension?), clarifies provisions for TRS Plan 1.
WAC 415-112-542 (How will returning to work affect my TRS Plan 2 or Plan 3 monthly retirement allowance?), clarifies provisions for TRS Plan 2 and Plan 3.
Proposal Changes the Following Existing Rules: Please see Explanation of Rule above.
No small business economic impact statement has been prepared under chapter 19.85 RCW. These amendments have no affect 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, Conference Room 115, Tumwater, WA, on December 12, 2001, at 10:00 a.m.
Assistance for Persons with Disabilities: Contact the rules coordinator by seven days before the 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. on December 12, 2001.
Date of Intended Adoption: No sooner than December 13, 2001.
November 6, 2001
Merry A. Kogut
Rules Coordinator
OTS-3564.9
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?)) How will returning to
work affect my PERS monthly benefit?
(((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.)) (1) You may work for an employer after retirement and continue to receive your retirement allowance if:
(a) You are employed in an ineligible position no sooner than one calendar month after your retirement benefit accrues;
(b) You are an active member of a higher education retirement plan;
(c) You are employed as a bona fide independent contractor as defined by WAC 415-02-110;
(d) You are employed as an elected or appointed official directly by the governor under RCW 41.40.150(4) and do not reenter membership;
(e) 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), 41.40.690 or 41.40.801. Your benefit will be discontinued if you receive more than fifteen thousand dollars in compensation per year for your services, adjusted annually beginning January 1, 1994, in accordance with that year's average Consumer Price Index for the Seattle, Washington area for urban wage earners and clerical workers, compiled by the Bureau of Labor Statistics, United States Department of Labor; or
(f) You are employed in an eligible position:
(i) No sooner than one calendar month after your retirement benefit accrues; and
(ii) The time you work does not exceed the "work limit" defined in subsection (2) of this section.
(2) What is the work limit for eligible positions?
(a) Plan 1 retiree working for an employer as defined in RCW 41.40.010 (4)(a): Fifteen hundred hours in a calendar year; or
(b) Plan 2 or 3 retiree working in an eligible position as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030: Eight hundred sixty-seven hours in a calendar year.
(c) Retirees from both a Plan 1 and a Plan 2 or 3: The Plan 1 limits will be applied.
(d) Retirees from both TRS Plan 1 and PERS Plan 1: The TRS Plan 1 rules will be applied.
(3) What happens if I work more than the work limit?
(a) The department will suspend your retirement allowance effective the day after the day in which you exceed the work limit. All hours worked for all covered employers in eligible positions are considered in determining the work limit.
(b) You have the option to return to membership in PERS if you are otherwise eligible. The option to return to membership is prospective from the date the retiree requests to return to membership.
(4) How will the suspension of benefits affect my retirement allowance?
(a) The department will:
(i) Prorate your retirement allowance for the month during which you exceeded the work limit; and
(ii) Suspend all future retirement allowance while you are working until the next calendar year except that it will:
(iii) Adjust for any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.
(b) If you separate from service, your retirement allowance will resume effective the first day of the month following the date of separation.
(5) Can I return to PERS membership?
(a) If you are a PERS retiree, you may choose to return to membership if you are employed by a PERS employer and meet the eligibility criteria. If you return to membership the department will stop your retirement allowance effective from the first of the month during which you return to employment. Membership will be prospective under RCW 41.40.023(12).
(b) If you reenter membership and later choose to retire again, the department will recalculate your retirement allowance under the applicable statutes and regulations.
(c) If you are a retiree from another retirement system that the department administers, and are eligible to enter PERS membership, you may choose to return to membership. Membership will be prospective from the month in which you opt into membership.
Example 1:
Kirk is a PERS Plan 2 retiree. He separates from service on
August 15th. His accrual date (retirement) is effective
September 1st. Kirk returns to work in a PERS Plan 2 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 5th
he notifies his employer in writing that he chooses to reenter
PERS Plan 2 membership.
On July 12th, Kirk works his eight hundred sixty-eighth hour. He is no longer eligible for his PERS Plan 2 retirement benefit as of July 12th. The retirement benefit is stopped for the remainder of July. On August 1st, Kirk is returned to membership and resumes making retirement contributions.
Example 2:
Kristal is a PERS Plan 1 retiree. She separated from
service on June 20th. Her accrual date (retirement) is effective
July 1st. She begins working in a PERS eligible position the
following January. By October 1st, Kristal has exceeded the
fifteen hundred hour work limit, and her benefit is suspended.
Kristal separates from service on November 15th and her benefit
is reinstated December 1st. Kristal qualifies to begin another
fifteen hundred hour work period on January 1st.
Example 3:
Millie is a PERS Plan 2 retiree. She separated from service
on June 20th. Her accrual date (retirement) is effective July
1st. She begins working in a PERS eligible position on February
1st of the following year. By September 1st, Millie has worked
eight hundred sixty-seven hours and continues to work. Millie's
benefit is suspended from September 2nd until January 1st if she
continues to work.
(6) How soon can I return to work as a retiree? If you
return to work sooner than one full calendar month after your
accrual date under RCW 41.40.037, your retirement allowance will
be reduced by 5.5% for every eight hours worked each month, until
you separate for one full calendar month. See RCW 41.40.037.
Example 1:
John's last day of work is September 15th. His accrual date
is October 1st. If John wants to return to work after he
retires, he will need to wait until at least November 1st to
avoid receiving the daily percentage reduction in his retirement
allowance.
Example 2:
Tony's last day of work is September 15th. His accrual date
is October 1st. Tony returns to work for five work days between
October 10th and October 17th. His October retirement allowance
will be reduced by five and one-half percent for every eight
hours worked in October (RCW 41.40.037). Tony does not return to
work. On December 1st, he will qualify for his full retirement
benefit. Tony will also qualify to return to work under the work
limits described in subsection (2) of this section.
Example 3:
Ruth's last day of work is September 15th. Her accrual date
is October 1st. She returns to work on October 10th and
continues working. Ruth's retirement benefit will be reduced by
5.5% for each eight hours she works. Under RCW 41.40.037, Ruth's
benefit reduction will accrue up to one hundred sixty hours per
month. If she stops working, Ruth's full retirement benefit will
resume after she remains separated for one full calendar month.
Any benefit reduction over one hundred percent will be applied to
Ruth's allowance in subsequent months.
(7) Defined terms used. Definitions for the following terms
used in this section may be found in the sections listed:
(a) "Accrual date" - RCW 41.40.193, 41.40.680, 41.40.801.
(b) "Eligible position" - RCW 41.40.037(2).
(c) "Employer" - RCW 41.40.010(4).
(d) "Ineligible position" - RCW 41.40.010.
(e) "Law enforcement officer" - RCW 41.26.030.
(f) "Membership" - RCW 41.40.023.
(g) "Report" - WAC 415-108-0104.
[Statutory Authority: RCW 41.50.050. 95-16-053, 415-108-710, filed 7/25/95, effective 8/25/95.]
(1) Has separated from service as defined in RCW 41.40.010(41);
(2) Has no written agreement to return to employment prior to entering "retiree status"; and
(3) Has applied for retirement, the accrual date has been determined under RCW 41.40.193, 41.40.680, or 41.40.801, and the benefit begins to accrue.
| Example: | Sally is eligible for retirement on July 1st. She submits an application on June 1st with a July 1st retirement date. Her last day of employment is June 30th and she does not have an agreement to return to work. |
| Sally's retirement date (accrual date) is July 1st and the benefit begins to accrue. The first retirement payment will be paid at the end of July. Sally entered "retiree status" effective July 1st. |
[]
OTS-5057.5
AMENDATORY SECTION(Amending WSR 01-01-059, filed 12/12/00,
effective 1/12/01)
WAC 415-110-710
((If I work for an employer after I retire,
will my retirement benefit be affected?)) How will returning to
work affect my SERS monthly benefit?
(((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 41.35.010.
(b) "Employer" - RCW 41.35.010.
(c) "Ineligible position" - RCW 41.35.010.
(d) "Membership" - RCW 41.35.030.
(e) "Report" - WAC 415-110-0104.)) (1) You may work for an employer after retirement and continue to receive your retirement allowance if:
(a) You are employed in an ineligible position no sooner than one calendar month after your retirement benefit accrues;
(b) You are an active member of a higher education retirement plan no sooner than one calendar month after your retirement benefit accrues;
(c) You are employed as a bona fide independent contractor as defined by WAC 415-02-110;
(d) You are employed as an elected or appointed official directly by the governor under RCW 41.40.150(4) and do not reenter membership;
(e) Your only employment is as an elected official of a city or town and you end your SERS membership. Your benefit will be discontinued if you receive more than fifteen thousand dollars in compensation per year for your services, adjusted annually beginning January 1, 1994, in accordance with that year's average Consumer Price Index for the Seattle, Washington area for urban wage earners and clerical workers, compiled by the Bureau of Labor Statistics, United States Department of Labor; or
(f) You are employed in an eligible position:
(i) No sooner than one calendar month after your retirement benefit accrues; and
(ii) The time you work does not exceed the "work limit" defined in subsection (2) of this section.
(2) What is the work limit for eligible positions?
(a) Plan 2 or 3 retiree working in an eligible position as defined in RCW 41.32.010, 41.35.010, or 41.40.010, or as a fire fighter or law enforcement officer, as defined in RCW 41.26.030: Eight hundred sixty-seven hours in a calendar year.
(b) Retirees from both a Plan 1 and SERS Plan 2 or 3: The Plan 1 limits will be applied.
(3) What happens if I work more than the work limit?
(a) The department will suspend your retirement allowance effective the day after the day in which you exceed the work limit. All hours worked for all covered employers in eligible positions are considered in determining the work limit.
(b) You have the option to return to membership in SERS if you are otherwise eligible. The option to return to membership is prospective from the date the retiree requests to return to membership.
(4) How will the suspension of benefits affect my retirement allowance?
(a) The department will:
(i) Prorate your retirement allowance for the month during which you exceeded the work limit; and
(ii) Suspend all future retirement allowance while working, until the next calendar year except that it will:
(iii) Adjust for any overpayments made to you for the month(s) in which you exceeded the work limit, as required by RCW 41.50.130.
(b) If you separate from service, your retirement allowance will resume effective the first day of the month following the date of separation.
(5) Can I return to SERS membership?
(a) If you are a SERS retiree, you may choose to return to membership if you are employed by a SERS employer and meet the eligibility criteria. If you return to membership the department will stop your monthly retirement allowance effective from the first of the month during which you return to employment. Membership will be prospective under RCW 41.35.060(3).
(b) If you reenter membership and later choose to retire again, the department will recalculate your retirement allowance under the applicable statutes and regulations.
(c) If you are a retiree from another retirement system that the department administers, and are eligible to enter PERS membership, you may choose to return to membership. Membership will be prospective from the month in which you opt into membership.
Example 1:
Phil is a SERS Plan 2 retiree. He separates from service on
August 15th. His accrual date (retirement) is effective
September 1st. Phil returns to work in a SERS Plan 2 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 5th
he notifies his employer in writing that he chooses to reenter
SERS Plan 2 membership.
On July 12th, Phil works his eight hundred sixty-eighth hour. He is no longer eligible for his SERS Plan 2 retirement allowance as of July 12th. The retirement benefit is stopped for the remainder of July. On August 1st, Phil is returned to membership and resumes making retirement contributions.
Example 2:
Tami is a SERS Plan 2 retiree. She separated from service
on June 20th. Her accrual date (retirement) is effective July
1st. She begins working in a SERS eligible position on February
1st of the following year. By September 1st, Tami has worked
eight hundred sixty-seven hours. Tami's benefit is suspended
from September 2nd until January 1st if she continues to work.
(6) How soon can I return to work as a retiree? If you
return to work sooner than one full calendar month after your
accrual date, your retirement allowance will be reduced by 5.5%
for every eight hours worked each month, until you separate for
one full calendar month. See RCW 41.35.060.
Example 1:
Steve's last day of work is September 15th. His accrual
date is October 1st. If Steve wants to return to work after he
retires, he will need to wait until at least November 1st to
avoid receiving the daily percentage reduction in his retirement
allowance.
Example 2:
Tim's last day of work is September 15th. His accrual date
is October 1st. Tim returns to work for five eight-hour work
days between October 10th and October 17th. His October
retirement allowance will be reduced by five and one-half percent
for every eight hours worked in October (RCW 41.35.060). Tim
does not return to work. On December 1st, he will qualify for
his full retirement benefit. Tim will also qualify to return to
work under the work limits described in subsection (2) of this
section.
Example 3:
Paige's last day of work is September 15th. Her accrual
date is October 1st. She returns to work on October 10th and
continues working. Paige's retirement benefit will be reduced by
5.5% for each eight hours she works. Paige's benefit reduction
will accrue up to one hundred sixty hours per month. If she
stops working, her full retirement allowance will resume after
she remains separated for one full calendar month. Any benefit
reduction over one hundred percent will be applied to Paige's
allowance in subsequent months.
(7) Defined terms used. Definitions for the following terms
used in this section may be found in the sections listed:
(a) "Accrual date" - RCW 41.35.450, 41.35.640.
(b) "Eligible position" - RCW 41.35.060(2).
(c) "Employer" - RCW 41.35.010(4).
(d) "Ineligible position" - RCW 41.35.010(23).
(e) "Law enforcement officer" - RCW 41.26.030.
(f) "Member" - RCW 41.35.010(5).
[Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, 415-110-710, filed 12/12/00, effective 1/12/01.]
(1) Has separated from service as defined in RCW 41.35.010(36);
(2) Has no written agreement to return to public employment prior to entering "retiree status"; and
(3) Has applied for retirement, the accrual date has been determined under RCW 41.35.450 or 41.35.640, and the benefit begins to accrue.
| Example: | Doug is eligible for retirement on July 1st. He submits an application on June 1st with a July 1st retirement date. His last day of employment is June 30th and he does not have an agreement to return to work. |
| Doug's retirement date (accrual date) is July 1st, and the benefit begins to accrue. The first retirement payment will be paid at the end of July. Doug entered "retiree status" effective July 1st. |
[]
OTS-5253.1
AMENDATORY SECTION(Amending 99-14-008, filed 6/24/99, effective
7/25/99)
WAC 415-112-515
When does a member of the ((teacher's))
teachers' retirement system ((Plan 1)) (TRS) enter((s))
retirement status((.))?
A member of ((the teacher's
retirement system Plan 1)) TRS enters retirement status when he
or she:
(1) Has ((terminated all public school employment in the
state of Washington)) separated from service or employment as
defined in RCW 41.32.010(48);
(2) Has no written agreement to return to ((public school))
employment; and
(3) Has ((made application)) applied for retirement, the
accrual date has been determined under RCW 41.32.500, 41.32.795,
or 41.32.855, and the benefit begins to accrue.
| Example: | (( |
| (( |
[Statutory Authority: RCW 41.50.050. 99-14-008, 415-112-515, filed 6/24/99, effective 7/25/99. Statutory Authority: RCW 41.50.050 and 41.32.570. 91-21-084, 415-112-515, filed 10/18/91, effective 11/18/91.]
OTS-5254.2
NEW SECTION
WAC 415-112-525
How soon can I return to work as a retiree?
(1) If you return to work sooner than one full calendar month
after your accrual date, your retirement allowance will be
reduced by 5.5% for every seven hours worked during the month
until you separate from all employment for one full calendar
month. See RCW 41.32.570 (TRS Plan 1), 41.32.802 (TRS Plan 2),
or 41.32.862 (TRS Plan 3).
Example 1:
Dave's last day of work is September 15th. He has no
agreement to return to work. His accrual date is October 1st.
If Dave wants to return to work after he retires, he will need to
wait until at least November 1st to avoid receiving the daily
percentage reduction in his retirement allowance.
Example 2:
Brian's last day of work is September 15th. He has no
agreement to return to work. His accrual date is October 1st.
Brian subsequently is asked to work for five seven-hour work days
between October 10th and October 17th. On November 1st, Brian's
retirement allowance will be reduced by five and one-half percent
for every seven hours worked during October. (RCW 41.32.570.)
On December 1st, he will qualify for his full retirement benefit.
Brian will also qualify to return to work under the work limits
described in WAC 415-112-540(2).
Example 3:
Joe's last day of work is September 15th. He has no
agreement to return to work. His accrual date is October 1st.
Joe then returns to work on October 10th and continues working.
Joe's retirement benefit will be reduced by 5.5% for each seven
hours he works. Joe's benefit reduction will accrue up to one
hundred forty hours per month. If he stops working, his full
retirement benefit will resume after he remains separated for one
full calendar month. Any benefit reduction over one hundred
percent will be applied to Joe's allowance in subsequent months.
(2) If you have a written agreement to return to work before
your accrual date, and in fact return to work, you have not
entered retirement status. See WAC 415-112-515. In this case,
you are not a retiree, and the 5.5% reduction in subsection (1)
of this section does not apply.
Example 4:
Teri's last day of work is September 15th. Her accrual date
would ordinarily be on October 1st. However, on September 18th,
Teri signed an agreement to work for one day in October. Teri
signed the agreement prior to her accrual date. Under WAC 415-112-515 she is not a retiree, and not eligible for her
retirement benefits. In addition, the 5.5% reduction does not
apply. Teri's accrual date will now be November 1st, as long as
she did not have any other agreements to work.
Defined terms used. Definitions for the following terms
used in this section may be found in the sections listed:
(a) "Accrual date" - WAC 415-112-520; RCW 41.32.795, 41.32.855.
(b) "Eligible position" - RCW 41.40.010, 41.32.010 (37)(a), 41.35.010(22).
(c) "Employer" - RCW 41.32.010(11).
[]
OTS-5213.4
NEW SECTION
WAC 415-112-541
How will returning to work affect my TRS
Plan 1 monthly pension?
This section implements RCW 41.32.570,
which limits employment for TRS Plan 1 retirees with public
educational institutions to fifteen hundred hours regardless of
the nature of service.
(1) You may return to any type of service with a public education institution for up to fifteen hundred hours per fiscal year (July 1st through June 30th) without affecting your TRS Plan 1 monthly pension under RCW 41.32.570, provided you have been retired from service for one full calendar month.
(a) Your employer must notify the department when you return to work. Your employer must report hours and compensation.
(b) If you are a TRS Plan 1 retiree and you work more than fifteen hundred hours during a fiscal year, the department will suspend your monthly pension. The pension is suspended until the first of the next fiscal year or termination of your employment, whichever comes first.
(c) If you are a retiree from both TRS Plan 1 and a Plan 2 or 3: The TRS Plan 1 limits will be applied.
(d) If you are a retiree from both TRS Plan 1 and PERS Plan 1: The TRS Plan 1 limits will be applied.
(e) If you are a TRS Plan 1 retiree working for a public education 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.
(2) If the department suspends your benefit because of your reemployment, the department will reinstate the original amount of your pension, less deductions to recover any overpayment, effective the day following your termination of employment, or at the beginning of the next fiscal year, whichever comes first.
(3) You must repay any monthly pension payment that you receive in excess of the amounts allowed under this section.
(4) You may choose to return to membership if you are employed by a public education institution and are otherwise eligible. Membership will be prospective from the month in which you opt into membership.
(5) Defined terms used. Definitions for the following term used in this section may be found in the section listed.
Public educational institution: WAC 415-112-0157.
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(1) You may return to any eligible position for up to eight hundred sixty-seven hours per calendar year without affecting your monthly retirement allowance.
(a) Your employer must notify the department when you return to work and report hours and compensation.
(b) Your monthly retirement benefit is suspended once you pass eight hundred sixty-seven hours, unless you are also a member of any Plan 1, in which case the Plan 1 limits will apply.
(c) Your monthly retirement benefit is reinstated at the beginning of the next calendar year or the day following your termination from employment whichever comes first.
(d) You may choose to return to membership if you are employed by a public school and are otherwise eligible. Membership will be prospective from the month in which you opt into membership.
(e) If you are a TRS Plan 2 or Plan 3 retiree working as a bona fide independent contractor as determined under WAC 415-02-110, you are not considered an employee and are not subject to the work limitations.
(f) If you are working as an on-call substitute teacher you are working in an ineligible position and not subject to the work limitations of RCW 41.32.802 and 41.32.862.
(2) You must repay any monthly pension payment that you receive in excess of the amounts allowed under this section.
(3) Defined terms used. Definitions for the following terms used in this section may be found in the sections listed.
(a) Eligible position: RCW 41.32.570 (2)(b).
(b) Substitute teacher: RCW 41.32.010(36).
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The following sections of the Washington Administrative Code are repealed:
| WAC 415-112-540 | How will returning to work affect my TRS Plan 1 monthly pension? |
| WAC 415-112-545 | How can I qualify for an additional three hundred fifteen hours of service without having my TRS Plan 1 monthly pension reduced? |