PERMANENT RULES
RETIREMENT SYSTEMS
Effective Date of Rule: Thirty-one days after filing.
Purpose: To update and clarify sections in chapter 415-02 WAC, and to incorporate provisions for the public safety employees' retirement system.
Citation of Existing Rules Affected by this Order: Amending WAC 415-02-020, 415-02-030, 415-02-175, 415-02-320, 415-02-340, 415-02-350, 415-02-370, 415-02-380, 415-02-500, 415-02-510, 415-02-520, 415-02-700, and 415-02-710.
Statutory Authority for Adoption: RCW 41.50.050(5).
Other Authority: For WAC 415-02-175 is RCW 41.40.710, 41.40.805, 41.32.810, 41.32.865, 41.35.470, 41.35.650, 41.26.520, 41.37.260; for WAC 415-02-320 and 415-02-340 is chapter 41.45 RCW; for WAC 415-02-350 is RCW 2.10.170, 41.26.240, 41.26.440, 41.37.160, 41.40.197, 41.40.188 (1)(c), 41.40.640, 41.40.840, 41.35.210, 41.32.489, 41.32.530 (1)(d), 41.32.770, 41.32.845, 43.43.260; for WAC 415-02-370 is RCW 41.50.165; for WAC 415-02-380 is RCW 41.26.164, 41.26.460, 41.40.188, 41.40.660, 41.40.845, 41.37.170, 41.35.220, 41.32.530, 41.32.785, 41.32.851, 43.43.271; for WAC 415-02-500, 415-02-510, and 415-02-520 is RCW 41.50.670, 41.50.680, 41.50.790; for WAC 415-02-700 is RCW 41.04.393; and for WAC 415-02-710 is RCW 41.04.017, 41.26.048, 41.32.053, 41.35.115, 41.40.0931, 41.40.0932, 43.43.285.
Adopted under notice filed as WSR 06-15-014 on July 6, 2006.
Number of Sections Adopted in Order to Comply with Federal Statute: New 0, Amended 0, Repealed 0; Federal Rules or Standards: New 0, Amended 0, Repealed 0; or Recently Enacted State Statutes: New 0, Amended 13, Repealed 0.
Number of Sections Adopted at Request of a Nongovernmental Entity: New 0, Amended 0, Repealed 0.
Number of Sections Adopted on the Agency's Own Initiative: New 0, Amended 0, Repealed 0.
Number of Sections Adopted in Order to Clarify, Streamline, or Reform Agency Procedures: New 0, Amended 0, Repealed 0.
Number of Sections Adopted Using Negotiated Rule Making: New 0, Amended 0, Repealed 0; Pilot Rule Making: New 0, Amended 0, Repealed 0; or Other Alternative Rule Making: New 0, Amended 0, Repealed 0.
Date Adopted: August 23, 2006.
S. J. Matheson
Director
OTS-8752.2
AMENDATORY SECTION(Amending WSR 00-10-016, filed 4/21/00,
effective 5/22/00)
WAC 415-02-020
Authority.
(1) The department ((is
vested with the authority to administer, in accordance with
chapter 105, Laws of 1975-'76 2nd ex. sess.)) has the
authority, in accordance with RCW 41.50.030, as now or
hereafter amended, ((the)) to administer the:
(a) Washington public employees' retirement system
created by chapter 41.40 RCW((, the));
(b) Washington public safety employees' retirement system created by chapter 41.37 RCW;
(c) Washington state teachers' retirement system created
by chapter((s)) 41.32 ((and 41.34)) RCW((, the));
(d) Washington school employees' retirement system
created by chapter 41.35 RCW((, the));
(e) Washington law enforcement officers' and fire
fighters' retirement system((,)) created by chapter 41.26 RCW((, the));
(f) Washington state patrol retirement system((,))
created by chapter 43.43 RCW((, the));
(g) Washington judicial retirement system((,)) created by
chapter 2.10 RCW((,)); and
((the)) (h) Judges retirement fund created by chapter 2.12 RCW.
(2) The director is ((empowered to propose)) authorized
to adopt rules pursuant to RCW 41.50.050.
[Statutory Authority: RCW 41.50.050. 00-10-016, § 415-02-020, filed 4/21/00, effective 5/22/00; Order 4, § 415-02-020, filed 7/27/77.]
(1) Accumulated contributions means the sum of all contributions paid into a member's defined benefit account, including interest.
(2) Appeal means the proceeding through which a party obtains review of a department action in an adjudicative proceeding conducted under chapter 34.05 RCW (the Administrative Procedure Act) and chapter 415-08 WAC (the department's appeal rules).
(3) Average final compensation(( - ))is defined in RCW 41.32.010(30) (TRS); RCW 41.35.010(14) (SERS); RCW 41.40.010(17) (PERS); and RCW ((43.43.120(15) (WSPRS)))
41.37.010(14) (PSERS).
(4) Average final salary for WSPRS is defined in RCW 43.43.120(15).
(5) Cafeteria plan means a "qualified" employee benefit
program under IRC section 125 ((of the Internal Revenue
Code)), such as certain health and welfare plans.
(((5))) (6) Calendar month.
(a) Refers to one of the twelve named months of the year, extending from the first day of the named month through the last day. For example: January 1st through January 31st is a calendar month. February 1st through February 29th is a calendar month in a leap year. March 13th through April 12th is not a calendar month.
(b) Exception: For the purpose of administering the
break in employment ((rules interpreting and implementing the
retiree return to work statutes ()) required by RCW 41.32.570,
41.32.802, 41.32.862, 41.35.060, 41.37.050 and 41.40.037(()))
for retirees returning to work, one calendar month means
thirty consecutive calendar days. For example: Kim's
retirement date is August 1((st)). August 31 would be the
earliest Kim could return to work and meet the requirement for
a one calendar month break in employment.
(((6))) (7) Compensation earnable or earnable
compensation definitions can be found in RCW 41.32.010(10) and
41.32.345 (TRS); RCW 41.35.010(6) (SERS); RCW 41.37.010(6)
(PSERS); and RCW 41.40.010(8) (PERS).
(((7))) (8) Contribution rate is:
(a) For employees: The fraction (percent) of compensation a member contributes to a retirement system each month.
(b) For employers: The fraction (percent) of payroll a member's employer contributes to a retirement system each month. Contribution rates vary for the different systems and plans.
(((8))) (9) Deferred compensation refers to the amount of
the participant's compensation, which the participant
voluntarily defers from earnings before taxes to a deferred
compensation program.
(((9))) (10) Defined benefit plan is a pension plan in
which a lifetime retirement ((benefit)) allowance is
available, based on the member's service credit and
compensation.
(((10))) (11) Defined contribution plan is a plan in
which part of members' or participants' earnings are deferred
into an investment account in which tax is deferred until
funds are withdrawn. The benefit is based on the contribution
rate and the amount of return from the investment of the
contributions. Members or participants receive the full
market rate of return minus expenses. There is no guaranteed
rate of return and the value of an account will increase or
decrease based upon market fluctuations.
(((11))) (12) Department means the department of
retirement systems.
(((12))) (13) Dependent care assistance salary reduction
plan (DCAP) is a plan that allows an eligible employee of the
state of Washington to set aside a "before tax" portion of his
or her gross salary before federal income and Social Security
taxes to be used for the reimbursement of dependent care
expenses.
(((13))) (14) Director means the director of the
department of retirement systems.
(((14))) (15) Employee means a worker who performs labor
or services for a retirement systems employer under the
control and direction of the employer as determined under WAC 415-02-110(2). An employee may be eligible to participate as
a member of one of the state-administered retirement systems
according to eligibility requirements specified under the
applicable retirement system.
(((15))) (16) Employer is defined in RCW 41.26.030(2)
(LEOFF), 41.32.010(11) (TRS), ((41.34.010)) 41.34.020(5) (Plan
3), 41.35.010(4) (SERS), 41.37.010(4) (PSERS) and 41.40.010(4)
(PERS).
(((16))) (17) Ex-spouse refers to a person who is a party
to a "dissolution order" as defined in RCW 41.50.500(3).
(((17))) (18) Final average salary for LEOFF is defined
in RCW 41.26.030(12) (((LEOFF))).
(((18))) (19) Gainsharing is the process through which
members of certain plans share in the extraordinary investment
gains on earnings on retirement assets under chapters 41.31
and 41.31A RCW.
(((19))) (20) Independent contractor means a contract
worker who is not under the direction or control of the
employer as determined under WAC 415-02-110 (2) and (3).
(((20))) (21) IRC means the Federal Internal Revenue Code
of 1986, as subsequently amended.
(22) JRF means the judges' retirement fund created by chapter 2.12 RCW.
(23) JRS means the Washington judicial retirement system created by chapter 2.10 RCW.
(24) LEOFF means the Washington law enforcement officers' and fire fighters' retirement system created by chapter 41.26 RCW.
(25) Member means a person who is included in the membership of one of the retirement systems created by chapters 2.10, 2.12, 41.26, 41.32, 41.34, 41.35, 41.37, 41.40, or 43.43 RCW.
(((21))) (26) Participant means an eligible employee who
participates in a deferred compensation or dependent care
assistance plan.
(((22))) (27) Participation agreement means an agreement
that an eligible employee signs to become a participant in a
deferred compensation or dependent care assistance plan.
(((23))) (28) Pension plan is a plan that provides a
lifelong post retirement payment of benefits to employees.
(((24))) (29) PERS means the Washington public employee's
retirement system created by chapter 41.40 RCW.
(30) Petition means the method by which a party requests a review of an administrative determination prior to an appeal to the director. The department's petitions examiner performs the review under chapter 415-04 WAC.
(((25))) (31) Plan 1 means the retirement plans in
existence prior to the enactment of chapters 293, 294 and 295,
Laws of 1977 ex. sess.
(((26))) (32) Plan 2 means the retirement plans
established by chapters 293, 294 and 295, Laws of 1977 ex.
sess., chapter 341, Laws of 1998, and chapter 329, Laws of
2001.
(((27))) (33) Plan 3 means the retirement plans
established by chapter 239, Laws of 1995, chapter 341 Laws of
1998, and chapter 247 Laws of 2000.
(((28) Pop-up is a term that the department uses to refer
to the benefit available to a retiree where the survivor of a
retiree receiving a benefit reduced by a survivor option
predeceases the retiree. Example: Linda is receiving a
retirement benefit reduced by a survivor option for her
husband, Joe. Joe dies before Linda. Linda's monthly
retirement allowance increases. The department refers to the
increase as a "pop-up."
(29))) (34) Portability is the ability to use membership in more than one Washington state retirement system in order to qualify for retirement benefits. See chapters 41.54 RCW and 415-113 WAC.
(((30))) (35) PSERS means the Washington public safety
employees' retirement system created by chapter 41.37 RCW.
(36) Public record is defined in RCW 42.17.020(((36)))(41).
(((31))) (37) Restoration is the process of restoring a
member's service credit for prior periods.
(((32))) (38) Retirement system employer - see
"employer."
(((33))) (39) Rollover means a distribution that is paid
to or from an eligible retirement plan within the statutory
time limit allowed.
(((34))) (40) Separation date is the date a member ends
employment in a position eligible for retirement or disability
benefit coverage.
(((35))) (41) SERS means the Washington school employees'
retirement system created by chapter 41.35 RCW.
(42) Split account is the account the department establishes for a member or retiree's ex-spouse.
(((36))) (43) Surviving spouse refers to a person who was
married to the member at the time of the member's death and
who is receiving or is eligible to receive a survivor benefit.
(((37))) (44) Survivor beneficiary means a person
designated by the member to receive a monthly benefit
allowance after the member dies.
(((38))) (45) Survivor benefit is a feature of a
retirement plan that provides continuing payments to a
beneficiary after the death of a member or retiree.
(((39))) (46) TRS means the Washington state teachers'
retirement system created by chapter 41.32 RCW.
(47) The Uniform Services Employment and Reemployment Rights Act of 1994 (USERRA) is the federal law that requires employers to reemploy and preserve job security, pension and welfare benefits for qualified employees who engage in military service.
(48) WSPRS means the Washington state patrol retirement system created by chapter 43.43 RCW.
[Statutory Authority: RCW 41.50.050(5), 41.40.010(42), 41.40.037. 04-04-037, § 415-02-030, filed 1/29/04, effective 3/1/04. Statutory Authority: RCW 41.50.050(5). 02-23-037, § 415-02-030, filed 11/13/02, effective 1/1/03; 02-01-120, § 415-02-030, filed 12/19/01, effective 1/19/02. Statutory Authority: RCW 41.50.050. 00-10-016, § 415-02-030, filed 4/21/00, effective 5/22/00; 94-09-039, § 415-02-030, filed 4/19/94, effective 5/20/94; Order 4, § 415-02-030, filed 7/27/77.]
(a) You are a member of LEOFF Plan 2, PERS Plan 2 or
((Plan)) 3, ((TRS Plan 2 or Plan 3)) PSERS, SERS Plan 2 or
((Plan)) 3, or ((LEOFF Plan 2)) TRS Plan 2 or 3;
(b) Your leave of absence was authorized by your employer;
(c) You resumed employment according to the requirements in subsection (3) of this section; and
(d) You ((purchase)) establish the service credit for the
period of leave according to the provisions in this section.
(2) How does an unpaid authorized leave of absence affect
my retirement? If you ((purchase)) establish service credit
for the period of time you were on an unpaid authorized leave
of absence:
(a) It will be used as part of your total service credit to determine retirement eligibility and pension; but
(b)(i) Except as noted in (b)(ii) of this subsection, the period of time you were on leave will not be included in your average final compensation period.
Example:
Joseph has the following earnable compensation prior to retirement:
| YR 1 | $30,000 | |
| YR 2 | $35,000 | |
| YR 3 | $40,000 | |
| YR 4 | $45,000 | |
| YR 5 | $50,000 | |
| YR 6 | Unpaid leave of absence for entire year | |
| YR 7 | $55,000 |
Joseph's AFC period will be YR 2, YR 3, YR 4, YR 5, and YR 7.(ii) This provision does not apply to interruptive military service. If you establish service credit for a period of interruptive military service and that period falls in your AFC period, you are entitled to have the salary you would have earned during that time period used in the calculation of your AFC.
(3) Do I qualify to ((purchase)) establish this service
credit? As a requirement for ((purchasing)) establishing this
service credit, you must resume employment within the same
retirement system you left.
(a) After resuming employment, you may request, and pay for, service credit whether you are a contributing member or whether you become inactive.
(b) If you are a law enforcement officer in LEOFF Plan 2 and took a part-time unpaid leave of absence while you worked part-time, you may request service credit only after returning to full-time employment with the employer that authorized your leave of absence. In this case, you may only request part-time service credit for the portion of time you were on unpaid leave of absence.
(4) How do I request this service credit? If you
((desire to purchase the)) wish to establish this service
credit ((for unpaid authorized leave of absence)), you must
contact the department. The department will obtain written
verification from your employer confirming the months of your
authorized leave of absence and your salary for the months
preceding and following the leave.
(5) How does the department determine the cost of
((purchasing)) establishing this service credit?
(a) In order to ((purchase)) establish service credit for
the period of time you were on leave of absence, you must pay
the employee and employer retirement contributions, plus
applicable interest. LEOFF Plan 2 members must also pay the
contributions normally paid by the state.
(b) The amount of the employee and employer contributions is calculated as follows:
(i) For TRS members, the salary upon which contributions are calculated is determined by averaging the salary earned for the school year, as defined in RCW 28A.150.040, prior to your unpaid leave of absence and the salary earned in the school year after you returned to work. If you were on leave of absence for less than the entire school year, that year's salary will be prorated according to the number of months you were on leave of absence.
(ii) For law enforcement officers in LEOFF Plan 2 who took a part-time unpaid leave of absence while working part-time, the salary upon which contributions are calculated is determined by:
(A) Averaging your basic salary during the last full month of employment before your part-time leave of absence, and your basic salary during the first full month after you return to full-time employment; and
(B) Multiplying the monthly salary determined according to (b)(ii)(A) of this subsection by the number of months you were on leave.
(iii) For members of other systems, the salary upon which contributions are calculated is determined by:
(A) Averaging the compensation earned during the last full month of employment before your leave of absence, and the compensation you earned during the first full month after you returned to work; and
(B) Multiplying the monthly salary determined according to (b)(iii)(A) of this subsection by the number of months you were on leave.
If you worked part-time prior to the leave of absence,
partial month wages will be used to estimate your average
salary. In this case, you may only ((purchase)) establish
part-time service credit for the period of time you were on
leave of absence.
(6) What is the payment process for ((purchasing))
establishing this service credit?
(a) You may purchase this service credit in one payment, or make payments at any time until the deadline expires.
(b) Interest will accrue on the unpaid balance until payment is made in full.
(c) The department will accept funds that have been rolled over from a tax-deferred retirement account for the purchase of the service credit. However, the amount you may roll over is limited to the purchase price of the service credit. If the rollover amount does not cover the entire purchase price, you must pay the additional amount within thirty days of the rollover. If the balance is not paid within thirty days, the rollover funds will be returned to the original financial institution.
(d) If you took more than one authorized leave of absence, the department will bill you separately for each occurrence. Service credit will be granted for each occurrence only after the bill for that period is paid in full.
(7) What is the deadline for ((purchasing)) establishing
this service credit? Except as provided in subsection (9) of
this section:
(a) If you are a member of LEOFF Plan 2, PERS Plan 2,
PSERS, or SERS Plan 2, ((or LEOFF Plan 2,)) payment in full
must be received within five years from the initial date of
your return to an eligible position, or prior to your
retirement, whichever occurs first.
(b) If you are a member of PERS Plan 3 or SERS Plan 3, payment in full must be received prior to your retirement.
(c) If you are a member of TRS Plan 2 or ((Plan)) 3,
payment in full must be received by August 31st of the fifth
school year, as defined in RCW 28A.150.040, after you return
to employment or prior to your retirement, whichever comes
first. The school year during which you return to work will
be counted as year one.
(8) What if I do not make payment in full by the deadline?
(a) If you are a Plan 2 member or a PSERS member and do not make payment in full by the deadline, the amount you paid will be refunded to you.
(b) If you are a Plan 3 member and do not make payment by the deadline, the portion of your payments that were:
(i) Employer contributions will be refunded to you; and
(ii) Employee contributions will be deposited into your defined contribution account and available to you only upon separation from service.
(c) If you are a Plan 2 member or a PSERS member, the department will refund partial payments prior to the deadline upon your request.
(d) If you are a PERS Plan 2, SERS Plan 2, or TRS Plan 2 member and transfer to Plan 3 prior to making payment in full:
(i) The department will refund any partial payments; and
(ii) You must reapply under Plan 3 if you still wish to
((purchase)) establish this service credit.
(9) What is the exception to the deadline? After your
initial deadline has passed, you retain the right to
((purchase)) establish this service credit until the date of
your retirement. However, the purchase price will be equal to
the full actuarial value of the increase in benefit that
results from the purchased service credit. You may use the
two-part formula in WAC 415-10-040 to determine actuarial
value.
(10) What state law applies to ((purchasing))
establishing service credit for an unpaid authorized leave of
absence?
(a) PERS Plan 2: RCW 41.40.710;
(b) PERS Plan 3: RCW 41.40.805;
(c) TRS Plan 2: RCW 41.32.810;
(d) TRS Plan 3: RCW 41.32.865;
(e) SERS Plan 2: RCW 41.35.470;
(f) SERS Plan 3: RCW 41.35.650;
(g) LEOFF Plan 2: RCW 41.26.520;
(h) PSERS: RCW 41.37.260;
(i) Deadline extension: RCW 41.50.165.
[Statutory Authority: RCW 41.50.050(5), 41.40.710, 41.40.805, 41.32.810, 41.32.865, 41.35.470, 41.35.650, 41.26.520, 41.50.165. 04-20-005, § 415-02-175, filed 9/23/04, effective 10/24/04.]
(3) What happens if you die before becoming eligible for a normal monthly benefit payment?
(a) Generally speaking, within the plans listed in the table in this section, the department may pay a monthly benefit to your surviving spouse or minor children. If you die before being eligible for retirement, or when you are eligible only for retirement with an actuarially reduced benefit, the department will reduce the benefit paid to your surviving spouse or minor children by the ERF corresponding to the amount of time between your age at death and the age at which you would have been eligible for an unreduced retirement benefit. (Exception: A TRS Plan 1 reduction is based on the earliest date a member would have first qualified if the member had continued in service.)
(b) There are differences among plans; please consult your plan for specific, detailed information.
| (( |
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(a) Example (a) (early retirement):
Sandy, a PERS Plan 2 member, applies for retirement at age 56 years and one month with a total of 21.11 years of service. Her average final compensation (AFC) is $3,500.00. PERS Plan 2 provides for two percent (.02) of AFC per year of service. Within PERS Plan 2, age 65 is the normal retirement age, but an actuarially reduced monthly retirement is available at an age as young as 55 if the member has at least 20 years of service credit. If Sandy retires now, she would be doing so eight years and eleven months early. According to the table, the ERF for retirement eight years and eleven months early is .4025. To determine the reduced monthly benefit, PERS will multiply Sandy's AFC of $3,500 x .02 x 21.11 (service credit years) x .4025 (ERF). Sandy's monthly retirement benefit will be $594.77.
(b) Example (b) (member's death):
Robert, a 56-year-old TRS Plan 1 active member, dies April 1, 2003, with 23.17 years of service. His AFC was $3,171.74. TRS Plan 1 allows for normal retirement at age 55 with 25 years of service. Since Robert was not fully qualified for retirement, his wife, Karen, who is 58 years old, is eligible for an actuarially reduced benefit based on the earliest date Robert would have first qualified for the normal retirement benefit, reduced by the Option 2 survivor factor. Survivor factors are based on the age difference between the member and the survivor. Robert was over 55; if he had continued in service, he would be eligible for retirement in one year and ten months, when he would have completed 25 years of service. According to the actuary tables, the ERF for one year and ten months is .8530, and the Option 2 survivor factor for a beneficiary two years older is .913 (see WAC 415-02-380(11)). To determine the reduced monthly benefit to which Karen is entitled, TRS would multiply 23.17 (Robert's service credit years) x .02 x $3,171.74 (AFC) x .8530 (ERF) x .913 (the Option 2 factor). Karen's monthly benefit will be $1,144.65.
(5))) The department uses an early retirement factor (ERF) to actuarially reduce a member's or beneficiary's monthly allowance if the monthly allowance begins before the member meets the age requirement for an unreduced retirement benefit. This reduction offsets the cost of paying the monthly allowance for a longer period of time.
(1) In what situations will the department use an ERF?
(a) The department will use an ERF to reduce a monthly allowance in any of the following situations, subject to the law governing your plan, and subject to the exceptions in (b) of this subsection:
(i) You choose to retire early.
(ii) You retire due to a disability before you are eligible to retire with an unreduced retirement allowance.
(iii) You die before you are eligible to retire with an unreduced retirement allowance, and your beneficiary is eligible for a monthly allowance.
(b) An ERF is not used in the following circumstances, although another method may be used to reduce benefits as required by the laws governing each plan:
(i) You meet your plan's requirements for "alternate early retirement";
(ii) You meet PSERS requirements for "early retirement";
(iii) You retire for service or due to a disability, from PERS Plan 1 or TRS Plan 1;
(iv) You are a member of LEOFF Plan 1;
(v) You retire due to a duty-related disability from LEOFF Plan 2;
(vi) You retire due to a disability or die before retirement from WSPRS Plan 1; or
(vii) You retire due to a disability from WSPRS Plan 2.
(c) The following table shows the law governing plans that use an ERF:
| Early Retirement | Disability Retirement | Death Prior to Retirement | |
| LEOFF Plan 1: | N/A | N/A | N/A |
| LEOFF Plan 2: | RCW 41.26.430 | RCW 41.26.470 | RCW 41.26.510 |
| PERS Plan 1: | N/A | N/A | RCW 41.40.270 |
| PERS Plan 2: | RCW 41.40.630 | RCW 41.40.670 | RCW 41.40.700 |
| PERS Plan 3: | RCW 41.40.820 | RCW 41.40.825 | RCW 41.40.835 and 41.34.070 |
| PSERS: | N/A | RCW 41.37.230 | RCW 41.37.250 |
| SERS Plan 2: | RCW 41.35.420 | RCW 41.35.440 | RCW 41.35.460 |
| SERS Plan 3: | RCW 41.35.680 | RCW 41.35.690 | RCW 41.35.710 |
| TRS Plan 1: | N/A | N/A | RCW 41.32.520 |
| TRS Plan 2: | RCW 41.32.765 | RCW 41.32.790 | RCW 41.32.805 |
| TRS Plan 3: | RCW 41.32.875 | RCW 41.32.880 | RCW 41.32.895 and 41.34.070 |
| WSPRS Plan 1: | RCW 43.43.280 | N/A | N/A |
| WSPRS Plan 2: | RCW 43.43.280 | N/A | RCW 43.43.295 |
(b) WSPRS Plan 2 only: The ERF used to calculate your beneficiary's monthly allowance if you die before retirement is based on the number of years between the age at which you die and age fifty-five or when you could have attained twenty-five years of service, whichever is less. See RCW 43.43.295.
(c) All other ERFs are based on number of years between the age at which you retire, or die, and the age at which you would have been eligible to retire with an unreduced retirement allowance.
(3) Examples.
(a) Early retirement:
Sandy, a PERS Plan 2 member, applies for retirement at age 56 years and one month with a total of 21.11 years of service. Her average final compensation (AFC) is $3,500.00.
PERS Plan 2 provides for two percent (.02) of AFC per year of service. A PERS Plan 2 member must be age 65 to retire with an unreduced benefit, but is eligible for an actuarially reduced monthly retirement allowance at age 55 with 20 years of service credit.
The difference between Sandy's age now (56) and the age at which she would receive an unreduced monthly allowance (65) is 8 years and 11 months. The corresponding ERF is .4025. Therefore, the department will multiply Sandy's AFC of $3,500 x .02 x 21.11 (service credit years) x .4025 (ERF). Sandy's monthly retirement allowance will be $594.77.
(b) Death before retirement (applies to TRS 1 only):
Robert, a 56-year-old TRS Plan 1 member, died April 1, 2006, with 23.17 years of service credit. His AFC is $3,171.74.
TRS Plan 1 provides an unreduced retirement allowance at age 55 with 25 years of service credit.
Robert's wife, Karen, will receive an actuarially reduced allowance based on the date Robert would have first qualified for an unreduced retirement allowance. If Robert had continued in service, he would have met eligibility requirements in one year and 10 months, when he earned 25 years of service credit. The ERF for one year and 10 months is .8530.
Karen's monthly allowance will be further reduced by the Option 2 survivor factor, which is based on the age difference between her and Robert. Karen is age 58, two years older than Robert. The Option 2 survivor factor for a beneficiary two years older is .913 (see WAC 415-02-380(11)).
The department will multiply 23.17 (Robert's service credit years) x .02 x $3,171.74 (AFC) x .8530 (ERF) x .913 (the Option 2 factor). Karen's monthly allowance will be $1,144.65.
(4) Table - Early retirement factors (ERF) for ((these
systems/plans:)) LEOFF Plan 2, WSP Plan 2, PERS Plan 1, TRS
Plan 1, and WSP Plan 1 and 2 vested/terminated members:
| Yrs Early | Month 0 | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 |
| 0 | 1.000 | .9933 | .9866 | .9799 | .9732 | .9665 | .9598 | .9531 | .9464 | .9397 | .9330 | .9263 |
| 1 | .9200 | .9133 | .9066 | .8999 | .8932 | .8865 | .8798 | .8731 | .8664 | .8597 | .8530 | .8463 |
| 2 | .8400 | .8333 | .8266 | .8199 | .8132 | .8065 | .7998 | .7931 | .7864 | .7797 | .7730 | .7663 |
| 3 | .7600 | .7558 | .7516 | .7474 | .7432 | .7390 | .7348 | .7306 | .7264 | .7222 | .7180 | .7138 |
| 4 | .7100 | .7058 | .7016 | .6974 | .6932 | .6890 | .6848 | .6806 | .6764 | .6722 | .6680 | .6638 |
| 5 | .6600 | .6558 | .6516 | .6474 | .6432 | .6390 | .6348 | .6306 | .6264 | .6222 | .6180 | .6138 |
| 6 | .6100 | .6058 | .6016 | .5974 | .5932 | .5890 | .5848 | .5806 | .5764 | .5722 | .5680 | .5638 |
| 7 | .5600 | .5558 | .5516 | .5474 | .5432 | .5390 | .5348 | .5306 | .5264 | .5222 | .5180 | .5138 |
| 8 | .5100 | .5067 | .5034 | .5001 | .4968 | .4935 | .4902 | .4869 | .4836 | .4803 | .4770 | .4737 |
| 9 | .4700 | .4667 | .4634 | .4601 | .4568 | .4535 | .4502 | .4469 | .4436 | .4403 | .4370 | .4337 |
| 10 | .4300 | .4267 | .4234 | .4201 | .4168 | .4135 | .4102 | .4069 | .4036 | .4003 | .3970 | .3937 |
| 11 | .3900 | .3867 | .3834 | .3801 | .3768 | .3735 | .3702 | .3669 | .3636 | .3603 | .3570 | .3537 |
| 12 | .3500 | .3467 | .3434 | .3401 | .3368 | .3335 | .3302 | .3269 | .3236 | .3203 | .3170 | .3137 |
| 13 | .3100 | .3083 | .3066 | .3049 | .3032 | .3015 | .2998 | .2981 | .2964 | .2947 | .2930 | .2913 |
| 14 | .2900 | .2883 | .2866 | .2849 | .2832 | .2815 | .2798 | .2781 | .2764 | .2747 | .2730 | .2713 |
| 15 | .2700 | .2683 | .2666 | .2649 | .2632 | .2615 | .2598 | .2581 | .2564 | .2547 | .2530 | .2513 |
| 16 | .2500 | .2483 | .2466 | .2449 | .2432 | .2415 | .2398 | .2381 | .2364 | .2347 | .2330 | .2313 |
| 17 | .2300 | .2283 | .2266 | .2249 | .2232 | .2215 | .2198 | .2181 | .2164 | .2147 | .2130 | .2113 |
| 18 | .2100 | .2092 | .2084 | .2076 | .2068 | .2060 | .2052 | .2044 | .2036 | .2028 | .2020 | .2012 |
| 19 | .2000 | .1992 | .1984 | .1976 | .1968 | .1960 | .1952 | .1944 | .1936 | .1928 | .1920 | .1912 |
| 20 | .1900 | .1892 | .1884 | .1876 | .1868 | .1860 | .1852 | .1844 | .1836 | .1828 | .1820 | .1812 |
| 21 | .1800 | .1792 | .1784 | .1776 | .1768 | .1760 | .1752 | .1744 | .1736 | .1728 | .1720 | .1712 |
| 22 | .1700 | .1692 | .1684 | .1676 | .1668 | .1660 | .1652 | .1644 | .1636 | .1628 | .1620 | .1612 |
| 23 | .1600 | .1592 | .1584 | .1576 | .1568 | .1560 | .1552 | .1544 | .1536 | .1528 | .1520 | .1512 |
| 24 | .1500 | .1492 | .1484 | .1476 | .1468 | .1460 | .1452 | .1444 | .1436 | .1428 | .1420 | .1412 |
| 25 | .1400 | .1392 | .1384 | .1376 | .1368 | .1360 | .1352 | .1344 | .1336 | .1328 | .1320 | .1312 |
| 26 | .1300 | .1292 | .1284 | .1276 | .1268 | .1260 | .1252 | .1244 | .1236 | .1228 | .1220 | .1212 |
| 27 | .1200 | .1192 | .1184 | .1176 | .1168 | .1160 | .1152 | .1144 | .1136 | .1128 | .1120 | .1112 |
| 28 | .1100 | .1092 | .1084 | .1076 | .1068 | .1060 | .1052 | .1044 | .1036 | .1028 | .1020 | .1012 |
| 29 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 30 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 31 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 32 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 33 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 34 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 35 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 36 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 37 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 38 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 39 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| 40 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 | .1000 |
| Yrs Early | Month 0 | Month 1 | Month 2 | Month 3 | Month 4 | Month 5 | Month 6 | Month 7 | Month 8 | Month 9 | Month 10 | Month 11 |
| 0 | 1.000 | .9925 | .9850 | .9775 | .9700 | .9625 | .9550 | .9475 | .9400 | .9325 | .9250 | .9175 |
| 1 | .9100 | .9025 | .8950 | .8875 | .8800 | .8725 | .8650 | .8575 | .8500 | .8425 | .8350 | .8275 |
| 2 | .8200 | .8125 | .8050 | .7975 | .7900 | .7825 | .7750 | .7675 | .7600 | .7525 | .7450 | .7375 |
| 3 | .7300 | .7250 | .7200 | .7150 | .7100 | .7050 | .7000 | .6950 | .6900 | .6850 | .6800 | .6750 |
| 4 | .6700 | .6650 | .6600 | .6550 | .6500 | .6450 | .6400 | .6350 | .6300 | .6250 | .6200 | .6150 |
| 5 | .6100 | .6050 | .6000 | .5950 | .5900 | .5850 |