Washington Administrative Code

This chapter applies only to members of Plan 3 retirement systems created under chapters 41.32 (TRS), 41.35 (SERS) and 41.40 (PERS) RCW.[Statutory Authority: RCW 41.50.050(5) and chapter 41.34 RCW. WSR 02-03-120, § 415-111-100, filed 1/23/02, effective 3/1/02. Statutory Authority…

(1) What am I responsible for as a Plan 3 member? As a Plan 3 member your responsibilities include, but are not limited to:(a) Adhering to time frames;(b) Making investment decisions for your defined contribution account;(c) Reviewing account information provided on statements, s…

(1) Can contributions in Plan 3 affect my deferral limits in other tax-deferred plans? Yes. Contributions to Plan 3 reduce your taxable income; this may affect your deferral limits if you participate in another tax deferred program that has a maximum contribution based on a perce…

(1) You must choose between two investment programs:(a) The total allocation portfolio, managed by the Washington state investment board; and(b) The self-directed investment program. You may contribute to only one of these programs at a time. However, you may maintain accounts in…

(1) Contribution rates: If you are a member of the Teachers' Retirement System (TRS) Plan 3, the School Employees' Retirement System (SERS) Plan 3, or the Public Employees' Retirement System (PERS) Plan 3, you are required to contribute from your compensation according to one of …

This section applies to members who invest in the self-directed investment program.(1) What is an allocation? An allocation is a set of instructions identifying your choice of investment program funds and the percentage of your money you want to invest in each fund. The amount yo…

(1) What are the requirements to request a distribution (withdrawal) of funds from my defined contribution account?(a) You must separate from all eligible employment;(b) The department must receive the notice of separation from your employer(s); and(c) The department's recordkeep…

Any time after you become eligible to withdraw funds from your Plan 3 account, you may use part or all of your funds to purchase a life annuity administered by the state of Washington. It is named the Total Allocation Portfolio (TAP) annuity, and it provides payments monthly.(1) …

(1) Statutory deadline dates.(a) When you are purchasing service credit available from participation as a former member of Plan 2, you will be subject to the statutory deadline date as if you were in Plan 2. The transfer of membership from Plan 2 to Plan 3 will not change a statu…

(1) You may designate or change a beneficiary for your defined contribution account at any time. When received by the department, the most recent beneficiary designation supersedes all prior beneficiaries and will be used for your Plan 3 defined contribution account.(2) If you de…

(1) What is gainsharing?(a) When the average of investment returns on the net assets held in the Plan 2 and 3 pension funds exceeds ten percent over a four-year period, the amount in excess of ten percent is called extraordinary gains.(b) A portion of the extraordinary gains is p…

All definitions in RCW 41.32.010 and WAC 415-02-030 apply to terms used in this chapter. Other terms relevant to the administration of chapter 41.32 RCW are defined in this chapter.(1) Accrual date means the first date from which a member's or beneficiary's benefit is calculated.…

See chapter 415-02 WAC starting with WAC 415-02-300 for information on how the department uses actuarial factors and schedules to calculate optional retirement allowances of members of the Washington state teachers' retirement system.[Statutory Authority: RCW 41.50.050(5). WSR 13…

WAC 415-112-120 through 415-112-156 codifies the department's existing interpretation of statutes and existing administrative practice regarding eligibility for membership in TRS Plans 1, 2 and 3. The department has applied and will apply these rules to determine eligibility for …

Only teachers are eligible to establish membership in TRS.(1) A teacher is a person who:(a) Is qualified to teach under WAC 415-112-015(8); and is employed by a public school in an instructional, administrative, or supervisory capacity; or(b) Otherwise meets the criteria in RCW 4…

(1) For the purposes of this chapter, you are considered a teacher and are eligible for TRS membership if you:(a) Possess a valid educational staff associate certificate issued by the office of the superintendent of public instruction under chapter 180-79A WAC; and(b) Serve in an…

If you are a teacher as defined in WAC 415-112-120 and meet the conditions in the following table, you established TRS membership. Your plan status depends upon the date you established membership, as indicated in the following table:Period of ServiceType of EmploymentPlanPrior t…

This section applies to Plan 1, 2 and 3 members who separate employment without retiring.(1) As a Plan 1 member:(a) If you separate from service without withdrawing contributions, you will participate in Plan 1 again if you become reemployed with a TRS employer, even if you are n…

(1) If you have never been a member of the teachers' retirement system (TRS), you may establish membership in Plan 2 or Plan 3 if you worked as a teacher for seventy or more hours per month during at least five months within a single school year period of September 1st through Au…

(1) Your TRS Plan 1 membership terminates:(a) When you retire for service or disability;(b) When you separate from service and withdraw your accumulated contributions; or(c) Upon your death.(2) Your TRS Plan 2 membership terminates:(a) When you retire for service or disability;(b…

(1) Why would I want to waive my Plan 3 one percent retirement benefit? Some state retirement systems have provisions that allow members to purchase service credit earned elsewhere. If you are employed by one of these states and wish to purchase service credit for time worked in …

(1) If you work concurrently in a TRS and PERS position, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either TRS or PERS according to the following tables:Former TRS Plan 1 Members1/Typ…

(1) If you work concurrently in a TRS and SERS position, your membership status and the nature of your positions will determine the system your employer will report you in. You will be reported in either TRS and SERS according to the following table:Former TRS Plan 1 Members1/Typ…

(1) What is the judicial benefit multiplier program? The judicial benefit multiplier (JBM) program provides a higher benefit multiplier to teachers' retirement system (TRS) Plan 1 members who serve as supreme court justices or judges in the court of appeals or superior court.(2) …

In TRS Plan 1, the service you provide during the ninety days of service required to establish membership after July 1, 1964, qualifies as creditable service after you establish membership.[Statutory Authority: RCW 41.50.050(5) and 41.32.010(26). WSR 05-12-042, § 415-112-240, fil…

(1) Plan 1 members: If you are otherwise eligible, you will receive service credit for any time you were on official leave from your position on or after July 1, 1960, provided that:(a) You were listed as employed by your employer; and(b) You were receiving compensation from your…

This section applies to Plan 1 members who qualify by this chapter or chapter 41.32 RCW to purchase credit for previous service, or to restore service credit after withdrawing contributions or taking a lump sum payment in lieu of benefits. This section does not apply to service c…

This section applies to Plan 2 and 3 members who qualify by this chapter or chapter 41.32 RCW to purchase credit for previous service or to restore service credit after withdrawing contributions or taking a lump sum payment in lieu of benefits. This section does not apply to serv…

As a TRS Plan 1 member, you may be eligible for service credit for additional study at an institution of higher learning or a commercial or technical school where the courses supplement your professional preparation.The department considers thirty-six quarter hours or twenty-four…

A member who accepts teaching or educational employment involving service to United States military personnel may be allowed service credit for the same upon application after his return to Washington public school employment and payment of annuity fund contributions within the t…

(1) As a Plan 1 member, you may establish service credit for teaching out-of-state, which includes teaching out of the country, only if:(a) You were on an official leave of absence granted by your employer when you provided the service; and(b) You returned to public school servic…

If you earned service credit for teaching out-of-state or for the federal government, you may be eligible to purchase that public education experience as TRS service credit. The public education claimed must have been covered by a retirement or pension plan and must have been as …

See RCW 41.32.065.(1) If you earned service credit in an out-of-state retirement system that covers teachers in public schools and do not purchase that service credit, you may use it to qualify for retirement.(2) If you use out-of-state service credit to qualify for retirement, y…

Service credit is not earned for service:(1) With the National Red Cross organization;(2) As a teacher or educational advisor in the Civilian Conservation Corps camps; or(3) As a Peace Corps volunteer.[Statutory Authority: RCW 41.50.050(5) and chapter 41.32 RCW. WSR 05-12-042, § …

For TRS Plan 1 calculations, one year of service credit consists of one hundred eighty days of instruction.(1) As a TRS Plan 1 member employed by a school district, educational service district, school for the blind, or school for the deaf:(a) Unless otherwise determined by a con…

(1) How is my service credit calculated? RCW 41.32.010 (26)(b) provides three methods that may be used to calculate service credit for Plan 2 and 3 members:(a) Twelve-month method: If you meet the following conditions, you will receive one service credit month for each month of a…

Most community and technical colleges employ academic employees under contracts expressed in terms of a certain number of contact hours, which are usually limited to actual time spent in the classroom. Most academic positions require more time to be spent providing services to th…

WAC 415-112-402 through 415-112-491 provide the department's interpretation of statutes and its administrative practice regarding classification of payments as earnable compensation in all TRS plans. The department has applied and will apply these rules to determine the proper ch…

The following table indicates whether certain types of payments are earnable compensation under TRS Plan 1, 2 or 3 and provides a cross-reference to the specific WAC.Type of PaymentTRS 1 Earnable Compensation?TRS 2/3 Earnable Compensation?Annual Leave Cash OutsYes - WAC 415-112-4…

(1) The department determines whether payments to an employee are earnable compensation based on the nature of the payment, not the name of the payment. The department considers the reason for the payment and whether the reason brings the payment within the statutory definition o…

(1) Nonmoney maintenance compensation, as defined in this section:(a) Is earnable compensation to the extent authorized by this section, for Plan 1 members; and(b) Is not earnable compensation for Plan 2 and 3 members.(2) Nonmoney maintenance compensation is compensation legally …

(1) TRS Plan 1 members:(a) Use of an employer vehicle for business purposes does not qualify as compensation earnable. If your employer's established policy prohibits the use of an employer vehicle for nonbusiness uses, all use of the vehicle will be deemed business use.(b) Use o…

(1)(a) Plan 1. Vehicle allowances may be earnable compensation for Plan 1 members according to this section.(b) Plans 2 and 3. Vehicle allowances are not earnable compensation for members of Plans 2 and 3. Subsections (2) through (5) of this section apply to Plan 1 members only.(…

(1)(a) Plan 1. Under RCW 41.32.010 (10)(a), cash-outs for up to two hundred forty hours of unused annual leave are included in earnable compensation1 for Plan 1 members according to this section.(b) Plans 2 and 3. Under RCW 41.32.010 (10)(b), cash-outs for unused annual leave and…

Cash-outs for unused sick leave are not earnable compensation in TRS Plans 1, 2, or 3, and are not includable in average final compensation.[Statutory Authority: RCW 41.50.050(5) and 41.32.010(10). WSR 05-12-108, § 415-112-417, filed 5/27/05, effective 6/27/05.]

(1) Plan 1. Except as provided in subsection (2) of this section, to calculate average final compensation for a member of TRS Plan 1, the department will:(a) Determine the two consecutive fiscal years in which the member's total earnable compensation is the highest.(b) Divide the…

RCW 41.32.345 provides an optional method of computing earnable compensation for part-time TRS Plan 1 members. This method is intended to ensure that a TRS Plan 1 member who earns a fractional year of service credit will receive benefits proportional to benefits received by a mem…