WAC 415-111-220
How do I choose a defined contribution
rate? (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 the
following rate structures:
| |
Base
Rate |
Additional
Rate |
Total
Contribution
Rate |
| Option A |
|
|
|
| All ages |
5.0% |
0.0% |
5.0% |
| Option B |
|
|
|
| Up to age 35 |
5.0% |
0.0% |
5.0% |
| Age 35 to 44 |
5.0% |
1.0% |
6.0% |
| Age 45 and
above |
5.0% |
2.5% |
7.5% |
| Option C |
|
|
|
| Up to age 35 |
5.0% |
1.0% |
6.0% |
| Age 35 to 44 |
5.0% |
2.5% |
7.5% |
| Age 45 and
above |
5.0% |
3.5% |
8.5% |
| Option D |
|
|
|
| All ages |
5.0% |
2.0% |
7.0% |
| Option E |
|
|
|
| All ages |
5.0% |
5.0% |
10.0% |
| Option F |
|
|
|
| All ages |
5.0% |
10.0% |
15.0% |
(2) How do I make the choice? Under WAC 415-111-110, it
is your responsibility to complete the correct form for
choosing a contribution rate and submitting the form in a
timely manner to your employer as directed on the form.
(3) Where do I get the form to make my choice? Your
employer must provide the appropriate form to choose a
contribution rate if you are enrolling in Plan 3 or
transferring from Plan 2 to Plan 3.
(4) When do I have to choose? You must choose a
contribution rate within ninety calendar days from your date
of hire in an eligible position. However, if you are
transferring from Plan 2 to Plan 3, you must choose a
contribution rate at the same time you transfer. The
ninety-day period does not apply to a member transferring from
Plan 2 to Plan 3.
(5) When do contributions begin?
(a) Once you choose a contribution rate, contributions
will begin the first day of the pay cycle in which you make
the choice.
(b) If the employer advises the department that you
should be reported into Plan 3 membership retroactively, the
ninety-day period starts from the date it is discovered that
you should have been reported. The department will decide
which date to use.
(6) What if I work for more than one employer? If you
are a Plan 3 member working in eligible positions for more
than one employer, you may select a different contribution
rate with each employer.
(7) What happens if I do not make a choice? Under RCW 41.34.040, you will be assigned a base rate of 5% (Option A)
if:
(a) You are a new employee or changing your employer, and
do not choose a contribution rate within the ninety-day
election period described in subsection (4) of this section;
or
(b) You are transferring from Plan 2 to Plan 3 and do not
choose a contribution rate at the time of transfer.
Contributions required under subsection (a) or (b) will begin
the first day of the pay cycle in which you are assigned to
Option A.
(8) Can I change my contribution rate?
(a) If you are a PERS 3 or SERS 3 member, once you choose
a contribution rate or are assigned the base rate of 5%
(Option A), you cannot change that contribution rate unless
you change employers. This rule is required by an IRS
decision on the tax qualified status of PERS 2 and 3 and SERS
2 and 3.
(b) Each time you change employers, you must choose a new
contribution rate within ninety days or you will be assigned a
base rate of 5% (Option A). No contributions will be taken
until you choose a rate or until the ninety-day period has
elapsed, whichever occurs first.
(c) Each January, TRS Plan 3 members may change their
contribution rate option by providing written notification to
their employer as described in WAC 415-111-110(1).
[Statutory Authority: RCW 41.50.050(5) and 41.34.090. 06-03-097, § 415-111-220, filed 1/17/06, effective 2/17/06. Statutory Authority: RCW 41.50.050(5) and 41.34.040. 04-02-004, § 415-111-220, filed 12/24/03, effective 1/1/04;
01-15-038, § 415-111-220, filed 7/13/01, effective 7/26/01.
Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW.
01-01-059, § 415-111-220, filed 12/12/00, effective 1/12/01.]