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• Chapter 2
  • Summary
  • Employer Responsibilities
  • TRS Member Qualification
  • TRS Plan 1 Rules
  • TRS Plan 2 & 3 Rules
  • Membership for Prior Periods
  • Questions & Answers
  • Definitions

Chapter 2: Membership

TRS Membership

TRS Plan 2 and Plan 3 Rules

This section outlines current rules for membership in TRS Plan 2 and TRS Plan 3 for teachers hired on or after October 1, 1977. If you have questions about TRS eligibility, contact Employer Support Services (ESS).

TRS Plan 2 or Plan 3

• Membership rules are the same for TRS Plan 2 and 3, unless otherwise noted.
• Refer to TRS Membership Definitions section for Plan 2, or Plan 3 definitions.
• Prior retirement membership impacts current PERS Plan membership. Use Member Reporting Verification (MRV) to view an employee's prior retirement status before determining in which plan to enroll a new employee.

How Eligibility Is Determined

The employer is responsible for the determination of the employee's eligibility for membership. A Plan 2 or Plan 3 teacher contracted to work in an eligible position is required to be a member of TRS and must be reported on the transmittal report. The teacher must be reported on the transmittal from the first day of employment in the eligible position. [RCW 41.32.780 and 835]

A position is eligible if:

The position normally requires at least five months within the school year (September 1-August 31) in which compensation is earned for at least 70 hours per month. [RCW 41.32.010(37)(b)] [WAC 415-112-120]

• Normally, as used in this definition, means the position requires at least five months of at least 70 hours per month during the school year. Unexpected school closures do not affect eligibility.
• "School year" means the twelve-month period from
  September 1 of one year to August 31 of the following year.

The following questions may assist you in determining the eligibility of a position.

1. Will the position ever require 70 or more hours of compensated employment in a month?

If the answer is no, the position is not eligible.

If the answer is yes, ask question 2.

2. Will the position ever require five or more months with at least 70 hours of compensation per month during the school year?

If the answer is no, the position is not eligible.

If the answer is yes, the position is eligible.

Determining Plan Membership When Hiring a New Employee

Current membership status is impacted by prior retirement membership history. Use Member Reporting Verification (MRV) to determine if the member has prior membership history with DRS. Next, select from the following to determine current plan membership:

• When the Employee is a Retiree
• When the Employee Is Working In One Eligible Position
• When the Employee is Working Concurrently In More Than One Retirement System
• When the Employee Is Working In an Ineligible Position or as a Substitute
• TRS Plan 2 or Plan 3 Teachers Elected to Statewide Office

When the Employee Is Working in an Ineligible Position or as a Substitute

A TRS Plan 2 or Plan 3 working for you in an ineligible position is not required to be a member of TRS but must be reported on the transmittal report beginning with the 2004-2005 school year using the substitute reporting codes.

Refer to the New Hire Pyramid Substitutes for reporting charts and additional information. An ineligible position is any position that does not require at least five months during the school year in which compensation is earned for at least 70 hours per month.

Example #1: A position requires part time work for 60 hours each month for the entire year.

Explanation: The position is not eligible because employment is for less than 70 hours each month.

Example #2: A position requires full time work for three months each year.

Explanation: The position is not eligible because employment is for less than five months each year.

Return to Determining Plan Membership

When the Employee Is Working In One Eligible Position

Once the position is determined to be eligible, the next step is to determine in what plan to report a TRS member.

Current TRS membership is impacted by prior retirement history. Use Member Reporting Verification (MRV) to determine if the member has prior membership history with DRS, then select from the following New Hire Pyramid reporting tools to determine in which plan to enroll a member:

1. No Prior Membership

Beginning July 1, 2007, a new and potential TRS member with no prior TRS membership history has the option to become a member of TRS Plan 2 or Plan 3 if hired into an eligible position.

• A new or potential member has 90 calendar days to make an irrevocable Plan Choice, or they are defaulted by the employer into Plan 3, rate option A, investment program WSIB.
• An employee employed in a TRS eligible position should initially be reported in TRS Plan 2, unless the employer receives the Member Information Form (MIF) from an employee choosing Plan 3 before the first payroll cutoff. If reporting for the first time, be sure to include the begin date, even if it is the same as the Plan Choice Date.

2. Prior Membership History

The TRS Reporting Chart lists the correct plan in which to enroll employees who have prior membership history with DRS and who will be working in one TRS eligible position.

Refer to Chapter 8 Reporting Plan 3

Return to Determining Plan Membership

When the Employee Is Working Concurrently in More than One Retirement System

If you have a TRS Plan 2 or Plan 3 working in positions in more than one system during the same school year, the nature of the positions determine how to report the member on the transmittal report. Refer to the following types of concurrent employment:

• TRS and PERS [WAC 415-112-155]
• TRS and SERS [WAC 415-112-156]

Return to Determining Plan Membership

When the Employee Is a Retiree

• Retirees have special reporting codes. Refer to the Retiree Returning to Work Reporting Charts for the correct plan and type codes. See Chapter 5 Employing Retirees for additional information
• Use the same eligibility criteria for retiree and active member positions. All retirees who return to work must be reported on the transmittal report.
• Generally, retirees who are performing services for an employer as a contractor are exempt from the retiree reporting requirements. However, employers must report any TRS Plan 2 or 3 retiree, who retired using the 2008 ERF and has not attained age 65; if they are directly compensated for services performed as a contractor or any other similiar compensated relationship. These contractors should be reported as if they are in an ineligible position.
• A TRS Plan 2 or Plan 3 retiree who returns to work in an eligible position is not required to return to TRS membership but may elect to do so. The option may be exercised prospectively. If a retiree reenters membership, benefits stop until the member again retires.
• If a retiree chooses to reenter membership, the retiree must contact DRS. Report as a Retiree Return to Work until notified by DRS to report as an active member.

Note: A retiree may return to public service but this may affect the retiree's pension. Please refer to the Retiree Returning to Work Reporting Charts and Employing Retirees in Chapter 5 for what to do when you hire a retiree.

Return to Determining Plan Membership

TRS Plan 2 or Plan 3 Teachers Elected to Statewide Office

A TRS Plan 2 or Plan 3 teacher who is elected to statewide office; e.g., state senator, may continue membership in TRS by making written application to the Director of DRS. If the application is accepted, membership will continue during the term of office.

Refer members to Elected Officials. Employers, please contact ESS for additional information.

Return to Determining Plan Membership