Depending upon the rules at your institution, an active PERS or TRS member who is eligible for coverage by a Higher Education Retirement Plan (HERP) may be allowed the following options for retirement coverage.
The employee may:
Please contact your plan administrator for other options that may be available.
An active member of PERS Plan 1, Plan 2, or Plan 3 can continue membership in PERS if employed in an eligible PERS position. An active member of TRS Plan 1 can continue membership in TRS if hired under a written contract, regardless of the number of hours of employment. An active member of TRS Plan 2 or TRS Plan 3 can continue membership in TRS if employed in an eligible TRS position. (See Chapter 2 for details about membership requirements.)
If an employee elects to continue PERS or TRS membership, report him or her on the monthly transmittal from the first day of eligible employment.
Note: When describing the membership options, let the employee know this is a one-time, irrevocable election. An employee cannot elect to end PERS or TRS membership and then later, based on the same employment with you, elect to rejoin PERS or TRS.
A former member of PERS or TRS who has withdrawn contributions from the system is treated the same as an individual who has never been a PERS or TRS member. If the individual is eligible for HERP coverage, he or she may elect to join a HERP immediately; or if allowed, wait up to two years (without any retirement coverage) and then join a HERP.
Retirees from TRS, PERS, PSERS, SERS, LEOFF, WSPRS, or JRS hired to work for a higher education institution are subject to the same reporting requirements as retirees hired to work for any DRS covered employer. Please refer to Chapters 7 and 8 for instructions for reporting retirees on the transmittal.
Note: A retiree from PERS Plan 1, 2 or 3, who has been separated from employment for one full calendar month following the retirement accrual date, may continue to receive his/her monthly benefit as long as they are an active member of a higher education retirement plan. (WAC 415-108-710). The retiree must be reported on the transmittal report as a retiree employed in an ineligible position (type code 99) as long as they remain an active member of a HERP.
A retiree from a system other than PERS, who is an active member of a HERP, will be subject to the DRS retiree return-to-work rules for the system and plan from which he/she retired. You must also report the correct position status; e.g., eligible or ineligible via type code 98 or 99 respectively.
If you hire a TRS Plan 1 retiree who has the option to participate in a HERP and chooses to do so, you must contact ESS.