Chapter 8: Transmittal Reporting

The Reporting Process

Plan Choice Reporting - Employer Responsibilities

As the employer, you have responsibilities for accurate and timely reporting of plan choice retirement data.

• Provide members with an orientation informing them of their plan choice options.
• Provide the Plan Choice Booklet with the Member Information Form (MIF) to new plan choice members immediately upon hire, and the MIF to newly hired existing Plan 3 members eligible to elect a new contribution rate.
• Distribute all necessary forms and publications to employees. Refer to the New Hire Pyramid for resources available and ordering information.
• Be sure to verify that members sign and date all required sections of the MIF, and submit the signed form to DRS if the member makes an irrevocable plan choice.
• Keep member addresses current.
• Verify the correct plan and choice options for new employees using Member Reporting Verification. Contact Employer Support Services for access to eServices or if you need assistance.
• Report an employee's Plan decision; and for Plan 3 also their contribution rate option, and their investment program on the first available regular transmittal following the receipt of the MIF.
• For applicable employees, monitor the 90 calendar day choice period and default the member if they do not make an election.
• Deduct and report Plan 3 member contributions correctly based on a member's chosen rate option. DRS doesn't edit Plan 3 member contributions based on the compensation reported and accepts whatever the employer reports for member contributions.
• Report Plan 3 member contributions as paid; employer contributions continue to be reported as earned.
• If the Plan 3 rate changes following a member's birthday, employers must begin using the new rate effective the first day of the following month. (Rate options B and C)
• Submit a transmittal correction as soon as possible for rejected data. Rejected Plan 3 member contributions create the potential for lost earnings on investments.
• Deduct and report Plan 3 member contributions for new or existing Plan 3 members prospectively starting with the first available pay period after receipt of the signed MIF with required selections or the member defaults. Don't deduct contributions at the Plan 3 rate retroactively back to the date of hire.

• Provide a Plan 3 member with the option to make up member contributions only if the employer errs reporting a Plan 3 choice.
• Monitor Plan 3 deferral limits to ensure that a member's contributions do not exceed Internal Revenue Code limits [WAC 415-111-111].
• Employers who have Plan 3 members are encouraged to submit the member data for each pay period. The sooner DRS receives Plan 3 member contributions and the transmittal report, the sooner member contributions are invested.
• The employer may be liable for lost earnings if a member suffers a loss of investment due to an employer error. [WAC 415-111-110 (4)]