Eligibility Determination Worksheet
Verifying Employees Who are Eligible to Participate in the Washington State Retirement System
- Determine if any independent contractors are employees.
- Generally, a worker is an employee if the employer has the right to control and direct the work of the worker. The employer controls both the work results and the means or methods by which the result is accomplished. Generally, a worker is an independent contractor if the employer has the right to control or direct only the result of the services and not the means and methods accomplishing the services.
WAC 415-02-110 - To determine if a worker is an independent contractor or an employee, DRS reviews the entire relationship between the worker and the employer. The terms of the contract and the actual arrangement under which the services are performed determine if a worker is an employee or an independent contractor. We apply several factors to evaluate if the employer has direction or control over the means and methods of the worker’s services. Some of those factors are listed on the Determining Independent Contractor Status Questionnaire.
Note: A retiree who used the 2008 Early Retirement Factors (ERF) to retire early cannot return to work in any capacity with a DRS covered employer before age 65 and continue to receive a retirement benefit for any month in which they work.
Their benefit will stop the first of the month they return to work. It will restart the month following the day they stop working. If the retiree works as a contractor after age 65, it will not affect their benefit.
For any contractor, independent contractor, or personal service contractor that you directly compensate, you will need to verify their retirement status. We have created a Contractor Status form for you to use with Member Reporting Verification (MRV) to review their status. If you see the following message displayed: “Retired under the 2008 early retirement factors. Stricter return to work rules apply,” contact Employer Support Services immediately for reporting instructions. If this message is not displayed, document and retain the form.
You are not required to verify the status of vendor companies, their employees and subcontractors. Vendor companies are hired through your normal bidding process.
Please remember this does not change the requirement to solicit retirement status from your employees. Continue to complete the Retirement Status form for employees and retain it for your records.
Note: An employer should also be aware that if an individual they are hiring retired from or has ever been a member of the Seattle, Spokane, or Tacoma Employees' Retirement System the employer will need to contact ESS.
Review DRS E-mail 09-001 & DRS E-mail 08-014.
