Eligibility Determination Worksheet

Verifying Employees Who are Eligible to Participate in the Washington State Retirement System

Determine if any employees on the list are independent contractors.
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 to retire early, cannot work as a contractor 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.

You are now required to collect retirement status information for 2008 ERF retirees who are compensated by a contract or a similar agreement for services provided to your organization. We recommend you contact the appropriate staff within your organization to establish a process that will allow you to stay informed about anyone associated with a contract or a similar agreement. See DRS E-mail 08-014.