Eligibility Determination Worksheet

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

Retirees Returning to Work

DRS Notice 01-007: ESSB 5937, regarding rehired retirees, passed in 2001. This law requires employers to report all rehired retirees in their employ to DRS.

Review DRS Notice 01-007

DRS Notice 03-004: SHB 1829, regarding PERS Plan 1 retirees, passed in 2003. This law allows PERS Plan 1 members who retired before August 1, 2003, to continue working in an eligible position up to 1,500 hours per calendar year without affecting their benefit -- provided they wait at least one calendar month before returning to work.

This law changes the limit on the number of hours a PERS Plan 1 retiree can work without having their pension benefits suspended -- provided they wait 90 calendar days after their effective date of retirement. The retirees are subject to a 1,900 hour lifetime limit. Hours worked above 867 to 1,500 within the calendar year count against the 1,900 hour lifetime limit. Once they reach their lifetime limit, the retiree's benefit will be suspended for working beyond 867 hours.

Review DRS Notice 03-004

DRS E-mails 09-001 & 08-014 2008 Early Retirement Factors (ERF) retirees and the return to work rules

The 2008 ERF legislation also established new restrictions on retirees who who return to work in any capacity with a DRS covered employer after using the new ERF. These restrictions apply if you hire the retiree as an employee or as a contractor.

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.

A retiree's benefit payment will stop if they retire under the 2008 ERF and return to work in any capacity with a DRS-covered employer before age 65. A 2008 ERF retiree cannot receive a benefit for any month in which they are compensated for work performed, or in any way receives financial compensation for the work being performed.

Review DRS E-mails 09-001 & 08-014