Reporting

The Post-Retirement Employment Bill (ESSB 5937) was passed and signed into law effective July 1, 2001. You are required to report all retirees in your employ on the transmittal report. You must report compensation and hours for all retirees working in eligible positions using the type codes 97 or 98. Report only beginning and end dates for the retirees working in ineligible positions (type code 99). For PERS/TRS Plan 1 employees working in eligible positions, employers will receive an invoice for employer contributions based on all reported compensation once the employee has exceeded 867 hours.

Review DRS Notice 01-007: New Retiree Rehire Reporting Requirements

2008 Early Retirement Factors and Retirees who Return to Work

The 2007 Legislature passed a law that adds new Early Retirement Factors (ERF) and new retiree return to work rules for members that choose to retire under the 2008 ERF. This ERF is available to Plan 2 and 3 members of the following systems: Public Employees' Retirement System (PERS), School Employees' Retirement System (SERS) and Teachers' Retirement System (TRS). The 2008 ERF is available July 1 for PERS, and September 1 for SERS and TRS.

The legislation that created the new 2008 ERF also established stricter return to work rules for retirees who return to employment after retiring using the new ERF. These restrictions apply whether you hire the retiree as an employee or as a contractor.

When you hire a contractor to perform services for your organization you will need to ask the individual if he or she retired using the 2008 ERF. You will also need to ask if the company the contractor works under is owned by an individual who retired under the new ERF and if that owner would receive compensation as a result of the contracted service.

Review DRS E-mail 08-014: Early Retirement Factors and Retirees