DRS Email 15-002, Potential Changes to Retiree Return to Work Rules

  • Notice No.: 15-002
  • Date: January 7, 2015
  • Applies to: PERS and Higher Education Employers
  • Subject: Potential Changes to Retiree Return to Work Rules

In the upcoming 2015 legislative session, the Select Committee on Pension Policy will request an amendment to ESHB 1981 – a law that changed the rules for retirees who return to work (RRTW). If an amendment to the law does not pass, it will be necessary for DRS to apply the 2011 law as enacted.*

If the amendment does not pass, the potential rules and reporting changes in the last two columns in the chart below will be implemented on August 1, 2015.

Retired from System/Plan Position Type Current RRTW Rules Potential Rule Changes Effective 8/1/2015 Potential Employer Reporting Changes
PERS Plan 1 Eligible Can work up to 867 hours in a calendar year before benefit is suspended. No change. No change.
PERS Plan 1 Ineligible Can work unlimited hours.

If in a PERS or Higher Ed position (including Higher Ed TRS faculty positions), can work up to 867 hours in a calendar year before benefit is suspended.

If in a position covered by any other DRS system, no change.

All employers will need to start reporting hours and compensation for retirees in ineligible positions (type code 99).
PERS Plan 2/3 Eligible Can work up to 867 hours in a calendar year before benefit is suspended.

If in a PERS or Higher Ed position (including Higher Ed TRS faculty positions), no change.

If in a position covered by any other DRS system, benefit is immediately suspended.

No change.
PERS Plan 2/3 Ineligible Can work unlimited hours.

If in a PERS or Higher Ed position, can work up to 867 hours in a calendar year before benefit is suspended.

If in a position covered by any other DRS system, no change.

All employers will need to start reporting hours and compensation for retirees in ineligible positions (type code 99).

Please forward the attached information sheet to your retiree return to work employees. If your employees have any questions, please ask them to contact a Retirement Specialist at DRS.

If the amendment to HB 1981 is adopted by the Legislature and signed by the Governor, no changes will be necessary.

Should you have questions, please reply to this message or call Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.

* Please see Employer Notice 14-014, dated October 6, 2014, for background information.

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