Notice No.: 16-018
Date: Dec. 12, 2016
Applies to: All Employers
Subject: DRS Email 16-018, Retirement Reminders
Listed below are a few reminders to help you accurately report to DRS.
First, there are many steps to the Plan Choice process and it is easy to miss one. Simply mailing the Member Information Form (MIF) to DRS does not record the member’s choice. You must send the Plan Choice information through the retirement transmittal to record the member’s choice. We have documented the process below.
As you may know, new public employees to PERS, SERS and TRS have 90 days to make an irrevocable choice between Plan 2 and Plan 3. Timely and accurate reporting is imperative. The following tips will help you meet these goals:
1. Document that you have provided the employee with the Plan Choice Booklet.
2. Ideally, the plan choice information should be provided to the employee on their first day of eligible employment.
3. Complete Section 5 of the MIF after you receive it from the employee.
4. Plan Choice must be reported through your transmittal for all new members.
Correcting Plan 3 errors can also be tricky. Please review to ensure you are fixing errors appropriately.
Plan 3 reporting errors
For every Plan 3 member you report, there are two separate records:
The system edits these records separately and will sometimes reject the defined benefit record, but accept the defined contribution record. When you use WBET to correct a rejected transaction, WBET will automatically calculate both member and employer contributions. If the member contributions did not reject, you must delete them from the earning record before you submit the report.
Finally, make sure you collect in writing the Retirement Status of every new employee.
Retirement Status Verification
RCW 41.50.139 requires employers to obtain, in writing, the retirement status of all new employees. Employers can document retirement status through their own processes or by using the Retirement Status Verification form. Employers retain this form for 60 years.
If you have any questions regarding this notice, contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6 and then 2.