Chapter 4: Reportable Compensation

LEOFF Reportable Compensation

Plan 2 Not Reportable Compensation

The following are payment types that are not considered basic salary and are not reportable to DRS for LEOFF Plan 2.

• Disability payments-Employer contributions to the disability leave supplement provisions do not qualify as basic salary and are not reportable.
• Workers' Compensation-Payments made under Title 51 RCW are excluded from the definition of basic salary and are not reportable.
• Private insurance-Any payment from a third party insurance company is neither paid leave nor payment for services rendered and is not reportable.
• Employer-paid taxes and employer-paid contributions are not salary or wages and are not reportable.
• Fringe benefits provided by an employer such as insurance premiums are not reportable.
• Illegal payments are not basic salary and are not reportable.
• Reimbursements or allowances in lieu of a reimbursement are not reportable.

  Example:

  An employer provides an annual stipend for the purchase of a uniform or other clothing required for the performance of a member's duties. The payment is a reimbursement for expenses incurred or expected to be incurred and is not basic salary.

• Standby pay-Payments for time not actually worked when the member must be available to work if the need arises, are not reportable.

  Example:

  Some employers provide payments to a member at less than the member's regular hourly rate in exchange for the member being available to come into work after his or her shift if called. These payments are not basic salary.

• Termination or retirement bonuses-An additional payment based on notification of a member's intent to terminate or retire is not basic salary and is not reportable.
• Statutorily excluded payments-Payments authorized by a law that excludes the payment from the calculation of a retirement allowance are not reportable.
• Cash outs of accrued leave for unused accrued leave is specifically excluded from the definition of basic salary and is not reportable.
• Severance pay-Any form of severance pay is excluded from the definition of basic salary and is not reportable.
• Payments in lieu-A payment or any other transfer in lieu of an item that does not qualify as basic salary is not reportable.