employers
Employers


Chapter 5: Special Conditions

Higher Education


New Hires

Effective July 1, 2011, new employees with no past Higher Education Retirement Plan (HERP) history who are hired into a HERP-eligible position have a choice between retirement systems. New employees with prior DRS membership may also be eligible for the HERP/Plan 3 choice, depending on their past membership scenario.

There are several steps to consider when evaluating an employee's eligibility for membership. You need to know if the employee has retired or is eligible to retire from a DRS covered retirement system. You will also need to know if the employee has ever been a member of a Washington State Retirement System. Then, depending on the position you hire them into you must evaluate the employee’s eligibility under the rules that apply for the appropriate system and plan.

Effective July 1, 2011, Higher Education Employers cannot offer their HERP to new employees who have retired or are eligible to retire from any retirement plan administered by DRS and listed in RCW 41.50.030. Employers can use the online Member Reporting Verification (MRV) to verify if the employee is retired. To determine if an employee is eligible to retire, please use this guideline and then contact Employer Support Services (ESS) if needed.

Tools for determining system and plan:

Membership Options for Higher Education Q & A

Retirement Membership Options – Faculty

Retirement Membership Options – Non Faculty

Choice between HERP and TRS/PERS Plan 3

New employees who qualify for the choice between the HERP and Plan 3 have 30 days to choose (PERS for non-faculty; TRS for faculty). If a choice isn’t made within 30 days, the employer will default the employee to the HERP. Whether the employee chooses or defaults, the choice is irrevocable.

Please provide the following information to employees considering whether or not to choose Plan 3:

Please do not refer new HERP/Plan 3 eligible employees to the Plan Choice Booklet. The rules affecting HERP-eligible higher education employees are different. If your employees have Plan 3 questions that cannot be answered with the above publications, please ask them to contact DRS.

When an employee chooses Plan 3, have them complete the Higher Education Employees Plan 3 Investment Program Form and then forward a copy of this form to DRS.

If an employee (who hasn’t previously participated in Plan 3) chooses Plan 3 instead of HERP, report the following information on your DRS transmittal:

  • 3C and date TRS or PERS was chosen
  • Employment begin date
  • Member contributions, investment program, rate option
  • Compensation, hours, employer contributions

Employer Handbook - Chapter 5