With the passage of ESHB 1981 in the 2011 Legislature, the Department has been asked by K-12 employees and stakeholders how we will interpret the impacts of this legislation on retirees from the Teachers’ Retirement System (TRS) Plan 1 who return to work for the 2011-2012 school year. This information is critical to those retirees who are currently negotiating contracts for the upcoming year. It is important to note that the legislation has not been signed by the Governor and so is not yet final law. However, the following interpretation applies if the bill is enacted into law as passed.
Effective January 1, 2012, TRS Plan 1 retirees who return to work for an education employer will only be eligible to work 867 hours in a fiscal year before their retirement benefit is suspended. This bill eliminates the 1900 hour lifetime bank and 1500 hour limits for all Plan 1 retirees who return to employment.
DRS will administer this change for TRS Plan 1 retirees as follows:
We hope this information is helpful to you. Further information on the bill and its other impacts will be provided to employers if or when the bill actually becomes law.
If you have any questions, please reply to this email or call Employer Support Services at 360-664-7200 (option 2) or 1-800-547-6657 (option 6, option 2).