Subject: DRS Email 13-029, Contract Review Process Update

  • Notice No.: 13-029
  • Date: December 13, 2013
  • Applies to: LEOFF Employers
  • Subject: DRS Email 13-029, Contract Review Process Update

On May 30, 2013, the Department of Retirement Systems (DRS) sent notification to 374 LEOFF employers, requesting copies of all contracts where services were provided by a DRS retiree between June 2010 and the present. To date, DRS has received over 300 contracts to review from 94 LEOFF employers. We continue to receive input from employers, compiling the information as it is received.

To analyze this information, we have designed a process to ensure all reviews of these retirees are completed in a consistent, timely manner, and all affected employers receive notification of next steps. Our objective in performing the reviews is to ensure that worker status has been correctly determined and that individuals have been correctly reported to the Department as required. Our top priority is to stop any pension overpayments that may be occurring.

Specifically, DRS’ approach to performing these reviews is to identify and take appropriate action related to:

  • Retirees who accepted 2008 Early Retirement Factors and returned to work for a public employer;
  • Retirees who have been misclassified as independent contractors; and
  • Other retirement eligibility and reporting issues for these retirees.

In performing these reviews, due to present resource constraints, DRS will focus on the most obvious issues first, especially those involving potential pension overpayments, and will follow up on related issues at a later time. This means that we will only request documentation for particular individuals at this time, rather than all employees. We will also notify employers of actions affecting their organizations and will use our best efforts to minimize any disruption to business.

Questions regarding the review process should be directed to DRS’ Employer Support Services group by phone at 1-800-547-6657, or (360) 664-7200, and by email at employersupport@drs.wa.gov.

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