Engrossed Substitute House Bill 1981 (ESHB 1981) created a fund for the purpose of funding future benefit obligations of HERP supplemental benefits.
Beginning January 1, 2012, higher education employers will contribute .25 percent on all HERP salaries paid. The rate increases to .50 percent on July 1, 2013. Similar to other retirement reporting, employers will report and pay the HERP contributions directly to DRS, which will be invested by the Washington State Investment Board (WSIB).
Beginning in January 2012, report the total compensation for all employees who are participating in HERP and employer contributions equal to .25 percent of the reported compensation, regardless of whether or not they are eligible for the supplemental benefit.
For example, if the total HERP salaries for January 10, 2012 payroll is $500,000. Then, you would pay $1,250 in contributions to DRS ($500,000 x .25% = $1,250).
HERP Report Group Number
DRS assigned a new, unique HERP report group number to each higher education institution to report HERP information via the transmittal.
Reporting Method Options
You may choose to report your HERP supplemental fund information through the DRS Web-Based Employer Transmittal (WBET) or through Secure File Transfer (SFT).
You will use a new Payment Advice form for paying HERP contributions. A new system/plan code (Z1) will be used for tracking contributions made to the new HERP fund.
Similar to other retirement reporting, payment of HERP contributions are due by the 15th of the month following the report period. If payments are past due, interest will be assessed. We—ll include HERP payments on your Statement of Account Activity. Please see Chapter 10 of the DRS Employer Handbook for additional information regarding Account Activity.