DRS Email 20-002 Plan 3 default change clarification
Notice No.: 20-002
Date: Jan. 22, 2020
Applies to: All Employers
Subject: DRS Email 20-002, Plan 3 default change clarification
This message provides a clarification to the Plan 3 Default Change:
DRS will not be requiring a new Plan 2 Default code (2D) and date to be reported via the transmittal process when an employee is defaulting into Plan 2. However, if you have previously programmed your systems to automatically send Plan 3 default information after 90 days, then you will need to modify your programs to stop this practice for employees hired into eligible positions (without previous plan choice) on or after July 1, 2020.
Under legislation approved in 2019, Plan 2 will become the default for all individuals newly hired into eligible PERS, SERS and TRS positions on or after July 1, 2020. This will be a change from the current default of Plan 3 (with investment Option A, Self-Directed).
No changes to your payroll system will be required as a result of this new law.
Further information regarding the legislation (Senate Bill 5360) and its impacts to your reporting/onboarding procedures will be provided closer to the July 1 implementation date.
If you have additional questions regarding this notice, please contact DRS Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2, or email us.