DRS Email 20-007, HERP Supplemental Benefit Fund Contribution Rate Change
Notice No: 20-007
Date: May 27, 2020
Applies to: HERP Employers
Subject: DRS Email 20-007, HERP Supplemental Benefit Fund Contribution Rate Change
In 2011, Engrossed Substitute House Bill 1981 (ESHB 1981) created a new higher education retirement plan (HERP) supplemental benefit fund for the purpose of funding future benefit obligations of HERP supplemental benefits. The contribution rate for the HERP Supplemental Benefit Fund is currently .50 percent on all HERP salaries paid.
In 2020, Second Substitute House Bill 1661 (2SHB 1661) established institution-specific contribution rates for the HERP supplemental benefit plans. Presented in the chart below are the HERP institution-specific contribution rates that are effective July 1, 2020.
|Contribution Rates Effective 7/1/2020|
|Higher Education Retirement Plan (HERP)||Percent||Rate|
|University of Washington|| |
|Washington State University||0.30%||0.0030|
|Western Washington University|| |
|Eastern Washington University||0.28%||0.0028|
|Central Washington University||0.28%||0.0028|
|The Evergreen State College||0.23%||0.0023|
|State Board for Community and Technical Colleges (Including all community and technical colleges)||0.13%||0.0013|
In addition to the institution-specific contribution rates, 2SHB 1661 directs the state Office of Financial Management to create individual accounts for each institution of higher education within the HERP Supplemental Benefit Fund. Individual accounts for each institution of higher education will be effective July 1, 2020. The transfer of the assets of the HERP Supplemental Benefit Fund into the individual accounts for each institution will occur during fiscal year 2021. The individual accounts for each institution will be used to manage the accounting for each benefit plan.
If you have any questions regarding this DRS Notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2, or email us.