Subject: DRS Email 12-014, How the Pension Reform bill...

  • Notice No.: 12-014
  • Date: August 30, 2012
  • Applies to: School District Employers
  • Subject: DRS Email 12-014, How the Pension Reform bill affects substitutes

The 2012 Pension Reform bill (Second Engrossed Senate Bill 6378) changes early retirement rules for those who first establish membership on or after May 1, 2013. Members with 30 years of service credit at the time of retirement and who are at least age 55, will accept a benefit reduction of five percent for each year before age 65. They will not be eligible for the current early retirement options.

It’s important for you to understand how this law affects substitute teachers and classified substitutes.

Eligibility for the current early retirement factors

  • Anyone who establishes membership before May 1, 2013.
  • 2011-2012 substitutes must purchase their time before May 1, 2013. The interest-free period for purchasing substitute time starts September 1 and ends February 28, 2013.

Eligibility for the 5% early retirement factor

  • Anyone who establishes membership after May 1, 2013.
  • Any new substitute who starts September 2012 and works through the 2013 school year. These potential members cannot establish membership until September 2013 and will only have access to the 5% ERF.


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.