Chapter 4: Reportable Compensation

In this section

This chapter provides information about compensation that is reportable to the Washington state retirement systems. Refer to this chapter for:

Employer responsibilities

Reportable compensation is the portion of salary or wages you pay to your employees that is used to determine retirement system contributions. It is also the compensation used to calculate retirement benefits. 

It is the employer’s responsibility to accurately track reportable compensation so that DRS can calculate retirement benefits. If adjustments to a member’s account or a retiree’s monthly benefit are necessary, it may cause a financial liability for both the employer and the member.

good to know:

Not all types of payments are reported to DRS

The term “reportable compensation” is used by DRS to represent compensation in all retirement systems, but the following terms may also be used: 

Reportable compensation is based upon the nature of the payment

DRS determines reportable compensation based upon the nature of the payment you make to an employee, not the name given to it. To determine if a payment is reportable compensation, consider the following:

  • What the payment is for
  • Whether the reason for the payment brings it within the statutory definition of reportable compensation

The importance of reportable compensation

Reporting compensation incorrectly could result in a member’s retirement account at DRS not having the appropriate interest applied, or the member having to pay retroactive contributions on compensation that should have been reported. If a retiree’s monthly retirement benefit is overstated, DRS must recover the amount overpaid. If a LEOFF Plan 2 retiree’s benefit is overpaid due to incorrect employer reporting of member information, the employer will be responsible for paying back up to one year of overpaid benefits from the date of discovery (RCW 41.26.570).

Reportable compensation: PERS

PERS reportable compensation table

The table below identifies whether a payment does or does not qualify as reportable compensation. Review the full text of the WAC to be sure you have correctly identified the payment in question.

  1. A portion of the value of an employer car allowance may be reportable. WAC 415-108-485
  2. A portion of the value of an employer provided vehicle may be reportable in Plan 1 only.
  3. A portion of the value of non-money maintenance provided may be reportable in Plan 1 only.
  4. A portion of the retirement or termination bonus may be reportable for all Plans if the agreement requires additional service and results in payment at the same or a lower rate than that paid for the same or similar service by other employees. RCW 41.50.730

Reportable compensation: TRS

TRS reportable compensation table

The table below identifies whether a payment does or does not qualify as reportable compensation. Review the full text of the WAC to be sure you have correctly identified the payment in question.

  1. A portion of the value of an employer car allowance may be reportable. WAC 415-112-41301
  2. A portion of the value of an employer provided vehicle may be reportable in Plan 1 only. WAC 415-112-413
  3. A portion of the value of non-money maintenance provided may be reportable in Plan 1 only. WAC 415-112-412
  4. A portion of the retirement or termination bonus may be reportable for all Plans if the agreement requires additional service and results in payment at the same or a lower rate than that paid for the same or similar service by other employees. RCW 41.50.730
  5. Only specific types of union leave are reportable. WAC 415-112-475

Reportable compensation: SERS

SERS reportable compensation table

The table below identifies whether a payment does or does not qualify as reportable compensation. Review the full text of the WAC to be sure you have correctly identified the payment in question.

  1. A portion of the value of an employer car allowance may be reportable. WAC 415-110-485
  2. A portion of the retirement or termination bonus may be reportable for all Plans if the agreement requires additional service and results in payment at the same or a lower rate than that paid for the same or similar service by other employees. RCW 41.50.730
  3. Only specific types of union leave are reportable. WAC 415-110-466

Reportable compensation: LEOFF

LEOFF reportable compensation table

The table below identifies whether a payment qualifies as reportable compensation. Review the full text of the WAC to be sure you have correctly identified the payment in question.

Reportable compensation: WSPRS

The table below is a quick reference guide to help characterize payments for WSPRS. Please note that reportable compensation in WSPRS is defined by the commission date, not the plan. Review the full text of the RCW listed to be sure you have correctly identified the payment in question.

WSPRS reportable compensation table

  1. “Year” means “state fiscal year,” which is the 12-month period beginning July 1 and ending June 30 of the next calendar year.
  2. The combined total of overtime included in the Average Final Salary related to either to RCW 47.46.040 or voluntary overtime, may not exceed 140 hours for WSPRS Plan 1, or 350 hours for WSPRS Plan 2.
  3. See also RCW 41.04.340(4).
  4. See also RCWs 43.43.26343.01.040 and 43.01.044.

For additional information, see the Overview Summary and What Is Reportable Compensation.

Reportable compensation: PSERS

PSERS reportable compensation table

The table below identifies whether a payment does or does not qualify as reportable compensation.

1Report compensation and actual hours worked, not time and a half.

2If the agreement requires additional service, refer to RCW 41.50.730.

3Compensation is reportable; hours are not reportable.

4Only specific types of union leave are reportable.

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