Subject: DRS Email 13-026, TRS Plan 3 Rate Window Reminder

  • Notice No.: 13-026
  • Date: November 26, 2013
  • Applies to: TRS Employers
  • Subject: DRS Email 13-026, TRS Plan 3 Rate Window Reminder

TRS Plan 3 members may change their contribution rate by submitting the TRS Plan 3 Contribution Rate Change Form to their employer by January 31, 2014.

This rate flexibility option does not apply to members of PERS or SERS.

Please report the new rate option on either the January or February transmittal report based on when you received the form. After completing the last section, mail the original signed form to DRS.

This option is being offered according to provisions granted to TRS Plan 3 by the Internal Revenue Service (IRS). The contribution rate option members select should be considered binding and can only be changed when they change employers or during the rate change window as permitted by the IRS.

NOTE: DRS submitted the PERS, SERS and TRS plans to the IRS for qualification in 2009 and the IRS has ruled that it would not qualify TRS Plan 3 unless the rate flexibility currently offered to TRS Plan 3 members is removed. In response to this provisional IRS plan qualification, the Legislature’s Select Committee on Pension Policy has sponsored a bill for the 2014 legislative session that makes the necessary changes to Plan 3 laws to remain a qualified plan. Under the provisions of this proposed legislation, TRS Plan 3 members have January of 2014 and one last opportunity in January 2015 to select a new contribution rate option. After January of 2015, TRS Plan 3 members would only be able to change their rate when they change employers.

Should you have questions, please reply to this message or call Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2.