Washington Code 41.32.813 – One-time purchase of service credit — Conditions — Payment — Rules
Current as of: 2023 | Check for updates
|
Other versions
(1) An active member who has completed a minimum of two years of creditable service in the teachers’ retirement system may, upon written application to the department, make a one-time purchase of up to seven years of service credit for public education experience outside the Washington state retirement system, subject to the following limitations:
Terms Used In Washington Code 41.32.813
- Creditable service: means membership service plus prior service for which credit is allowable. See Washington Code 41.32.010
- Department: means the department of retirement systems created in chapter 41. See Washington Code 41.32.010
- Employer: means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid. See Washington Code 41.32.010
- Member: means any teacher included in the membership of the retirement system who has not been removed from membership under RCW 41. See Washington Code 41.32.010
- Membership service: means service rendered subsequent to the first day of eligibility of a person to membership in the retirement system: PROVIDED, That where a member is employed by two or more employers the individual shall receive no more than one service credit month during any calendar month in which multiple service is rendered. See Washington Code 41.32.010
- Pension: means the moneys payable per year during life from the pension reserve. See Washington Code 41.32.010
- Public school: means any institution or activity operated by the state of Washington or any instrumentality or political subdivision thereof employing teachers, except the University of Washington and Washington State University. See Washington Code 41.32.010
- Retirement system: means the Washington state teachers' retirement system. See Washington Code 41.32.010
- Teacher: means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. See Washington Code 41.32.010
(a) The public education experience being claimed must have been performed as a teacher in a public school in another state or with the federal government;
(b) The public education experience being claimed must have been covered by a retirement or pension plan provided by a state or political subdivision of a state, or by the federal government; and
(c) The member is not currently receiving a benefit or currently eligible to receive an unreduced retirement benefit from a retirement or pension plan of a state or political subdivision of a state or the federal government that includes the service credit to be purchased.
(2) The service credit purchased shall be membership service, and may be used to qualify the member for retirement.
(3) The member shall pay the actuarial value of the resulting increase in the member’s benefit calculated in a manner consistent with the department’s method for calculating payments for reestablishing service credit under RCW 41.50.165.
(4) The member may pay all or part of the cost of the service credit to be purchased with a lump sum payment, eligible rollover, direct rollover, or trustee-to-trustee transfer from an eligible retirement plan. The department shall adopt rules to ensure that all lump sum payments, rollovers, and transfers comply with the requirements of the internal revenue code and regulations adopted by the internal revenue service. The rules adopted by the department may condition the acceptance of a rollover or transfer from another plan on the receipt of information necessary to enable the department to determine the eligibility of any transferred funds for tax-free rollover treatment or other treatment under federal income tax law.
(5) The employer also may pay all or a portion of the member’s cost of the service credit purchased under this section.
NOTES:
Effective date—2006 c 257: “This act takes effect January 1, 2007.” [ 2006 c 257 § 4.]