RCW ch. 41.32 — Revised Code of Washington Chapter 41.32 RCW — Teachers' Retirement

RCW 41.32.005 Provisions applicable to "plan 1," "plan 2," and "plan 3." RCW 41.32.010 through 41.32.067 shall apply to members of plan 1, plan 2, and plan 3. [ 1995 c 239 s 101; 1992 c 72 s 4; 1991 c 35 s 30; 1990 c 274 s 16. Prior: 1989 c 273 s 15; 1989 c 272 s 4; 1977 ex.s. c 293 s 19.] NOTES: Effective date— RCW 41.32.010 Definitions. As used in this chapter, unless a different meaning is plainly required by the context: (1)(a) "Accumulated contributions" for plan 1 members, means the sum of all regular annuity contributions and, except for the purpose of withdrawal at the time of retirement, any amount paid under RCW 41.50.165(2) with regular interest thereon. (b) "Accumulated contributions" for plan 2 members, means the sum of all contributions standing to the credit of a member in the member's individual account, including any amount paid under RCW 41.50.165(2), together with the regular interest thereon. (2) "Actuarial equivalent" means a benefit of equal value when computed upon the basis of such mortality tables and regulations as shall be adopted by the director and regular interest. (3) "Adjustment ratio" means the value of index A divided by index B. (4) "Annual increase" means, initially, fifty-nine cents per month per year of service which amount shall be increased each July 1st by three percent, rounded to the nearest cent. (5) "Annuity" means the moneys payable per year during life by reason of accumulated contributions of a member. (6) "Average final compensation" for plan 2 and plan 3 members, means the member's average earnable compensation of the highest consecutive sixty service credit months prior to such member's retirement, termination, or death. Periods constituting authorized leaves of absence may not be used in the calculation of average final compensation except under RCW 41.32.810(2). (7)(a) "Beneficiary" for plan 1 members, means any person in receipt of a retirement allowance or other benefit provided by this chapter. (b) "Beneficiary" for plan 2 and plan 3 members, means any person in receipt of a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer by another person. (8) "Contract" means any agreement for service and compensation between a member and an employer. (9) "Creditable service" means membership service plus prior service for which credit is allowable. This subsection shall apply only to plan 1 members. (10) "Department" means the department of retirement systems created in chapter 41.50 RCW. (11) "Dependent" means receiving one-half or more of support from a member. (12) "Director" means the director of the department. (13) "Disability allowance" means monthly payments during disability. This subsection shall apply only to plan 1 members. (14)(a) "Earnable compensation" for plan 1 members, means: (i) All salaries and wages paid by an employer to an employee member of the retirement system for personal services rendered during a fiscal year. In all cases where compensation includes maintenance the employer shall fix the value of that part of the compensation not paid in money. (ii) For an employee member of the retirement system teaching in an extended school year program, two consecutive extended school years, as defined by the employer school district, may be used as the annual period for determining earnable compensation in lieu of the two fiscal years. (iii) "Earnable compensation" for plan 1 members also includes the following actual or imputed payments, which are not paid for personal services: (A) Retroactive payments to an individual by an employer on reinstatement of the employee in a position, or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation and the individual shall receive the equivalent service credit. (B) If a leave of absence, without pay, is taken by a member for the purpose of serving as a member of the state legislature, and such member has served in the legislature five or more years, the salary which would have been received for the position from which the leave of absence was taken shall be considered as compensation earnable if the employee's contribution thereon is paid by the employee. In addition, where a member has been a member of the state legislature for five or more years, earnable compensation for the member's two highest compensated consecutive years of service shall include a sum not to exceed thirty-six hundred dollars for each of such two consecutive years, regardless of whether or not legislative service was rendered during those two years. (iv) For members employed less than full time under written contract with a school district, or community college district, in an instructional position, for which the member receives service credit of less than one year in all of the years used to determine the earnable compensation used for computing benefits due under RCW 41.32.497, 41.32.498, and 41.32.520, the member may elect to have earnable compensation defined as provided in RCW 41.32.345. For the purposes of this subsection, the term "instructional position" means a position in which more than seventy-five percent of the member's time is spent as a classroom instructor (including office hours), a librarian, a psychologist, a social worker, a nurse, a physical therapist, an occupational therapist, a speech language pathologist or audiologist, or a counselor. Earnable compensation shall be so defined only for the purpose of the calculation of retirement benefits and only as necessary to insure that members who receive fractional service credit under RCW 41.32.270 receive benefits proportional to those received by members who have received full-time service credit. (v) "Earnable compensation" does not include: (A) Remuneration for unused sick leave authorized under RCW 41.04.340, 28A.400.210, or 28A.310.490; (B) Remuneration for unused annual leave in excess of two hundred forty hours as authorized by RCW 43.01.044 and 43.01.041. (b) "Earnable compensation" for plan 2 and plan 3 members, means salaries or wages earned by a member during a payroll period for personal services, including overtime payments, and shall include wages and salaries deferred under provisions established pursuant to sections 403(b), 414(h), and 457 of the United States Internal Revenue Code, but shall exclude lump sum payments for deferred annual sick leave, unused accumulated vacation, unused accumulated annual leave, or any form of severance pay. "Earnable compensation" for plan 2 and plan 3 members also includes the following actual or imputed payments which, except in the case of (b)(ii)(B) of this subsection, are not paid for personal services: (i) Retroactive payments to an individual by an employer on reinstatement of the employee in a position or payments by an employer to an individual in lieu of reinstatement in a position which are awarded or granted as the equivalent of the salary or wages which the individual would have earned during a payroll period shall be considered earnable compensation, to the extent provided above, and the individual shall receive the equivalent service credit. (ii) In any year in which a member serves in the legislature the member shall have the option of having such member's earnable compensation be the greater of: (A) The earnable compensation the member would have received had such member not served in the legislature; or (B) Such member's actual earnable compensation received for teaching and legislative service combined. Any additional contributions to the retirement system required because compensation earnable under (b)(ii)(A) of this subsection is greater than compensation earnable under (b)(ii)(B) of this subsection shall be paid by the member for both member and employer contributions. (c) In calculating earnable compensation under (a) or (b) of this subsection, the department of retirement systems shall include: (i) Any compensation forgone by a member employed by a state agency or institution during the 2009-2011 fiscal biennium as a result of reduced work hours, mandatory or voluntary leave without pay, temporary reduction in pay implemented prior to December 11, 2010, or temporary layoffs if the reduced compensation is an integral part of the employer's expenditure reduction efforts, as certified by the employer; (ii) Any compensation forgone by a member during the 2011-2013 fiscal biennium as a result of reduced work hours, mandatory leave without pay, temporary layoffs, or reductions to current pay if the reduced compensation is an integral part of the employer's expenditure reduction efforts, as certified by the employer. Reductions to current pay shall not include elimination of previously agreed upon future salary reductions; and (iii) Any compensation forgone by a member during the 2019-2021 and 2021-2023 fiscal biennia as a result of reduced work hours, mandatory leave without pay, temporary layoffs, furloughs, reductions to current pay, or other similar measures resulting from the COVID-19 budgetary crisis, if the reduced compensation is an integral part of the employer's expenditure reduction efforts, as certified by the employer. Reductions to current pay shall not include elimination of previously agreed upon future salary increases. (15)(a) "Eligible position" for plan 2 members from June 7, 1990, through September 1, 1991, means a position which normally requires two or more uninterrupted months of creditable service during September through August of the following year. (b) "Eligible position" for plan 2 and plan 3 on and after September 1, 1991, means a position that, as defined by the employer, normally requires five or more months of at least seventy hours of earnable compensation during September through August of the following year. (c) For purposes of this chapter an employer shall not define "position" in such a manner that an employee's monthly work for that employer is divided into more than one position. (d) The elected position of the superintendent of public instruction is an eligible position. (16) "Employed" or "employee" means a person who is providing services for compensation to an employer, unless the person is free from the employer's direction and control over the performance of work. The department shall adopt rules and interpret this subsection consistent with common law. (17) "Employer" means the state of Washington, the school district, or any agency of the state of Washington by which the member is paid. Except as otherwise specifically provided in this chapter, "employer" does not include a government contractor. For purposes of this subsection, a "government contractor" is any entity, including a partnership, limited liability company, for-profit or nonprofit corporation, or person, that provides services pursuant to a contract with an employer. The determination whether an employer-employee relationship has been established is not based on the relationship between a government contractor and an employer, but is based solely on the relationship between a government contractor's employee and an employer under this chapter. For the purposes of retirement plan membership, this subsection includes tribal schools who have chosen to participate in the retirement system and satisfied the requirements of RCW 28A.715.010(7). (18) "Fiscal year" means a year which begins July 1st and ends June 30th of the following year. (19) "Former state fund" means the state retirement fund in operation for teachers under chapter 187, Laws of 1923, as amended. (20) "Index" means, for any calendar year, that year's annual average consumer price index, Seattle, Washington area, for urban wage earners and clerical workers, all items compiled by the bureau of labor statistics, United States department of labor. (21) "Index A" means the index for the year prior to the determination of a postretirement adjustment. (22) "Index B" means the index for the year prior to index A. (23) "Index year" means the earliest calendar year in which the index is more than sixty percent of index A. (24) "Local fund" means any of the local retirement funds for teachers operated in any school district in accordance with the provisions of chapter 163, Laws of 1917 as amended. (25) "Member" means any teacher included in the membership of the retirement system who has not been removed from membership under RCW 41.32.878 or 41.32.768. Also, any other employee of the public schools who, on July 1, 1947, had not elected to be exempt from membership and who, prior to that date, had by an authorized payroll deduction, contributed to the member reserve. (26) "Member account" or "member's account" for purposes of plan 3 means the sum of the contributions and earnings on behalf of the member in the defined contribution portion of plan 3. (27) "Member reserve" means the fund in which all of the accumulated contributions of members are held. (28) "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. The provisions of this subsection shall apply only to plan 1 members. (29) "Pension" means the moneys payable per year during life from the pension reserve. (30) "Pension reserve" is a fund in which shall be accumulated an actuarial reserve adequate to meet present and future pension liabilities of the system and from which all pension obligations are to be paid. (31) "Plan 1" means the teachers' retirement system, plan 1 providing the benefits and funding provisions covering persons who first became members of the system prior to October 1, 1977. (32) "Plan 2" means the teachers' retirement system, plan 2 providing the benefits and funding provisions covering persons who first became members of the system on and after October 1, 1977, and prior to July 1, 1996. (33) "Plan 3" means the teachers' retirement system, plan 3 providing the benefits and funding provisions covering persons who first become members of the system on and after July 1, 1996, or who transfer under RCW 41.32.817. (34) "Prior service" means service rendered prior to the first date of eligibility to membership in the retirement system for which credit is allowable. The provisions of this subsection shall apply only to plan 1 members. (35) "Prior service contributions" means contributions made by a member to secure credit for prior service. The provisions of this subsection shall apply only to plan 1 members. (36) "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. For the purposes of retirement plan membership, this subsection includes tribal schools who have chosen to participate in the retirement system and satisfied the requirements of RCW 28A.715.010(7). (37) "Regular contributions" means the amounts required to be deducted from the compensation of a member and credited to the member's individual account in the member reserve. This subsection shall apply only to plan 1 members. (38) "Regular interest" means such rate as the director may determine. (39) "Retiree" means any person who has begun accruing a retirement allowance or other benefit provided by this chapter resulting from service rendered to an employer while a member. (40)(a) "Retirement allowance" for plan 1 members, means monthly payments based on the sum of annuity and pension, or any optional benefits payable in lieu thereof. (b) "Retirement allowance" for plan 2 and plan 3 members, means monthly payments to a retiree or beneficiary as provided in this chapter. (41) "Retirement system" means the Washington state teachers' retirement system. (42) "Separation from service or employment" occurs when a person has terminated all employment with an employer. Separation from service or employment does not occur, and if claimed by an employer or employee may be a violation of RCW 41.32.055, when an employee and employer have a written or oral agreement to resume employment with the same employer following termination. Mere expressions or inquiries about postretirement employment by an employer or employee that do not constitute a commitment to reemploy the employee after retirement are not an agreement under this section. (43)(a) "Service" for plan 1 members means the time during which a member has been employed by an employer for compensation. (i) If 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. (ii) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470. (iii) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470. (iv) Reduction efforts such as furloughs, reduced work hours, mandatory leave without pay, temporary layoffs, or other similar situations as contemplated by subsection (14)(c)(iii) of this section do not result in a reduction in service credit that otherwise would have been earned for that month of work, and the member shall receive the full service credit for the hours that were scheduled to be worked before the reduction. (b) "Service" for plan 2 and plan 3 members, means periods of employment by a member for one or more employers for which earnable compensation is earned subject to the following conditions: (i) A member employed in an eligible position or as a substitute shall receive one service credit month for each month of September through August of the following year if he or she earns earnable compensation for eight hundred ten or more hours during that period and is employed during nine of those months, except that a member may not receive credit for any period prior to the member's employment in an eligible position except as provided in RCW 41.32.812 and 41.50.132. (ii) Any other member employed in an eligible position or as a substitute who earns earnable compensation during the period from September through August shall receive service credit according to one of the following methods, whichever provides the most service credit to the member: (A) If a member is employed either in an eligible position or as a substitute teacher for nine months of the twelve-month period between September through August of the following year but earns earnable compensation for less than eight hundred ten hours but for at least six hundred thirty hours, he or she will receive one-half of a service credit month for each month of the twelve-month period; (B) If a member is employed in an eligible position or as a substitute teacher for at least five months of a six-month period between September through August of the following year and earns earnable compensation for six hundred thirty or more hours within the six-month period, he or she will receive a maximum of six service credit months for the school year, which shall be recorded as one service credit month for each month of the six-month period; (C) All other members employed in an eligible position or as a substitute teacher shall receive service credit as follows: (I) A service credit month is earned in those calendar months where earnable compensation is earned for ninety or more hours; (II) A half-service credit month is earned in those calendar months where earnable compensation is earned for at least seventy hours but less than ninety hours; and (III) A quarter-service credit month is earned in those calendar months where earnable compensation is earned for less than seventy hours. (iii) Any person who is a member of the teachers' retirement system and who is elected or appointed to a state elective position may continue to be a member of the retirement system and continue to receive a service credit month for each of the months in a state elective position by making the required member contributions. (iv) When an individual is employed by two or more employers the individual shall only receive one month's service credit during any calendar month in which multiple service for ninety or more hours is rendered. (v) As authorized by RCW 28A.400.300, up to forty-five days of sick leave may be creditable as service solely for the purpose of determining eligibility to retire under RCW 41.32.470. For purposes of plan 2 and plan 3 "forty-five days" as used in RCW 28A.400.300 is equal to two service credit months. Use of less than forty-five days of sick leave is creditable as allowed under this subsection as follows: (A) Less than eleven days equals one-quarter service credit month; (B) Eleven or more days but less than twenty-two days equals one-half service credit month; (C) Twenty-two days equals one service credit month; (D) More than twenty-two days but less than thirty-three days equals one and one-quarter service credit month; (E) Thirty-three or more days but less than forty-five days equals one and one-half service credit month. (vi) As authorized in RCW 41.32.065, service earned in an out-of-state retirement system that covers teachers in public schools may be applied solely for the purpose of determining eligibility to retire under RCW 41.32.470. (vii) Reduction efforts such as furloughs, reduced work hours, mandatory leave without pay, temporary layoffs, or other similar situations as contemplated by subsection (14)(c)(iii) of this section do not result in a reduction in service credit that otherwise would have been earned for that month of work, and the member shall receive the full service credit for the hours that were scheduled to be worked before the reduction. (viii) The department shall adopt rules implementing this subsection. (44) "Service credit month" means a full service credit month or an accumulation of partial service credit months that are equal to one. (45) "Service credit year" means an accumulation of months of service credit which is equal to one when divided by twelve. (46) "State actuary" or "actuary" means the person appointed pursuant to RCW 44.44.010(2). (47) "State elective position" means any position held by any person elected or appointed to statewide office or elected or appointed as a member of the legislature. (48) "Substitute teacher" means: (a) A teacher who is hired by an employer to work as a temporary teacher, except for teachers who are annual contract employees of an employer and are guaranteed a minimum number of hours; or (b) Teachers who either (i) work in ineligible positions for more than one employer or (ii) work in an ineligible position or positions together with an eligible position. (49) "Teacher" means any person qualified to teach who is engaged by a public school in an instructional, administrative, or supervisory capacity. The term includes state, educational service district, and school district superintendents and their assistants and all employees certificated by the superintendent of public instruction; and in addition thereto any full time school doctor who is employed by a public school and renders service of an instructional or educational nature. [ 2021 c 12 s 3; 2018 c 257 s 2; 2012 c 236 s 3; 2011 1st sp.s. c 5 s 2. Prior: 2010 2nd sp.s. c 1 s 904; 2010 1st sp.s. c 32 s 7; prior: 2008 c 204 s 1; 2008 c 175 s 1; prior: 2007 c 398 s 3; 2007 c 50 s 1; prior: 2005 c 131 s 8; 2005 c 23 s 1; 2003 c 31 s 1; 1997 c 254 s 3; 1996 c 39 s 1; prior: 1995 c 345 s 9; 1995 c 239 s 102; prior: 1994 c 298 s 3; 1994 c 247 s 2; 1994 c 197 s 12; 1993 c 95 s 7; prior: 1992 c 212 s 1; 1992 c 3 s 3; prior: 1991 c 343 s 3; 1991 c 35 s 31; 1990 c 274 s 2; 1987 c 265 s 1; 1985 c 13 s 6; prior: 1984 c 256 s 1; 1984 c 5 s 1; 1983 c 5 s 1; 1982 1st ex.s. c 52 s 6; 1981 c 256 s 5; 1979 ex.s. c 249 s 5; 1977 ex.s. c 293 s 18; 1975 1st ex.s. c 275 s 149; 1974 ex.s. c 199 s 1; 1969 ex.s. c 176 s 95; 1967 c 50 s 11; 1965 ex.s. c 81 s 1; 1963 ex.s. c 14 s 1; 1955 c 274 s 1; 1947 c 80 s 1; Rem. Supp. 1947 s 4995-20; prior: 1941 c 97 s 1; 1939 c 86 s 1; 1937 c 221 s 1; 1931 c 115 s 1; 1923 c 187 s 1; 1917 c 163 s 1; Rem. Supp. 1941 s 4995-1.] NOTES: Retroactive application— RCW 41.32.012 Construction—Chapter applicable to state registered domestic partnerships—2009 c 521. For the purposes of this chapter, the terms spouse, marriage, marital, husband, wife, widow, widower, next of kin, and family shall be interpreted as applying equally to state registered domestic partnerships or individuals in state registered domestic partnerships as well as to marital relationships and married persons, and references to dissolution of marriage shall apply equally to state registered domestic partnerships that have been terminated, dissolved, or invalidated, to the extent that such interpretation does not conflict with federal law. Where necessary to implement chapter 521, Laws of 2009, gender-specific terms such as husband and wife used in any statute, rule, or other law shall be construed to be gender neutral, and applicable to individuals in state registered domestic partnerships. [ 2009 c 521 s 95. Formerly RCW 41.32.950.] NOTES: Effective dates— RCW 41.32.013 Substitute teachers—Application for service credit—Procedures. Substitute teachers may apply to the department to receive service credit or credit for earnable compensation or both after the end of the last day of instruction of the school year during which the service was performed. (1) The application must: (a) Include a list of the employers the substitute teacher has worked for; (b) Include proof of hours worked and compensation earned; and (c) Be made prior to retirement. (2) If the department accepts the substitute teacher's application for service credit, the substitute teacher may obtain service credit by paying the required contribution to the retirement system. The employer must pay the required employer contribution upon notice from the department that the substitute teacher has made contributions under this section. (3) The department shall charge interest prospectively on employee contributions that are submitted under this section more than six months after the end of the school year, as defined in *RCW 28A.150.040, for which the substitute teacher is seeking service credit. The interest rate charged to the employee shall take into account interest lost on employer contributions delayed for more than six months after the end of the school year. (4) Each employer shall quarterly notify each substitute teacher it has employed during the school year of the number of hours worked by, and the compensation paid to, the substitute teacher. (5) The department shall adopt rules implementing this section. (6) If a substitute teacher as defined in **RCW 41.32.010(36)(b)(ii) applies to the department under this section for credit for earnable compensation earned from an employer the substitute teacher must make contributions for all periods of service for that employer. [ 1992 c 212 s 16; 1991 c 343 s 4; 1990 c 274 s 5.] NOTES: Reviser's note: RCW 41.32.020 Name of system. The name of the retirement system provided for in this chapter shall be the "Washington State Teachers' Retirement System" and by this name all of its business shall be transacted and all of its funds invested and all of its cash, securities and other property held. [ 1947 c 80 s 2; Rem. Supp. 1947 s 4995-21. Prior: 1937 c 221 s 2; Rem. Supp. 1941 s 4995-2.] RCW 41.32.025 Department's power to determine eligibility. The department is empowered within the limits of this chapter and, with regard to restoration of service credit under RCW 41.50.165(2), to decide on all questions of eligibility covering membership, service credit, and benefits. [ 1994 c 197 s 13; 1991 c 35 s 35; 1955 c 274 s 3; 1947 c 80 s 16; Rem. Supp. 1947 s 4995-35. Prior: 1941 c 97 s 2, part; 1937 c 221 s 3, part; Rem. Supp. 1941 s 4995-3, part. Formerly RCW 41.32.160.] NOTES: Intent— RCW 41.32.032 Membership in system—Service credit of educational staff associates. (1) Any teacher, as defined under RCW 41.32.010, who is first employed by a public school on or after June 7, 1984, shall become a member of the retirement system if otherwise eligible. (2) Any person who before June 7, 1984, has established service credit under chapter 41.40 RCW while employed in an educational staff associate position and who is employed in such a position on or after June 7, 1984, has the following options: (a) To remain a member of the public employees' retirement system notwithstanding the provisions of RCW 41.32.240 or 41.32.780; or (b) To irrevocably elect to join the retirement system under this chapter and to receive service credit for previous periods of employment in any position included under RCW 41.32.010. This service credit and corresponding employee contribution shall be computed as though the person had then been a member of the retirement system under this chapter. All employee contributions credited to a member under chapter 41.40 RCW for service now to be credited to the retirement system under this chapter shall be transferred to the system and the member shall not receive any credit nor enjoy any rights under chapter 41.40 RCW for those periods of service. The member shall pay any difference between the employee contributions made under chapter 41.40 RCW and transferred under this subsection and what would have been required under this chapter, including interest as set by the director. The member shall be given until July 1, 1989, to make the irrevocable election permitted under this section. The election shall be made by submitting written notification as required by the department requesting credit under this section and by remitting any necessary proof of service or payments within the time set by the department. Any person, not employed as an educational staff associate on June 7, 1984, may, before June 30 of the fifth school year after that person's return to employment as a teacher, request and establish membership and credit under this subsection. [ 1995 c 239 s 103; 1992 c 212 s 17; 1991 c 35 s 39; 1984 c 256 s 2. Formerly RCW 41.32.242.] NOTES: Intent— RCW 41.32.033 Membership in system—Charter school employers and employees. This section designates charter schools established under chapter 28A.710 RCW as employers and charter school employees as members, and applies only if the department of retirement systems receives determinations from the internal revenue service and the United States department of labor that participation does not jeopardize the status of these retirement systems as governmental plans under the federal employees' retirement income security act and the internal revenue code. [ 2016 c 241 s 133. Prior: 2013 c 2 s 303 (Initiative Measure No. 1240, approved November 6, 2012).] NOTES: Effective date— RCW 41.32.035 Employer contribution rates—Computation and payment. The amount paid by each employer shall be computed by applying the rates established under chapter 41.45 RCW to the total earnable compensation of the employer's members as shown on the current payrolls of the employer. The employer's contribution shall be paid at the end of each month in the amount due for that month, except as provided in RCW 41.32.013. [ 1990 c 274 s 8; 1989 c 273 s 18; 1984 c 236 s 3. Formerly RCW 41.32.403.] NOTES: Findings— RCW 41.32.042 Validity of deductions—Interest. The deductions from salaries of members of the retirement system for their contributions to the system are not considered diminution of pay and every member is conclusively presumed to consent thereto as a condition of employment. All contributions to the member reserve shall be credited to the individual for whose account the deductions from salary were made. Regular interest shall be credited to each member's account at least annually. [ 1992 c 212 s 9; 1982 1st ex.s. c 52 s 13; 1947 c 80 s 46; Rem. Supp. 1947 s 4995-65. Prior: 1941 c 97 s 5, part; 1939 c 86 s 5, part; 1937 c 221 s 6, part; Rem. Supp. 1941 s 4995-6, part. Formerly RCW 41.32.460.] NOTES: Effective dates— RCW 41.32.044 Retired teacher may reenter system—Benefit limitations. A retired teacher upon returning to service in the public schools of Washington may elect to again become a member of the retirement system: PROVIDED, That if such a retired teacher elects to be restored to membership he or she must establish two full years of service credit before he or she will be eligible to retire under the provision of a formula other than the one in effect at the time of his or her previous retirement: PROVIDED FURTHER, That where any such right to again retire is exercised to become effective before a member has established two full years of service credit he or she may elect to retire only under the provisions of the formula in effect at the time of his or her previous retirement: AND PROVIDED FURTHER, That this section shall not apply to any individual who has returned to service and is presently in service on *the effective date of this 1973 amendatory act. [ 2012 c 117 s 56; 1973 2nd ex.s. c 32 s 5; 1947 c 80 s 58; Rem. Supp. 1947 s 4995-77. Formerly RCW 41.32.580.] NOTES: *Reviser's note: RCW 41.32.052 Exemption from taxation and judicial process—Exceptions—Nonassignability—Deductions authorized. (1) Subject to subsections (2), (3), and (4) of this section, the right of a person to a pension, an annuity, a retirement allowance, or disability allowance, to the return of contributions, any optional benefit or death benefit, any other right accrued or accruing to any person under the provisions of this chapter and the moneys in the various funds created by this chapter shall be unassignable, and are hereby exempt from any state, county, municipal or other local tax, and shall not be subject to execution, garnishment, attachment, the operation of bankruptcy or insolvency laws, or other process of law whatsoever whether the same be in actual possession of the person or be deposited or loaned. (2) This section shall not be deemed to prohibit a beneficiary of a retirement allowance who is eligible: (a) Under RCW 41.05.080 from authorizing monthly deductions therefrom for payment of premiums due on any group insurance policy or plan issued for the benefit of a group comprised of public employees of the state of Washington or its political subdivisions; (b) Under a group health care benefit plan approved pursuant to RCW 28A.400.350 or 41.05.065 from authorizing monthly deductions therefrom, of the amount or amounts of subscription payments, premiums, or contributions to any person, firm, or corporation furnishing or providing medical, surgical, and hospital care or other health care insurance; or (c) Under this system from authorizing monthly deductions therefrom for payment of dues and other membership fees to any retirement association composed of retired teachers and/or public employees pursuant to a written agreement between the director and the retirement association. Deductions under (a) and (b) of this subsection shall be made in accordance with rules that may be adopted by the director. (3) Subsection (1) of this section shall not prohibit the department from complying with (a) a wage assignment order for child support issued pursuant to chapter 26.18 RCW, (b) an order to withhold and deliver issued pursuant to chapter 74.20A RCW, (c) an income withholding order issued pursuant to RCW 26.23.060, (d) a mandatory benefits assignment order issued by the department, (e) a court order directing the department of retirement systems to pay benefits directly to an obligee under a dissolution order as defined in RCW 41.50.500(3) which fully complies with RCW 41.50.670 and 41.50.700, or (f) any administrative or court order expressly authorized by federal law. (4) Subsection (1) of this section does not exempt any pension or other benefit received under this chapter from tax under Title 82A RCW. [ 2026 c 238 s 806; 2012 c 159 s 20. Prior: 1991 c 365 s 21; 1991 c 35 s 63; 1989 c 360 s 25; 1987 c 326 s 23; 1982 c 135 s 1; 1981 c 294 s 13; 1979 ex.s. c 205 s 5; 1971 c 63 s 1; 1961 c 132 s 5; 1947 c 80 s 59; Rem. Supp. 1947 s 4995-78; prior: 1937 c 22 s 9; 1917 c 163 s 19. Formerly RCW 41.32.590.] NOTES: Findings— RCW 41.32.053 Death benefit—Course of employment—Occupational disease or infection. (1) A one hundred fifty thousand dollar death benefit shall be paid to the member's estate, or such person or persons, trust or organization as the member has nominated by written designation duly executed and filed with the department. If no such designated person or persons are still living at the time of the member's death, the member's death benefit shall be paid to the member's surviving spouse as if in fact the spouse had been nominated by written designation, or if there is no surviving spouse, then to the member's legal representatives. (2) The benefit under this section shall be paid only where death occurs as a result of (a) injuries sustained in the course of employment; or (b) an occupational disease or infection that arises naturally and proximately out of employment covered under this chapter. The determination of eligibility for the benefit shall be made consistent with Title 51 RCW by the department of labor and industries. The department of labor and industries shall notify the department of retirement systems by order under RCW 51.52.050. [ 2007 c 487 s 3; 2003 c 402 s 2.] RCW 41.32.054 Disability retirement—Criminal conduct. A member shall not receive a disability retirement benefit under RCW 41.32.540, 41.32.550, 41.32.790, or 41.32.880 if the disability is the result of criminal conduct by the member committed after April 21, 1997. [ 1997 c 103 s 2.] NOTES: Severability— RCW 41.32.055 Falsification—Penalty. (1) Any person who shall knowingly make false statements or shall falsify or permit to be falsified any record or records of the retirement system, except under subsection (2) of this section, in any attempt to defraud such system as a result of such act, is guilty of a class B felony punishable according to chapter 9A.20 RCW. (2) Any person who shall knowingly make false statements or shall falsify or permit to be falsified any record or records of the retirement systems related to a member's separation from service and qualification for a retirement allowance under RCW 41.32.480 in any attempt to defraud that system as a result of such an act, is guilty of a gross misdemeanor. [ 2007 c 50 s 2; 2003 c 53 s 218; 1947 c 80 s 67; Rem. Supp. 1947 s 4995-86. Prior: 1937 c 221 s 10. Formerly RCW 41.32.670.] NOTES: Intent— RCW 41.32.062 Effect of certain accumulated vacation leave on retirement benefits. RCW 43.01.044 shall not result in any increase in retirement benefits. The rights extended to state officers and employees under RCW 43.01.044 are not intended to and shall not have any effect on retirement benefits under this chapter. [ 1983 c 283 s 3. Formerly RCW 41.32.850.] RCW 41.32.063 Benefit calculation—Limitation. (1) The annual compensation taken into account in calculating retiree benefits under this system shall not exceed the limits imposed by section 401(a)(17) of the federal internal revenue code for qualified trusts. (2) The department shall adopt rules as necessary to implement this section. [ 1995 c 145 s 2.] RCW 41.32.064 Establishing, restoring service credit. Notwithstanding any provision to the contrary, persons who fail to: (1) Establish allowable membership service not previously credited; (2) Restore all or a part of that previously credited membership service represented by withdrawn contributions; or (3) Restore service credit represented by a lump sum payment in lieu of benefits, before the deadline established by statute, may do so under the conditions set forth in RCW 41.50.165. [ 1998 c 17 s 2.] RCW 41.32.0641 Disabled in the line of duty—Continuation of service credit—Conditions. Those members subject to this chapter who became disabled in the line of duty and who received or are receiving benefits under Title 51 RCW or a similar federal workers' compensation program shall receive or continue to receive service credit subject to the following: (1) No member may receive more than one month's service credit in a calendar month. (2) No service credit under this section may be allowed after a member separates or is separated without leave of absence. (3) Employer contributions shall be paid by the employer at the rate in effect for the period of the service credited. (4) Employee contributions shall be collected by the employer and paid to the department at the rate in effect for the period of service credited. (5) Contributions shall be based on the regular compensation which the member would have received had the disability not occurred. If contribution payments are made retroactively, interest shall be charged at the rate set by the director on both employee and employer contributions. Service credit shall not be granted until the employee contribution has been paid. (6) The service and compensation credit shall not be granted for a period to exceed twenty-four consecutive months. (7) Should the legislature revoke the service credit authorized under this section or repeal this section, no affected employee is entitled to receive the credit as a matter of contractual right. [ 2007 c 49 s 2.] RCW 41.32.065 Election to use out-of-state service credit to calculate time at which the member may retire. A member who has not purchased service credit under the provisions of RCW 41.32.813 or 41.32.868 may elect under this section to apply service credit earned in an out-of-state retirement system that covers teachers in public schools solely for the purpose of determining the time at which the member may retire. The benefit shall be actuarially reduced to recognize the difference between the age a member would have first been able to retire based on service in the state of Washington and the member's retirement age. [ 2006 c 257 s 3; 1991 c 278 s 1.] NOTES: Effective date— RCW 41.32.066 Purchase of additional service credit—Costs—Rules. (1) A member eligible to retire under RCW 41.32.480, 41.32.765, or 41.32.875 may, at the time of filing a written application for retirement with the department, apply to the department to make a one-time purchase of up to five years of additional service credit. (2) To purchase additional service credit under this section, a member shall pay the actuarial equivalent value of the resulting increase in the member's benefit. (3) Subject to rules adopted by the department, a member purchasing additional service credit under this section may pay all or part of the cost 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. (4) Additional service credit purchased under this section is not membership service and shall be used exclusively to provide the member with a monthly annuity that is paid in addition to the member's retirement allowance. [ 2006 c 214 s 2.] NOTES: Effective date— RCW 41.32.067 Purchase of additional benefits—Conditions. A member may purchase additional benefits subject to the following: (1) The member shall pay all reasonable administrative and clerical costs; and (2) The member shall make a member reserve contribution to be actuarially converted to a monthly benefit at the time of retirement. [ 1992 c 212 s 13; 1991 c 278 s 2.] RCW 41.32.215 Provisions applicable to plan 1. RCW 41.32.240 through * 41.32.575 shall apply only to members of plan 1. [ 1992 c 72 s 5; 1991 c 35 s 103.] NOTES: *Reviser's note: RCW 41.32.240 Membership in system. (1) All teachers employed full time in the public schools shall be members of the system except noncitizen teachers who have been granted a temporary permit to teach as exchange teachers. (2) A minimum of ninety days or the equivalent of ninety days of employment during a fiscal year shall be required to establish membership. A teacher shall be considered as employed full time if serving regularly for four-fifths or more of a school day or if assigned to duties which are the equivalent of four-fifths or more of a full time assignment. A teacher who is employed for less than full time service may become a member by filing an application with the retirement system, submitting satisfactory proof of teaching service and making the necessary payment before June 30 of the school year immediately following the one during which the service was rendered. (3) After June 30th of the school year immediately following the one during which the less than full-time service was rendered, the necessary payment may be made under RCW 41.50.165(2). [ 2026 c 36 s 28; 1994 c 197 s 14; 1991 c 35 s 38; 1979 ex.s. c 45 s 3; 1965 ex.s. c 81 s 3; 1963 ex.s. c 14 s 4; 1961 c 132 s 1; 1955 c 274 s 7; 1947 c 80 s 24; Rem. Supp. 1947 s 4995-43. Prior: 1941 c 97 s 3, part; 1939 c 86 s 2, part; 1937 c 221 s 4, part; 1931 c 115 s 3, part; 1923 c 187 s 10, part; Rem. Supp. 1941 s 4995-4, part.] NOTES: Intent— RCW 41.32.260 Credit for military service or as state legislator. Any member whose public school service is interrupted by active service to the United States as a member of its uniformed services, or to the state of Washington, as a member of the legislature, may upon becoming reemployed in the public schools, receive credit for that service upon presenting satisfactory proof, and contributing to the member reserve, either in a lump sum or installments, amounts determined by the director. Except that no military service credit in excess of five years shall be established or reestablished after July 1, 1961, unless the service was actually rendered during time of war. This section shall be administered in a manner consistent with the requirements of the federal uniformed services employment and reemployment rights act. (1) The surviving spouse or eligible child or children of a member who left the employ of an employer to enter the uniformed services of the United States and died while serving in the uniformed services may, on behalf of the deceased member, apply for retirement system service credit under this subsection up to the date of the member's death in the uniformed services. The department shall establish the deceased member's service credit if the surviving spouse or eligible child or children: (a) Provides to the director proof of the member's death while serving in the uniformed services; (b) Provides to the director proof of the member's honorable service in the uniformed services prior to the date of death; and (c) Pays the employee contributions required under chapter 41.45 RCW within five years of the date of death or prior to the distribution of any benefit, whichever comes first. (2) A member who leaves the employ of an employer to enter the uniformed services of the United States and becomes totally incapacitated for continued employment by an employer while serving in the uniformed services is entitled to retirement system service credit under this subsection up to the date of discharge from the uniformed services if: (a) The member obtains a determination from the director that he or she is totally incapacitated for continued employment due to conditions or events that occurred while serving in the uniformed services; (b) The member provides to the director proof of honorable discharge from the uniformed services; and (c) The member pays the employee contributions required under chapter 41.45 RCW within five years of the director's determination of total disability or prior to the distribution of any benefit, whichever comes first. [ 2005 c 64 s 6; 1992 c 212 s 8; 1991 c 35 s 40; 1974 ex.s. c 199 s 2; 1973 1st ex.s. c 189 s 1; 1971 ex.s. c 271 s 1; 1967 c 50 s 2; 1961 c 132 s 2; 1955 c 274 s 8; 1947 c 80 s 26; Rem. Supp. 1947 s 4995-45. Prior: 1941 c 97 s 4, part; 1939 c 86 s 4, part; 1937 c 221 s 1, part; Rem. Supp. 1941 s 4995-5, part.] NOTES: Intent— RCW 41.32.263 State legislators and state officials eligible for retirement benefits. A member of the retirement system who is a member of the state legislature or a state official eligible for the combined pension and annuity provided by RCW 41.32.497, or 41.32.498, as now or hereafter amended shall have deductions taken from his or her salary in the amount of seven and one-half percent of earnable compensation and that service credit shall be established with the retirement system while such deductions are reported to the retirement system, unless he or she has by reason of his or her employment become a contributing member of another public retirement system in the state of Washington. Such elected official who has retired or otherwise terminated his or her public school service may then elect to terminate his or her membership in the retirement system and receive retirement benefits while continuing to serve as an elected official. A member of the retirement system who had previous service as an elected or appointed official, for which he or she did not contribute to the retirement system, may receive credit for such legislative service unless he or she has received credit for that service in another state retirement system, upon making contributions in such amounts as shall be determined by the board of trustees. [ 1991 c 35 s 41.] NOTES: Intent— RCW 41.32.267 Service credit for paid leave of absence—Application to elected officials of labor organizations. (1) A member who is on a paid leave of absence authorized by a member's employer shall continue to receive service credit as provided under the provisions of RCW 41.32.240 through * 41.32.575. (2) A member who receives compensation from an employer while on an authorized leave of absence to serve as an elected official of a labor organization, and whose employer is reimbursed by the labor organization for the compensation paid to the member during the period of absence, may also be considered to be on a paid leave of absence. This subsection shall only apply if the member's leave of absence is authorized by a collective bargaining agreement that provides that the member retains seniority rights with the employer during the period of leave. The earnable compensation reported for a member who establishes service credit under this subsection may not be greater than the salary paid to the highest paid job class covered by the collective bargaining agreement. [ 1993 c 95 s 5.] NOTES: *Reviser's note: RCW 41.32.270 Teaching service, how credited. Service rendered for four-fifths or more of the official school year of the school district or institution in which a teacher is employed shall be credited as a year's service regardless of the length of the school term, but in no case shall more than one year of service be creditable for service rendered in one fiscal year. Service rendered for less than four-fifths of the official school year shall be credited for that portion of the school year for which it was rendered: PROVIDED, That no service of less than twenty days in any school year shall be creditable. [ 1947 c 80 s 27; Rem. Supp. 1947 s 4995-46. Prior: 1941 c 97 s 4, part; 1939 c 86 s 4, part; 1937 c 221 s 5, part; Rem. Supp. 1941 s 4995-5, part.] RCW 41.32.300 Limitation on credit for out-of-state service. (1) Henceforth a total of not more than four years of service outside of the state shall be credited to a member who establishes or reestablishes credit for out-of-state public school employment in this state subsequent to July 1, 1961. Foreign public school teaching service shall be creditable as out-of-state service. (2) No out-of-state service credit shall be established or reestablished subsequent to July 1, 1964, except that a member who has been granted official leave of absence by his or her employer may, upon return to public school service in this state, establish out-of-state membership service credit, within the limitations of this section and conditioned upon satisfactory proof and upon contributions to the member reserve, for public school service rendered in another state or in another country. (3) No member who establishes out-of-state service credit after July 1, 1947, shall at retirement for pension payment purposes be allowed credit for out-of-state service in excess of the number of years credit which he or she shall have earned in the public schools of the state of Washington. [ 1992 c 212 s 14; 1991 c 35 s 42; 1963 ex.s. c 14 s 5; 1961 c 132 s 7; 1955 c 274 s 11; 1947 c 80 s 30; Rem. Supp. 1947 s 4995-49.] NOTES: Intent— RCW 41.32.310 Time limit for claiming service credit—Payments. (1) Any member desiring to establish credit for services previously rendered, must present proof and make the necessary payments on or before June 30 of the fifth school year of membership. Payments covering all types of membership service credit must be made in a lump sum when due, or in annual installments. The first annual installment of at least twenty percent of the amount due must be paid before the above deadline date, and the final payment must be made by June 30th of the fourth school year following that in which the first installment was made. The amount of payment and the interest thereon, whether lump sum or installments, shall be made by a method and in an amount established by the department. (2) A member who had the opportunity under chapter 41.32 RCW prior to July 1, 1969, to establish credit for active United States military service or credit for professional preparation and failed to do so shall be permitted to establish additional credit within the provisions of RCW 41.32.260 and 41.32.330. A member who was not permitted to establish credit pursuant to section 2, chapter 32, Laws of 1973 2nd ex. sess., for Washington teaching service previously rendered, must present proof and make the necessary payment to establish such credit as membership service credit. Payment for such credit must be made in a lump sum on or before June 30, 1974. Any member desiring to establish credit under the provisions of this subsection must present proof and make the necessary payment before June 30, 1974; or, if not employed on the effective date of this amendment, before June 30th of the fifth school year upon returning to public school employment in this state. (3) After June 30th of the fifth school year of membership, any member desiring to establish credit for services previously rendered, must present proof and make the necessary payments under RCW 41.50.165(2) but prior to retirement. [ 1994 c 197 s 15; 1992 c 72 s 6. Prior: 1991 c 35 s 43; 1974 ex.s. c 193 s 1; 1973 2nd ex.s. c 32 s 2; 1969 ex.s. c 150 s 9; 1965 ex.s. c 81 s 8; 1955 c 274 s 12; 1947 c 80 s 31; Rem. Supp. 1947 s 4995-50.] NOTES: Intent— RCW 41.32.330 Credit for professional preparation subsequent to becoming teacher. The department may allow credit for professional preparation to a member for attendance at institutions of higher learning, or for a scholarship or grant under an established foundation, subsequent to becoming a public school teacher; but not more than two years of such credit may be granted to any member. [ 1991 c 35 s 44; 1969 ex.s. c 150 s 10; 1955 c 274 s 14; 1947 c 80 s 33; Rem. Supp. 1947 s 4995-52.] NOTES: Intent— RCW 41.32.340 Creditable service, what to consist of. Creditable service of a member at retirement shall consist of the membership service rendered for which credit has been allowed, and also, if a prior service certificate is in full force and effect, the amount of the service certified on the prior service certificate. No pension payments shall be made for service credits established or reestablished after July 1, 1955, if such credits entitle the member to retirement benefits from any other public state or local retirement system or fund. No pension payments shall be made for service credits established or reestablished after July 1, 1961, if such credits entitle the member to retirement benefits from a public federal retirement system or fund for services rendered under a civilian program: PROVIDED, That no pension payments shall be made for service credits established or reestablished after July 1, 1969, if credit for the same service is retained for benefits under any other retirement system or fund. [ 1991 c 35 s 45; 1969 ex.s. c 150 s 11; 1961 c 132 s 3; 1955 c 274 s 15; 1947 c 80 s 34; Rem. Supp. 1947 s 4995-53. Prior: 1941 c 97 s 4, part; 1939 c 86 s 4, part; 1937 c 221 s 5, part; Rem. Supp. 1941 s 4995-5, part.] NOTES: Intent— RCW 41.32.345 "Earnable compensation" defined for certain part-time employees—Adoption of rules. (1) Subject to the limitations contained in this section, for the purposes of RCW 41.32.010(14)(a)(iv), earnable compensation means the compensation the member would have received in the same position if employed on a regular full-time basis for the same contract period. (2) In order to ensure that the benefit provided by this section is not used to unfairly inflate a member's retirement allowance, the department shall adopt rules having the force of law to govern the application of this section. (3)(a) In adopting rules which apply to a member employed by a school district, the department may consult the district's salary schedule and related workload provisions, if any, adopted pursuant to RCW 28A.405.200. The rules may require that, in order to be eligible for this benefit, a member's position must either be included on the district's schedule, or the position must have duties, responsibilities, and method of pay which are similar to those found on the district's schedule. (b) In adopting rules which apply to a member employed by a community college district, the department may consult the district's salary schedule and workload provisions contained in an agreement negotiated pursuant to chapter 28B.52 RCW, or similar documents. The rules may require that, in order to be eligible for this benefit, a member's position must either be included on the district's agreement, or the position must have duties, responsibilities, and method of pay which are similar to those found on the district's agreement. The maximum full-time workweek used in calculating the benefit for community college employees paid on an hourly rate shall in no case exceed fifteen credit hours, twenty classroom contact hours, or thirty-five assigned hours. (4) If the legislature amends or revokes the benefit provided by this section, no affected employee who thereafter retires is entitled to receive the benefit as a matter of contractual right. [ 2025 c 58 s 2019; 1992 c 212 s 18; 1990 c 33 s 570; 1987 c 265 s 2. Formerly RCW 41.32.011.] NOTES: Explanatory note— RCW 41.32.350 Purchase of additional annuity—Member contribution r