Current through Register Vol. 24-18, September 15, 2024
RCW
2.10.146, enables the department to provide
retiring members with four retirement benefit options. The member must choose
an option when applying for service or disability retirement.
(1)
Option One: Benefit option without
survivor features (standard allowance). The department pays the retiree
a monthly retirement allowance based solely on the single life of the member,
in accordance with
RCW
2.10.146. When the retiree dies, all benefits
cease. Any remaining balance of the retiree's accumulated contributions will be
paid to:
(a) Such person or persons, trust,
or organization as the judge has nominated by written designation duly executed
and filed with the department of retirement systems; or
(b) If there is no such designated person or
persons still living at the time of the judge's death, then to the surviving
spouse; or
(c) The member's estate;
or
(d) If there is neither such
designated person or persons still living at the time of death nor a surviving
spouse, then to the judge's legal representative.
(2)
Benefit options with a survivor
feature.
(a) A retiring member is
allowed to select from several retirement options which create an actuarially
equivalent benefit that includes a survivor feature. The survivor feature
entitles the survivor to receive a monthly allowance after the retiree dies. If
the member chooses one of the survivor options, the monthly benefit the member
will receive is actu-arially reduced to offset the cost of the survivor
feature. After the retiree dies, the department pays the survivor an allowance
for the duration of his or her life. If the retiree and the survivor both die
before the retiree's accumulated contributions are exhausted, all benefits
cease. Any remaining balance of the retiree's accumulated contributions will be
paid to:
(i) Such person or persons, trust,
or organization as the judge has nominated by written designation duly executed
and filed with the department of retirement systems; or
(ii) If there is no such designated person or
persons still living at the time of the judge's death, then to the surviving
spouse; or
(iii) The member's
estate; or
(iv) If there is neither
such designated person or persons still living at the time of death nor a
surviving spouse, then to the judge's legal representative.
(b) Option Two (joint and whole
allowance). When the retiree dies, the department pays the survivor a monthly
retirement allowance equal to the gross monthly allowance received by the
retiree.
(c) Option Three (joint
and one-half allowance). When the retiree dies, the department pays the
survivor one-half of the amount of the retiree's gross monthly retirement
allowance.
(d) Option Four (joint
and two-thirds allowance).
(i) Option Four is
available to members retiring on or after January 1, 1996.
(ii) When the retiree dies, the department
pays the survivor two-thirds (66.667%) of the member's gross monthly retirement
allowance.
(3)
Benefit increases when survivor predeceases retiree (pop-up
provision).
(a) This subsection
applies to members retiring on or after January 1, 1996, who selected Option
Two, Three, or Four.
(b) If the
survivor dies before the retiree, the retiree's monthly retirement allowance
will increase, effective the first day of the following month, to:
(i) The amount that would have been received
had the retiree chosen Option One described in subsection (1) of this section;
plus
(ii) Any cost-of-living
adjustments received prior to the survivor's death based on original
selection.
(c) Pop-up
recalculation example.
Agnes retires in 1996 (Year 0). She would like Beatrice, her
daughter, to receive a monthly allowance after Agnes dies. Therefore, Agnes
selects a retirement benefit option with a survivor feature. As a result her
monthly allowance is reduced from $2,000 (standard allowance) to $1,750.
Unfortunately, Beatrice dies in January 2001 (Year 5). Under the pop-up
provision, Agnes' monthly benefit will increase to the amount she would have
received had she chosen Option One (standard allowance) plus her accumulated
COLA's:
| Year |
Option One (Standard Allow.) |
Survivor Option (2,3,4) plus COLAs |
COLA incr. (3% max) |
$ Increase |
| 0 (1996) |
2,000.00 |
1,750.00 |
(ineligible) |
0.00 |
| 1 (1997) |
1,750.00 |
.02 |
35.00 |
| 2 (1998) |
1,785.00 |
.03 |
53.55 |
| 3 (1999) |
1,838.55 |
.025 |
45.96 |
| 4 (2000) |
1,884.51 |
.03 |
56.54 |
| 5 (2001) |
2,000.00 |
1,941.05 |
- |
- |
| Total COLAs |
191.05 |
| Original Option One Benefit Amount |
+ Total COLAs |
= New Benefit Amount |
| $2000 |
+ $191.05 |
= $2,191.05* |
* In the future (i.e., Year 5), Agnes' COLA will be based on
the increased benefit amount ($2,191.05).
(d) If the survivor dies and the retiree's
benefit increases under this subsection, and thereafter the retiree also dies
before all contributions are exhausted, all benefits cease. Any remaining
balance of the retiree's accumulated contributions will be paid to:
(a) Such person or persons, trust, or
organization as the judge has nominated by written designation duly executed
and filed with the department of retirement systems; or
(b) If there is no such designated person or
persons still living at the time of the judge's death, then to the surviving
spouse; or
(c) The member's estate;
or
(d) If there is neither such
designated person or persons still living at the time of death nor a surviving
spouse, then to the judge's legal representative.
(4)
Survivor. For the
purposes of this section, "survivor" means a person nominated by the member to
receive a monthly benefit allowance after the member dies. A member nominates
the survivor at the time of retirement by filing a completed form provided by
the department, verified by a notarized signature or other means acceptable to
the department.
Statutory Authority:
RCW
41.50.050(5),
2.10.052, 2.10.070(6),
2.10.140 - [2.10.]146, 2.12.030.
01-13-009, §415-100-055, filed 6/8/01,
effective 7/9/01. Statutory Authority:
RCW
2.10.146,
41.26.460,
41.32.530,
41.50.050,
41.32.785,
41.40.188 and
41.40.660. 96-01-047, §415-100-055, filed 12/14/95,
effective 1/14/96. Statutory Authority:
RCW
34.05.050 and 1990 c 249. 91-03-013, §415-100-055, filed 1/7/91,
effective 2/7/91.
