Washington Administrative Code
Title 415 - Retirement Systems, Department of
Chapter 415-110 - School employees' retirement system
REPORTABLE COMPENSATION
Section 415-110-488 - Severance pay not earned over time - Contract buy outs
Severance pay that is not earned over time is not earned for services rendered and is not reportable. An example of severance pay not earned over time is a payment negotiated as part of termination agreement.
Example: |
At the time of an employee's termination the employer agrees to pay a lump sum payment equal to two months' salary. The employer identifies this payment as "severance pay." Because the payment was not earned for services rendered, it is not reportable compensation and will not be included in the retirement calculation. |
For treatment of severance pay earned over time, see WAC 415-110-458.
Statutory Authority: Chapters 41.32, 41.34, 41.35, 41.50 RCW. 01-01-059, §415-110-488, filed 12/12/00, effective 1/12/01.