Retirement Badge #04: Retirement Reporting Essentials & Employer Responsibilities-Retirement Badge #04

Retirement Badge #04 - PowerPoint

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This document outlines key Washington State public employer responsibilities for retirement reporting and the basics of the Department of Retirement Systems (DRS) and the Deferred Compensation Plan (DCP). DRS administers retirement plans for public employees, provides planning tools, and offers guidance on pension benefits.<br /><br />A primary employer duty is verifying and documenting each new employee’s retirement status in writing (RCW 41.50.139). Employers should use DRS’s Retirement Status Verification Form (RSVF) or an equivalent form signed by both employee and employer, retain it for 60 years, and complete a new form upon rehire to ensure status is current. DRS discourages using third-party vendors for retirement-eligible positions because it can complicate contribution and data reporting and may create pension overpayments for which the employer is liable.<br /><br />The training emphasizes accurate “reportable compensation” reporting, since it determines retirement contributions and is used to calculate benefits through Average Final Compensation. DRS evaluates whether a payment is reportable based on the purpose of the payment (not its label) and by statute/regulation (RCWs/WACs). Incorrect reporting can lead to inaccurate account interest, retroactive member contributions, and recovery of overpaid retiree benefits.<br /><br />The document provides detailed tables of what is and is not reportable for TRS (Plans 1–3) and SERS (Plans 2–3), highlighting that some items (e.g., base contract/base rate, certain bonuses, retroactive salary) may be reportable, while others (e.g., many allowances, reimbursements, sick leave cash-outs, most severance/termination bonuses) are not—often with plan-specific differences. Employers are directed to the DRS Employer website and Employer Support line for help.<br /><br />It also explains DCP (a 457 plan) with pretax and Roth options (Roth available since Oct. 2023). Employers must submit a DCP transmittal each payday, reconcile reports and payments promptly, and only implement deferral changes when shown on the DCP Deferral Change Report. Contribution limits (e.g., $23,000 for 2024, plus catch-up options) are noted.

Keywords

Washington State Department of Retirement Systems (DRS)

public employer retirement reporting responsibilities

Retirement Status Verification Form (RSVF)

RCW 41.50.139 retirement status documentation

reportable compensation rules (TRS/SERS)

Teachers' Retirement System (TRS) Plans 1–3

School Employees' Retirement System (SERS) Plans 2–3

Average Final Compensation (AFC) benefit calculation

Deferred Compensation Plan (DCP) 457 pretax and Roth

DCP transmittal, deferral change report, and contribution limits