Retirement Badge #05: New Hire and Employee Notification-Retirement Badge #05

Retirement Badge #05 - PowerPoint

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This document outlines employer responsibilities for retirement eligibility verification and new-hire reporting under Washington’s Department of Retirement Systems (DRS), focusing on “Retirement Badge #5” training for school districts. It explains that districts must determine whether each new hire’s position is retirement-eligible (generally based on an expectation of at least 70 hours per month and minimum duration requirements, with separate criteria for classified and certificated/TRS employees). Employers are encouraged to use the DRS Position Eligibility Worksheet or complete the eligibility questionnaire within ERA (Employer Reporting Application).<br /><br />A key requirement is verifying every person paid through payroll—full-time, part-time, coaches, student workers, interns, and variable employees—by looking them up in ERA to identify prior DRS history or retiree status. Findings must be documented on the Retirement Status Verification Form (RSVF), which must be retained for at least 60 years.<br /><br />The document summarizes the new-hire process for employees with no prior DRS membership: eligible employees have a 90-calendar-day “Plan Choice” window to choose Plan 2 or Plan 3 (defaulting to Plan 2 if no choice is made), and the decision is irrevocable. Plan 3 members must also select a contribution rate (5%–15%), which is locked while employed at the district. The 90-day clock starts the day after the employee begins paid, benefit-eligible work (including paid training/orientation), counts weekends/holidays, and extends to the next business day if the deadline falls on a weekend/holiday.<br /><br />Returning employees follow different rules: returning Plan 2 members stay in Plan 2 (beneficiary updates needed), while returning Plan 3 members must reselect a contribution rate within 90 days; otherwise they default to 5%, and no contributions are withheld until a rate is chosen.<br /><br />Best practices include communicating retirement benefits at orientation, sending consistent notification emails, tracking notifications, and using DRS resources and employer handbook guidance.

Keywords

Washington Department of Retirement Systems (DRS)

Employer Reporting Application (ERA)

retirement eligibility verification

position eligibility worksheet

Retirement Status Verification Form (RSVF)

school district new-hire reporting

70 hours per month eligibility rule

Plan Choice 90-day window

Plan 2 vs Plan 3 selection

Plan 3 contribution rate selection