Retirement Badge #06: Retirement Enrollment Basics-Retirement Badge #06

Retirement Badge #06 - PowerPoint

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This document (WASBO Retirement Badge #6) explains school district employer responsibilities for correctly enrolling and reporting employees to Washington State’s Department of Retirement Systems (DRS). Employers must properly classify workers (employee vs. independent contractor), verify every worker’s retirement status, determine position and member eligibility, enroll eligible employees in the correct system (e.g., SERS/TRS), report changes through the Employer Reporting Application (ERA), submit contributions on time, and report termination/end dates.<br /><br />A central requirement is collecting and retaining a Retirement Status Verification Form (or an employer-created equivalent meeting DRS requirements) for anyone paid through payroll; this verification must be kept for 60 years. Workers paid through Accounts Payable must also be evaluated for eligibility and retirement status. Prior membership matters: returning members may have established plan status that affects current enrollment, and rehired retirees can face benefit restrictions.<br /><br />The document emphasizes that employers must notify DRS when a Washington State retiree is rehired. Failure to do so can make the district financially responsible for pension overpayments and other compliance violations. For new members with no prior DRS membership, employers must provide orientation and required materials and ensure employees are informed of plan options. New members have 90 days from their first paid work day to choose between Plan 2 and Plan 3; if they do not choose, they are automatically and permanently defaulted into Plan 2. ERA issues automated reminders to employees and employers, and employers must report the plan choice (once) with the selection date.<br /><br />Guidance is included for substitutes and temporary/ineligible positions: determine eligibility by assessing both the position and the person, use DRS charts/forms, and report actual begin/end work dates. For retirees returning to work, report them under the system of the current job (not the retired system), assign Plan 0, create a new record entry (don’t edit existing), and use retiree-specific return-to-work type codes. Accurate type code use is critical for compliance and to monitor retiree hour limits.

Keywords

Washington State Department of Retirement Systems (DRS)

school district employer responsibilities

employee vs independent contractor classification

Retirement Status Verification Form retention (60 years)

Employer Reporting Application (ERA) reporting

SERS and TRS enrollment eligibility

rehired retirees notification and benefit restrictions

Plan 2 vs Plan 3 90-day election default

reporting contributions and termination/end dates

return-to-work type codes and retiree hour limits