Wash. Admin. Code § 415-02-360

Current through Register Vol. 24-23, December 1, 2024

Section 415-02-360 - What is the optional cost-of-living adjustment (COLA) for PERS Plan 1 and TRS Plan 1?

(1) PERS Plan 1 and TRS Plan 1 members can choose to receive an initially reduced retirement benefit in order to receive an annual cost-of-living adjustment in the future. With this optional COLA, the member's monthly retirement benefit is actuarially reduced at the time of retirement. Thereafter, the monthly benefit of the member (and subsequently their beneficiary) is adjusted annually, based on changes in the consumer price index (CPI) for the Seattle-Tacoma-Bremerton, Washington area, up to the statutory maximum. For more information, see:

PERS Plan 1: RCW 41.40.188(1)(c); WAC 415-108-326

TRS Plan 1: RCW 41.32.530(1)(d); WAC 415-112-504

(2)Examples

(a) Ernie is a member of TRS Plan 1. He retires at age 55 with 30 years of service and chooses the Single Life Option (no survivor beneficiary). His average final compensation (AFC) is $4,295.33 per month.

(i) If he does not choose the optional COLA, his monthly benefit will be $2,577.20 (2% x 30 x $4,295.33).

(ii) If he does choose the optional COLA, his initial monthly benefit will be reduced to $1,909.19, based on the factor in the table in subsection (3) of this section (.7396 x $2,577.20). This monthly amount may increase each year with changes in the CPI.

Regardless whether or not Ernie chooses the optional COLA, he will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.

(b) Tina is a member of PERS Plan 1. She retires with 30 years of service credit at age 52 and 8 months. Because she has 30 years of service, there is no reduction for an early retirement. Tina chooses the Single Life Option (no survivor beneficiary). Her average final compensation (AFC) is $3,825.00 per month.

(i) If she does not choose the optional COLA, her monthly benefit will be $2,295.00 (2% x 30 x $3,825.00).

(ii) If she does choose the optional COLA, her initial monthly benefit will be reduced to $1,692.56, based on the factor in the table in subsection (3) of this section (.7375 x $2,295.00). This monthly amount may increase each year with changes in the CPI.

Regardless whether or not Tina chooses the optional COLA, she will begin to receive the uniform COLA at age 66, consistent with all statutory requirements.

(3)Table.

Use these factors to convert monthly benefit payments (any retirement option) without the optional COLA to the same retirement option with the optional COLA. The following factors are effective September 1, 2010.

Plan 1 Optional COLA Factors

Age	PERS 1	TRS 1	Age	PERS 1	TRS 1
20	.6636	.6664	61	.7713	.7648
21	.6650	.6675	62	.7760	.7693
22	.6665	.6687	63	.7807	.7739
23	.6680	.6698	64	.7855	.7786
24	.6695	.6710	65	.7904	.7833
25	.6711	.6722	66	.7953	.7881
26	.6727	.6734	67	.8003	.7930
27	.6743	.6746	68	.8054	.7980
28	.6760	.6759	69	.8105	.8030
29	.6777	.6772	70	.8157	.8081
30	.6794	.6786	71	.8210	.8133
31	.6811	.6800	72	.8263	.8185
32	.6828	.6815	73	.8317	.8238
33	.6845	.6831	74	.8370	.8291
34	.6862	.6847	75	.8425	.8344
35	.6879	.6864	76	.8479	.8398
36	.6897	.6881	77	.8533	.8452
37	.6915	.6900	78	.8588	.8506
38	.6934	.6918	79	.8642	.8560
39	.6954	.6938	80	.8696	.8614
40	.6975	.6959	81	.8750	.8668
41	.6997	.6980	82	.8803	.8722
42	.7020	.7002	83	.8856	.8775
43	.7045	.7024	84	.8907	.8828
44	.7071	.7048	85	.8957	.8879
45	.7099	.7073	86	.9006	.8929
46	.7129	.7098	87	.9053	.8978
47	.7161	.7125	88	.9098	.9025
48	.7194	.7153	89	.9141	.9070
49	.7229	.7183	90	.9181	.9113
50	.7264	.7214	91	.9218	.9153
51	.7300	.7247	92	.9253	.9191
52	.7337	.7282	93	.9286	.9226
53	.7375	.7319	94	.9316	.9258
54	.7414	.7357	95	.9343	.9288
55	.7454	.7396	96	.9369	.9316
56	.7494	.7435	97	.9392	.9342
57	.7536	.7476	98	.9415	.9365
58	.7579	.7518	99	.9436	.9388
59	.7623	.7560
60	.7668	.7604

Wash. Admin. Code § 415-02-360

Statutory Authority: RCW 41.50.050(5). WSR 10-16-086, §415-02-360, filed 7/30/10, effective 9/1/10. Statutory Authority: RCW 41.50.050(5) and chapter 41.45 RCW. WSR 08-20-068, §415-02-360, filed 9/25/08, effective 10/26/08; WSR 02-18-048, §415-02-360, filed 8/28/02, effective 9/1/02.