Updated May 2008
This publication relates to the following retirement plans:
Some WSPRS members leave active service during their career and exercise the option to withdraw their contributions from their retirement fund. Members who withdraw their contributions lose all service credit associated with the withdrawn contributions and any future benefits based on that service credit. There are three different ways to recover service credit lost due to the withdrawal of contributions.
You return to WSPRS and complete payment within the statutory deadline.
You join a retirement system other than WSPRS and restore the service withdrawn from WSPRS. The other retirement system must be a dual member system.
You purchase withdrawn service credit after the restoration deadline passes. Purchasing after the deadline will increase your cost.
Restoration rules apply to service credit lost due to withdrawal of contributions. Under restoration rules, you repay the full amount of the original withdrawal, plus recovery interest compounded from the time of withdrawal until the restoration costs are paid in full.
You may only apply for restoration after you reestablish membership in WSPRS by working in a WSPRS covered position. Additionally, you must return to service within 10 years of separation.
You are required to initiate and complete restoration payments within 60 calendar months (5 years) of returning to service or prior to retirement, whichever comes first. Payments may be made in a lump sum or in installment payments.
You can make direct payment with either a personal or cashier's check. In many cases it's also possible to transfer funds from another eligible retirement account to pay your bill. However, DRS cannot accept funds in excess of the cost to make your purchase. You are advised to check with the administrator of your account to see if you can transfer those dollars. DRS is classified by the Internal Revenue Service as a 401(a) account.
You may continue your restoration payments even if you leave active service. If you return to service, begin restoration payments, leave your job, and again withdraw your contributions, the original deadline does not change. Any contributions or interest associated with service credit earned after the initial withdrawal will be assigned a new deadline, if you again return to service and apply for restoration.
A dual member:
For restoration under dual membership, you must repay the amount withdrawn plus interest within 24 months (2 years) of becoming a dual member or before you retire, whichever comes first.
For more information about dual membership rights, refer to the DRS publication, What Is Dual Membership and How Does it Affect Me?
WSPRS members have the option to apply for service credit for periods of public service or leaves of absence that fall under rules other than normally accumulated service credit. This is referred to as optional service. Optional service can be acquired by paying contributions within a specific time period immediately after returning to normal active service. Payment must be initiated which actively employed in a covered position. However, once initiated, payments can be completed regardless of employment status.
Common types of optional service include temporary duty disability and military service that interrupts employment.
Though it is considerably more expensive than recovering the service within the statutory deadline, optional service can be purchased any time during active membership.
If you have questions concerning any periods of time that you think may qualify as optional service, contact DRS.
All active WSPRS members have the option to purchase withdrawn service credit even after deadlines for normal or dual member restoration have passed. Service credit purchased under this law costs more than service credit recovery within statutory deadlines because cost is based on the increased value of your retirement benefit, not on the amount of withdrawn contributions.
If you wish to apply for service credit purchase, contact DRS to receive a billing.
In many cases it is possible to roll over funds from another tax-deferred retirement account to satisfy restoration or service credit purchase billings. See note on rollovers and transfers.
DRS uses a formula based on the following:
For WSPRS Plan 1 and Plan 2 members, the normal retirement age is:
If you leave your State Patrol commission prior to age 55, you must be vested to receive a benefit.
If a service credit purchase does not change your potential retirement date, only Part 1 of the formula is used. If the purchase allows the potential retirement date to be sooner, Parts 1 and 2 of the formula are used.
Part 1: Average Earnings x Service Credit Being Purchased x Table 1 Actuarial Factor = Part 1 Cost
Part 2: Average Annual Earnings x Total of anticipated service credit at retirement x number of years able to retire earlier (after purchase) x Table 2 Actuarial Factor x Table 3 Actuarial Factor = Part 2 Cost
Part 1 Cost + Part 2 Cost = Total purchase price
Ron is a WSPRS Plan 1 member. He is age 50 and has 19 years of service credit.
Determine Normal Retirement Age:
Ron’s first opportunity to retire would come in 5 years when he is age 55 with 24 years of service. Ron’s normal retirement age is 55. Since he is currently age 50, Ron is 5 years from normal retirement age.
Determine years of earlier retirement:
If Ron purchases 2 years of service, his current total service would increase to 21 years. This means that Ron would reach 25 years* of service when he is age 54. Ron would be able to retire 1 year earlier at the age of 54 instead of his normal retirement age of 55.
Part 1: Average Annual Earnings x Years of Service purchased x Table 1 Factor = Cost
$55,000 x 2 years x 0.2567 = $28,237
Part 2: Average Annual Earnings x Total service credit at retirement x Years of Earlier Retirement x Table 2 Factor x Table 3 Factor = Cost
$55,000 x 25 x 1 x 0.00489 x 0.8481 = $5,702.41
Total Purchase Cost: Part 1 cost + Part 2 cost = Total Purchase Cost
$28,237 + $5,702.41 = $33,939.41
* Retirement eligibility is age 55, or 25 years of service credit.
To initiate the recovery of service credit, or to obtain an estimate for the cost of service credit purchase, contact DRS. Be sure to provide your:
The provisions governing the recovery of withdrawn or optional service credit are contained in Chapter 41.40 and 41.50 Revised Code of Washington (RCW). This publication is a summary of those provisions, not a complete description of the law, and describes provisions currently in effect. If there are any conflicts between what is written in this brochure and what is contained in the law, the applicable law will govern.
