Chapter 8: Transmittal Reporting
The Reporting Process
Before Adding a New Employee to the Transmittal
When you hire a new employee who is eligible for retirement system coverage or who chooses to participate in the DCP, or when an existing employee becomes eligible for retirement coverage, you must begin reporting the employee to DRS.
You must also report to DRS any newly employed retiree of a Washington State retirement system; to include anyone directly compensated for contracted services or any other similiar compensated relationship, if they retired using the 2008 Early Retirement Factor (ERF) and are under age 65.
Retirement - Before Adding an Employee
Determine whether or not the employee has any retirement history; and, if so, in what retirement systems and plans they were members using Member Reporting Verification (MRV). Verifying prior plan membership and retirement status is critical to ensure accurate reporting. This includes determining if the employee can transfer into PERS Plan 3, or if he or she must choose between Plan 2 or Plan 3 within 90 days of employment. For additional information, contact ESS for assistance with verifying a plan assignment.
Determine the correct month to begin reporting the employee. If an employee first earns compensation in March, you would begin reporting the employee with a March earning period and begin date. The employee would be added to either the March or the April transmittal, depending upon your payroll cycle. See the section Reporting and Your Payroll Cycle.
For anyone compensated for contracted services performed or as a result of contracted services performed by those in their employ, you must also determine from MRV if they retired using the 2008 ERF and under age 65. You must report actual begin and end dates using ineligible type codes.
DCP - Employers Cannot Add a Participant to the Transmittal
DRS currently informs employers when to start deducting DCP deferrals. DRS will distribute an official DRS report as notification to all employers except users of the Human Resources Management System (HRMS) payroll system. DRS informs employers of the new participants' deferrals and/or deferral amount changes via a paper or electronic report. This report replaced the Participation Agreement and Deferral Change forms that DRS previously sent to employers as authorization (per the employee) for a new deduction amount. Refer to Chapter 11 - Deferred Compensation for more information.