Chapter 8: Transmittal Reporting
The Reporting Process
Plan Choice Reporting - Summary
This section applies to the Public Employees' Retirement System (PERS), The School Employees' Retirement System (SERS) and the Teachers' Retirement System (TRS). Plan choice reporting falls into three groups:
- new members and potential members (substitutes)
- Plan 2 members with a January transfer option
- members who chose Plan 2 or Plan 3 or defaulted to Plan 3
Due to the nature of how investment returns affect the size of Plan 3 members’ defined contribution accounts, employers have increased responsibility for reporting Plan 3 member contributions accurately and in a timely manner. Refer to WAC 415-111-110 for employer responsibilities and to review potential employer liability for lost earnings due to employer error.
Plan 3 has a dual benefit structure
Plan 3 is a defined benefit plan like Plan 1 and Plan 2. However, there are two distinct components to Plan 3; the defined benefit and the defined contribution. Member contributions finance a defined contribution component, and employer contributions finance the defined benefit.
- The defined benefit is employer financed. Once a member meets the service requirements, this component provides for a lifetime monthly benefit for a member who retires. The amount of the benefit is based on the member's total service credit and their average final compensation
- The defined contribution component is member financed and provides a tax-deferred investment program. The amount of retirement income generated by the defined contribution component depends on several items: how much the member contributes, how promptly the contributions are invested, and the rate of return on each investment.
Review Employer Responsibilities for additional information.