DRS Notice 22-005, 2008 ERF Retiree Return-to-Work Reminder

Notice No: 22-005
Date:  April 28, 2022
Applies to: State Agencies, Political Subdivisions, Higher Ed
Subject: DRS Notice 22-005, 2008 ERF Retiree Return-to-Work Reminder

Strict return-to-work rules apply to a retiree who has used the 2008 Early Retirement Factors (ERFs) to retire early and is under age 65. As a DRS-covered employer, you are required to advise DRS if this type of retiree performs services for your agency in any capacity. This means as an employee, as an independent contractor or through a third party.

Per WAC 415-02-325, a DRS-covered employer is any organization that employs one or more members of any retirement system administered by DRS. It also includes First Class Cities that maintain separate retirement systems but also employ members of LEOFF.

Background
Effective Jan. 1, 2008, certain members could choose to retire under alternative early retirement factors. DRS refers to the factors as the 2008 ERFs and to members that choose to retire under the alternative early retirement factors as 2008 ERF retirees.

Return-to-work rules for 2008 ERF retirees are stricter than those applied to other retirements. This type of retiree, if under age 65, cannot work in any capacity for a DRS-covered employer and continue to receive a DRS benefit.

How do employers know if someone is a 2008 ERF retiree?
If someone retired using the 2008 Early Retirement Factors (2008 ERF) and is under age 65, the Member Management (MMG) screen will look like this in the Employer Reporting Application (ERA):

What are employers required to do?

1. Ask for the retirement status of employees by filling out the Retirement Status Verification form (or similar form created by your organization)
   • Use MMG to verify the employee’s status
   • Note your findings on the form
   • Sign the form
   • Retain for 60 years
     
     
2. Ask for the retirement status for other types of workers by filling out the Contractor or Third-Party Worker Retirement Status Verification form (or a similar form created by your organization)
   • Use MMG to verify the worker’s retirement status
   • Retain the form for three years after the services are last performed by the worker

We recommend you contact the appropriate staff within your organization (possibly in accounts payable or your hiring managers), to establish a process that will ensure DRS is informed about a 2008 ERF retiree returning to work as an independent contractor or like agreement.

3. Report a 2008 ERF retiree to DRS if the retiree performs services for your agency (and is under age 65). Contact Employer Support Services (ESS) immediately if you are unsure how to do this. Some employers will be able to report the information through their monthly DRS transmittal. Other employers may have to contact ESS to complete the action.
   
   

Questions? If you have any questions regarding this DRS Notice, please contact Employer Support Services at 360-664-7200, option 2, or 800-547-6657, option 6, option 2; or email us.