Washington Administrative Code › Title 415 - Retirement Systems, Department of › Chapter 415-10 - Purchase of service credit after statutory deadline RCW 41.50.165 › Section 415-10-080 - If I purchase service credit under RCW 41.50.165, can I receive a refund of my payments?

Current through Register Vol. 24-14, July 15, 2024
(1)
You may receive a refund only after you separate from service and apply
			 for withdrawal of your contributions.
Your payments to purchase service
			 credit under
			 RCW
			 41.50.165(2) qualify as a
			 part of your accumulated contributions. There are additional restrictions for
			 TRS Plan 1, LEOFF Plan 2 and members of the Plan 3 systems as listed in
			 subsections (2), (3), and (4) of this section.
(2)
Restrictions for TRS Plan 1
			 members.
At the time of retirement,
			 RCW
			 41.32.498(2) prohibits you
			 from withdrawing payments made to purchase service credit under
			 RCW
			 41.50.165(2).
(3)
Restrictions for LEOFF Plan 2
			 members.
Payments made to purchase service credit under
			 RCW
			 41.50.165(2) and interest on
			 those payments will be refunded at one hundred percent. Those payments will not
			 be included when calculating the one hundred fifty percent refund of
			 contributions under
			 RCW
			 41.26.540(1)(b).
(4)
Restrictions for Plan 3 members of
			 TRS, SERS and PERS.
When you apply for service credit under
			 RCW
			 41.50.165(2), one-half of
			 the amount due will go into your defined benefit plan and one-half will go into
			 your defined contribution plan. As a member of any Plan 3 system, you may apply
			 for a refund of your contributions from the
defined contribution
portion of your account upon separation from employment. Your refund will be
			 based on the market value of your contributions, including earnings and losses,
			 at the time you withdraw. The defined benefit portion will be paid when you are
			 eligible to receive benefits.
Example 1 (Market has gains):
Joe restores 5 years of service credit at a total cost of
				$10,000.00. One-half, or $5,000.00, goes into Joe's defined contribution plan
				member account, and the other $5,000.00 goes into the pension trust fund for
				his defined benefit plan. Joe separates two years later and applies for the
				withdrawal of his defined contribution account. While Joe was in service the
				market experienced gains. The value of Joe's defined contribution account is
				now $6,000.00. Joe receives $6,000.00 (minus applicable taxes and penalties).
				The defined benefit portion is not refundable but Joe will receive a one
				percent defined benefit allowance when he is eligible.
Example 2 (Market has losses):
Joe restores 5 years of service credit at a total cost of
				$10,000.00. One-half, or $5,000.00, goes into Joe's defined contribution plan
				member account, and the other $5,000.00 goes into the pension trust fund for
				his defined benefit plan. Joe separates two years later and applies for the
				withdrawal of his defined contribution account. While Joe was in service the
				market suffered a loss. The value of Joe's defined contribution account is now
				$4,000.00. Joe receives $4,000.00 (minus applicable taxes and penalties). The
				defined benefit portion is not refundable but Joe will receive a one percent
				defined benefit allowance when he is eligible.
Statutory Authority:
				  RCW
				  41.50.050(5),
				  41.26.540,
				  41.32.498,41.40.730,
				  41.40.830,
				  41.50.160,
				  41.50.165,
				  41.50.175. 02-03-120, §
										415-10-080, filed 1/23/02,
				  effective 3/1/02. Statutory Authority:
				  Chapter
				  41.50 RCW. 00-22-049,
				  §
										415-10-080, filed 10/27/00,
				  effective 11/27/00. Statutory Authority:
				  RCW
				  41.50.050 and
				  41.50.165. 97-01-014, §
										415-10-080, filed 12/6/96,
				  effective 1/6/97.