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LEOFF Plan 2 members who will receive a tiered multiplier at retirement, will have a 2% multiplier applied to their entire years of service and an additional .5% multiplier applied at 15 years and one month through 25 service credit years.
Any retirement before age 53 is an early retirement. If you have at least 20 years of service credit and you are at least age 50, you can choose to retire early. If you retire early, your benefit will be reduced to reflect that you will be receiving it over a longer period of time. Your benefit depends on how much service credit you have earned and your age.
If you retired as a public safety officer from a designated Washington state retirement system, the federal Pension Protection Act of 2006 (PPA) might benefit you. It allows you to exclude up to $3,000 of your qualified health, accident and long-term care insurance premiums from your gross taxable income each year as long as the premiums are also deducted from your retirement benefit.Read more.
There are some situations where customers cannot retire online (for example, if you are a member of more than one retirement system). For this reason, we also offer a paper application for retirement. With the paper application, you can retire anytime within one year of the official benefit estimate.
The Deferred Compensation Program or DCP is a voluntary savings program you can use to increase your retirement savings. DCP uses many of the same investment options available to Plan 3 members, including investments that are managed for you. With DCP, you control your contribution amount so your savings can grow with you. Saving an additional $100 a month now could mean an extra $100,000 in retirement!
What type of funds can I use to purchase an annuity? Your payment must come from an eligible governmental plan, like your DCP savings. Members cannot use PERS/SERS/TRS Plan 3 contributions to pay for this annuity.
What if I return to work? The return to work rules for service credit are the same as your retirement benefit. If you return to work for a DRS-covered employer, your annuity will stop if you return to retirement system membership or if you exceed allowable hours as a retiree (867 per year). If you do not return to a DRS-covered employer, your annuity will continue.
If you are a LEOFF Plan 2 member and you become disabled, you might be entitled to a disability benefit. This publication describes disability retirement benefits and how to apply for them. The Department of Retirement Systems (DRS) recommends you contact a Retirement Specialist if you plan to apply for a LEOFF disability retirement.
If you are totally incapacitated for continued employment with your LEOFF employer and you leave that employment as a result of your disability, you might be eligible for a disability retirement benefit.
You must file an application with DRS before you can qualify for a disability benefit. DRS will determine whether you are capable of carrying out the duties of the job you performed at the time of the disability or any other LEOFF-eligible employment you are qualified to perform. DRS will also determine whether your disability occurred in the line of duty. You are responsible for scheduling and paying for independent medical examinations to prove you qualify for disability retirement.
If the normal retirement benefit calculation rule yields a monthly benefit greater than 10% of your FAS, you will receive the higher benefit amount. However, only the amount equal to 10% of your FAS is nontaxable.
LEOFF Plan 2 members who retire with a line-of-duty disability on or before Feb. 1, 2021, will receive a 2% multiplier retirement allowance with a one-time lump-sum benefit enhancement equal to $100 per service credit month or $20,000, whichever is greater. This is in addition to their monthly line-of-duty disability benefit.
Call DRS and request an official estimate for a disability retirement. It takes about 3-4 weeks for DRS to calculate your benefit. Then we will mail you a packet with the estimate and a three-part form. You, your employer and your doctor will need to complete all three forms in the packet.
You may apply for disability retirement from DRS before separating from employment. If you have already separated, you may still apply for disability retirement as long as you were disabled at the time of your separation.
Your retirement date is the first of the month following your date of separation. For example, if your application is approved May 4, and you separate from service May 15, your retirement date is June 1 and you will receive your first monthly benefit on the last working day of June.
On July 1 of every year following your first full year of retirement, your monthly benefit will be adjusted by the percentage change in the Consumer Price Index to a maximum of 3% per year.
If you are unable to perform the duties of your former rank, you may request assignment to a lower rank that has duties you are able to perform. At no time should you be restored to duty at a pay rate that is lower than the current rate for the position you held at the time of your retirement. Following cancellation of your disability benefit and upon your return to a LEOFF-eligible position, you will begin earning service credit again and become eligible for an active member benefit.
Your disability benefit could be affected if you go to work for any public employer in Washington state. In some cases, depending on the position and the extent to which you work, your disability benefit might be suspended and you might be required to make contributions to a retirement system. If you decide to return to work, call DRS to determine how your benefit will be affected.
If you separate from LEOFF employment, you can either withdraw your funds, retire if you meet eligibility requirements or leave your funds in the plan if you are vested for a future retirement. You can also leave your funds in the account if you have a balance of more than $1,000. If you are inactive and non-vested with a balance of less than $1,000, DRS is required to close your account and return the funds to you. The IRS requires you to start receiving your monthly benefit by age 72, unless you are still employed.
If you have 10 or more years of LEOFF service credit, you can withdraw 150% of your accumulated contributions. If you decide to withdraw your contributions, you give up your right to a future LEOFF retirement benefit. You can restore your contributions and re-establish your benefit only in certain circumstances.
You will need to contact DRS to request a cost for restoring your credit. We are not able to provide an estimate when you call. Similar to a retirement benefit estimate, this cost must be calculated by DRS and may require information from your employer.
You must request and purchase the missing service within the timeframe allowed for your plan. The amount of time varies by plan. Ask DRS about your options for purchase. If the deadline has passed, you may still have the option to purchase additional service credit as an annuity option when you retire. This purchase will not restore missing time, but it would be used in your retirement payment calculation.
If you are considering returning to employment in a position covered by another DRS-retirement system (non-LEOFF), talk to your potential employer or contact DRS to find out how your retirement benefit could be affected.
In most cases, your monthly benefit will be based on the highest base salary you earned, regardless of which system you earned it in. Base salary includes your wages and overtime and can include other cash payments if those payments are included as base salary in all the retirement systems you are retiring from.
Do you have U.S. military service? If you leave or reduce your DRS retirement plan-covered employment to serve in the military, you could be eligible for restoration of missing retirement service credit. The amount of service credit you have directly affects your retirement income calculation.
If you are married when you retire, you choose from a few benefit options that can include retirement income coverage for your spouse if you die before them. See options for changing your benefit after retirement.
If you marry after retirement, you could be eligible to change your benefit option to add your spouse. You need to be married at least a year and request DRS add your spouse during your second year of marriage. See options for changing your benefit after retirement.
Upon divorce or separation, your monthly benefit is not subject to sharing or division unless it is court-ordered. DRS could be required to pay a portion of your retirement account to satisfy a divorce agreement. This order is called a property division. The order could award an interest in your account to your ex-spouse, or split your account into two separate accounts.
For each tax year you receive a retirement benefit, we will provide you with a 1099-R form to use in preparing your tax return (see 1099-R). These forms are usually mailed at the end of January for the previous year. The information is also available through your online account.
If you are a highly paid member or retiree, you may encounter a federal limit on your retirement benefit. There are two federal regulations that could limit benefits for highly paid members and retirees. The salary limit (which restricts the salary used to determine your benefit) and the benefit limit (which limits the annual benefit amount you can receive). In other words, federal law limits the amount of compensation you can pay retirement system contributions on, and that can be used in your benefit calculations. The IRS can adjust the amount each year. 041b061a72