Legislation Bulletin - Calculating Compensation for Retirement Purposes
Monday, June 29
Association of Washington Cities
- In the Public Employees’ Retirement Systems, retirement benefits are calculated using a formula that includes years of service and final average compensation. This bill directs the Department of Retirement Systems (DRS) to include compensation that is lost during the 2009-2011 fiscal biennium as a result of reduced work hours, voluntary leave without pay, or temporary furloughs as long as the employer certifies the reduced compensation is due to the employer’s expenditure reduction efforts. The costs for this program will be funded consistent with normal pension funding policy, which means that employers and members will be assessed any increased costs to the retirement systems.
read
more...