RCW 2.10.146, enables the department to provide retiring members with four retirement benefit options. The member must choose an option when applying for service or disability retirement.
Agnes retires in 1996 (Year 0). She would like Beatrice, her daughter, to receive a monthly allowance after Agnes dies. Therefore, Agnes selects a retirement benefit option with a survivor feature. As a result her monthly allowance is reduced from $2,000 (standard allowance) to $1,750. Unfortunately, Beatrice dies in January 2001 (Year 5). Under the pop-up provision, Agnes' monthly benefit will increase to the amount she would have received had she chosen Option One (standard allowance) plus her accumulated COLA's:
Year | Option One (Standard Allow.) | Survivor Option (2,3,4) plus COLAs | COLA incr. (3% max) | $ Increase |
0 (1996) | 2,000.00 | 1,750.00 | (ineligible) | 0.00 |
1 (1997) | 1,750.00 | .02 | 35.00 | |
2 (1998) | 1,785.00 | .03 | 53.55 | |
3 (1999) | 1,838.55 | .025 | 45.96 | |
4 (2000) | 1,884.51 | .03 | 56.54 | |
5 (2001) | 2,000.00 | 1,941.05 | - | - |
Total COLAs | 191.05 | |||
Original Option One Benefit Amount | + Total COLAs | = New Benefit Amount | ||
$2000 | + $191.05 | = $2,191.05* |
* In the future (i.e., Year 5), Agnes' COLA will be based on the increased benefit amount ($2,191.05).
Wash. Admin. Code § 415-100-055
Statutory Authority: RCW 41.50.050(5), 2.10.052,2.10.070(6), 2.10.140 - [2.10.]146, 2.12.030. 01-13-009, § 415-100-055, filed 6/8/01, effective 7/9/01. Statutory Authority: RCW 2.10.146, 41.26.460, 41.32.530, 41.50.050, 41.32.785, 41.40.188 and 41.40.660. 96-01-047, § 415-100-055, filed 12/14/95, effective 1/14/96. Statutory Authority: RCW 34.05.050 and 1990 c 249. 91-03-013, § 415-100-055, filed 1/7/91, effective 2/7/91.