Pension Plans [PFM to update with 2017 financial statements.]The University offers four contributory retirement plans that cover eligible faculty, staff, and administrative employees. The Washington State Public Employees’ Retirement System (“PERS”) Plans 1, 2, and 3, Washington State Teachers Retirement System (“TRS”) Plans 1, 2, and 3, and the Law Enforcement Officers’ and Fire Fighters’ (“LEOFF”) Plan 2, are multiple-employer, defined benefit, public retirement plans administered by the State. The University Retirement Plan (the “CWURP”) is a defined contribution plan administered by the University. Under each plan, the employee and employer contribute a percentage of the employee’s compensation. An actuarial valuation of the PERS, TRS and LEOFF plans for University employees is not available on a stand-alone basis. See APPENDIX B, Note 13, for additional discussion of the University’s pension plans CWURP. The CWURP is a defined contribution pension plan with a supplemental payment, when required. The CWURP plan covers faculty, professional staff, and certain other employees and is administered by the University. The Board is authorized to establish and amend benefit provisions. Contributions to the plan are invested in annuity contracts or mutual fund accounts offered by the three plan sponsors. Benefits from fund sponsors are available upon separation or retirement at the employee’s option. Employees have at all times a 100 percent vested interest in their accumulations. Employee contribution rates to CWURP are based on age, and range from 5 percent to 10 percent of salary. The University matches employee contributions to this plan, and all required contributions have been made. The CWURP contributions for the year ended June 30, 2017, were $[___] for employees and $[___] for the University. PERS, TRS and LEOFF. PERS Plan 1 provides retirement and disability benefits, and minimum benefit increases beginning at age 66 to eligible non-academic plan members hired prior to October 1, 1977. PERS Plans 2 and 3 provide retirement and disability benefits, and a cost-of-living allowance, to eligible non-academic plan members hired on or after October 1, 1977. In addition, PERS Plan 3 has a defined contribution component, which is fully funded by employee contributions. PERS defined benefit plan benefits are vested after an employee completes five years of eligible service. TRS Plan 1 provides retirement and disability benefits, a lump sum death benefit, and minimum benefits increases beginning at age 65 to certain eligible faculty hired prior to October 1, 1977. TRS Plans 2 and 3 provide retirement benefits, and cost-of-living allowance to certain eligible faculty hired on or after October 1, 1977. In addition TRS Plan 3 has a defined contribution component which is fully funded by employee contributions. Defined benefit plan benefits are vested after an employee completes five years of eligible service. LEOFF Plan 2 provides retirement benefits and a cost of living allowance for eligible law enforcement officers. LEOFF System benefits are vested after an employee completes five years of eligible service. The authority to establish or amend benefit provisions for PERS, TRS, and LEOFF plans resides with the Washington State Legislature. The Washington System Department of Retirement Systems (“DRS”) issues a publicly available financial report that includes financial statements and required supplementary information. The report may be obtained by writing to the Washington System Department of Retirement Systems, P.O. Box 48380, Olympia, WA, 98504. The required contribution rates expressed as a percentage of covered payroll and required contributions at June 30, 2017, were as follows: Contribution Rates Required Contribution Employee University University PERS Plan 1 6.00% 11.18% Plan 2 6.12 11.18 Plan 3 5 to 15 11.18 TRS Plan 1 6.00 13.13 Plan 2 5.95 13.13 Plan 3 5 to 15 13.13 LEOFF Plan 2 8.41 8.59 (2) (1) TRS rates are effective September 1 through August 31 for each year; all other plans are effective July 1. Employee rates for PERS Plan 1 and TRS Plan 1 are set by statute. (2) Includes a State funded contribution of 3.36%.
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