SBRP SUPPLEMENTAL RETIREMENT BENEFIT

Supplementation retirement benefit (SBRP) is a defined benefit providing lifetime income separately managed by SBCTC. Eligibility requirements include age, years of service, and disability retirement provisions. Calculations are complex and based on retirement age, years of service, goal income, and assumed retirement income. Components include goal income, service factors, and assumed retirement income calculated by TIAA actuaries. The process involves district eligibility review, notice of intent to retire, benefit options selection, and beneficiary designation.

• Retirement Benefit
• SBRP
• SBCTC
• Calculation
• Eligibility

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1. SBRP SUPPLEMENTAL RETIREMENT BENEFIT Calculation Overview and Steps Pam Kelly & Julie Huss February 2024

2. WHAT IS A SUPPLEMENTAL BENEFIT? A defined benefit, formula-driven, lifetime income benefit. Separately, but in connection with the SBRP, this benefit provides a safety net for eligible SBRP participants - assuring a minimum benefit from their state employment. This benefit is managed and funded by the SBCTC. 2

3. ELIGIBILITY REQUIREMENTS DETERMINED BY DISTRICT Participation prior to July 1, 2011 At least age 62: Full benefit = age 65 or older. Reduced benefit = at least age 62. At least 10 continuous YOS in the plan. Disability retirement = must meet special SBRP disability retirement provisions at any age. 3

4. THE CALCULATION COMPLETED BY SBCTC Is complex and performed once for a qualifying retiree, based on retirement effective date. Requires assistance from a professional actuary. SBCTC cannot provide projected calculations. SBRP (TIAA) account balances (as well as hardship withdrawals and division of assets due to a divorce) have no effect on the calculation. 4

5. WHAT IS THE CALCULATION BASED ON? Age at retirement. Years of continuous service up to 25. The calculation and comparison of the goal income and assumed retirement income. The calculation also considers: The age of the beneficiary (up to 5 years difference). Benefit from another WA State Retirement Plan (TRS, PERS, SERS), if any. 5

6. CALCULATION COMPONENTS Goal Income includes: Years of service (up to 25), Salary (two highest fiscal years/averaged by month), Service factor - 2% per YOS, unless contributed less than 10% at age 50 (prior to 1/98, this was optional) Assumed Retirement Income calculated by TIAA actuaries based upon actual contributions invested in TIAA Traditional and CREF Stock. 6

7. OVERVIEW AND STEPS Part one: District Eligibility Review Notice of Intent to Retire Benefit Options Selection and Beneficiary Designation Part two: Calculation Worksheet & Instructions 7

8. DISTRICT ELIGIBILITY REVIEW Form should be completed for each employee who retires. Becomes the record of review and local determination on eligibility for a supplemental calculation. Completed forms should be retained on a similar schedule as payroll information. 8

9. STATE BOARD SUPPLEMENTAL RETIREMENT PLAN ELIGIBILITY REVIEW Participating employers should complete this form for all SBRP Participants at the time of retirement. A copy of this completed form should be retained with the employee s records. State law authorizes the public higher education institutions, including the State Board, to sponsor a Supplemental Retirement Benefit Plan. The intent of the Plan is to ensure eligible participants receive at least a minimal benefit for their state service. The amount of supplementation, if any, is determined by a calculation that considers average annual salary, years of plan service and assumed benefit from participation in the SBRP. More information on supplementation can be gained through review of the Supplemental Retirement Benefit Plan Document or the Summary Plan Description. Both documents are available on the State Board s website. To be eligible for a supplemental benefit calculation, the participant must have participated in the SBRP prior to July 1, 2011, must be at least 62 years of age at retirement (or retired for health or disability reasons) and have 10 consecutive years of full-time service in the plan or its equivalent in part-time service calculated consistent with RCW 28B.50.489. Employee I.D./SSN Participant Name Retirement Plan Participation Date Retirement Effective Date 10 or more Continuous Years of Service (Yes or No) Age at Retirement (Years/Months) This SBRP participant meets / does not meet the eligibility criteria for a Supplemental Retirement Benefit calculation (Circle one). Date Signed Retirement Representative for the Employer * This form is intended for use with retiring SBRP participants. It is a record of the Participating Employer s review of the employee s eligibility for a supplemental benefit calculation. The completed form should be maintained with the former employee s payroll records. 9

10. NOTICE OF INTENT TO RETIRE This form begins the request for calculation. Requires the retiree s signature. College must review for accuracy. 10

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12. BENEFIT PAYMENT OPTION/BENEFICIARY DESIGNATION This form is required to complete calculation. Requires the retiree, spouse (if applicable) and witness signature(s). 12

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14. CALCULATION WORKSHEET & INSTRUCTIONS Fill in the information for the most recent (25) years of eligible service. Using your own worksheet? Colleges have the option to use their locally developed worksheet. It must include all requested information and be reviewed and approved by SBCTC prior to its use. 14

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17. COLUMN 1 FISCAL YEAR Enter the fiscal years (7/1 through 6/30) during which the employee had earnings and made contributions to SBRP/TIAA. Technical Colleges: This benefit is based on years of service at WA public higher education institutions/agencies only. Years of service prior to 9/1/1991 (and pension benefits based on such service) should not be included in the calculation. (Prior to 9/1/1991, technical colleges were elements of the public school system.) 17

18. COLUMN 2 MONTHS OF SERVICE The number of months of service during which salary was earned and SBRP contributions were deducted and matched. May not be the same as seniority as defined in your faculty CBA. 18

19. COLUMN 3 APPOINTMENT YEAR Enter the basic appointment period for each fiscal year. Examples: #1 Enter 9 for a faculty member with an academic year appointment. If leave of absence, without pay for one quarter during that year, you would still enter 9 but the enter for Column #2 would be 6. #2 Enter 12 for administrators with a contract appointment for the fiscal year (beginning July 1), but enter 11 for an administrator with an appointment for 240 days of service, etc. 19

20. COLUMN 4 SERVICE CREDIT Service credit for each fiscal year cannot exceed 1.0. Service credit is only provided for time in which contributions were made. For part-time faculty, calculate FTEs based on RCW 28B.50.489 (your definition of full time and in-class teaching hours). For example: If full-time faculty teaching load is 45 credits and the faculty member teaches 20 credits, the FTE would be .44. A FT Faculty member on sabbatical with pay contributions were made) would receive 1.0 FTE year of service credit. If contributions were not not made, or they were on leave without pay for that quarter, the correct entry would be .66 FTE year of service credit. with pay for one quarter (if 20

21. COLUMN 5 TOTAL INCOME Enter total income from which contributions were deducted/matched during the FY. In the final year payment cannot for accrued and unused vacation leave. Do not include compensation for unused sick leave, early retirement incentives, settlements, or income from which contributions were not deducted. cannot exceed 30 days 21

22. SEND FORMS TO Send all forms (and if applicable, the DRS single life income option document) to PO Box 42495, Olympia WA 98504-2495 Attn: Pam Kelly Forms with sensitive information should be mailed. If e-mailing, cover the SSN and mail originals. Calculation worksheet can be e-mailed. 22

23. WHAT HAPPENS NEXT? Benefit offset calculation requested from TIAA. TIAA is working through the backlog, shifting to SBCTC. Calculation worksheets sent to other colleges. Information gathered, as needed. SBRP supplemental calculation is completed. Letter or e-mail of decision is sent. 23

24. MORE INFO State Board Supplemental Retirement Plan webpage Navigation: https://www.sbctc.edu/ For Colleges & SBCTC Staff My Employment Retirement plans and planning tools SBRP Supplemental Retirement Benefit Benefit forms and plan documents Navigation: https://www.sbctc.edu/ For Colleges & SBCTC Staff My Employment Benefit forms and plan documents 24

25. SBRP/SBSRP CONTACT INFO Julie Huss, SBRP Administrator, jhuss@sbctc.edu 360-704-4303 Pamela Kelly, HR Consultant, pkelly@sbctc.edu 360-704-4301 25

26. QUESTIONS? Note: All material licensed under Creative Commons Attribution 4.0 International License.