9/16/2014

1

DEPARTMENT OF RETIREMENT SYSTEMS

Year in ReviewMarcie Frost, Director

Select Committee on Pension PolicySeptember 16, 2014

DRS Statsas of June 30

Dollars Collected

• Members - $1.1 B last FY

• Employers - $1.5 B last FY

Dollars Paid

• $346 M in July 2014

• $3.9 B last FY

Plan Members

• Active – 296,219

• Annuitants – 157,641

• Inactive –231,297

• Total – 685,157

Team Members - 235

9/16/2014

2

Benefits Paid by CountyFY 2013

The Numbers Past 12 Months

Contact Center 192,133 calls

47,005 emails

5,892 visitors

Processing Center 22,680 estimates

11,053 calculations

5,290 recalculations

9/16/2014

3

Member choices

Plan Choice

New Hire Choice

64%51% 48%

36%49% 52%

PERS SERS TRS

PLAN  CHOICE  LAST  FISCAL  YEAR

Plan 2 Plan 3

Investments3,682

2,1342,504

1,7631,306

2,092

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PERS 3 SERS 3 TRS 3

Investment Choice for New Members in Plan 3 last Fiscal Year

Self WSIB/TAP

9/16/2014

4

TAP Annuity450

873 1,123

7761 129

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

PERS 3 SERS 3 TRS 3

Plan 3 Retirees Opting for a TAP Annuity last Fiscal Year

Number w/o TAP Annuity Number of TAP Annuity Recipients

Purchasing Additional Service Credit

9,852

473

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Grand Total

Retirees who Purchased Service Credit last Fiscal Year

Retirees Who Didn't PSC Retires Who Purchased Service Credit (PSC)

Average Number of Months 

Purchased = 51.3

Average Cost of the PSC = $79,035

9/16/2014

5

Inactive Members

189,079

60,509

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Vested

Non‐Vested

Average 

AccountBalance = $32,458

Average 

AccountBalance = $2,126

Online Seminar

Career Path

9/16/2014

6

Member Education

24 Seminars scheduled for 2014• 17 at Western WA locations • 7 at Eastern WA locations

3,358 attendees – 2014 to date 2012 First live webinar/recorded seminar

• 4,499 hits on website

2013 Seminar recorded• 8,336 hits on website

Benefit Fairs New Employee Orientations Record Keepers

• Choice/Investment/Distribution Seminars

Operational view of the Management System

• Engaged Team Members• Vigilant Resource Steward• Best Practice leader• Reliable Partner• Elated Customers

Key Goals

9/16/2014

7

Strategic Initiatives

Quarterly Target Review

9/16/2014

8

Quarterly Target Review

Focus on Customer Satisfaction

Respectful,ResponsiveandRight Since 2012, team members have interviewed

2,656 retirees

278 interviews conducted in the past quarter

9/16/2014

9

135

48

177

57

0

7795

112

6641

427

490259

301

313

224166 126

6886

0

25

50

75

100

125

150

175

200

225

250

275

300

325

350

375

400

425

450

475

500

525

550

575

Retirementprocess /application

Phone service Onlineretirementapplication

PaymentSchedule /Timing

General Postive PaymentAmount ‐

Recalculation

Forms /Publications

Status Updates Online services Seminars /education

Opportunities Positives

July 2013-June 2014 Interviews

Top Ten Topics – Last 12 MonthsBased on the number of times customers mentioned each topic

both positively and as an opportunity

Supportive and Accountable Work Environment

Onboarding New Team Members/Leaders Retirement Specialists

• 6 month classroom• 6 month – SPIKE team

Behavioral Based Hiring• Customer Focused• People and Team Focused• Energy Level• Attitude• Plus high numeric ability/reasoning

Team Leaders• Supportive and Engaged• Observational Coaching• Ability to comprehend complexity

9/16/2014

10

Profile XT

Team Member Engagement

9/16/2014

11

IndependentContractor Reviews

374 LEOFF employers

300+ contracts

115 individuals prioritized

Issues identified include:

• 2008 ERFs • Misclassification of worker status • Improper separation from service • Employees returning to work not reported

25 employers assessed – $1,587,000*

5 members assessed – $160,487

* Final amount dependent upon employer wage and hour reporting

Independent Contractor Reviews

DRS Response

Enhanced employer awareness

Internal training about LEOFF retirements

Escalation and consultation process for retire/rehire questions

Requiring documentation for hours worked if not full-time

Additional outreach and presentations to employer and member organizations to clarify pension impacts of return to work

9/16/2014

12

Deferred Compensation Program

Assets – $3.4 B

Total Participants – 63,322

Actively Contributing – 31,661

Receiving Payments – 2,694

Employers Offering DCP – 927

New State Employee Take Up Rate – 4.7%

Low Administrative Fees – 0.129%

Investment Lineup:• Savings Pool

• US Large Cap Equity Index

• US Small Cap Equity Index

• Global Equity Index

• Emerging Market Equity Index

• Washington State Bond Fund

• Social Balanced Fund

• Retirement Strategy Funds

Thank you

Questions?