July 20th 2024

Exclusive Benefit Rule

Washington State WAC Clarifies that LEOFF Plan 1 Members and Beneficiaries Own the surplus

WAC 415-02-756 How does the department comply with Internal Revenue Code exclusive benefit rules? No assets of the retirement system may be used for, or diverted to, a purpose other than the exclusive benefit of the members and their beneficiaries at any time prior to the satisfaction of all liabilities with respect to members and their beneficiaries. [Statutory Authority: WSR 10-24- 099]

Internal Revenue Code exclusive benefit rules?

The exclusive benefit rule applies to all tax-sheltered retirement plans and is stated in IRC section 401(a) for employer plans and section 408(a) for IRA plans. This rule stipulates that all activities of the plan must be for the exclusive benefit of the plan beneficiaries.

RCW 41.54.080
Benefits under chapter—Contractual rights not established.

The benefits provided under RCW 41.54.080 are not provided to employees as a matter of contractual right and the legislature retains the right to alter or abolish these benefits at any time prior to a member's retirement.
[ 1987 c 192 § 8.]

RCW 34.05.020
Savings—Authority of agencies to comply with chapter—Effect of subsequent legislation.

Nothing in this chapter may be held to diminish the constitutional rights of any person or to limit or repeal additional requirements imposed by statute or otherwise recognized by law. Except as otherwise required by law, all requirements or privileges relating to evidence or procedure shall apply equally to agencies and persons. Every agency is granted all authority necessary to comply with the requirements of this chapter through the issuance of rules or otherwise. No subsequent legislation shall be held to supersede or modify the provisions of this chapter or its applicability to any agency except to the extent that such legislation shall do so expressly.
[ 1988 c 288 § 102; 1967 c 237 § 24. Formerly RCW 34.04.940.]