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Gain-Sharing
(Extraordinary Investment Gains)
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The January 1, 2008, gain-sharing payment amounts have been calculated and are now available on the
Department of Retirement Systems' (DRS) website.
Gain-sharing is a mechanism enacted by the Legislature in 1998 for increasing retirement benefits based on investment returns.
When the Legislature enacted gain-sharing, it reserved the right to amend or repeal the act in the future. In
2007, the Legislature repealed the distribution of extraordinary gains after 2008.
Under gain-sharing, eligible members of PERS 1, TRS 1, and all Plans 3 received increased retirement benefits when the earnings of
the retirement systems' investments exceed an average gain of 10 percent during the previous four-year period.
The gain-sharing determination has been performed by OSA in even-numbered years only. Distributions triggered by
extraordinary gains become effective January 1 of even-numbered years. The gain-sharing process is outlined in
Chapters 41.31
and
41.31A
of the Revised Code of Washington.
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2008 Calculation |
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Fiscal Year |
Rate of Return1 |
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2007 |
21.33% |
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2006 |
16.70% |
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2005 |
13.05% |
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2004 |
16.72% |
(a) Four-year
compound average |
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(b) Gain-sharing threshold |
10.00% |
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(c) Extraordinary gains2 |
6.91% |
1
Provided by the Washington State
Investment
Board. |
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2 {a - b, but not
less than 0%} |
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