A cost-of-living adjustment (COLA) is an annual adjustment applied to your retirement income to reflect changes in the economy (inflation). Most DRS retirement plans offer a COLA, but Plan 1 members in PERS and TRS only have a COLA if they selected it during retirement. View the 2025 COLA percentages by retirement date and plan. When will I receive the 2025 COLA? LEOFF Plan 1 COLAs take effect April 1 and start with April 30 benefit payments. All other DRS Plan COLAs take effect July 1 and start with July 31 benefit payments. You need to be retired by July 1 for at least one year to be eligible for a COLA. Once you’re eligible, you’ll receive any COLA starting with the pension payment issued at the end of July, and every year after. You don’t need to apply to receive the COLA – it’s automatic. How much will the COLA be? The maximum annual COLA you can receive for most DRS plans is 3%. If inflation that year is above 3%, the additional amount is applied to future adjustments (called COLA banking). Any year inflation is lower than 3%, the COLA can pull from banked amounts in prior years. This happens automatically and the adjustment is made for you. You could receive a different adjustment each year, depending on the amount available in your COLA bank. Will PERS 1 and TRS 1 receive a benefit increase? If the legislature changes the current law, most of these retirees could receive a one-time increase in July. There are several bills that could affect this decision. You can track all bills here.

You’ve most likely heard us say the Deferred Compensation Program (DCP) is a terrific way to save for retirement. And that in addition to your pension, DCP can help you reach your retirement goals. We’re not bragging, but here are a couple of school district (SD) employees who demonstrate what they did or are doing to increase their chances for having a successful retirement. Kim – Battle Ground SD “My mom joined DCP when she worked for the state. She’s the one who told me I needed to start,” says Kim, a recently retired employee with the Battle Ground SD. While there, she was the Lead Student Services Coordinator, covering the student data system for 18 schools from pre-k through high school. Kim started working in 1981 for an educational service district and began socking away $50 a month. As she began earning more, she started saving more. “I’m not a penny pincher by any means,” she says. “In the last couple years, I had a mindset of what I wanted.” She set a goal for those retirement wants, which included living the same lifestyle she had while she was earning a paycheck. Kim has a low to medium risk tolerance for making investments. “I work hard for my money, and I hate to see it go. I didn’t take chances. Each raise, I upped it (the monthly amount) a little more. I’d ask myself and my kids: ‘is it a need or a want? You don’t need a new pair of pants all the time.’ We still lived a really good life.” What is risk tolerance? All investments carry some risk. Generally, younger folks can handle more risk (more growth potential), while people nearing retirement often choose safer options. How much risk you take is really up to you. Salary increases can add up Kim sees raises as savings opportunities. “A salary increase doesn’t mean you need to spend it – save it! I taught my kids to save. And also, you should see a financial planner. Go talk to somebody.” Her now 91-year old retired mother who once worked for the state played a key part in encouraging her to save with DCP. “It’s a nice program. I wish my daughter and son had DCP; they have a 401k.” Her advice? “You have to be strict with yourself. Every penny counts. They say, ‘you can’t take it with you,’” she says. Then she adds with a laugh, “But you can have it when you’re not working anymore.” Kim retired in June and she’s already feeling the joy. “Retirement is wonderful! Start saving when you’re young and let your money start working for you.” Troy – Stanwood-Camano SD Troy began his career in 1997 with the Lake Stevens SD but has spent most of his time with the Stanwood-Camano SD as a technician specialist. “Working in the tech industry is very satisfying,” he says. “I get to go to the schools and upgrade, repair and plan technology to support the teachers.” Troy got his DCP savings nudge from an old boss. “My former financial director at the district office recommended it to me.” When he started saving, he began with $250 per month. Over time, he basically doubled the amount each year and is now maxing out. Troy says his approach to investing is low to somewhat risky. “I added another source (in addition to DCP) to my portfolio.” One in 20 DCP customers reach the annual maximum limit each year. If you’re curious, here are some average amounts saved by age group. You can create your own savings goals by joining DCP if your employer participates in the program. And who knows? You might see the kind of success Kim and Troy are enjoying. DCP resources The DRS website can help guide you along your path to retirement. If you’re new, here are some DCP resources to get you started: Enrollment eligibility – make sure you’re eligible for Washington’s DCP by talking to your employer or reviewing this list of eligible employers What is DCP? – a short introductory video How to save for retirement with DCP – a Fund Your Future with DRS podcast DCP investment FAQ – a list of questions customers ask most often, and the answers DCP calculator – this calculator lets you estimate using percentages Ready to enroll? You can enroll online – new DCP customers can also enroll by completing and mailing this paper form. If you are already enrolled in DCP, do not use this form. To change contributions, add Roth or opt out of automatic enrollment, make the change through your online DCP account or contact 888-327-5596. Inspired to increase your DCP contributions? To change your contribution amount, log in to your account. From the DCP account page, select Change Monthly Contribution, Transactions. Your changes can take up to 30 days to go into effect (depending on your employer’s payroll cycle). If you separate from employment and later return to work for an employer who participates in DCP, you can reenroll anytime. If any payments from your account have started, they will stop. Estimate contributions with the DCP calculator.

It can take a lifetime to accrue the retirement benefits you have earned. Unfortunately, it can take only one fraudulent scheme for those benefits to be negatively impacted. Beyond what DRS can do as an organization, it’s a best practice for all of us to take steps to keep our own account information secure. At DRS, we continue to enhance the security of our systems to protect your accounts. This means you may notice some changes to the website as we roll out these enhancements. Please know that as we do, we closely monitor the impact these changes could have on your experience as we strive to balance ease of use with security.   For example, you can now use an authenticator app or a landline phone as a multi-factor authentication device when logging into the website. We have also made other changes within the site. Soon, we will no longer accept email as an authentication method. If you use email for multi-factor authentication, please log in and set yourself up with one of the other options: text message, authenticator app or phone call. If you run into any issues using the website or are unable to complete an action on our website, please take a note of any on-screen instructions and feel free to contact us. Here are a few tips to keep in mind: Use strong passwords and a password manager: Strong passwords are critical to protecting data. They should be long, random, and unique. You can also use passphrases, which are a combination of random words that are easier to remember. Pick at least four words and string them together. A passphrase with no special characters is stronger than a shorter password with special characters.Password managers are a powerful tool to help you create long, random, and unique passwords for each of your accounts. Plus, they make storing passwords and user IDs easy. Turn on multi-factor authentication (MFA): Enable multi-factor authentication on all your online accounts that offer it, especially email, social media, and financial accounts. If you are given the option, use authentication apps or hardware tokens, which are more secure than MFA phones.  Update software: Ensure your software is up-to-date. This is the best way to make sure you have the latest security patches and updates on your devices. Install updates as soon as they become available. When buying Internet-connected technologies, choose devices that auto-update and that are made by brands from trusted countries. Trusted help. Technology continues to advance at a rapid pace. Many companies and organizations (like DRS) require their employees to take online cyber security trainings. Ask relatives or friends for tips on what they're learning. Protect your email account. Email is a holy grail for attackers because with access to your email, the attackers can instantly learn about you. Avoid using email services that don't have modern authentication like MFA and strong security practices. Consider establishing a separate email address only used for your financial accounts (banks, credit cards, credit agencies). Consider using a paid email service that provides additional protection against bad actors. This is a small investment that keeps you better protected. Freeze your credit. Set up an account for each of the three credit agencies (Equifax, Experian, and Transunion) and set up a credit freeze. You can temporarily lift the credit freeze when applying for a new credit card, bank account or loan. Configure text notifications. Getting notifications from your bank and credit cards when transfers occur or charges are made is helpful in identifying fraud. When following up with your bank, always use their phone number as listed on their website, not what's in an email or text message sent to you.  See the complete DRS Account Security Checklist. At DRS, it’s our goal to ensure that members receive the benefits they’ve earned. We take many steps to ensure your account is protected. You can find out more about retirement account security here.

As a public employee, you may be looking at your financial picture and seeing a mix of different retirement accounts: a 401(k) from a past job, maybe an IRA, and probably a Deferred Compensation Program (DCP) account. Each of these accounts has served a purpose over the years, but managing them all can feel like juggling too many balls at once. That’s where consolidation comes in. Consolidating your retirement accounts means rolling multiple accounts into one. For many people, this step can simplify their finances and reduce headaches both now and down the road. But is it the right move for you? Let’s explore some of the key reasons why consolidation might make sense and what to consider before making changes. Advantages of consolidation Streamlined investment strategy With all your retirement savings in one place, it becomes easier to manage your overall investment strategy. You can make sure your portfolio is properly diversified and aligned with your retirement timeline and risk tolerance, without needing to coordinate between multiple financial institutions. Potential for lower fees Some accounts charge maintenance or management fees. Consolidating into a low-fee account (like many public employee DCP plans) could help reduce your overall costs. Over time, those savings can add up. Reduced likelihood of errors for multiple Required Minimum Distributions (RMDs) Once you reach age 73 (or 75 if you were born in 1960 or later), the IRS requires you to start taking minimum distributions from certain retirement accounts, such as traditional 401(k)s, 457s, and IRAs. If you have multiple accounts, you may be required to take separate RMDs from each and that can mean more math, more deadlines, and a greater risk of missing something. By consolidating your accounts, you may be able to take one RMD instead of several. This reduces the likelihood of errors and makes tax planning in retirement much more manageable. What to consider before consolidating While consolidation can simplify your financial life, there are a few things to consider first: Review fees and investment options: Not all accounts are created equal. Compare the investment choices and costs of your existing accounts with the one you’re thinking of consolidating into. Check for penalties: Some accounts may charge fees for transferring out, or have early withdrawal penalties. Understand tax implications: Make sure you’re rolling funds between similar account types (like traditional to traditional) to avoid unintended tax consequences. For more information about DRS-specific rollovers, visit the rollover information page. The Deferred Compensation Program (DCP) is the only DRS administered plan that accepts rollovers from other plans. More about DCP rollovers. It’s also a good idea to talk to a financial advisor or retirement counselor familiar with public employee plans. They can help you evaluate whether consolidation aligns with your retirement goals. The bottom line Simplicity can be your friend. Consolidating your retirement accounts may help reduce stress, cut down on paperwork, and make it easier to manage your finances. For many public employees, rolling other accounts into their DCP account with strong investment options and low fees is a smart move. Just be sure to weigh your choices carefully. Talk to a financial advisor if you need some advice.