Once an employee establishes membership in a retirement system, the employee begins to build a future retirement benefit. This benefit is funded by contributions-made by the employee, the employer, and with some systems, the state-and the investment earnings from these contributions. Except for Plan 3 member contributions, WSIB invests retirement contributions. When a member retires, money from this investment fund is used to pay the retired member a defined monthly benefit. The number of years of service credit the member has earned and the amount of the member's highest average compensation during employment determine the amount of the service retirement benefit to which a member is entitled.
Plan 3 is composed of two retirement benefit components. The defined contribution component is member financed and the defined benefit component is employer financed. Members can choose between two investment programs: the Washington State Investment Board (WSIB) Investment Program or the Self-Directed Investment Program.
Member benefits are explained in member handbooks published by DRS. Member handbooks are available for PERS, PSERS, SERS, TRS, LEOFF, WSPRS and JRS members. Each member of a retirement system should be given a copy of the appropriate handbook to help the member understand retirement rights and benefits. If you need copies of these handbooks, please contact DRS.