Plan Choice Reporting - Plan 3 Contribution Rate Options
PERS, SERS, and TRS Plan 3 members with a rate option choice can select from six rate options:
A
5 percent of pay at all ages
B
5 percent of pay until age 35
6 percent of pay age 35 - 44
7.5 percent age 45 and above
C
6 percent of pay until age 35
7.5 percent of pay age 35 - 44
8.5 percent age 45 and above
D
7 percent of pay at all ages
E
10 percent of pay at all ages
F
15 percent of pay at all ages
Reporting Rate Options
New plan choice members electing membership in Plan 3 must choose a contribution rate and investment program. New plan choice members have up to 90 calendar days to make their elections or the employer defaults them to rate option A (5%). Report member and employer contributions in Plan 2 until a Member Information Form (MIF) is received or you default the member after 90-calendar days.
Existing Plan 3 members changing employers have up to 90 calendar days to select a contribution rate option or they default to rate option A (5%). Member contributions aren't reported until the MIF is received or you default the member after 90-calendar days. Report employer contributions in Plan 3 from the first day of work.
If the member has selected option B or C, employers begin using the new rate effective the first day of the month following the member's birthday.
Members working for more than one employer in eligible positions may select a different rate option for each employer.
Members of PERS and SERS Plan 3 can't change the rate option they select unless they change employers. Members of TRS Plan 3 currently have the option to elect a new contribution rate during the month of January each year.
A Plan 3 member, who separates from employment and returns to work for the same employer, may select a new rate option only if the member worked for a different employer during their separation period. If the member is rehired in a short enough time frame to cause the employer to question their opportunity to have worked for a different employer, the employer should ask the member “Did you work for another employer between your termination and new hire dates?” Review a rehire's job application for interim employment. Use this information to determine if the employee has the option to choose a new contribution rate.
PERS JBM Contribution Rate Options
Plan 3 members who participate in the Judicial Benefit Multiplier program and their employers pay an additional contribution rate above the regular PERS rate. The additional amount is set in statute [RCW 41.40.124, RCW 41.40.127].
