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PERS Plan 2 & PERS Plan 3 rules for Local Officials

Last Updated: May 2007

The following rules apply to local elected officials who choose to be covered by the Public Employees’ Retirement System (PERS) Plan 2 or Plan 3 while in office. You are eligible to participate in PERS Plan 2 or Plan 3 while in office if:

• You are a PERS Plan 2, PERS Plan 3, TRS Plan 2, TRS Plan 3 or LEOFF Plan 2 member when elected to office, or
• You are a former member of one of these plans (even if you withdrew funds from your retirement account); or
• You have never been a member of a retirement plan administered by the state of Washington.

You are not required to join PERS membership while serving in your elected position. However, if you would like to become a member while in office, you must apply to the Department of Retirement Systems (DRS).

When can I apply for membership?

You may apply for membership at any time during your current term of office. If you enter membership after your current term of office has begun, membership will be retroactive to the first day of your current term of office. You will be required to pay employee contributions plus interest back to the first day of your term.

Your membership decision is final: Once you have established retirement system membership, you must remain a member until you separate from all eligible public employment. If you serve an additional term of office with the same employer without a break in service, you will remain a retirement system member until you terminate employment. If you separate from service and leave office, you will not be considered separated if you return to office for the same employer during the term in which you left.

Can I receive credit for past elected service?

When you have established membership for your current term, you may have the option of purchasing service credit for any previous term or terms of office during which you did not choose to apply for membership. Membership will be granted retroactively to the beginning of your elected service.

To receive service credit for any previous term or terms of elected service, you must pay the required employee and employer contributions and interest, as determined by DRS. Your employer may elect to pay the required employer contributions and interest for you.

All prior consecutive service must be purchased. If you have served multiple terms in office with different employers, you may purchase credit for service with each employer independently. If you do not choose to become a member while holding elected office, and later become an active PERS Plan 2 or Plan 3 member in a non-elected position, you may then purchase credit for your elected service.

You may purchase service credit for elected service performed prior to September 1, 1991, only:

• if you were compensated for more than 90 times the state minimum wage; and
• for months in which your service totaled 90 or more hours.

Note: For periods from January 1, 1987 through August 31, 1991, employee and employer contributions are due only for months that service credit was received.

Note: For periods prior to January 1, 1987, employee and employer contributions are due for any months worked, including months that service credit was not earned.

How much service credit will I earn?

The amount of service credit you earn helps to determine the size of your retirement benefit.

For each month that you earn 90 times the state minimum wage, you will receive service credit as follows:

• 90 or more hours = One service credit month
• At least 70, but fewer than 90 hours = . 5 service credit month
• Less than 70 hours = .25 service credit month

What will my retirement benefit be?

Your service retirement benefit is based on the following formula:

2 percent x service credit years x Average Final Compensation =
Monthly benefit

Average Final Compensation is the monthly average of your 60 consecutive highest-paid service credit months

How much will I contribute to my retirement fund?

Plan 2 contribution rates are variable and may be changed as necessary to reflect the cost of the plan.

In Plan 3, the amount you contribute depends on the contribution rate option you choose. Plan 3 features six contribution rate options that, once selected, may only be changed if you change employers.

The Plan 3 contribution rate options are:

• Option A: 5% fixed at all ages
• Option B: 5% up to age 35; 6% ages 35 to 44; 7.5% age 45 and up
• Option C: 6% up to age 35; 7.5% ages 35 to 44; 8.5% age 45 and up
• Option D: 7% fixed at all ages
• Option E: 10% fixed at all ages
• Option F: 15% fixed at all ages

Can I retire and retain my elected position?

You may retire and retain your elected position if:

• In that position, you earn less than $22,355 (as of 2006) adjusted annually for inflation, and
• You abandon claims for credit for future periods of elected service.

How do I enroll?

To begin, continue or re-establish PERS Plan 2 or Plan 3 membership, contact DRS and provide the following information:

• Name
• Social Security number
• Address and phone number
• Position title and employer
• Beginning and ending dates of all elected official service

DRS will send you a letter and application once you provide us with all of these items.

To Learn More

More information about elected or governor-appointed officials is available by contacting DRS. Additional rules governing all PERS Plan 2 or Plan 3 members are summarized in the PERS Plan 2 or Plan 3 Member Handbook. To obtain a copy of a member handbook, or for more information about governor-appointed service, contact DRS.