PERS Plan 2 highlights, When should I start planning for retirement?

This handbook explains your rights and benefits under Plan 2 of the Washington State Public Employees’ Retirement System (PERS). The plan is a 401(a) and is designed to be an important source of income that, along with Social Security benefits (if you are eligible), personal savings, and other investments, will help pay your living expenses when you retire.

Plan 2 or Plan 3 — which to choose?

The 2000 Washington State Legislature created Public Employees’ Retirement System (PERS) Plan 3, a dual-component retirement plan modeled after the Teachers’ (TRS) and School Employees’ Retirement System (SERS) Plans 3 that were activated in 1996 and 2000 respectively.

First-time PERS employees must choose to become either Plan 2 or Plan 3 members within 90 days of beginning employment. You are reported in Plan 2 until you select a plan. If you do not select a plan within 90 days, your default choice becomes Plan 3. Plan choice is irrevocable.

Established PERS Plan 2 members (those who first entered service prior to the implementation of PERS Plan 3) have the option to transfer to Plan 3 during a designated transfer period. Transfer to Plan 3 is irrevocable. More information about plan transfer.

You can obtain more information about the Plan Choice from your employer or on this Web site.

PERS Plan 2 highlights

Here is a brief summary of the plan’s provisions.

You are eligible to retire if you are:

Age 65 or older and have at least five service credit years, or
At least age 55 and have at least 20 service credit years. If you retire before age 65, your benefit will be reduced.
The plan provides disability retirement benefits and survivor benefits if you meet the requirements.
You and your employer both contribute toward your future benefits.
You may remain a member of the plan if you transfer to another PERS-covered employer.
Your contributions are refundable only if you leave PERS-covered employment. If you withdraw your contributions, you lose your right to future benefits. However, under certain circumstances you may restore your withdrawn contributions and reestablish your benefits. You cannot withdraw contributions made by your employer.
If you are a dual member of PERS and another Department of Retirement Systems (DRS) retirement plan, you may be able to combine service credit in order to qualify for retirement.

Inform your employer of previous PERS membership

It is important you tell your employer if you have any prior membership, even if you withdrew your contributions.

If you wish to change your beneficiary, ask your employer for a Beneficiary Designation Form or download the form and submit the form to DRS.

Elected or Governor appointed officials, city managers, chief administrative officers of a county, port district, or public utility district have the option to become a PERS member. They must contact DRS to elect membership, even if membership was previously established.

When should I start planning for retirement?

Planning for retirement is an ongoing process. The sooner you start, the more likely you are to enjoy a comfortable and successful retirement. Here is a simple thing you can do to help build your retirement plan:

As early in your career as possible, attend one of DRS’ Retirement Planning Seminars. These full-day sessions feature qualified speakers on a number of retirement subjects and are free of charge. The dates and locations for these seminars are announced in the member newsletter, Retirement Outlook.