This handbook explains your rights and benefits under Plan 3 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.
The 2000 Washington State Legislature created Public Employees’ Retirement System (PERS) Plan 3, a dual-component retirement plan modeled after Washington State’s 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 annual option to transfer to Plan 3 during the month of January. Transfer to Plan 3 is irrevocable.
You can obtain more information about the Plan Choice from your employer or on this Web site.
PERS Plan 3 has a dual benefit structure. Member contributions finance a defined contribution component, and employer contributions finance a defined benefit component.
The member-financed, defined contribution component provides an investment program you may access any time you separate from covered employment. The amount of retirement income generated depends on how much you contribute and the performance of your investments. You choose how much you contribute, where your contributions are invested, and how and when you take payment.
The employer-financed, defined benefit component provides a lifetime monthly benefit at age 65, or a reduced lifetime monthly benefit as early as age 55. Reduction factors vary based on the number of service credit years and your age. The benefit amount is based on your years of service credit and your average final compensation. Your benefit amount could be affected if you choose a survivor benefit option.
Here is a brief summary of the plan’s provisions.
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.
Planning for retirement is an ongoing process. The sooner you start, the more likely you are to enjoy a comfortable and successful retirement. Here are some simple things you can do to help build your retirement plan: