PERS Plan 3: Summary of Benefits

Defined Contribution Account	Your member contributions are deposited in a defined contribution account. That money is invested according to your instructions and you can take payment of that account any time you terminate from all covered employment.
Contribution Rates	Contributions to PERS Plan 3 are mandatory. Under current federal law, once you select a contribution rate you cannot change it unless you change employers. Currently, there are six contribution rate options.
Benefit Formula	1% x Service Credit Years x AFC = Monthly Benefit.
Eligible for Retirement	PERS Plan 3 provides a full retirement benefit at age 65 if you have: At least 10 service credit years; or Five service credit years, including 12 service credit months that were earned after age 44; or Five service credit years earned in PERS Plan 2 prior to June 1, 2003. A reduced benefit is available as early as age 55.
How Service Credit is Accumulated	Service credit is based on hours worked during a calendar month. 90 hours = 1 service credit month. Less than 90 but at least 70 hours = 1/2 service credit month. Less than 70 hours = 1/4 of a service credit month.
Service Credit for Military Time	You may be eligible to receive service credit for time spent in the military. See Military Service.
Average Final Compensation (AFC)	Your AFC is the monthly average of your 60 consecutive highest-paid service credit months. Not included are payments for any type of severance pay, such as lump-sum payments for deferred sick leave, vacation or annual leave.
Death in Service Survivor Benefit	If you have less than 10 years of service credit and are not eligible to retire, your contributions plus interest will be paid to your beneficiary(s). If you have at least 10 years of service, or are eligible to retire, your beneficiary can choose between a monthly benefit or a lump sum payment of your contributions plus interest.
Cost of Living Adjustment	On July 1 of every year following your first full year of retirement, your monthly benefit will be adjusted by the percentage change in the Consumer Price Index (CPI-U, Seattle), to a maximum of 3 percent per year.
Health Insurance Coverage	If you qualify for Public Employees Benefits Board (PEBB) health insurance coverage, you must elect PEBB coverage within 60 days of separation from employment.