This handbook explains your rights and benefits under Plan 3 of the Washington state School Employees’ Retirement System (SERS). 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 Washington State Legislature created School Employees’ Retirement System (SERS) Plan 3, a dual-component retirement plan modeled after the Washington state Teachers’ Retirement System (TRS) Plan 3 which was created in 1996.
SERS 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. The amount of your reduction is based on your service credit and age. The benefit amount is based on your years of service credit and your average final compensation and 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.