What is gain sharing?

Ongoing gain sharing

If the WSIB's earnings on SERS combined Plan 2 and Plan 3 fund assets average more than 10 percent annually over a four-year period, half of the amount over 10 percent will be passed on to Plan 3 members' defined contribution accounts based on each member's service credit. Gain sharing payments are made in January of even-numbered years and are deposited in members' defined contribution accounts. Note:House Bill 2391, signed by Governor Gregoire on May 15, 2007, makes changes to gain sharing.

To be eligible for a gain sharing payment, you must meet one of the following criteria:

You must have earned service credit during the 12-month window from September 1 to August 31 of the year immediately preceding the distribution, and had a balance of at least $1,000 in you member account on August 31 of the year immediately preceding the distribution; or
Be in receipt of the defined benefit component of SERS Plan 3; or
Be in receipt of the defined contribution component of Plan 3; and you must:

(a) have completed 10 service credit years; or
(b) have completed five service credit years including at least 12 service credit months after age 54; or

You must have a balance of at least $1,000 in your member account on August 31 of the year immediately preceding the distribution, and have completed five service credit years by September 1, 2000 and transferred to SERS Plan 3.

How does my defined benefit component work?

Under SERS Plan 3, the defined-benefit component is the benefit you receive at retirement that is based on your service credit, age and average final compensation.

Your benefits under the defined benefit component of Plan 3 are funded by contributions made by your employer during your period of membership, and investment earnings from those contributions. Employer contributions are held in trust and invested by the WSIB.