Summary of Benefits

SERS 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. See What is a defined contribution plan?
Contribution Rates	Contributions to SERS 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	SERS Plan 3 provides for 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 SERS Plan 2 prior to September 1, 2000. A reduced benefit is available as early as age 55. See When Can I retire?.
How Service Credit is Accumulated	Service credit is based on the total compensated time reported by your employer on your behalf. Employees of school districts or educational service districts may receive 12 service credit months for the school year, September 1 - August 31. 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 service credit month. See What is service credit?.
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. See How is my benefit calculated?.
Death in Service Survivor Benefit	• If you die before you have initiated payment from your defined contribution account, your beneficiary will receive the balance in that account. • If you die before you retire, your surviving spouse, or if none, your minor children, will receive a defined benefit. See Death before retirement.
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. See Cost-of-Living adjustment.
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.