This handbook explains your rights and benefits under Plan 3 of the Washington state Teachers’ Retirement System (TRS). 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 Teachers’ Retirement System (TRS) Plan 3, a dual-component retirement plan, in 1995. It became effective July 1, 1996.
TRS 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 the 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. See “What are my benefit options?”
All public school “teachers” hired into an “eligible position” on or after July 1, 1996 until June 30, 2007, are covered by TRS and are required to join Plan 3. Currently, an “eligible position” is one which normally requires five or more months of 70 or more hours of compensated employment from September through August.
TRS members who first become hired on or after July 1, 2007, will have 90 days to choose between TRS Plan 2 and TRS Plan 3. Individuals who do not choose either TRS Plan 2 or TRS Plan 3 within 90 days will be mandated into TRS Plan 3.
If you established membership in TRS on or after October 1, 1977, but before July 1, 1996, you began TRS membership in Plan 2. Plan 2 members hired between October 1, 1977 and June 30, 2007, have the option to transfer to Plan 3 each January. If you established membership in TRS before October 1, 1977, you are covered by Plan 1. Plan 1 members cannot transfer to Plan 3.
“Teacher” means any person who is qualified to teach and is employed by a public school in an instructional, administrative, or supervisory position. This includes:
Substitute teachers should request the publication Substitute Teacher’s Guide to Obtaining Service Credit to determine their participation status. This is available from the Department of Retirement Systems (DRS) or your employer and can be downloaded from this Web site.
If you are already receiving retirement or disability benefits from a public employer in Washington, you may be prohibited from joining this plan. If this applies to you, contact DRS.
Information is also available in the brochures, Thinking About Working After Retirement? and TRS Plan 2 and 3 Disability Benefits which may be obtained from your employer, TRS or this Web site.
It is important you tell your employer if you have any prior membership, even if you withdrew your contributions.