Your WSPRS benefits are not affected if you work after retirement in any position other than a commissioned Washington State Patrol officer. However, if you plan to begin working for a public employer in Washington state after retirement, contact DRS before accepting employment.
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 three percent per year.
Most of your retirement benefit will be subject to federal income tax. The only portion exempt from tax is the part that was taxed before it was contributed. Member contributions under WSPRS Plan 2 are not taxed at the time they are contributed.
After you retire, DRS will notify you of the portion of your contributions that has already been taxed. The IRS refers to this taxed amount as your “cost.” You must complete a W4-P form to tell WSPRS how much of your benefit should be withheld for taxes. If you do not, DRS will follow IRS rules requiring withholding as if you are married and claiming three exemptions.
Retirement benefits are not generally subject to assignment or attachment. However, payments received by you in the form of retirement benefits or as a refund of your contributions may be subject to payment of any orders authorized by law, including spousal maintenance and child support.
DRS is authorized to divide pensions between members and ex-spouses based upon court-ordered property division. If the divorce decree complies with the applicable law, DRS will send the property division payment directly to the ex-spouse. For more information, read the DRS publication "Can a Legal Order Affect My Retirement Account?"