The IRS limits have increased for retirement savings programs like Washington’s Deferred Compensation Program (DCP). Beginning Jan. 1, you can contribute up to $24,500 per year. Age 50 or older: you can contribute an additional $8,000 beyond the limit ($32,500 for 2026). For highly compensated employees ($150,000 in FICA wages for 2025), who are age 50 or older, the additional $8,000 may be required as Roth contributions. These limits apply to DCP Roth and pretax contributions. That means whether you contribute to Roth, pretax or both DCP options, it’s a combined total.  If you’re already a DCP participant, now’s a great time to consider increasing your contributions. If you’re not a participant and your employer offers DCP, consider signing up. The new limits are effective Jan. 1, 2026. But depending on your employer’s payroll, it can take up to 30 days for your account changes to go into effect. So, if you want to begin saving in the new year, you might want to start your changes now. How much do DCP customers save each month? The DCP program makes it easy to save for retirement. Even a minimum monthly contribution of 3% of your salary can add up to big savings over time. The most common percentages saved are 10%, 5% and 3%. Age 26-35: Average monthly contribution is $477 Age 36-45: Average monthly contribution is $655 Age 46-55: Average monthly contribution is $800 Around 5% of DCP customers contribute the maximum amount. Next steps Change your contribution online through your DCP account Check out the DCP page New to DCP? Enrolling is easy with this online form

The annual Plan 3 transfer window will be open in January for some members of PERS, SERS and TRS Plan 2 to make a permanent move to Plan 3. Members with these plans and hire dates may be eligible to transfer to Plan 3: TRS Plan 2 members who began service before July 1, 2007 PERS Plan 2 state and higher education employees who began state service before March 1, 2002 PERS Plan 2 local government employees who began service before Sept. 1, 2002 SERS Plan 2 members (without past PERS Plan 2 service) who first established membership before July 1, 2007 SERS Plan 2 members (with past PERS Plan 2 service) who first established membership before Aug. 1, 2009 If this applies to you, and you would like to transfer from Plan 2 to Plan 3, DRS will transfer your Plan 2 contributions along with any interest earned to a Plan 3 investment account. All you need to do is complete a Member Transfer form and submit it to your employer by Jan. 31. Plan 3 has two parts: a pension account and an investment account. Your employer pays into your pension fund, while your contributions go into an investment account that you control. Plan 3 rules allow you to withdraw the investment portion of your funds at any time after separating from employment. For more information about the differences between Plan 2 and Plan 3, see Plan Choice. Other ways to boost your retirement income If you’d like to maximize your retirement income but are not eligible to transfer plans, there are several ways to do so through DRS. Deferred Compensation Program (DCP) DCP is a voluntary savings plan like 457, 403b or IRAs. You choose your monthly deposit amount, and you can adjust it up or down as your needs and income change. Some Plan 2 members may choose to set their DCP contribution rate to be the difference between 15% and the current Plan 2 rate to treat Plan 2 more like Plan 3. Similar to the Plan 3 investment component, you can withdraw your DCP savings any time after you separate, making options like early retirement more available to you. Plan annuity You can purchase a plan annuity using your DCP savings or other approved funding sources. The plan annuities increase your monthly pension and therefore offer the same survivor option and COLAs, as well as a balance refund. If you or your survivor pass before the original purchase amount is fully paid out, your beneficiaries will receive the remaining balance. You must purchase Plan annuities at the time of retirement.

The 2026 Cost-of-Living Adjustments (COLA) percentages effective July 1 for most plans have not been released. DRS will update the COLA information page when the information becomes available (usually sometime in March). You can review the current 2025 COLA adjustments on the COLA information page.

Mark your calendar – the new schedule is here! DRS issues pension payments on the last business day of each month. Please note: the date you receive your payment will depend on your financial institution. 2026 pension payment schedule January 30 February 27 March 31 April 30 May 29 June 30 July 31 August 31 September 30 October 30 November 30 December 31 Keep your information up to date To use a different bank account for direct deposit, update it in your online account. Your new information will need to be provided early in the month (before the 15th) to be effective for that month. Keep your address up to date. You’ll receive a payment in the mail if the change is not effective in time. Also, keeping your address current allows your tax documents to be delivered on time. How to update your direct deposit: Log in to your online account Select My Account from the menu options listed. This will bring up a table of your account information. Next to Direct Deposit select View/Edit. For security, enter the current bank account number you have on file. Enter the new routing number. Select Validate Number. Enter the new account number and information. Check the agreement box and select Next. When prompted, verify your changes using multi-factor authentication. If you do not receive a confirmation email/text, it was not successfully changed.