State of Washington: Department of Retirement Systems

March 6, 2025

A cost-of-living adjustment (COLA) is an annual adjustment applied to your retirement income to reflect changes in the economy (inflation). Most DRS retirement plans offer a COLA, but Plan 1 members in PERS and TRS only have a COLA if they selected it during retirement. View the 2025 COLA percentages by retirement date and plan. When will I receive the 2025 COLA? LEOFF Plan 1 COLAs take effect April 1 and start with April 30 benefit payments. All other DRS Plan COLAs take effect July 1 and start with July 31 benefit payments. You need to be retired by July 1 for at least one year to be eligible for a COLA. Once you’re eligible, you’ll receive any COLA starting with the pension payment issued at the end of July, and every year after. You don’t need to apply to receive the COLA – it’s automatic. How much will the COLA be? The maximum annual COLA you can receive for most DRS plans is 3%. If inflation that year is above 3%, the additional amount is applied to future adjustments (called COLA banking). Any year inflation is lower than 3%, the COLA can pull from banked amounts in prior years. This happens automatically and the adjustment is made for you. You could receive a different adjustment each year, depending on the amount available in your COLA bank. Will PERS 1 and TRS 1 receive a benefit increase? If the legislature changes the current law, most of these retirees could receive a one-time increase in July. There are several bills that could affect this decision. You can track all bills here.

News August 12, 2025

“I was still trying to find what I wanted to do,” he says. “I was taking a scuba diving class and one of the divers was a captain with the Tacoma Fire Department. He sparked my interest.” No pun intended; it was quite a spark indeed. This chance meeting set off Dave’s 48-year firefighting career – an ongoing career with no end in sight. He enjoys what he does: the variety, of course, but mainly helping others. “I’d say I’ve gotten a lot of people through probably the worst day they’ve had and maybe the best day, too. I love being part of the community.” When it comes to his career at the TFD, Dave says he also enjoys the camaraderie and passing on what he’s learned to younger firefighters. “It keeps me young,” he adds. Only a handful of firefighters and police officers remain in the Law Enforcement Officers’ and Fire Fighters’ Retirement System (LEOFF) Plan 1. LEOFF Plan 1 is a closed system that no longer accepts members. Today, these first responders join LEOFF Plan 2 when they’re hired. Saving lives Dave, like all firefighters, sees a lot of things on the job—some great and some not so great. They range from the worst things to the most satisfying. He’s had such a long career, it’s hard for him to choose his most memorable experiences. “One that stuck with me happened in February 1983. A woman tried to jump off the Tacoma Narrows bridge during my shift. She thought it would be easier to take her own life but changed her mind as she started to jump and grabbed a cable.” The call came in at a time before firefighters had technical resources and training for such a harrowing situation, but Dave didn’t hesitate. “I hopped over the railing and pulled her through the cable when she got her finger caught,” he says. He supported her body while working to pull her finger safely through the cable. “It was dark and foggy. I couldn’t see how far down it was until I went back out there the next morning.” The woman (and her finger) were saved that night due to Dave’s heroism and his ability to fight his fear. Seventy-three and beating the odds LEOFF Plan 1 members can retire at age 50. So why hasn’t Dave retired yet? “I don’t know,” he says. “The idea of retiring really bothers me because I’ve always got to stay busy. I’m sure I’d find plenty to do, but I don’t want to give up the routine and what’s been my life. Dave’s bout with cancer a few years ago helped him reflect on his priorities, and he discovered that retirement wasn’t one of them. “I had to take about nine months off work, but I’m cancer-free —knock on wood.” While there is never a bright side to cancer, he did find love. He and his wife Sherie met right before his health crisis and have been together for four years. They share a dog, a Savannah cat, five grown children (between them), and a grandson. And oh boy, does he keep busy.

News August 5, 2025

Why does 20 years matter? DRS pension plans are vested, or provide a guaranteed benefit, after 5-10 years of public service. So why are we talking about 20 years? Well, your service time is an important part of pension formulas.It takes time to build up the years of service needed to have a substantial pension benefit, and 20 years is often considered a significant milestone. Let’s take a closer look at what you might do with 20 years. Early retirement Can you retire early after 20 years? The answer is “yes” if you meet certain qualifications according to your plan and system. In fact, any retirement before age 65 is considered early in most plans. While there are some plans, like LEOFF, PSERS and WSPRS that have a different set of early retirement qualifications, we’re going to cover Plans 2 and 3 of PERS, SERS and TRS. PERS, SERS and TRS Plan 2 Plan 2 is an employer and employee-funded pension plan also called a defined benefit. If you have earned at least 20 years of service credit and are 55 or older, you can choose to retire early, but your benefit will be reduced. There is less of a reduction (in some cases no reduction) if you have 30 or more years of service credit. If you joined before May 1, 2013, have 30 or more years of service and you are age 62, you can retire with a full benefit under the 2008 ERF. PERS, SERS and TRS Plan 3 Plan 3 has two parts – an employer-funded pension benefit and an employee-funded investment contribution. Each part has different qualification requirements. Pension benefit: The early retirement rules described above apply to the employer-funded part of your plan. However, with Plan 3, the earliest you can retire is age 55 with a reduced benefit if you have at least 10 service credit years. Plan 3 also has a feature called benefit indexing once you have 20 years of service. Find out more about this below. Investment contribution: You can withdraw from your investment account at any time after separating employment. See more about early retirement as it relates to your plan and system. Other 20-year milestones Here are a couple more considerations for your retirement planning goals that are marked by the 20-year point in your career. Plan 3 benefit indexing If you have at least 20 years of service once you separate employment, you could qualify for benefit indexing. For every month you delay collecting your pension, your benefit amount will increase by 0.25%. Benefit indexing stops once you reach your normal retirement age. To take full advantage of the benefit indexing increase, some Plan 3 members use their investment or other retirement savings account to fund their early retirement until they reach age 65 and begin collecting their pension benefit. Increase your DCP While you’re thinking about retiring with 20 years, and you’re age 50 or over, take a look at what DCP has to offer. Catch-up options Participants age 50 and older: You’re allowed an additional $7,500, for a maximum limit of $31,000. Special Catch-up limit: In addition to the limits above, a Special Catch-up limit of $47,000 could be available to those participants nearing retirement. To determine your eligibility, call DRS at 800-547-6657. See the catch-up options video for more. More resources – DRS videos and webinars You can watch a video or attend a live webinar about early retirement. This PERS, SERS, TRS early retirement video can get you started while you’re thinking about retiring with 20 service credit years. See the webinars webpage and the DRS video library for additional topics. And don’t forget to check out the Fund Your Future with DRS podcast, Retiring at 55 – pros and cons.