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

If you’re interested in pension-related legislation, sign up below to receive an email alert when we update our Pension-Related Legislation page. We expect to send updates weekly, but we may send more or less frequently depending on how bills move through the legislative process. As part of this list, you might also receive a few messages throughout the year notifying you if we update any administrative rules. You’re also welcome to subscribe to other lists, such as Member News, or subscribe to receive legislative updates using SMS text messaging instead of email. Just select “Subscribe” at the top of each page on the DRS website for all available subscription options. More news See all news

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.