The 2025 COLA percentages effective July 1 for most plans have not been released. DRS will update the COLA information page when the information becomes available in 2025 (usually sometime in March). Review the current 2024 COLA adjustments on the COLA information page.
Category Archives: Member
More DCP savings in 2025
The IRS limits have increased for retirement savings programs like Washington’s Deferred Compensation Program (DCP). Beginning Jan. 1, 2025, you can contribute up to $23,500 per year. If you’re 50 or older, you can contribute up to $31,000 per year. These limits apply to DCP Roth and pretax contributions. That means whether you contribute to…
Updates to DCP and Plan 3 Retirement Strategy Funds
A new Retirement Strategy Fund (RSF) is coming to the lineup of investment options in Plan 3 and the Deferred Compensation Program (DCP). The most recent addition – the 2070 Retirement Strategy Fund – will be available beginning Jan. 6, 2025. The newest fund is designed for those born in 2003 or later. Meanwhile, the…
The ins and outs of retirement service credits
We’re often asked to explain what service credit is and how it works. Customers want to know about topics related to service credit, such as portability (also known as reciprocity), dual membership and out-of-state credit. Here’s a rundown along with some links to helpful resources. Retirement service credit basics Service credits are the units used…
Required minimum distributions begin at 73
Do you have DCP or Plan 3? If so, keep in mind that if you are separated from employment, federal law requires you to withdraw a minimum amount from your investment account when you reach age 73. The DRS record keeper, Voya, calculates this Required Minimum Distribution (RMD) and pays this amount to you automatically…
Retirees may continue CFD donations
If you’re retired or are planning to retire soon, you can continue donating to the state’s Combined Fund Drive (CFD) after you retire. CFD is an “opt out” program. In other words, if you are currently donating, then retire, your donations continue into retirement until you elect to make changes. You can also begin making…
Is it a bear or a bull?
Understanding the market’s animal-like behavior You’ve most likely heard the words “bear” and “bull” when the topic of the stock market comes up. But what do they mean when applied to investing and saving for retirement? These symbolic animals, known for their strength and stubbornness, are used to represent market volatility; bear markets fall, and…
Customers report receiving unrequested verification codes
A few DRS customers have reported receiving unrequested text, voice or email messages with a verification code from Voya Financial, our record keeper for DCP and plan 3 investment accounts. Voya is researching the issue. We don’t have any indication that any accounts were accessed or compromised. If you get a text or email from…
The 2024 Annual Report is here
The 2024 Annual Comprehensive Financial Report (ACFR) reflects our ongoing commitment to accurate and transparent financial reporting of the retirement systems. It contains the following detailed information: Financial information for employers The 2024 Participating Employer Financial Information (PEFI) is now available. It includes allocation schedules and information to assist employers participating in the state of Washington’s multiple-employer, cost-sharing…
Keep your retirement accounts secure
Each October National Cybersecurity Awareness Month focuses on raising awareness of the importance of cybersecurity. This month is a great time to do a security check on your retirement accounts. Here are three tips that will help ensure that your accounts are safe: And here’s another great tip that’s easy to do right now while…
