Choose a plan: Plan 2 basics

Plan 2 has one part: a pension account.
You and your employer contribute to the pension.


(funded by you and your employer)


Plan 2

retirement income

A 2% pension plan

Plan 2 has a 2% pension. You and your employer contribute to your plan. Your retirement income does not depend on the amount of the contributions.

Lifetime benefit

Once you meet age and service requirements and you’ve applied for retirement, you will receive a guaranteed monthly benefit for your lifetime. Your benefit is based on your years of service credit and the pay you’ve earned.

Service credit years (SCY) The number of years you are credited for working. 

Average Final Compensation (AFC) The average of your highest consecutive 60 months earnings, wherever they are in your service. 


The formula used to calculate your benefit:

2% x SCY x AFC = monthly retirement income


If you worked full time every month for 15 years and your average monthly pay for your highest consecutive five years was $4,000, your monthly benefit would be $1,200.

2% x 15 SCY x $4,000 AFC = $1,200 monthly retirement income

Your contributions

Plan 2 is funded by mandatory contributions you and your employer make.

The Washington State Investment Board (WSIB) invests those contributions. Your member contributions are deducted from your pay and you can see your contributions on your statement. Contribution rates can change every two years, based on funding needs of the plan. 

Plan 2 contribution rates

PERS Public Employees’ Plan 26.36%
SERS School Employees’ Plan 27.76%
TRS Teachers’ Plan 28.05%

What is WSIB? WSIB, or the Washington State Investment Board, is responsible for developing member investment options and managing retirement savings investment programs.

Retirement age and service credit requirements

At what age can I retire with a full benefit? What about early retirement?

Retirement with a full benefit: Age 65 with at least five years of service credit. If you have at least 5 years of service credit and you’re age 65, you can retire with a full benefit.

Early retirement with a reduced benefit: Age 55 with 20 or more years of service credit. Your monthly benefit will be reduced for each year (prorated monthly) before you turn age 65 to reflect that you will receive a monthly benefit over a longer period of time. The amount of your reduction depends on your age. The earlier you retire, the larger the reduction.

There is less of a benefit reduction for early retirement if you have 30 or more years or service credit. Your benefit will be reduced by 5% for each year (prorated monthly) before you turn age 65. Again, the earlier you retire, the larger the reduction.

Leaving employment before you’re eligible to retire

Your plan is designed to provide you with a source of income throughout your retirement. For this reason, you may not borrow from or against your contributions at any time.

Withdrawing when you leave employment

It is possible to withdraw your contributions and the interest they’ve earned at any time after you leave public service. However, if you do, you give up your right to a future retirement benefit. You may not withdraw your employer’s contributions under any circumstances.

Leaving your money in the plan

When you leave employment without starting to receive a retirement benefit, you can leave your money in the plan where it will continue to earn interest. If you have at least five years of service credit, you are vested in the plan. Being vested means you’re eligible for the 2% pension benefit provisions of Plan 2 once you meet the age and service credit requirements.

Recovering service credit

If you withdraw your contributions and later return to public service, there are certain options for recovering your withdrawn service credit by making a one-time purchase.

Back to Top