Contributions are automatically deducted from your paycheck, so saving is easy. Start with as little as $30 per month. You can also let your contributions grow with percentage deductions.
Online or by phone, you can change your contribution amount and investment selections at any time. Your changes can take up to 30 days to go into effect (depending on your employer’s payroll cycle).
DCP offers a variety of professionally managed investment options, including “one-step” funds that automatically rebalance the asset mix as you move toward your target date for retirement. Funds are selected by the Washington State Investment Board, with fees among the lowest in the marketplace.
Regulations: DCP adheres to administrative codes or rules adopted by Washington agencies. See the DCP section of the WAC (Washington Administrative Code).
Employees of Washington state and political subdivisions who offer the DCP program are eligible to participate in DCP. Enrollment is easy!
Ready to enroll in DCP? Complete the quick enrollment form. With this easy form, you’ll be done in minutes!
If you prefer to choose your investments now or add additional information about employer contributions, use this detailed DCP Enrollment Form.
If you leave employment and later return to a DCP-covered employer, resuming your DCP contributions is easy. Complete a new enrollment form to get started!
New employees: Have you received a letter about being automatically enrolled in DCP? Because DCP is voluntary, there are actions you can take once you receive your enrollment notification letter in the mail. For example, you can change your contribution amount or your investment options. You can also opt out of DCP with the option to rejoin later.
Why have I been enrolled? Your organization participates in automatic enrollment.
Are any employees exempt from automatic enrollment? Yes. Automatic enrollment does not include student employees or retirees returning to work, even if they fit the newly hired/full time employee status.
How do I change my DCP options or opt out of automatic enrollment? Once you receive a DCP notification letter you can choose to opt out, change your contribution options or select another investment. Make these changes through your online account or call 888-327-5596.
How much will I contribute with automatic enrollment? 3% of pretax income is the default deferral rate.
When will I make my first contribution? Approximately three months after your hire date. The time varies due to your employer’s payroll cycles. Changes made during the initial automatic enrollment period make you an active DCP participant, which means your contributions may begin sooner AND you can no longer withdraw any contributions made under automatic enrollment.
What kinds of changes make me an active participant? If you change your investment option or contribution amount, this will make you an active participant (which means you can no longer withdraw any contributions made during automatic enrollment).
Can I make changes after the opt-out deadlines have passed? Yes. At any time during your employment, you can stop your deferrals or change your contribution amounts. You can also change investment options.
Where will my contributions be invested? Your contributions will be invested in the Retirement Strategy Fund that assumes you’ll begin withdrawing funds at age 65.
How do I designate a beneficiary for this account? Once you are enrolled, designate beneficiaries through DRS using online account access or the beneficiary form; if you don’t designate a beneficiary, the payment would go to your estate.
If I opt out, can I join DCP later? Yes.
Can I withdraw contributions made during automatic enrollment? Yes. If you make this choice within 90 days from your first contribution, you can withdraw your contributions from DCP as long as the record keeper receives your withdrawal form within the 90 days. Call the DRS record keeper at 888-327-5596 to request a form.
Are my contributions subject to tax withholding if withdrawn? Yes, because your contributions are pretax dollars. The tax withholding is 10%.
With DCP, you can change your contributions at any time. This includes starting, stopping, increasing or decreasing the amounts you contribute from your paycheck. Contribute to your DCP account in dollar or percentage amounts. The choice is yours. These 2021 pretax income limits apply to all DCP participants:
This annual maximum limit is equal to:
Participants age 50 and older: You’re allowed an additional $6,500 for a maximum limit of $26,000. This is equal to:
Special Catch-up limit: In addition to the limits above, a Special Catch-up limit of $39,000 could be available to those participants nearing retirement. To determine your eligibility, call DRS at 800-547-6657.
Special deferral limits: If you are under age 50 and want to defer over the monthly maximum of $1,625, or if you’re 50 or older and want to defer over the maximum of $2,166, contact us for a Special Deferral form: 800-547-6657.
To change your contribution amount, log in to your account. From the DCP account page, select Change Monthly Contribution, Transactions. Your changes can take up to 30 days to go into effect (depending on your employer’s payroll cycle). If you separate from employment and later return to work for an employer who participates in DCP, you can reenroll anytime. If any payments from your account have started, they will stop. Estimate contributions with the DCP calculator.
Can I continue contributing to DCP after I separate from employment? No, once you separate from service you can’t continue contributing to DCP.
If your employer provides compensation for unused annual or sick leave, consider deferring these cash-outs into DCP to maximize your contributions at retirement. Taxes are not paid on this money until you withdraw it from your account. Maximum limits apply, and your employer must participate in DCP for you to be eligible.
To take advantage of one-time leave cash-outs, contact DRS at 800-547-6657 at least 30 days before you separate. You’ll need to have this information:
Note: If your participation in VEBA (Voluntary Employees’ Beneficiary Association) is funded by sick leave cash-outs, those funds may not be directed to DCP. Please check with your payroll or human resources department to verify VEBA participation and how it is funded.
Any time you are enrolled in DCP, you can roll over certain distributions into DCP from an Individual Retirement Arrangement (IRA), IRC 457 distributions from your current employer, or from a former employer’s retirement plan. You can contact your IRA custodian or former employer to determine how rollovers are handled, then complete the Rollover In Request form. DCP will invest your rolled funds according to your current investment allocation.
For most customers, you must be separated from DCP-covered employment to withdraw from your account.
If you submit a withdrawal request while you are still employed, the request will be held for up to 180 days until we receive a separation date from your employer. Once you separate, the funds will be released to you.
In some cases, you can withdraw your DCP funds while you are still working for a DCP-covered employer. Here are those exceptions:
There are two ways to access your DCP account funds: Use online withdrawal, or complete a paper form. We recommend online withdrawal because it’s faster and easier than a paper form. With online withdrawal, your account information is prefilled for you, you can estimate payments and tax withholdings instantly and add your direct deposit information. You’ll also receive immediate confirmation that your transaction is in progress.
To complete your withdrawal online, log into your online account and select your DCP account.
Under the Quick Access menu, select Request Online Withdrawal.
In some cases, you may be unable to complete your DCP withdrawal online. Or maybe you prefer to complete and mail in a paper form. Either way, we’ve got you covered here.
DCP and JRA Withdrawal – This form covers most DCP withdrawals. Use it to request withdrawals when you separate from employment or to change your current distribution option if you are already receiving payments. You can also complete this request online.
DCP In-Service Withdrawal – Use this form to request DCP withdrawals while you are still employed. See the above section “Can I withdraw from DCP while employed?” for eligibility information. Some of these transactions can also be completed online.
For the following withdrawal types, you’ll need to call the DRS record keeper to get the form you need. Call 888-327-5596 or log into your DCP account to chat live with a customer service associate. They will help you select the right form for your needs.
Beneficiary Distribution Request – Request a withdrawal from your awarded beneficiary account.
Alternate Payee Withdrawal – Used to withdraw funds per a Qualified Domestic Relations order, this form can be obtained by calling 888-327-5596.
Unforeseeable emergency withdrawals – If you are experiencing severe financial hardship because of an unforeseeable emergency, you may be eligible to withdraw funds from your DCP account. IRS requirements restrict this type of withdrawal, and may limit the amount you can withdraw.
Automatic Enrollment Withdrawal – New employees automatically enrolled in DCP have up to 90 days after their first paycheck deferral to cancel DCP and withdraw any contributions. After 90 days, standard withdrawal eligibility applies.
IRS Form W-4P – Request to have federal income tax withheld from each withdrawal or annuity payment you receive.
In general, if we have your separation date on file, DCP withdrawals happen pretty fast—within a few business days. If you have not yet separated from DCP-covered employment, we’ll release your payment once we receive the separation date from your employer.
Some special DCP withdrawal types differ in their payment timelines and whether separation from employment is required. When you complete your withdrawal, you’ll receive information specific to your withdrawal type.
Your DCP account offers several options for withdrawals.
You can also leave your DCP savings invested for as long as you want even if you separate from DCP-covered employment. Minimum withdrawals are required by the federal government when you reach a certain age. See required minimum distributions.
Yes, once you begin receiving payments, you can change your payment amount, frequency of payments and payment date at any time. Make changes through your online investment account or using the paper forms listed in the section above.
In the event of your death, your beneficiaries will receive payment from your DCP account. Keeping your beneficiaries updated is important. Your DCP beneficiaries must be declared separate from any beneficiaries you’ve selected for another plan or program, like a pension. You can name anyone as your beneficiary: spouse, child, domestic partner, friend, neighbor, etc. You can also designate a charity or trust. If you die without a current beneficiary designation on file, a distribution will be made to your estate.
Once you are enrolled in DCP, update your beneficiaries online through drs.wa.gov/oaa. Or complete the paper form (Beneficiary Designation) and mail it to DRS. See the Forms section of the DRS website.
The DCP account holder (participant) selects one or more beneficiaries. When DRS is notified of the participant’s death, we mail a letter and beneficiary form to each beneficiary on file. Once the form is returned to DRS, we set up a separate account under the beneficiary’s Social Security number. This account is called a “beneficiary account.”
What are my withdrawal options? If you are a spouse, you have the same withdrawal options as the participant did. You can leave the money in the account, withdraw in full or withdraw it in payments. If you are not a spouse, you can withdraw the funds. For more specific information about withdrawal options, contact the DRS record keeper.
Can I contribute additional funds to the awarded beneficiary account? No.
Can I roll my beneficiary account funds into my IRA? A spouse beneficiary can roll the funds into a traditional IRA. A non-spouse can roll the funds into an inherited IRA.
Can I roll my awarded beneficiary account into my own DCP account? No. The accounts must be kept separate for distribution purposes. However, you can withdraw the beneficiary account funds while you are still working for a DCP-covered employer.
How do I name a beneficiary for my awarded beneficiary account? You can’t. Upon your death, any remaining funds go directly to your estate.
Beneficiary or survivor, what is the difference? A survivor is the spouse or registered domestic partner of the participant at the time of passing. The survivor beneficiary has the same account withdrawal options as the participant did. A beneficiary who is not a survivor is a non-spouse.
Who can I contact? For more information about beneficiaries, contact DRS.
Your contributions are deducted before tax, which keeps more of your dollars working for you. This is called tax-deferred savings. With DCP, your contributions are only taxed when you withdraw them, and you only pay federal income tax.
DCP has no federal tax penalty for early withdrawals, which means you can withdraw your savings at any age. However, your DCP contributions are deducted from your pre-tax salary. This means you will need to pay federal income tax on any money you withdraw from DCP.
When you complete your withdrawal, you’ll receive tax information specific to your withdrawal type. If you complete your withdrawal online, you’ll also receive a real-time estimate of your tax withholding. For example, rollovers from your DCP contributions are not taxed until you actually withdraw the rolled funds.
The likelihood of lower taxes will depend on your income, current tax bracket and any contribution decisions you make. DRS and the DCP record keeper cannot offer financial counseling. Consult a financial advisor for advice on tax savings.
You can make DCP account changes anytime through your online account.
Access your account to:
Your statements will be available through your online account unless you opt into mailed statements through the record keeper.
Quarters are divided into the following months:
Your statement could include information for more than one plan, depending on your situation. Quarterly statements are released within two months of the quarter-end.
Active members: Update your name and/or address through your employer. That new information will soon appear in your online retirement account.