Retiring
Ready to retire?
Here’s what to know before you take the next step.
How to retire with DRS
Request an official benefit estimate from DRS 3 to 12 months prior to your retirement date. Make this request through your online account or by contacting us. In most cases, we will provide your estimate 5 to 8 weeks before your retirement date. If you haven’t received your requested estimate within 5 weeks of your retirement date, contact us.
Estimates are prioritized by retirement date, which allows DRS to use the most recent information available for you and gives you ample time to submit your retirement application. An official benefit estimate is not the same as the benefit estimator tool available to all customers. To assist your retirement planning any time before or after requesting your official benefit, you can use the benefit estimator tool through your online account.
Complete a retirement application at least 5 weeks from the date you intend to retire (once you receive your official estimate). Complete the application online or request a paper form.
Visit the DRS retirement checklist for a more complete picture of the steps needed.
FAQ
These applications are only available to customers who qualify for retirement. When you are within one year of retiring, you must request an official benefit estimate from DRS before online retirement or a paper application becomes available to you. Preview the questions you’ll answer using this Example DRS Retirement Application.
Separation Date – the last day you’re paid for employment. Typically, it’s your last day in public service.
Retirement Date – the first day of the month AFTER your separation date and you’ve applied to retire.
Review the retirement requirements on your plan page:
Public Employees’ Retirement System
Teachers’ Retirement System
School Employees’ Retirement System
Law Enforcement Officers’ and Fire Fighters’ Retirement System
Washington State Patrol Retirement System
Public Service Employees’ Retirement System
We understand sometimes the unexpected happens and you might not be able to follow the recommended timeline to retire once you’re eligible. In this case, we can work with you to process your retirement as quicky as possible. Please contact us as soon as you can to get started. During the process, any pension payments that are missed will be paid to you retroactively.
Here are four decisions you will make when you apply to retire for your DRS pension:
1. When are you going to retire?
2. Are you going to provide a survivorship option?
3. Do you want to purchase an annuity?
4. How do you want to have your benefit taxed?
Visit your plan page for more about survivorship options.
Public Employees’ Retirement System
Teachers’ Retirement System
School Employees’ Retirement System
Law Enforcement Officers’ and Fire Fighters’ Retirement System
Washington State Patrol Retirement System
Public Service Employees’ Retirement System
If you are going to provide a survivorship, we’ll need a copy of a document that shows your survivor’s date of birth, like a driver’s license or passport. The soon-to-be retiree will also need to provide their bank account information. Preview an Example DRS Retirement Application.
Here are some organizations customers commonly contact when retiring.
Department of Retirement Systems
Website: www.drs.wa.gov
Phone: 360-664-7000 or 800-547-6657 (TTY dial 711)
Visit the DRS contact page for more options to reach us.
Deferred Compensation Program (DCP)
Website: www.drs.wa.gov/dcp
Phone: 888-327-5596
Plan 3 Record Keeper
Website: www.drs.wa.gov/rk
Phone: 888-327-5596
Social Security Administration (SSA)
Website: www.ssa.gov
Phone: 800-772-1213
Internal Revenue Service (IRS)
Website: www.irs.gov
Phone: 800-829-1040
Health Care Authority (PEBB or SEBB)
Website: www.hca.wa.gov
Phone: 800-200-1004 PEBB Phone: 360-725-0440 or 800-200-1004
Medicare/Medicaid
Website: www.medicare.gov
Phone: 888-633-4227
Voluntary Employees’ Beneficiary Association (VEBA)
Website: www.veba.org
Phone: 888-828-4953
Statewide Health Insurance Benefits Advisors (SHIBA)
Website: www.insurance.wa.gov/shiba/
Phone: 800-562-6900
Are DRS pension payments taxed?
Yes. Your pension is subject to federal income tax. DRS withholds any required IRS federal income taxes for your distribution type. Any after-tax contributions will be paid according to IRS guidelines.
How do I change my IRS deductions?
Log into your online account or print a new W4-P form.
What tax form will I receive in retirement?
After you retire, the form you receive is a 1099-R. You can download this from your online account. You will also receive a copy in the mail.
More about taxes:
Have more questions about how your pension or DCP withdrawals are taxed? You’re not alone. IRS forms and taxes covers the most common tax questions about retirement payments, IRS forms like the 1099-R, and federal withholding.
Do I qualify for public safety officer tax savings?
If you are retiring as a public safety officer from a designated Washington state retirement system, you might be able to exclude up to $3,000 of your qualified health, accident and long-term care insurance premiums from your gross taxable income each year. See more about potential tax savings.
After you separate from employment, you can withdraw funds from your investment account at any time. You can submit a request before your separation date, but we must receive confirmation of that date from your employer to complete the transaction.
To complete your withdrawal online, log into your online account and select your Plan 3 or DCP account. Under the “More resources” menu, select Request online withdrawal.
You can also contact the DRS record keeper, Voya financial at 888- 327-5596 for assistance with your investment transaction. Log in to your investment account to chat live with a customer service associate. They will help you select the right transaction for your needs.
More information about withdrawals
Maybe you’re retiring in another state. Perhaps another country. Either way, explore more information about retiring outside Washington state.
A power of attorney (POA) is a legal document that allows you to name someone called an agent to make decisions on your behalf during your lifetime. A POA is not legally valid after your death. Read more about power of attorney.
DRS does not provide healthcare and cannot directly assist with your healthcare questions. However, we have a list of popular healthcare resources that can help point you in the right direction.
Whether you retire through your online account or complete a paper application, preview the questions you’ll answer using this example application.
Are you within five years of retiring? These online half-day seminars cover everything you need to know about retiring through DRS.
Agenda
9:00 am – Getting ready for retirement
10:00 am – Break
10:15 am – Applying for retirement
10:45 am – Break
11:00 am – Social Security
11:30 am – Break
11:45 am – Health care
12:45 pm – Break
1:00 pm – VEBA
1:30 pm – Program ends
Before attending a seminar you should:
- Sign up for online account access.
- Review how to join a webinar and join 5 minutes before the session starts. For log in or audio assistance, call 360-664-7930.
We encourage you to review these materials:
- Retirement Planning Checklist
- PEBB and retiree health care webinars
- Statewide Health Insurance Benefits Advisors (SHIBA)
- Social Security: Online Services
- Social Security: Estimate Your Benefit
Also visit this VEBA information for your plan
VEBA MEP: State Agencies, Higher Education Institutions
HRA VEBA Plan: Counties, Cities, Towns, Special Purpose Districts
VEBA Plan: K-12, Community and Technical Colleges
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Did you know we have a separate news list just for retired members? Sign up now to stay informed in retirement. We’ll send information about cost-of-living adjustments, tax forms and more resources curated for retired members.
