Paycheck increase allows for more savings
At the beginning of July, state employees under PERS may notice a 4% increase to their paycheck. This increase is thanks to legislation that passed in March 2023 and is intended to help you with the cost of inflation.
With the extra money coming in, you may feel like you can finally plan that trip to California. Go ahead and book the vacation — just don’t forget about your long-term goals too.
One of the great things about getting a paycheck increase is that it allows you to have more flexibility with your budget.
You can use the extra money to:
- pay off credit card debt
- save for a big vacation
- open an account or add to your child’s 529 college savings fund
- increase your DCP contributions for retirement
No matter how you decide to use the extra funds, know that setting aside a small amount of $50 or $100 to an account every month can add up overtime.
How to change your DCP contributions
If you’re contributing a percentage of your paycheck to DCP – your account will automatically benefit from this increase. And now is a great time to raise that number. If you’re contributing 3%, consider increasing it to 4 or 5%.
- Log into your DRS account.
- From the account page, under “My Investments” select DCP
- This will open a new window with DCP and Voya
- Select the tab for Contributions & Savings
- Select Manage Contributions
- Select Update My Contributions
Don’t have an account? It only takes a few minutes to enroll.
Listen to the DCP podcast episode
In episode 11 of the DRS podcast, you’ll learn all about DCP and how it can help you save for retirement. Find out how taxes are applied, the importance of contributing with a percentage of your income and tools for maximizing your investment.
You also have the option to read the transcript.
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