You're considered retired once you begin receiving a retirement benefit. This is usually the first of the month after the month you've separated from employment.
If you separate from employment, but wait to start drawing a benefit, you'll be considered retired once you do begin receiving it.
There are two catch-up options you can use to defer additional money to your DCP account. For details, call us at 888-327-5596 and select option 2.
You are guaranteed a retirement benefit for your lifetime and, if you choose a survivor option, for the lifetime of your survivor.
Our goal is for you to receive your benefit payment by the end of the month.
If you choose direct deposit, and it has become effective, you will receive your first benefit payment by the last banking day in the month you retire (a banking day is any day the bank is open) .
Direct deposit example:
You retired on March 1, and the last banking day of the month is March 31. You will receive your payment by March 31. See When am I considered retired?
If you don’t choose direct deposit, we will mail your paper check with the intention of it reaching you by the end of the month.
Paper payment example:
You retired on March 1. You should receive your paper payment by March 31 or shortly after. Sometimes, the US mail may cause a delay. See When am I considered retired?
Please note: We're only able to send your check to one bank account. If you would like your payment deposited in two accounts, be sure to arrange with your bank for an automatic transfer of funds.
Deductions to your retirement benefit check can include:
The good news is some of the payroll deductions you currently see (Social Security, Medicare) will not be taken from your retirement benefit.
It depends on your age and your service credit.
You can begin drawing a normal retirement:
You can begin drawing an early retirement:
Your Plan 2 handbook contains more specific information.
You can use our online service to estimate your benefit or, if you are within two years of retirement, please call us at 360- 664-7000 or 800-547-6657 to request a written estimate. Here is the formula we will use to calculate your monthly benefit:
Service credit months ÷ 12 x 2% x Final Average Salary = Monthly Benefit
Members sometimes think there is a cap on the amount of service credit used in Plan 2 benefit calculations. There is not. All of your service credit will be used in the calculation.
Average your monthly salary from the highest-paid 60 consecutive months in which you earned service credit. Usually, this is your last 60 months of service. Your FAS does not include severance pay, such as lump-sum payments for deferred sick leave, vacation or annual leave.
We will calculate your benefit based on the initial information we receive from your employer. Once final information is reported to us, your benefit will be recalculated and, if appropriate, we will make a one-time payment that is retroactive to your original retirement date. Please allow several weeks after your employer reports any additional salary for this recalculation to be completed.
Each option has both benefits and consequences you will need to evaluate. Before making a decision, it's a good idea to consult a licensed tax advisor, estate planner, or financial planner who specializes in retirement law and planning.
You'll want to consider the following:
Applying for retirement – online
Go to your online retirement account. Log in (or sign up if you haven't already done so). The online retirement application will display only what you need based on your retirement system, plan and retirement eligibility rules. Follow the step-by-step instructions and electronically submit the application to us when you're ready. If you encounter any issues during the process, don't give up! Just give us a call and we will help walk you through it.
Applying for retirement – paper application packet
When you are ready to begin the process, request a retirement application from us. Be sure to submit the completed application with all required signatures and documentation, including proof of age for your survivor if you choose one of the options with a survivor benefit.
Remember, if you're purchasing service credit, you'll need to complete and turn in your purchase form with your retirement application.
If you prefer to talk with a Retirement Specialist in person, you can stop by our Olympia office anytime during our normal business hours of 8 am – 5 pm, Monday – Friday, excluding holidays. It works best if you first request an estimate and retirement packet and have enough time to look it over before you visit. That will give your Retirement Specialist specific information to go over with you and also ensure your questions are answered.
You can reach us at 360-664-7000 or 800-547-6657. Here are directions and a map to DRS.
During the month of your retirement, we will send you notification with the amount of your benefit and the date you can expect to receive your first payment. Any time you have questions, be sure to call.
Here are a few things to consider when moving outside the country or state:
If you're an active member in any of the retirement systems listed below and you once belonged to another of these systems, you may be eligible for benefits as a "dual member."
There are three advantages to being a dual member:
To find out more about retiring as a dual member, see What is dual membership and how does it affect me?
If you were a member of SCERS, please call us at 360-664-7000 or 800-547-6657 for information about dual membership with SCERS.