Annuities
An annuity is a guaranteed income plan that you purchase. The money you receive from your annuity is in addition to the money that you receive from your pension.
With annuities, you take your money out of market risk and use it to give yourself monthly lifetime income. Annuities are the only investment withdrawal option that guarantee you will not outlive your account balance.
Once you set it up, an annuity doesn’t allow you to change the income amount. Once you begin receiving monthly payments, you cannot cancel the annuity.
What kind of annuities does DRS offer?
DRS offers annuities administered by Washington state with investments provided by the Washington State Investment Board.
Pension annuities for Plans 1, 2 or 3
There are two optional pension annuities available when you apply for retirement: a Service Credit Annuity and a Plan Annuity.
The cost and benefit increase is the same for both because they use the same annuity factors. The difference lies in the features. You don’t have to choose between the two. You can purchase both.
Plan 3 TAP annuity
If you’re a Plan 3 member, you can purchase a Washington state TAP Annuity once you’ve separated from service. This annuity allows you to turn all or a portion of your Plan 3 investments into a separate lifetime monthly retirement income. You would receive this income in addition to your pension.
Annuities available for your plan
For more information about these annuities, including survivorship options, cost estimates and tax considerations, visit your plan page.
Podcast Episode 21 – DCP earnings and annuities
In this episode, we look at the options for withdrawing and using money from your DCP account. One popular choice includes purchasing an annuity that will guarantee the funds last for your lifetime.
Annuity webinar
Watch this 30-minute recorded webinar about purchasing an additional benefit.
