(PERS) Plan 3 Member Handbook - Department of Retirement

Washington State Public Employees’ Retirement System (PERS) – Plan 3 Facts in a Flash 2 Plan Summary 3 How to contact the Department of Retirement Systems 3 Privacy of your information Welcome to PERS 4 How your plan works 7 Planning for retirement Milestones/ Life Changes 8 Becoming vested 8 Leaving public service 9 Returning to public service 9 Marriage or divorce 9 When the unexpected happens 10 Retirement planning checkup Approaching Retirement 11 Service retirement 12 Early retirement 12 Retiring as a dual member 13 Estimating your benefit 13 Purchasing additional service credit 13 Updating your plan for retirement Ready to Retire 13 Applying for retirement 14 Your defined benefit options 14 Health insurance coverage 14 Federal benefit limit

14 Federal tax on your retirement benefit 14 Legal actions 15 When and how your benefit will be paid Once You Retire 15 Cost-of-living adjustment (COLA) 15 Working after retirement 15 Benefit overpayments or underpayments 15 Changing a benefit option or survivor after you retire 16 Glossary of Terms 17 Index Updated May 2013 P Public Employees’ Facts in a Flash Plan Summary PERS Plan 3 has two parts – a defined benefit part and a defined contribution part. Your employer contributes to your defined benefit part. You contribute to the defined contribution part. When you meet plan requirements and retire, you are guaranteed a monthly benefit for the rest of your life from the defined benefit part. Your retirement benefit will be based on your years of service (while a member of PERS Plan 3) and your compensation. There is no limit on the service credit years included in your benefit calculation. This formula will be used to calculate your monthly retirement benefit: 1% x service credit years x average final compensation = monthly benefit The value of your defined contribution part will consist of your contributions and their investment returns. You are vested in the plan when you have: • Ten service credit years; or • Five years of service credit and at least 12 of those months were earned after the age of 44; or • Five service credit years earned in PERS Plan 2 before June 1, 2003. Once vested, you are eligible to retire with a full benefit at 65. Retirement before 65 is considered an early retirement. If you have at least 10 years of service credit and are 55 or older, you can choose to retire early, but your benefit may be reduced. There is less of a reduction if you have 30 or more years of service credit. If the unexpected happens – disability or death before retirement – benefits may be available. If you become totally incapacitated and leave your job as a result, you may be eligible for a disability retirement benefit. If you die before retirement, your survivor may be eligible to receive a benefit based on your years of service credit. Login or sign up for online access to your retirement account. Track your contributions and service credit; read the latest newsletter; use your individual data to estimate your retirement benefit; and when you’re ready, apply for retirement....

Website: www.drs.wa.gov | Filesize: 512kb
No of Page(s): 20
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