Fill - Free fillable Department of Retirement Systems Plan Choice Guide (City of DuPont) PDF form

Department of Retirement Systems

Plan Choice Guide

For new employees hired on or after June 30, 2020

You have 90 days to choose

between two rerement plans

Plan 2 or Plan 3? Use this guide

and online tools to evaluate the

best t for you

Carefully consider your opons;

your plan choice is permanent

Conrm your plan choice with

the forms inside

drs.wa.gov/choice 1

Welcome to public service

Congratulaons on your employment

in public service! It is our pleasure to

welcome you as a customer of the

Washington State Department of Rerement

Systems (DRS).

As a new member of the rerement system for

public employees (PERS), school employees

(SERS) or teachers (TRS), you have a choice to

make that will set the course for your future

rerement benets.

This publicaon will guide you through the

basics of making that choice. Addional

resources are available at drs.wa.gov/choice.

At DRS, our mission is to provide informaon,

experse, tools and services to help you

prepare for and experience a successful

rerement. We look forward to serving your

rerement needs.

Contents

90 days to choose your plan 2

Insight into Plan 2 4

Insight into Plan 3 5

Ready to choose a plan? 9

Plan comparison 10

Rerement terms to know 12

Plan Choice Member Informaon Form 13

Beneciary Designaon Form 15

PERS

Public Employees’

Rerement System

SERS

School Employees’

Rerement System

TRS

Teachers’

Rerement System

Plan choice

rerement systems

Want to know what vesng is?

How about early rerement? See

"Rerement terms to know" on page 12.

2 DRS Plan Choice Guide

90 days

to choose your plan

You have 90 days to choose between two plans

oered in PERS, SERS and TRS—Plan 2 or Plan 3.

Carefully consider your opons. Your plan choice

is permanent. If you don’t choose a plan within

90 days of becoming a public employee, you will

automacally be placed in Plan 2, and you cannot

later decide to become a member of Plan 3.

We understand you are busy in your new job with

many decisions and responsibilies. Even so, we

encourage you to take me to think about your

rerement goals, compare features and make

benet projecons. Then, select the plan that

best ts your circumstances.

What to consider before choosing a plan

There are a number of things to consider when

choosing between Plan 2 and Plan 3. Both plans

oer a path to a successful rerement, but each

one is designed to meet dierent needs. Here are

some things to ask yourself as you weigh your

opons:

What is my future career path? Do you

envision a lifeme career with an employer

in the state rerement systems, or will you

eventually be working in the private sector

or in another state? These quesons are

important as you consider whether benets

will go with you to a new job.

How soon do I want to rere? The two

plans have dierent requirements for

how long you have to work to be eligible

for a benet and how soon you can rere

or access your funds. Consider these

provisions as you think about how much

me you have unl your planned

rerement date.

Do I want to be involved in investments

for my plan? What is your risk tolerance?

Are you comfortable making and managing

investment selecons, or would you prefer

having those decisions made by investment

professionals?

What opons do I want for my

contribuon rate? Plan 2 and Plan 3 have

dierent approaches to your rerement

contribuons. Think about whether you

want to select how much comes out of your

paycheck or if you want that amount to be

determined and adjusted based on what is

needed to fund your plan.

Use the Plan Choice Calculator

A standard pracce for esmang

rerement income needs is to base it

on 80% of your income ve to 10 years before

you rere. As you evaluate Plans 2 and 3, use

the Plan Choice Calculator (drs.wa.gov/choice)

to compare rerement income projecons with

this standard, or with your own goal. The tool will

generate projecons based on plan selecon and

other variables, including your salary, when you

plan to stop working and when you plan to start

collecng rerement benets.

What happens if you don’t

choose a plan?

Your employer will begin deducng

Plan 2 contribuons from your pay

prior to making a plan choice. Aer 90

days you will default to Plan 2 if you do

not formalize your choice.

drs.wa.gov/choice 3

It’s also important to consider other sources of

rerement income as you calculate a projected

monthly rerement benet. Do you qualify for

Social Security benets? Do you have savings in

other rerement plans from past employers? Do

you have an IRA? These should be considered as

you decide whether to join Plan 2 or Plan 3.

Supplemental savings programs

If you discover in your projecons

that you’ll need more income in

rerement, consider joining a supplemental

savings program oered by or through your

employer. The Washington State Deferred

Compensaon Program is such a program, giving

you an opportunity to invest addional money

for your rerement while lowering your taxable

income while you work. Administered by DRS,

the Deferred Compensaon Program is oered

through many public employers in the state.

Signup is easy and you can start by contribung

as lile as $30 per month. Visit drs.wa.gov/dcp to

learn more.

Key features

A one-part plan

One part with a

guaranteed income

A two-part plan

One part with a

guaranteed income

and one part with

investment opons

No personal

investments

Investments you

choose or have

selected for you

One predetermined

contribuon rate that

will vary over me

Choose from six

income contribuon

rates

Earliest you can rere

(with reduced benet)

20 service credit

years at age 55

Earliest you can rere

(with reduced benet)

10 service credit

years at age 55

Health insurance

in rerement

If you receive PEBB or

SEBB coverage, you

must begin receiving

your rerement

benet as soon as you

leave employment,

or you will forfeit

PEBB coverage in

rerement

Health insurance

in rerement

If you receive PEBB

or SEBB coverage,

you can delay

receiving your

rerement benet

and sll be eligible

for PEBB coverage in

rerement

Plan

Friends and coworkers might

oer advice, but everyone’s

circumstances are unique.

Ocial resources like this guide can oer

you unbiased informaon to make the

plan choice right for you. The following

pages dig a bit deeper into each plan.

Which plan is best for you?

More resources are available

to help you decide.

Find calculators, videos and plan

handbooks at drs.wa.gov/choice

For more plan comparisons, see page 10.

4 DRS Plan Choice Guide

Insight into Plan 2

Plan 2 has one part—a 2% dened benet. You

and your employer contribute to your plan. Your

benet does not depend on the amount of the

contribuons.

A 2% dened benet plan

Once you meet age and service requirements and

you’ve applied for rerement, you will receive

a guaranteed monthly benet for your lifeme.

Your benet is based on your years of service

credit and the pay you’ve earned.

The 2% dened benet formula used to

calculate your rerement is:

2% x service credit years x Average Final

Compensaon = monthly benet

How it works: If you worked full me every month

for 15 years and your average monthly pay for

your highest consecuve ve years was $4,000,

your monthly benet would be $1,200.

2% x 15 SCY x $4,000 AFC = $1,200 monthly benet

Contribuon rates

Plan 2 is funded by mandatory contribuons

you and your employer make. The Washington

State Investment Board (WSIB) invests those

contribuons. Member contribuons are

deducted from your pay and you can see

your contribuons on your pay statement.

Contribuon rates change over me, based on

funding needs of the plan.

Member Contribuon Rates

(through 6/30/2021)

Public Employees’ Plan 2 7.90%

School Employees’ Plan 2 8.25%

Teachers’ Plan 2 7.77%

Note: Legislave changes can result in supplemental

rate adjustments. Find up-to-date contribuon rate

informaon on the DRS website.

Rerement—age and service credit

requirements

• Rerement with a full benet—age 65

with at least ve years of service credit.

If you have at least 5 years of service credit

and you’re age 65, you can rere with a full

benet.

• Early rerement with a reduced

benet—age 55 with 20 or more years of

service credit. Your monthly benet will be

reduced for each year (prorated monthly)

before you turn age 65 to reect that

you will receive a monthly benet over a

longer period of me. The amount of your

reducon depends on your age. The earlier

you rere, the larger the reducon.

• There is less of a benet reducon for

early rerement if you have 30 or more

years or service credit. Your benet will

be reduced by 5% for each year (prorated

monthly) before you turn age 65. Again,

the earlier you rere, the larger the

reducon.

drs.wa.gov/choice 5

Leaving employment before

you’re eligible to rere

Your plan is designed to provide you with a source

of income throughout your rerement. For this

reason, you may not borrow from or against your

contribuons at any me.

It is possible to withdraw your contribuons and

the interest they’ve earned at any me aer

you leave all public service. However, if you do,

you give up your right to a future rerement

benet. You may not withdraw your employer’s

contribuons under any circumstances.

When you leave employment without starng to

receive a rerement benet, you can leave your

money in the plan where it will connue to earn

interest. If you have at least ve years of service

credit, you are vested in the plan. Aer becoming

vested, you’re eligible for the 2% dened benet

provisions of Plan 2 once you meet the age and

service credit requirements.

If you withdraw your contribuons and later

return to public service, there are certain opons

for recovering your withdrawn service credit by

making a one-me purchase. See Plan 2 Recovery

of Withdrawn or Oponal Service Credit on the

DRS website.

Insight into Plan 3

Plan 3 has two parts—a dened benet and a

dened contribuon. Your employer contributes

to your dened benet. You contribute to the

dened contribuon. You choose your investment

program and contribuon rate for the dened

contribuon part of your plan. Once chosen, your

dened contribuon rate is permanent unless you

change employers.

A 1% dened benet …

Once you meet age and service requirements and

you’ve applied for rerement, you will receive

a guaranteed monthly benet for your lifeme.

Your benet is based on your years of service

credit and the pay you’ve earned.

The 1% dened benet formula used to

calculate your rerement is:

1% x service credit years x Average Final

Compensaon = monthly benet

How it works: If you worked full me every month

for 15 years and your average monthly pay for

your highest consecuve ve years was $4,000,

your dened benet would be $600.

1% x 15 SCY x $4,000 AFC = $600 monthly benet

The 1% dened benet part of Plan 3 is funded

by mandatory contribuons made by your

employer and invested by the Washington State

Investment Board (WSIB). The dened benet is

guaranteed and is not dependent on investment

performance.

… and a dened contribuon for

investments you select

Under the dened contribuon part of Plan 3,

a poron of your pay is directed to investments

that you select from a range of oerings managed

What is WSIB?

WSIB, or the Washington State Investment

Board, is responsible for developing member

investment opons and managing rerement

savings investment programs.

6 DRS Plan Choice Guide

by the Washington State Investment Board.

The next secons discuss your contribuon rate

opons and the investment programs that are

available to you.

Choosing your dened contribuon rate

You choose how much to contribute from one of

these six rate opons:

Contribuon rate opons

Contribution rate options

5% all ages

5% up to age 35

6% ages 35 through 44

7.5% age 45 and older

6% up to age 35

7.5% ages 35 through 44

8.5% age 45 and older

7% all ages

10% all ages

15% all ages

If you don’t choose a contribuon rate, it will

default to opon A (5% for all ages).

Once your rate is set, you can change it only

when you change employers. Changing means

working for a dierent employer, not another

division or unit at your current workplace.

Ideally, you want to choose your contribuon

rate based on three consideraons: rerement

income needs, years unl rerement and current

budget.

To come up with a target rerement income, it’s

standard pracce to base it on about 80% of what

you believe your income will be ve to 10 years

before you rere.

Online tools and calculators can help you

determine the impact and benets of dierent

contribuon rates. These tools include a Take-

Home Pay Esmator and a Disbursement

Calculator (for esmang what an ending account

balance will pay monthly during rerement). For

tools and resources, visit the educaon secon

(drs.wa.gov/educaon)

Choosing your investments

The dened contribuon part of Plan 3 oers you

the choice between two investment programs:

• Self-Directed

• Washington State Investment Board (WSIB)

Plan 3 investment choice

Self-Directed

Investment Program

Build and

Monitor

One-Step

Investing

WSIB Program

Total Allocation

Portfolio

1) The Self-Directed Investment Program

If you choose the Self-Directed Investment

Program, you can take two dierent approaches.

One is the Build and Monitor approach, and the

other is One-Step Invesng.

5% all ages

5% up to age 35

6% ages 35 through 44

7.5% age 45 and older

6% up to age 35

7.5% ages 35 through 44

8.5% age 45 and older

7% all ages

10% all ages

15% all ages

drs.wa.gov/choice 7

Build and Monitor: you select, monitor and

adjust your investments. With Build and Monitor,

you select your own mix of individual funds and

decide how much to invest in each one. Choose

from a menu of professionally managed funds

listed in the chart below. The risk and return

proles of the funds range from high to low. You

are responsible for monitoring your investments

and making changes as you see t for your

circumstances.

Build and Monitor Funds

Emerging Market Equity Index

U.S. Small Cap Value Equity Index

Global Equity Index

U.S. Large Cap Equity Index

Socially Responsible Balanced

Washington State Bond

Short Term Investment Fund

One-Step Invesng: your investments are

automacally adjusted for you. The One-Step

Invesng approach is made up of Rerement

Strategy Funds, also known as "target date"

funds. Each one is diversied and automacally

rebalances, adjusng your asset mix as you move

toward a target date for rerement that meets

your needs and lifestyle.

There are 12 Rerement Strategy Funds, each

idened by a target rerement year, spaced

in ve-year increments (2050, 2055, 2060 for

example). To select the Rerement Strategy

Fund that’s right for you, take the year you were

born and add it to the age you expect to rere or

withdraw your funds. The sum is your target date.

How it works: 1993 (birth year) + 65 (rerement

age) = 2058 (2060 is the closest target date)

Once you have a target date, pick the fund with

the year closest to your target. In the previous

example, the selecon would be the 2060 fund.

2) The WSIB Investment Program

If you have your contribuons directed to the

Washington State Investment Board Program,

WSIB will invest them in its Total Allocaon

Porolio (TAP). A monthly valued fund, the TAP is

a diversied mix of U.S. and internaonal stocks,

bonds, private equity and real estate investments.

Deciding on an investment program

WSIB Total Allocaon Porolio (TAP). The TAP is

a fairly aggressive balanced fund that is intended

for long term invesng. The investment strategy

is to create a porolio mix designed to generate

maximum return in the long term at a prudent

level of risk. It includes some asset classes not

available in the Self-Directed Investment Program,

which increases the porolio’s diversicaon but

causes it to be a monthly valued porolio.

Plan 3 investments

With Plan 3, you are not locked into the

investment choices you make now. If you

later decide to change your investment

program or fund selecons you can contact

the Plan 3 record keeper (drs.wa.gov/plan3).

8 DRS Plan Choice Guide

Self-Directed Investment Program. Within the

Self-Directed Program, you can choose one of

two approaches—Build and Monitor or One-Step

Invesng. To determine which one might be right

for you, ask yourself these quesons:

• Do I want to select my own mix of

individual funds?

• Am I comfortable deciding how much to

invest in each fund?

• Do I have the me to keep an eye on my

investments and make changes as I get

closer to rerement?

If the answer to any of these quesons is yes,

you might be interested in the Build and Monitor

approach to invesng. If the answer to any of

these quesons is no, you might be interested in

the One-Step Invesng approach.

If you choose from the seven investment funds

as part of the Build and Monitor approach to

invesng, you will be responsible for monitoring

your account balances and periodically

rebalancing if necessary to maintain your

investment objecves.

The One-Step Invesng approach is designed

for those who answered no to any of the

quesons above. If you are not interested in

selecng, monitoring or making changes to your

investments, the Rerement Strategy Fund might

be right for you.

More informaon on both WSIB’s TAP program

and the Self-Directed Investment Program

is available in the Investments secon at

drs.wa.gov/plan3.

If you do not make an investment

program selecon

If you do not select either investment program,

your contribuons will default into the Self-

Directed Investment Program. In this case, all

of your contribuons will be invested in the

Rerement Strategy Fund that assumes you’ll

rere at age 65.

Rerement—age and service credit

requirements

• Rerement with a full benet—age 65. If

you have at least 10 years of service credit

and you’re age 65, you can rere with a full

benet. If you have at least ve years of

service credit, you can rere at age 65 with

a full benet if you earned at least one of

your ve years of service credit aer age

44.

How it works: You’re age 47 and have ve years of

service credit. You earned three years of service

credit aer the age of 44. You choose to leave

public service and begin drawing from the dened

contribuon part of your plan. You plan to delay

receiving your dened benet unl age 65.

Because you have earned at least one year of

service credit aer age 44, you can rere with a

full benet at age 65 even though you only have

ve years of service credit.

• Early rerement with a reduced benet—

ages 55 to 64 with at least 10 years of

service credit. If you rere early, your

monthly benet is reduced to reect that

you will receive it for a longer period of

me. The earlier you rere, the larger the

reducon.

• There is less of a benet reducon for

early rerement if you have 30 or more

years of service credit. Your benet will

be reduced by 5% for each year (prorated

drs.wa.gov/choice 9

monthly) before you turn age 65. Again,

the earlier you rere, the larger the

reducon.

Leaving employment before you’re

eligible to rere

The dened benet part of your plan is

designed to provide you with a source of income

throughout your rerement. For this reason, you

can’t withdraw the contribuons your employer

makes to this part of your plan.

In Plan 3, it is possible to withdraw your

contribuons and investment earnings from your

dened contribuon any me aer you leave all

public service. However, withdrawal could reduce

an important source of your rerement income.

Plan 3 annuies

An annuity purchase is a way to convert your

investments to a guaranteed lifeme income

stream, providing the security of a set monthly

payment that can cover part or all of your xed

expenses. However, exibility is not a feature

of annuies. If your xed expenses increase,

annuies do not allow you to adjust payment

amounts to meet changing needs. With annuies,

you are trading market risk and account growth

for the guarantee that you will not outlive your

account balance. For more informaon about

annuies — including the TAP Annuity — see DRS

Annuies at drs.wa.gov/annuity.

Ready to choose a plan?

1. Complete the Member Informaon Form on

page 13 and turn it in to your employer.

2. Complete the Beneciary Designaon form

on page 15 and return it to DRS.

Sll not sure?

Visit drs.wa.gov/choice for more resources.

Plan 3 members, if you have at

least 20 years of service credit

when you leave employment and

do not start receiving your dened

benet, it will increase by about 3% each

year you delay receiving it, up to age 65.

10 DRS Plan Choice Guide

Plan 2 Plan 3

Dened Benet Dened Benet Dened Contribuon

Plan structure

The benet in Plan 2 is based on the

length of me you’ve worked, your pay

and your age at rerement. You will

receive a benet for the rest of your life.

The payments are guaranteed by the

state of Washington. Both you and your

employer contribute to your plan.

This part of the benet in Plan 3 is based

on the length of me you’ve worked,

your pay and your age at rerement. You

will receive a benet for the rest of your

life. The payments are guaranteed by

the state of Washington. Your employer

contributes this part of your plan.

This part of the benet is based on what

you contribute to the plan and how the

investments you select perform.

Benet calculaon

2% x service credit years x Average Final

Compensaon = monthly benet

1% x service credit years x Average Final

Compensaon = monthly benet

Determined by your contribuons,

investment performance and withdrawal

choices.

Contribuon rates

Public Employees 7.90%

School Employees 8.25%

Teachers 7.77%

Note: Legislave changes can result in

supplemental rate adjustments. Find up-

to-date contribuon rate informaon on

the DRS website.

Your employer contributes this part of

your benet; you do not.

You select your rate. You cannot change

your rate unless you change employers.

Opon A 5% all ages

Opon B 5% up to age 35

6% ages 35-44

7.5% ages 45 and older

Opon C 6% up to age 35

7.5% ages 35-44

8.5% ages 45 and older

Opon D 7% all ages

Opon E 10% all ages

Opon F 15% all ages

The role of investments

Your contribuons are invested by the

Washington State Investment Board

(WSIB). Your benet is guaranteed

and is not dependent on investment

performance.

Your employer contributes this part of

your benet. Those contribuons are

invested by the WSIB. Your benet is

guaranteed and is not dependent on

investment performance.

You choose how your contribuons will

be invested from a range of opons

provided by the WSIB. The amount of

your benet depends on the amount you

contribute and the performance of your

investments.

Vesng

You earn the right to a monthly benet

in rerement when you have 5 years of

service credit.

You earn the right to a monthly benet in

rerement aer 10 years of service credit

in most cases, or aer 5 years of service

credit with at least 12 months earned

aer age 44.

Vesng does not apply to this part of your

benet. You may withdraw the account

balance if you leave employment or you

may leave it in unl you reach rerement.

Plan comparison

drs.wa.gov/choice 11

Plan 2 Plan 3

Dened Benet Dened Benet Dened Contribuon

Eligibility for normal rerement

Age 65 or older with at least 5 service

credit years.

Age 65 or older with at least 10 service

credit years, or Age 65 or older with at

least 5 service credit years if at least 12 of

those months were earned aer age 44.

There is no specic age requirement for

this part of your benet. You may access

your money at any me aer you leave

employment.

Eligibility for early rerement with a reduced benet

Age 55 or older with at least 20 service

credit years. There is less of a reducon

to your benet if you have at least 30

service credit years.

Age 55 or older with at least 10 service

credit years. There is less of a reducon

to your benet if you have at least 30

service credit years.

There is no age requirement for this

part of your benet. You may withdraw

your money at any me aer you leave

employment.

If you are age 55 with 30 years of service

credit, your benet reducon is 5% for

each year (prorated monthly) before you

turn age 65.

If you are age 55 with 30 years of service

credit, your benet reducon is 5% for

each year (prorated monthly) before you

turn age 65.

Leaving employment before you’re eligible to rere

Your money can remain in the plan or

you can withdraw your contribuons and

the interest they’ve earned. However, if

you withdraw, you give up your right to a

future rerement benet.

You don’t contribute to the dened

benet part of your plan. Your employer

makes those contribuons, and you

cannot withdraw them.

Your money can remain in the plan,

or you can access your contribuons

and investment earnings. A variety of

distribuon opons are available.

Cost-of-Living Adjustments (COLAs)

On July 1 of every year aer your rst full

year of rerement, your monthly benet

will be adjusted by the percentage change

in the Consumer Price Index, up to a

maximum of 3% per year.

On July 1 of every year aer your rst full

year of rerement, your monthly benet

will be adjusted by the percentage change

in the Consumer Price Index, up to a

maximum of 3% per year.

There are no Cost-of-Living Adjustments

for the dened contribuon part of your

benet.

If you choose to purchase an annuity

using your dened contribuon funds,

some annuity opons include a COLA.

Health care coverage in rerement (PEBB)

Note: Employees receiving health insurance through the Public Employees Benets Board (PEBB) or the School Employees Benets Board

(SEBB) are eligible to receive health care coverage in rerement from PEBB. Not all DRS employers parcipate in PEBB/SEBB – contact

your employer to verify your health insurance provider. Addional informaon about PEBB coverage for qualifying rerees is available at

hca.wa.gov/employee-reree-benets.

To qualify, you must elect coverage

within 60 days of terminaon and begin

receiving your rerement benet as soon

as you leave employment. If you delay

receiving your rerement benet, you will

not be eligible for health care coverage

under PEBB.

To qualify, you must elect coverage within

60 days of terminaon. As long as you

meet the age and service requirements of

the plan (age 55 or older with 10 or more

years of service credit), you can delay

receiving your rerement benet and sll

be eligible for PEBB coverage.

Leaving your contribuons in the plan or

starng to draw them does not impact

your eligibility for health care coverage

under PEBB.

12 DRS Plan Choice Guide

Retirement terms to know

Asset mix: An investment porolio that is invested in

any combinaon of the three major classes of assets:

(1) cash and equivalents, (2) xed income instruments

(bonds), and (3) equity instruments (common stocks

or ordinary shares).

Average Final Compensaon (AFC): The monthly

average of your 60 highest paid consecuve service

credit months.

Cost-of-Living Adjustment (COLA): In Plan 2 and in

the dened benet part of Plan 3, on July 1 of every

year following your rst full year of rerement, your

monthly benet is adjusted by the percentage change

in the Consumer Price Index, to a maximum of 3% per

year. This percentage change can increase or decrease

your benet.

Dened benet: A predetermined rerement benet,

also called a pension plan.

• Plan 2 dened benet: 2% x your SCY x your

AFC. Both you and your employer make

contribuons to your dened benet.

• Plan 3 dened benet: 1% x your SCY x your

AFC. Your employer makes contribuons to the

dened benet part of your plan.

Dened contribuon: For Plan 3 members, an amount

based on your contribuons and the performance of

the investments you choose. Investment returns (both

gains and losses) are applied to your account.

Early rerement: In most cases, if you rere before

you turn age 65, your monthly benet is reduced to

reect the fact that you will receive it over a longer

period of me. The amount of the reducon depends

on how much younger than age 65 you are when you

rere and the amount of service credit you have.

Full rerement: For all members, a rerement benet

that is not reduced because you rered from public

service at age 65.

Interest or interest rate: An amount that your

contribuons earn.

Normal rerement: The age you’re entled to receive

a full rerement benet.

Pension: Your rerement benet.

Porolio: A collecon of investments.

Return: A measure of how your investments perform.

Returns consist of interest, dividends, and gains or

losses in the value of the principal. Your investment

returns can be posive or negave.

Risk: The probability that an investment will lose value

or fail to gain in value.

Service credit years (SCY): We calculate your service

credit years by dividing your total service credit

months by 12. Twelve months equals one year of

service credit. For more informaon about service

credit earned for your system (PERS, SERS or TRS), see

your member handbook.

Vested: The point at which you have earned a dened

benet.

• Plan 2 members are vested aer earning ve

years of service credit.

• In Plan 3, you are vested aer earning 10

years of service credit in most cases or aer

ve years of service credit, depending on your

age and when your service credit was earned.

However, you have no vesng requirements for

the dened contribuon part of your benet

and may take distribuons at any me aer

you leave public employment.

Plan guides

Every Plan 2 and Plan 3 system (PERS, SERS,

TRS) has a member guide. Find your guide

under Members at drs.wa.gov.

Member Information Form

This form is for new and returning employees

hired into retirement-eligible positions for PERS,

SERS or TRS. Submit this form to your employer

within 90 days of your hire date.

Give completed form to your employer.

Need help? Contact DRS.

800.547.6657 or 360.664.7000

TTY: 711 ꔷ

www.drs.wa.gov

Member Status and System

Member status



New Member

Choosing Plan 2: Complete Sections 1, 2 and 3

Choosing Plan 3: Complete Sections 1, 2, 3 and 4



Returning Plan 1 or Plan 2 Member

Complete Section 1 only

 Returning Plan 3 Member

Complete Sections 1, 3 and 4

System



TRS

Teachers’ Retirement System

 SERS

School Employees’ Retirement System

 PERS

Public Employees’ Retirement System

Choosing a plan? Visit drs.wa.gov/choice for info to help you decide.

Section 2: Retirement Plan Selection (new members)

Choose your plan. Your selection is permanent. Note: If your employer has not received your plan selection

within 90 calendar days of your hire date, you will be permanently assigned to the plan speci ed in state law.

 Plan 2

 Plan 3 — Also complete Section 4 on the back

Section 3: Signature Required (new and returning members)

Sign and date this form on the day you submit it to your employer.

New member: I have chosen the retirement plan marked in Section 2. I understand that my retirement

plan selection is permanent. If I selected Plan 3, I have also completed Section 4 on the back of this form.

Returning Plan 3 member: I have completed Section 4 on the back of this form. I also understand that

returning Plan 3 members who do not select a contribution rate within 90 days will be assigned the

current default rate of 5%.

Signature Date

Section 1: Personal Information

Name (last,  rst, middle) Social Security Number

Mailing Address City State ZIP

Birthdate (mm/dd/yyyy) Gender (optional)

 Male  Female

Phone Number

Email Address

DRS MS 133 6/20

Clear Form

Return the completed form to your employer.

Section 5: To Be Completed by Employer

Employer Name and Mailing Address

Reporting Group

Employers: Mail the original of this form

to DRS only if Section 2 was required.

Department of Retirement Systems; PO

Box 48380; Olympia, WA 98504-8380

Section 4: Plan 3 Contribution Rate and Investment Program Selection

Plan 3 contribution rate. If you do not choose an option, your default will be Option A. Once established

by selection or default, you may change your rate option only with a change of employer or through the

purchase of optional service credit from work as a substitute teacher.

Age

Member

Contribution Rate



Option A

All ages 5.0%



Option B

Up to age 35

Ages 35 to 44

Ages 45 and older

5.0%

6.0%

7.5%



Option C

Up to age 35

Ages 35 to 44

Ages 45 and older

6.0%

7.5%

8.5%



Option D

All ages 7.0%



Option E

All ages 10.0%



Option F

All ages 15.0%

Plan 3 investment program. Choose one. You can change your investment selections at any time.

 Use the target date fund for my age as part of the Self-Directed Program (SELF)

This option will automatically place you in the Retirement Strategy Fund that assumes you’ll

retire at age 65.

 I will choose my Self-Directed Program Investments (SELF)

If you choose this option, your Plan 3 account will need to be created before you can select

investments. Once you submit this form and receive a letter that con rms your plan choice,

call 888-327-5596 or visit drs.wa.gov/login to choose your investments. If you do not choose

investments, your contributions will be invested in the Retirement Strategy Fund that assumes

you’ll retire at age 65.

 Washington State Investment Board (WSIB) Investment Program

For more information about Plan 3 investments, including a complete list of available investments,

visit drs.wa.gov/plan3 or call 888-327-5596.

Your Social Security number is needed so DRS can report to the IRS any funds paid to you. DRS will not disclose your

Social Security number unless required to do so by law. See IRC sections 6041(a) and 6109.

Beneﬁ ciary Designation

This form allows members, retirees, survivors,

legal-order payees and those separated from

service to name or update their bene t recipients.

Send completed form to:

Department of Retirement Systems

PO Box 48380 ꔷ Olympia, WA 98504-8380

www.drs.wa.gov

ꔷ 800.547.6657

360.664.7000 ꔷ TT Y: 711

DRS MS 100 1/20

*DRSMS100*

Personal Information

Name (Last, First, Middle) Social Security Number

Mailing Address City State ZIP

Date of Birth (mm/dd/yyyy) Phone Number Alternate Phone Number

Email Address

My Status (Check All That Apply)

 Member (active or inactive): I am a DRS member who contributes (active) or has contributed to (inactive) a DRS retirement system

and/or participates in DCP.

 Retiree: I am a DRS member who contributed to a retirement system and is now collecting a retirement bene t.

 Survivor: I am receiving a bene t from a deceased DRS member’s or retiree’s account.

 Legal-Order Payee:

I have been awarded a portion of a DRS retirement bene t.

Are you receiving money from someone else’s account?

 Yes (Provide Name and Social Security Number Below)  No

Account Holder’s Name (If Different from Above) Social Security Number (If Different from Above)

Retirement System and/or Program

 Apply to All My Retirement Plans/Programs  Washington State Patrol Retirement System (WSPRS)

 Public Employees’ Retirement System (PERS)  Law Enforcement Of cers’ and Fire Fighters’ Retirement System (LEOFF)

 Teachers’ Retirement System (TRS)  Public Safety Employees’ Retirement System (PSERS)

 School Employees’ Retirement System (SERS)  Judicial Retirement System (JRS)

 Deferred Compensation Program (DCP)  Judicial Retirement Account (JRA)

Important Information

Members can make this change quickly online at

www.drs.wa.gov/oaa

. Any current primary bene ciaries you’ve

named will appear. You can then edit them or even copy them to another retirement system or program. If

you use a paper form to submit your choices, only your primary bene ciaries will appear online until you add

contingent bene ciaries in your online account. If you decide to  ll out this paper form, please return it to DRS,

not your employer. If you make a mistake, please correct it and initial beside the correction.

Please complete the other side of this form as well.

Your Social Security number is needed so DRS can report to the IRS any funds paid to you. DRS will not disclose your

Social Security number unless required to do so by law. See IRC sections 6041(a) and 6109.

As a new employee, it is important that you choose your beneciaries when you select a retirement plan.

Select and update your beneciaries online or complete and mail this form to DRS.

Accessing your online account: Once your Member Information Form has been processed, create an account

drs.wa.gov/oaa

to view and update your beneciaries online.

Clear Form

Signature Required

Pay any funds related to my account to my primary bene ciary(ies) in the percentage(s) I chose or as required by law. If any

bene ciaries precede me in death, share their percentages equally among the remaining primary bene ciaries. If no primary

bene ciaries survive me, send any funds to my contingent bene ciaries. All the information I have entered is true and complete.

These changes replace any previous bene ciary choices I have made.

Signature Date

Beneﬁ ciary Designation



Primary _____ %

Name (Last, First) or Full Name of Entity Mailing Address

Relationship Social Security Number Date of Birth City State ZIP

 Primary _____ %

 Contingent _____ %

Name (Last, First) or Full Name of Entity Mailing Address

Relationship Social Security Number Date of Birth City State ZIP

 Primary _____ %

 Contingent _____ %

Name (Last, First) or Full Name of Entity Mailing Address

Relationship Social Security Number Date of Birth City State ZIP

 Primary _____ %

 Contingent _____ %

Name (Last, First) or Full Name of Entity Mailing Address

Relationship Social Security Number Date of Birth City State ZIP

Instructions

You must name at least one primary bene ciary. Do not name yourself. If you pick more than one primary

bene ciary or more than one contingent bene ciary, the total percentage(s) for each category must add up to

100%. Use whole numbers (for example, 50% and 50% or 66% and 34%).

If you have more than four bene ciaries, attach a separate sheet with the same information as below; then sign

and date it. Alternatively, you can update your bene ciary information online.

If you die in the line of duty, your bene ciary(ies) could be entitled to a one-time, duty-related death bene t.

The same people you name below on this form will automatically be added as your bene ciary(ies) for this

bene t. If you want to name different people or put in different percentages, you can make those changes in

your online account at

www.drs.wa.gov/oaa

Important Deﬁ nitions

Primary beneﬁ ciary: A person or entity (for example, an estate, trust, charitable organization, etc.) you

choose to receive your money. After your death, we will pay all primary bene ciaries either equally or in the

percentages you chose. If you are married and name someone other than your spouse as your bene ciary,

retirement system laws may require DRS to pay your spouse. The total designation for your primary bene ciary

selection(s) must equal 100%.

Contingent beneﬁ ciary: A person or entity you choose to receive your money if both you and all your primary

bene ciaries die. The total designation for your contingent bene ciary selection(s) must equal 100%.

16 DRS Plan Choice Guide

To contact DRS

Plan

A one-part plan with a

guaranteed lifeme benet

(pension).

You and your employer both

fund the pension.

A two-part plan with a

guaranteed lifeme benet plus

an investment program you

select and contribute to.

Your employer funds the pension part;

you fund the personal investment part.

This publicaon is intended as an educaonal tool. It is not intended to advise or recommend specic investment

strategies. Members making this decision might want to seek professional nancial assistance.

This publicaon provides an overview of some features of Plans 2 and 3 for the Public Employees’ Rerement

System (PERS), School Employees’ Rerement System (SERS) and Teachers’ Rerement System (TRS). It is not

a legal document, nor is it a complete descripon of the law governing these plans. If there are any conicts

between what is wrien in this publicaon and what is contained in the law, the current law governs.

MulPCB 6/20

Write Email

Website

Call

HoursVisit

http://www.drs.wa.gov http://www.drs.wa.gov

http://www.drs.wa.gov/administration/map

http://www.drs.wa.gov/administration/contact

mailto:drs.contact@drs.wa.gov

http://www.drs.wa.gov/oaa http://www.drs.wa.gov/oaa

360.664.7000

800.547.6657

TTY 711

Department of

Retirement Systems

PO Box 48380

Olympia, WA 98504

General inquiries:

drs.contact@drs.wa.gov

Send a secure message

through your online account:

drs.wa.gov/oaa

drs.wa.gov

You can also send email

through the Contact Us

page on the DRS website.

Monday - Friday

8 am to 5 pm

Pacific Time

6835 Capitol Blvd. SE

Tumwater, WA 98501

See the DRS website for

directions.

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