Summary of Plan 3

PERS Plan 3 was created by the Washington State Legislature in March 2000 and became effective March 1, 2002, for state agencies and higher education institutions; and September 1, 2002, for local governments and municipalities.

PERS Plan 3 is designed to achieve benefits for all employees by providing increased flexibility in retirement planning.

Plan 3 has a structure composed of two separate retirement benefit components— defined contribution and defined benefit.

The defined contribution component is member financed and provides a tax-deferred investment program that you may access any time after you separate from PERS-covered employment. The amount of retirement income generated by the defined contribution component depends on how much you contribute and the performance of your investments. You make the initial choice of how much to contribute, then you decide where your contributions are invested, and how and when you take payment.

The defined benefit component is employer financed and— once you meet service credit requirements— provides for a lifetime monthly benefit at age 65, an unreduced lifetime benefit at age 62*or a reduced lifetime monthly benefit as early as age 55. The amount of the benefit is based on your years of service credit and your average final compensation. See the PERS Plan 3 Member Handbook for additional details regarding the defined benefit component.