Washington State
Department of
Retirement Systems
PERS Plan 2
Service Credit Years are calculated by dividing your total service credit months by 12. You receive one service credit month for each calendar month in which you are compensated for 90 or more hours.
Average Final Compensation is the monthly average of your 60 consecutive highest-paid service credit months.
| PERS Plan 2 |
|---|
| Defined Benefit 2% × SCY × AFC Guaranteed Lifetime Benefit |
What benefits does PERS Plan 2 provide?
PERS Plan 2 is a defined benefit plan that provides a guaranteed lifetime monthly retirement benefit based on your years of service credit and your compensation, provided you meet age and service requirements. The guarantee in PERS Plan 2 is two-fold. PERS Plan 2 members are guaranteed to receive a benefit based on the formula given below, and PERS Plan 2 funds are guaranteed by the state of Washington. The formula for computing your benefit at retirement is:
2% × Service Credit Years (SCY) × Average Final Compensation (AFC)
For example, if you worked a total of 15 years, working every month, with an average salary over the last five years of $30,000, your benefit would be:
2% × 15 × $30,000 = $9,000 annually = $750 a month
Once you have received benefits for a full year, your monthly benefit amount may increase each year, based on cost of living increases, up to a maximum of 3 percent per year.
Who contributes to PERS Plan 2?
PERS Plan 2 is funded by employer contributions and mandatory member contributions. Contribution rates vary over time. View a history of employee contribution rates.
When am I eligible for retirement under PERS Plan 2?
* This early retirement benefit is effective July 1, 2008. If a court of law decides the repeal of gain sharing is invalid, the reductions for early retirement that were in place before passage of the new law will apply. See Gain Sharing.
| Retirement Age | Required Service Credit Years |
Benefit |
|---|---|---|
| 65 | At least 5 | Full benefit |
| 62 | At least 30 | Unreduced benefit* |
| 55 | At least 20 | Reduced benefit Early Retirement Reduction Factors Table |
Can I withdraw my Defined Benefit contributions?
In PERS Plan 2, you may withdraw your contributions and earnings if you separate from service. However, doing so cancels all rights and benefits you may have earned in PERS. If you return to PERS-covered service, you may be eligible to purchase your service credit. See Can I Recover Withdrawn or Optional Service Credit? on the DRS Web site or call 360-664-7000 or toll-free at 800-547-6657 to request a copy.
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