Overview of Plan 2 and 3

It is important to have a thorough understanding of the differences between the two plans before deciding. We will begin with a brief overview of Plan 2 and Plan 3.

Choose Your Plan, Choose Your Benefit
Plan 2 has a guaranteed lifetime benefit Plan 3 has a guaranteed lifetime benefit plus an investment program you select and contribute to
Plan 2 benefit formula
2% x service credit years x average final compensation		 Plan 3 benefit formula
1% x service credit years x average final compensation		 Your contributions and their investment returns

Although your employer will begin taking Plan 2 contributions, you will default to Plan 3 in 90* days if you do not formalize your choice.

* Effective July 1, 2011: New employees of a higher education institution must contact their employers to find out if they’re eligible to participate in a Higher Education Retirement Plan (HERP). If they are, they have 30 days from their hire date to choose a HERP or PERS Plan 3. If they do not make a decision within 30 days, they will default to a HERP.

Washington State