Every January, eligible PERS Plan 2 members have the opportunity to transfer to PERS Plan 3, if they wish. Active employees participating in PERS Plan 2 who first established membership prior to March 1, 2002 are eligible to participate in this annual transfer to PERS Plan 3. The decision to transfer to PERS Plan 3 is irrevocable.
New PERS members hired on or after March 1, 2002 make an irrevocable plan choice within 90 days of hire. Therefore, if you are a member who chose PERS Plan 2 after March 1, 2002, you do not have the option of transferring to PERS Plan 3.
Why may you want to change plans?
- Ability to possibly take an earlier retirement with less years of service
- Under PERS 2, you must have at least 20 years of service at age 55+ to take an early retirement.
- With PERS 3, you only need to have 10 years of service, also at age 55+
- Ability to pursue the lifetime retiree medical insurance without being required to begin your PERS 3 retirement benefit.
- If a PERS 3 participants separates from employment as early as age 55, with at least 10 years of service, they can pursue the retiree medical coverage, without having to access their PERS monies.
- PERS 2 participants must actually begin their PERS benefit to be eligible for the retiree medical).
- Ability to have your PERS 3 account grow even after you separate from service.
- PERS 2 benefits “freeze” until the benefit is drawn.
- PERS 3 monies may continue to increase until the money is drawn, for those with 20 or more years of service
Some of the above options may sound interesting to you. You are encouraged to ensure you understand the implications of changing plans before you elect to do so. The following resources are available to help you with this decision:
- Member Handbooks and other Department of Retirement Systems (DRS) publications are available on the DRS website.
- Investment education and information is available on the Plan 3 website under the “Education” link.. Financial modeling software is provided to help you compare projected Plan 2 versus Plan 3 benefits, based on your personal situation.
- You will need the current account balance from your most recent annual statement from DRS. You may access your annual statement at www.drs.wa.gov, and then create or log in to your account under the "Your Retirement Account" link on the right-hand side of the page. This information can also be provided by contacting DRS by phone at 1-800-547-6657 or by email at recep@drs.wa.gov.
To transfer to PERS Plan 3 you must complete a Member Information Form and submit it to Human Resource Services by January 31, 2016. The Member Information Form is available at the Pullman HRS Office at 139 French Administration Building or online.
