DRS Plan 3
TRS and PERS Plan 3 Retirement
The Teachers Retirement System (TRS) Plan 3 and Public Employees Retirement System (PERS) Plan 3 are tax-deferred hybrid Defined Contribution/Defined Benefit Plans. If selected, participation in the TRS 3 and PERS 3 plan for eligible employees is required no later than 30 days following the date of eligible employment.
WSU make employer contributions to a Defined Benefit account. Employees make contributions to a Defined Contribution plan.
Plan 3 Defined Benefit Contributions
WSU will make contributions to the defined benefit account. These contributions are vested after 10 years of service; or after 5 years of service, if 12 months of service are earned after age 44; or after 5 years, if at least five service credit years were earned in PERS Plan 2 before June 1, 2003.
When a participant of Plan 3 is eligible to retire, they are guaranteed a monthly benefit from the Defined Benefit portion of the plan. This benefit will be based on the individual’s years of service (while a member of Plan 3) and their average final compensation (the monthly average of the 60 consecutive highest-paid service credit months). The monthly retirement benefit is based on the following calculation:
1% x service credit years x average final compensation = monthly benefit
Eligibility for retirement is based on being vested in the plan, and being age 65 (eligible for a full benefit), or being at least 55 or older with 10 years of service credit (eligible for a reduced early retirement benefit).
Plan 3 Defined Contribution Rates
Employees make mandatory contributions to the Defined Contribution portion of the plan. These contributions are immediately and fully vested, and portable if you leave employment with WSU.
A participant of Plan 3 will select one of the following irrevocable options during the 30 day enrollment window. Should they not make a selection, they will be defaulted to Option A.
Option A: | 5% all ages |
Option B: | 5% up to age 35 |
6% age 35 to 44 | |
7.5% age 45 and above | |
Option C: | 6% up to age 35 |
7.5% age 35 to 44 | |
8.5% age 45 and above | |
Option D: | 7% all ages |
Option E: | 10% all ages |
Option F: | 15% all ages |
All Plan 3 members are eligible to change their contribution rate if they change employers.
Retirement Plan Administrator
The Department of Retirement Systems (DRS) administers the Defined Benefit portion of PERS 3, with Voya managing the Defined Contribution. Visit DRS’s website for additional information about Plan 3, and the Defined Contribution website with Voya to review investment information.
Please refer to the Plan 3 Handbooks for details regarding TRS and PERS Plan 3 .
(Note: Plan 3 became an option for Faculty and AP employees on July 1, 2011. Documents and resources may reference an option to select Plan 2. Plan 2 is not a plan option for Faculty and AP employees, with the possible exception for those that hold current Plan 2 service credit.)
For questions regarding Plan 3, please contact DRS at 1-800-547-6657. Voya representatives are available to answer questions regarding the Defined Contribution plan. Call their counseling center phone number at 888-327-5596
Optional Retirement Programs
The ability to save additional funds are available through WSU, allowing employees to make contributions to a separate retirement account. For information regarding the additional retirement saving programs available through WSU, visit Voluntary Investment Plans.
Separation and Retirement from WSU
Separation/Retiring from WSU with Plan 3 Information
Disclaimer: If there are any discrepancies between this website and the provisions of the Plan 3, the DRS Plan Documents will prevail.