Below is a brief summary of the retirement plans administered by the Department of Retirement Systems for eligible Civil Service and Non-Student Temporary Employees. For more details and member handbooks, visit the DRS website.
Immediate participation is required by all eligible employees. You will participate in Plan 2 or Plan 3 based on your initial eligible employment with any state agency, as indicated below, even if you withdrew prior contributions.
Service credit canceled by previous withdrawals may be restored by repayment of withdrawn contributions, plus interest within 5 calendar years of returning to a PERS eligible position or before retirement, whichever is first.
|Plan 2||Classified state employees hired on or after 10/1/1977, and if hired after 3/1/2002 must choose Plan 2 or 3 within 90 days of employment*||At age 65 with 5 years of service, or an actuarially reduced benefit at age 55 with 20 years of service.||2% of Average Final Compensation per year of service.|
|Plan 3||Same as PERS 2; if hired on or after 3/1/2002, must choose Plan 2 or 3 within 90 days of employment*||At age 65 if vested or an actuarially reduced benefit at age 55 with 10 years of service (defined benefit)||1% of Average Final Compensation per year of service (defined benefit)|
* Eligible employees will initially be enrolled in PERS Plan 2;
- For the period from 3/1/2002 through 6/30/2020, if a plan was not chosen within the 90-day enrollment period, the individual was defaulted into the PERS Plan 3 with a 5% contribution rate, and the default investment option was the retirement strategy fund with the retirement date closest to the retirement target date of the member (effective July 22, 2011).
- Those hired on 7/1/2020 or later will be defaulted into PERS Plan 2 if a plan is not chosen within the 90-day enrollment period.
Key differences between PERS 2 and PERS 3 can be found in this comparison chart.
Federal Income Taxes
Federal income taxes will be calculated on your salary after the retirement deduction is made. Therefore, you will not pay federal income taxes on your retirement contribution. Federal income taxes will be due on retirement accumulations paid as retirement income or contributions withdrawn upon termination.
If you are a full-time WSU student or are the spouse of a full-time WSU Student, you may be eligible to waive participation. Contact Human Resource Services for additional information.