PERS1 is a traditional pension plan. It provides
monthly income for Washington retired public employees.
Eligibility to PERS1 was closed to new members as of October 1, 1977.
Contributions are made by the employer and
employee.
Your monthly check is 2% times the number of years of service, multiplied by the monthly average salary of the highest consecutive 24 months of service. It
is reduced for retirement before age 65 and by taking survivorship
benefits.
For example, Sally works for 26 years, and earns an average of
$50,000 for two years. Her annual PERS1 pension at 65 would be 52% x
$50,000 or $26,000 per year or $2,165 per month. She could pay for
an addition 5 service years if she wished. This would
increase her yearly pension to 62% or $31,000.
A look at benefits benefits:
- It is a predictable income.
- Generous pay-out; To a maximum of 60% (30 service years)
of your highest two years service.
- If you work more than thirty years you can choose
accrue your deductions in a separate account.
- Benefits can include eligibility for pooled medical
insurance (PEBB). You must pay for this
insurance.
- Includes survivorship benefits, now available to state-registered domestic partners.
- Provides a 3% maximum cost of living benefit beginning age
66.
- You can buy up to five years additional service years
for a cash payment based on your monthly benefit and
actuarial table. This is essentially an annuity; it is much less
expensive than buying an annuity from an insurance company.
- Being a PERS member still allows you to fully participate in
an IRA, Roth IRA, or a 403(b) plan.
You should also consider this:
- If you left service ten or fifteen years ago the
amount of your pension will be "frozen" in time. Cost of living
adjustment occurs after you are a retiree.
- Public pensions are not protected by the federal government.
They are backed up by the State of Washington and the
legislature can change the rules.
- Once your retire, the decisions you made under PERS1
cannot be changed. It is best to examine and understand
survivorship, early retirement and buying extra service.
- IRA's or other savings should be on hand for lump sum needs
in retirement.
- If you pull your accrued contributions out of PERS1, you lose all pension benefits.