The IRS limits have increased for retirement savings programs like Washington’s Deferred Compensation Program (DCP). Beginning Jan. 1, 2025, you can contribute up to $23,500 per year. If you’re 50 or older, you can contribute up to $31,000 per year. These limits apply to DCP Roth and pretax contributions. That means whether you contribute to Roth, pretax, or both DCP options, it’s a combined total.  If you’re already a DCP participant, now’s a great time to consider increasing your contributions. If you’re not a participant and your employer offers DCP, consider signing up. The new limits are effective Jan. 1, 2025. But depending on your employer’s payroll, it can take up to 30 days for your account changes to go into effect. So, if you want to begin saving in the new year you might want to start your changes now! How much do DCP customers save each month? The DCP program makes it easy to save for retirement. Even a minimum monthly contribution of 3% of your salary can add up to big savings over time. The most common percentages saved are 10%, 5% and 3%. Age 20-35: Average monthly contribution is $359 Age 36-45: Average monthly contribution is $586 Age 46-55: Average monthly contribution is $728 Around 5% of DCP customers contribute the maximum amount. Next steps Change your contribution online through your DCP account Check out the DCP page New to DCP? Enrolling is easy with this online form

Looking for your 1099-R form for tax purposes? By Jan. 31, you can access it by signing in to your retirement account and then selecting the 1099-R link from the main menu. From there you can view it or print a copy. Hard copies of the form will be mailed by the end of January. For Plan 3 and DCP members, starting Feb. 1, any additional 1099-R forms for your investment accounts will be available under “Statements and Documents” when you select your plan from your online account.

Mark your calendar – the new schedule is here! DRS issues pension payments on the last business day of each month. Please note: the date you receive your payment will depend on your financial institution. 2025 pension payment schedule Jan 31              Feb 28             Mar 31             Apr 30 May 30            Jun 30              Jul 31               Aug 29 Sep 30             Oct 31              Nov 28             Dec 31 Keep your information up to date If you’ve changed banks recently, you can change your direct deposit settings in your online account. Your new information will need to be provided early in the month (before the 15th) to be effective for that month. Keep your address up to date. You will receive a check in the mail if the change is not effective in time. Also, keeping your address current allows your tax documents to be delivered on time. How to update your direct deposit: Log in to your online account Select My Account from the menu options listed. This will bring up a table of your account information. Next to Direct Deposit select View/Edit. For security, enter the current bank account number you have on file. Enter the new routing number. Select Validate Number. Enter the new account number and information. Select Accept.

Public employees in Washington State can take comfort in the security of their retirement funds. Our state pension system, administered through the Department of Retirement Systems, is 96% funded. This places us among the top 5 pension systems in the nation. The Office of the State Actuary calculates this funding status yearly. Washington is a leader in designing and maintaining sustainable public pensions. Our state is one of the first to use hybrid defined contribution/defined benefit plans. Combined with the investment success of the Washington State Investment Board, these innovations have landed Washington’s system of public pensions among the top in the nation. Your pension is funded primarily by investment gains on the contributions you and your employer make during your working career. Over the last decade, DRS pension funds have returned a net 9.26% a year. Every $100 paid to you as a retiree comes from three sources:• $10 from when you were working• $20 from your employer• $70 in investment gainsOur pension system is governed and overseen by a variety of experts and entities, including:• Washington State Legislature• Select Committee on Pension Policy• Office of the State Actuary• Law Enforcement Officers’ and Fire Fighters Plan 2 Retirement Board• Pension Funding Council• Washington State Investment Board Together, these groups create policies, perform valuations, determine health and funding status, evaluate funding assumptions and contribution rates and invest responsibly, helping your funds grow. Find out more about these groups or listen to this podcast about how pensions are guaranteed.