April is Financial Literacy month and spring break, and that means it’s a great time to look at your budget and set some financial goals now so you’re prepared for the future. If you’ve been thinking it’s too soon or too difficult – or too late – here’s a best kept secret: those who start planning now,…
Category Archives: Member
Increasing your tax withholdings
Many retirees, especially early in their retirement, find that they need to increase the amount of tax (tax withholdings) that are deducted from their monthly pension. DRS is often asked: Is my pension taxed? If your contributions were made before they were taxed, for example non-Roth contributions to the Deferred Compensation Program, then yes, federal…
What is DB, DC and DCP?
When it comes to your retirement plan, have you seen these acronyms? If you have an investment account or visited the DRS website, there’s a good chance you have. While there are many acronyms you might see when it comes to retirement, these are a few of the most common. We thought this might be…
The value of a pension
The Office of the State Actuary prepared this example to assist DRS with developing a general educational resource. We caution against using this hypothetical illustration for other purposes, including personal financial planning, because (among other limitations) it’s based upon 2023 market conditions and relies on a simplified model. The high-level takeaways also change with different…
One teacher’s fulfilling solution
If you retired today, would you volunteer to work for free at the same place? Meet Cornelius Lopez. Cornelius is retired from Teachers’ Retirement System Plan 1. He taught math for 60 years; Forty-eight of those years were at McMurray Middle School on Vashon Island. After his retirement in June 2023, he began volunteering at…
What is vesting?
Vesting is your right to the money contributed to your pension plan by your employer. Once you become vested, you’re entitled to receive a pension benefit when you retire. You’ll receive a monthly check for the rest of your life, even if you’ve left public employment. In Washington state this benefit is considered a contractual…
New benefits for some retirees, including return to work rules
New legislation allows more flexibility in the number of hours some retirees can work for the public sector. Also, retirees who chose the 3% ERF option will receive an increase to their monthly benefit. More return to work hours Nursing positions Effective April 14, 2023 — July 1, 2026 If you retired under PERS or…
Is retiring early right for you?
Retiring early isn’t something everyone longs for, but it might be worth considering if you haven’t thought about it already. As with all big decisions that leave us standing at the crossroads, deciding to retire early isn’t something you can take lightly. It’s not as easy as deciding on a dessert at a buffet, but…
Rumors we have heard
Rumors. They sure can be wild at times. At DRS, it’s not unusual for us to speak with customers who have heard a rumor that, as it so often turns out, is not exactly accurate. Some of the rumors we hear include:
Rise in fraudulent retirement calls and emails
Department of Retirement Systems recently learned of several email and phone schemes targeting public employees. Last week, an employee at the Washington State Department of Ecology got a call from one of these scammers. The employee, who will remain anonymous, received a call on her work cell phone from someone claiming to represent a non-profit…
