Paycheck increase allows for more savings
At the end of July, state employees may notice a 3% increase to their paycheck. This increase is thanks to legislation that passed in March 2023 and is intended to help you with the cost of inflation.
One of the best things about getting a paycheck increase is that it gives you more flexibility with your budget.
You can use the extra money to:
- pay off credit card debt
- save for a big vacation
- open an account or add to a child’s 529 college savings fund
- increase your DCP contributions for retirement
No matter how you decide to use the extra funds, setting aside a small amount of $50 or $100 to an account every month can add up overtime and help you achieve any goal.
Consider a percentage increase for your DCP contributions
If you’re currently contributing a percentage of your paycheck to DCP, your account will already benefit from this increase. Just know that now is the perfect time to raise that number. By increasing your percentage, your DCP account will see faster gains in the upcoming years. At the same time, you’ll still see an increase in your take-home pay. It’s a win-win.
Example: if you’re contributing 3% now, consider increasing it to 4% or 5%.
How to change your contributions:
- Log in and select your DCP account
- At the Voya main menu select Accounts and then Washington State DCP
- Select Contributions & Savings, then Manage Contributions
- The page will show what your current contribution rate is. Select Update My Contributions to make the change.
Don’t have an account? It only takes a few minutes to enroll in DCP.
Got a few minutes? Listen to the DCP podcast episode
In episode 11, you’ll find out how DCP can help you save for retirement. The 17-minute episode explains how taxes are applied, the importance of contributing with a percentage of your income and tools for maximizing your investment.
You can also read the transcript of the episode.
Recent news
In May, you might notice that the timing for your Deferred Compensation Program (DCP) contribution changes are happening sooner.
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Certain retirees in Plan 1 of the Public Employees’ Retirement System and Plan 1 of the Teachers’ Retirement System (PERS 1 and TRS 1) will receive a one-time benefit increase
