Washington DRS explained: a complete guide for public employees near retirement
How Washington's state retirement systems work, from which plan you're in to how your pension is figured, when you can retire and how to apply.
The Washington State Department of Retirement Systems (DRS) runs the pensions for state workers, teachers, school staff, local government workers, police, firefighters and judges. Most members get a monthly pension for life figured as 2% (Plans 1 and 2) or 1% (Plan 3) x years of service x average final compensation. Plan 3 adds an investment account you fund yourself. Full retirement is age 65 in Plans 2 and 3, with earlier options at 55.
Who DRS covers: the systems
DRS is a state agency that runs several separate retirement systems. Which one you're in depends on your job, not on where you live. The list below comes from the DRS: plans page.
| System | Who it covers |
|---|---|
| PERS (Plans 1, 2, 3) | State employees and most city, county and other local government workers |
| TRS (Plans 1, 2, 3) | Teachers and other certificated school staff |
| SERS (Plans 2, 3) | Classified school employees, such as office, food service and transportation staff |
| PSERS (Plan 2) | Full-time public safety jobs, such as corrections officers and some 911 telecommunicators |
| LEOFF (Plans 1, 2) | Law enforcement officers and firefighters |
| WSPRS (Plans 1, 2) | Washington State Patrol troopers |
| Judicial plans (including JRS) | Judges |
PERS, TRS and SERS cover the most people, so this guide focuses on them and on PSERS. LEOFF, WSPRS and the judicial plans have their own formulas and much earlier retirement ages. For example, LEOFF Plan 2 members can retire with a full benefit at 53 with at least five years of service (DRS: LEOFF Plan 2), and WSPRS Plan 1 caps the pension at 75% of pay (DRS: WSPRS).
DRS also runs the Deferred Compensation Program (DCP), a voluntary 457(b) savings plan. It is separate from your pension.
Plans 1, 2 and 3
Inside PERS and TRS there are three plans. Your plan depends mostly on when you were hired:
- Plan 1 is for people hired into an eligible job before October 1, 1977 (DRS: PERS Plan 1). It is closed to new members. There is no SERS Plan 1; school employees hired that early are in PERS Plan 1.
- Plan 2 is a traditional pension. Members pay a contribution rate that is reset every two years.
- Plan 3 is a hybrid: a smaller pension paid for by your employer, plus an investment account built from your own contributions.
New PERS, TRS and SERS employees have 90 days to choose Plan 2 or Plan 3. If you don't choose, you are placed in Plan 2, and the choice is permanent (DRS: choose your plan). Before mid-2020, the default was Plan 3, so some long-time members landed in Plan 3 without choosing it. Compare the three plans side by side.
How your pension is figured
multiplier x years of service credit x average final compensation (AFC) = monthly pension
| Plan | Multiplier | AFC is your |
|---|---|---|
| PERS Plan 1 | 2%, max 60% of AFC | Highest 24 months in a row |
| TRS Plan 1 | 2%, max 60% of AFC | Two highest-paid fiscal years in a row |
| Plan 2 | 2% | Highest 60 months in a row |
| Plan 3 | 1% | Highest 60 months in a row |
| PSERS Plan 2 | 2% | Highest 60 months in a row |
Sources: DRS: PERS Plan 1, TRS Plan 1, PERS Plan 2, PERS Plan 3, PSERS Plan 2, and the AFC definitions in RCW 41.40.010.
Average final compensation (AFC) is your average monthly pay over your best stretch. The months must be in a row, but they can come from any point in your career. For 2026, pay above $360,000 a year doesn't count for members who started on or after January 1, 1996.
Service credit is how DRS counts your years. In PERS Plans 2 and 3, a month with 90 or more paid hours earns a full month; 70 to 89 hours earns half a month; fewer than 70 hours earns a quarter. In PERS Plan 1, 70 hours earns a full month. TRS and SERS use school-year rules: 810 hours across a school year that starts in September earns a full year (DRS: TRS Plan 2). You can never earn more than one month of credit per calendar month.
Dana is a made-up PERS member with 25 years of service and an AFC of $6,000 a month, retiring at 65.
- In Plan 2: 2% x 25 x $6,000 = $3,000 a month.
- In Plan 3: 1% x 25 x $6,000 = $1,500 a month, plus whatever is in her Plan 3 investment account.
When you can retire
| Plan | Full benefit | Earliest, reduced |
|---|---|---|
| PERS and TRS Plan 1 | Any age with 30 years; 55 with 25; 60 with 5 | None while working; full benefit at these points |
| Plan 2 | 65 with 5 years | 55 with 20 years |
| Plan 3 | 65, once vested (usually 10 years) | 55 with 10 years |
| PSERS Plan 2 | 65 with 5 years, or 60 with 10 PSERS years | 53 with 20 years |
The Plan 1 ages are for members still working in a covered job. If you left and are "inactive", full retirement is 65 with five years (DRS: PERS Plan 1).
In Plans 2 and 3, how much an early pension is cut depends on your years of service and hire date:
- Under 30 years: the pension is reduced by an actuarial factor. DRS's sample factors keep about 41% of the pension at 55 and about 91% at 64 (DRS: PERS Plan 2).
- 30 or more years, hired before May 1, 2013: a much smaller cut, from 20% at 55 to none at 62 (RCW 41.40.630).
- 30 or more years, hired on or after May 1, 2013: 5% for each year before 65, so 50% off at 55.
PSERS cuts 3% for each year before 60 (RCW 41.37.210). See every age, with worked examples.
Cost-of-living raises
Plan 2 and Plan 3 pensions, and PSERS, get an automatic cost-of-living adjustment (COLA) each July 1 once you've been retired a full year. It follows Seattle-area inflation, capped at 3% a year. Inflation above 3% is "banked" and used in later, lower years. For July 2026, members who retired before January 1, 2025 got 3.00%, and those who retired from January 1 to July 1, 2025 got 2.55% (DRS: COLA).
PERS Plan 1 and TRS Plan 1 have no automatic COLA. At retirement, Plan 1 members can choose an optional COLA, which lowers the starting pension in exchange for yearly increases of up to 3%. The legislature sometimes passes a one-time raise: in 2026 it gave eligible Plan 1 retirees a permanent 3% increase, capped at $110 a month, starting with the July 2026 payment (DRS: 2026 Plan 1 increase).
Protecting a spouse or partner
When you retire, you pick how the pension is paid. Option 1 pays the most but stops at your death. Options 2, 3 and 4 pay less to you but continue 100%, 50% or 66.67% of it to your survivor for life. If you are married or in a registered domestic partnership and don't name your spouse or partner, they must sign a notarized consent. The choice is final once retirement begins, with a few exceptions (DRS: PERS Plan 2). Read how each option works.
The Plan 3 investment account
In Plan 3, your employer pays for the 1% pension and your own contributions go into an investment account. You pick a contribution rate from six options, from 5% to 15% of pay. If you don't choose, you get Option A, 5% at every age. You can change the rate only when you move to a different Plan 3 employer. You can invest in age-based Retirement Strategy Funds (the default), build your own mix, or use the state's Total Allocation Portfolio (TAP), which is managed like the state pension fund (DRS: PERS Plan 3).
The account is always yours, and it rises and falls with the markets. After you leave, you can take payments, roll it over, buy an annuity or leave it invested.
Health insurance and Social Security
- Health insurance: many state, higher education and school retirees can keep coverage through the Public Employees Benefits Board (PEBB) retiree program, run by the Health Care Authority (HCA). The deadline is strict: HCA must receive your form no later than 60 days after your employer-paid coverage ends. Most retirees must start their pension right away to qualify. Exceptions include Plan 3 members who are at least 55 with 10 years, and Plan 2 members who separate on or after January 1, 2024 at 55 or older with 20 years (WAC 182-12-171). Call HCA at 800-200-1004 before you set a date. Compare your choices before 65.
- Social Security: Washington signed its agreement to bring public employees into Social Security in 1951, and many PERS, TRS and SERS jobs pay Social Security tax (DRS employer handbook, chapter 12). Coverage depends on your employer, so check your pay stub for Social Security (OASDI) tax. Since 2025, a public pension no longer lowers Social Security benefits. Read why.
How to apply
- Within 12 months of retiring, you can start the official process with DRS. Ask for an official estimate 3 to 12 months before your date.
- Choose your survivor option and gather any spousal consent, notarized.
- Apply at least 3 to 5 weeks before the date you want, which DRS recommends (DRS: PERS Plan 2).
- Tell your employer and HCA, so your health coverage carries over without a gap.
Your retirement date is the first of the month after you leave your job, and pensions are paid on the last business day of each month (DRS: TRS Plan 2). If you go back to work for a DRS employer, wait at least 30 days after retiring, and watch the 867-hour yearly limit.
Our checklist lists every deadline from three years out to Medicare at 65, so nothing slips.
Open the retirement checklistCommon questions
How do I know if I'm in Plan 2 or Plan 3?
Log in to your DRS online account or check your annual statement. If you were hired in PERS, TRS or SERS and never made a choice, you were placed in the default plan for that time.
Is a Washington DRS pension taxed?
Generally yes. DRS says pension payments are generally taxable as federal income when you receive them (DRS: TRS Plan 2). Ask a tax professional about your own situation.
What happens to my contributions if I die before retiring?
They go to your beneficiary with interest. If you had at least 10 years in Plan 1 or Plan 2, or were vested in Plan 3, your spouse or partner may be able to take a monthly pension instead (DRS: PERS Plan 2).
Can I combine service from two DRS systems?
Often yes. DRS lets "dual members" count service in one system toward eligibility in another, but each pension is figured from its own system's service and rules. Ask DRS about your case.
Does more than 30 years help in Plan 1?
Not for the basic pension. Plan 1 caps it at 60% of AFC, which you reach at 30 years.
Who gives an official estimate?
DRS. Ask through your online account or call 800-547-6657.
General information, not advice. We aren't part of the Washington State Department of Retirement Systems. Ask DRS for an official estimate, and HCA about retiree health coverage, before you choose a date.