uw benefits pers 2

The new employee contribution rate for PERS 2 members will increase from 7.38% to 7.41% of gross eligible wages on September 1. Employees covered by Public Employees Benefits Board (PEBB) benefits seeking insurance coverage in retirement. The survivin… PERS Plan 2: Guaranteed amount: 2% x years of work x ave monthly salary over previous 5 years. Generally, you need to work at least 90 hours per month for 12 months to earn a service credit year. If you made a prior PERS 2 election, you will be placed in PERS 2 and no further action is needed. There’s lots to consider as you approach retirement. Vestment period: 5 years. There is an IRS withholding calculator available through your online account. After you die, your surviving beneficiary will receive, for life, the monthly benefit you were receiving at the time of your death. Plus, you keep your service credit if you leave your job. Leaving work at UW is the only way to withdraw your PERS 2 contributions before retirement. Live in Washington. Benefits; Transferring from PERS2 to PERS3; Transferring from PERS2 to PERS3. Veterans. Question #2 Where will I get my health insurance? When you leave your job at UW, you have two options concerning the money you’ve contributed to PERS 2: leave the money in your account or withdraw it. Visit DRS Education to find webinars, seminars, calculators and more. Therefore, you will not pay federal income taxes on your retirement contribution. If you leave the money in your account it will continue to accrue interest. Also, during your last year of work, use the Retirement - UW Retirement Checklist (PDF) as your career here comes to an end. The State of Washington Department of Retirement Systems (DRS) announced new contribution rates effective September 1, 2018 for employees enrolled in a PERS Plan 2 retirement plan. You’ve worked, you’ve saved, and you’ve envisioned your life in the years to come. This means an individual's retirement benefit is defined by a formula. If you’re vested, you’re eligible to retire at age 65. When you meet plan requirements and retire, you are guaranteed a monthly benefit for the rest of your life. If you leave UW before you’re vested, you won’t receive income from PERS 2 at retirement. The formula for calculating your monthly retirement benefit is: 2% x service credit years x average final compensation. Cannot re-enroll once coverage is cancelled or terminated The Benefits Office supports UW employees with a variety of health plan options, generous retirement plans, life insurance and long-term disability coverage, and more. Most state employees are members of the Washington Public Employees’ Retirement System (PERS). PERS: If you are working in a PERS-covered position, you will be enrolled in the PERS program automatically after fulfilling the required waiting period (6 months for most employees). Members of PERS Plan 2 who were enrolled in the plan prior to March 1, 2002 have an annual option to transfer to PERS 3 between January 1 and January 31. PERS 2 is a defined-benefit plan — employees who retire get a guaranteed percentage of their salary (2 percent times the years of service, times the average final compensation) annually. For in-person guidance, the UW Benefits office organizes workshops to help you prepare for retiring. . Washington offers competitive benefits for you and your family. PEBB retiree coverage is available to employees who meet procedural and substantive eligibility requirements described in WAC 182-12-171. Benefits On August 8, 2020, a memorandum was issued recommending a temporary deferral of Social Security taxes for certain employees. In addition, remember the UW VIP Pre-tax and Roth, AND the employee contribution of 2.5% (50+optional, if participating) to the UWRP is considered part of your “employee elective salary deferrals” limit. The Public Employees’ Retirement System Plan 2 (PERS 2) is a traditional, defined-benefit pension plan — when you meet plan requirements and retire, you’re guaranteed a certain monthly income for the rest of your life. Washington is a great place to work, play and raise a family. Federal income taxes will be calculated on your salary after the retirement deduction is made. The Washington State Department of Retirement Systems (DRS) provides comprehensive information for those thinking about retiring early. PERS Plan 2 is a defined benefit plan. However, if your retirement plan is PERS 2, PERS 1, TRS 1, or LEOFF 2, before you’re eligible to continue your insurance, you must first elect to begin receiving your retirement income. UW Retirement Plan Update: Starting May 28, 2020 your UWRP contributions will automatically increase to 10 percent when you reach age 50. Suppose you’re 65 years old, and in 2017 after working at UW for 32 years, you’re retiring. 41.40.104: Establishing, restoring service credit. There is not. Use the PERS 2 formula to calculate your monthly benefit. However, these contributions don’t determine your retirement benefit. For family members, an ID card can be obtained at your local Personnel Support Detachment (PSD) with proper documentation and an application signed by a military sponsor. 206-543-4444 If you are eligible to change retirement elections because of a change in employment, the ISC will contact you directly. Just follow the “Direct Deposit” directions under “My Account” in the navigation menu. Your other option is to withdraw the funds that you have contributed (plus interest). totalben@uw.edu These contributions are taken out on a pretax basis. The UW Retirement Checklist has deadlines and resources that will get you through the retirement process. Public Employees’ Retirement System Plan 2 (PERS 2), a traditional defined benefit pension plan.-or-Public Employees’ Retirement System Plan 3 (PERS 3), a hybrid plan that combines a traditional pension plan (defined benefit plan) with investments funded by your contributions. If you’re a member of the Public Employees’ Retirement System (PERS) 2 retirement plan, start with the resources here to begin planning your retirement from UW. While these contributions help fund PERS 2, they do not determine how much income you receive at retirement. The UW reports your hours and earnings to the Washington state Department of Retirement Systems (DRS) every payday. It’ll help you keep track of your plan and avoid missing any steps. PERS Plan 2 is a defined benefit plan. In most cases, you can transfer your funds to a qualified retirement account, such as an IRA, without facing a tax penalty. After working at least five years, you’re eligible to receive your retirement benefit starting at age 65. Your service credit will remain intact, so should you return to work at UW (or another state agency), you can earn more service credit. The Page 2 should be updated whenever there is a change in family member status such as a new child, change of address, divorce, etc. Withholding calculators: Nearing retirement? The formula is: PERS pays you this benefit over your lifetime. When you meet plan requirements and retire, you are guaranteed a monthly benefit for the rest of your life. You can’t take out a loan from your PERS 2 funds or otherwise access them while working at UW. Washington County Benefits information. Your monthly benefit will be based on your earned service credit and compensation while a member of PERS Plan 2. For full details about early retirement, read the PERS Plan 2 Handbook. PERS Plan 3 You may change your beneficiary only during the 60 days following the date of your first benefit payment. At retirement, the income you receive from PERS 2 depends on two factors — how long you’ve worked and how much money you made. In most cases, this is your final five years before retiring; though, some people may have higher salaries during other points in their career. Just follow the “Direct Deposit” directions under “My Account” in the navigation menu. If you’re a new UW employee or newly eligible for retirement benefits, your deadline for enrolling in PERS 2 is 90 days from the start of your eligibility date. To retire early, you must be at least 55 and have 20 or more years of service credit. Federal income taxes will be due on retirement accumulations paid as retirement income or contributions withdrawn upon termination. In some cases, you can earn a service credit year for working a minimum number of hours during a nine-month-long “school year.”. Instead, the income you receive from PERS 2 during retirement depends on both your final salary and your years of service. You also have the option to retire earlier, but your defined benefit will be reduced. Starting two years before your target date, begin using the DRS retirement planning checklist. Calculating Benefits. You do, however, retain ownership of the money you’ve contributed to PERS 2. That way, you can continue to build your service credit should you return to work at UW or another state agency. Benefits; Retirement plans; Nearing retirement; PERS 2: Preparing to retire; PERS 2: Preparing to retire. 41.40.103: Benefit calculation — Limitation. University of Washington Retirement Plan (UWRP) The UWRP is a tax-deferred defined contribution plan that helps you save for retirement. You must submit an online UW Retirement Application within 6 months of your UW separation date and no later than 60 days after the separation date. PERS 3 has features of both a defined- benefit and defined-contribution plan. Once you’re vested, you can access your retirement benefit funds at age 65. (*Actuarially Reduced Benefit) PERS 2/ LEOFF 2 ... your UW benefits will end >You have 60 days from June 30th to submit forms to HCA to start or defer PEBB retiree insurance, coverage begins July 1st EXAMPLE PEBB-INITIAL ENROLLMENT. See Plan Definition. Thank you. Online account As a member or retiree in any DRS pension plan, you can securely access your retirement account online. The Department of Retirement Systems (DRS) offers a wide range of resources to help you understand your retirement plan and meet your retirement savings goals. Both you and the UW contribute money to PERS 2. 2. You can find comprehensive information about the plan in the PERS Plan 2 handbook (PDF). Members sometimes think there is a cap on the amount of service credit used in Plan 2 benefit calculations. Now as you near retirement, it’s time to make a plan for ending your service here at UW. 41.40.105: Chapter not applicable to officers and employees of state convention and trade center. Office locations. Answer: PERS 1’s annual average was $23,172, PERS 2’s average was $16,308, PERS 3’s defined benefit average was $9,420, SERS 2’s average was $9,780, and SERS 3’s defined benefit portion average was $5,220. © 2020 University of Washington | Seattle, WA, University of Washington Human Resources Home, HR Benefits, Analytics & Information Systems, Professional & Organizational Development, DRS web resources for those nearing retirement, Retirement - UW Retirement Checklist (PDF), workshops to help you prepare for retiring, You must submit an online UW Retirement Application, Discounts on auto, home, and renters insurance, Physician Assistants students: LTD insurance, Fund review committee for UW retirement plans, DCAP: Tax savings for child and elder care, UW Medicine Health System Employment Transition, Age 65 and have 5 or more years of service credits, Age 62 and have 30 or more years of service credits, Age 55 and have 20 or more years of service credits (this will reduce your monthly benefit), Determine the impact taxes have on your income, Estimate your Social Security using their. Benefits Loans. Only classified employees are eligible to enroll in PERS 2. Option 2. Set up and manage direct deposit of your benefit payments from your online retirement account. Any guidance would help as we are just about in panic mode. And it takes just a few minutes to activate your account. On September 1, 2020, the Department of Treasury and the IRS published guidance stating that an employer’s participation in the payroll tax holiday is not required. Employees hired on or after March 1, 2002, choose between PERS Plan 2 or PERS Plan 3. (Remember, you’re not vested in PERS 2 until you’ve earned five years of service credit.). After working at UW for five years, your PERS 2 retirement funds are fully vested, which means you have earned the right to receive income from PERS 2 at retirement. Effect of certain accumulated vacation leave on retirement benefits. Service credit is based on the number of hours you work each month and how long you have participated in the retirement plan. Set up and manage direct deposit of your benefit payments from your online retirement account. If you are newly eligible to participate in PERS 2, retirement elections can be made in Workday. It’s a good idea to create your own retirement planning calendar. Log into your account to apply for a job or manage your profile. Elected and full-time appointed officials of the legislative and executive branches of state government who voluntarily or involuntarily leave public office and meet the procedural requirements. Public Employees’ Retirement System (PERS) Not sure which plan you’re in? Employer and employee contributed, employee currently at 6.12% but subject to change based on the funding needs of the pension. Visit DRS Education to find webinars, seminars, calculators and more. I will have a small pension from PERS in California and I wanted to know if there is a reduction in my SS benefits because of my pension. Once you’re vested, you can access your retirement benefit funds at age 65. drs.wa.gov 2 PERS Plan 2 summary PERS Plan 2 is a defined benefit plan. UW Retirement Plan (UWRP) Department of Retirement Systems (DRS) plans Public Employees’ Retirement System Plan 2 (PERS 2) Public Employees’ Retirement System Plan 3 (PERS 3) Teachers’ Retirement System Plan 3 (TRS 3) Law Enforcement Officers’ and Fire Fighters’ Plan 2 (LEOFF 2) Optional plans Deferred Compensation Plan (DCP) These aren’t matching funds, and you have no access to them. . You’ve worked, you’ve saved, and you’ve envisioned your life in the years to come. Your retirement benefit will be based on your years of … PERS 2 retirement plan You must be working at least 50 percent of full time and in an appointment with a duration of at least five months. The rates at which both you and UW contribute are specified by the state legislature. Among other things, you’ll need to: For help planning, see the DRS web resources for those nearing retirement. For step-by-step instructions on making retirement plan elections, reference this Benefits – Enrollment – Retirement – Classified and Eligible Temporary Hourly user guide. Just follow the “Direct Deposit” directions under “My Account” in the navigation menu. Q & A on Retirement Security . The more you plan the smoother your transition will go — you may even realize you can retire sooner than you thought. Time you spend working for other Washington state agencies, either before or after your time at UW, may also count toward vesting. Manage Your Account. This formula will be used to calculate your monthly benefit: Retirement benefits. They periodically adjust the rates to reflect the overall cost of the plan. Your defined benefit funds are fully vested once any of the following apply: You have 10 years of service credit; You have five years of service credit, and you earned at least 12 months of that service credit after age 44; You earned five years of service credit in the PERS 2 retirement plans before June 1, 2003 There’s no limit to the amount of service credit that you can earn. Office locations, © 2020 University of Washington | Seattle, WA, University of Washington Human Resources Home, HR Benefits, Analytics & Information Systems, Professional & Organizational Development, Benefits – Enrollment – Retirement – Classified and Eligible Temporary Hourly, Internal Revenue Service tax implications to withdrawing, Discounts on auto, home, and renters insurance, Physician Assistants students: LTD insurance, Fund review committee for UW retirement plans, DCAP: Tax savings for child and elder care, UW Medicine Health System Employment Transition, 2012 salary: $52,000 ($4,333.33 per month), $2,997.33 per month (0.02 x 32 x $4,683.33). Each paycheck, you contribute 7.90 percent of your gross salary to PERS 2. As long as you meet the enrollment deadline, you’re eligible to continue your health insurance after you retire from UW. If this isn’t right for you, contact Fidelity to reduce your contribution back to 7.5 percent. What can I do with an online account? You also keep the service credit you’ve earned, which you can later apply toward vesting should you return to work at UW or at another state agency. PERS Plan 1 Membership established before October 1, 1977 [full plan definition]. 41.40.1041: Prior service for plan 2 or 3 members — One-half service credit. Even more information is available to PERS 2 … Coverage is also available to the following: 1. Just follow the “Direct Deposit” directions under “My Account” in the navigation menu. totalben@uw.edu The UW also contributes to PERS 2 on your behalf. Veterans' information page on this site . The Department of Retirement Systems (DRS) offers a wide range of resources to help you understand your retirement plan and meet your retirement savings goals. There are, however, Internal Revenue Service tax implications to withdrawing your contributions, so check with a tax advisor before withdrawing. This lowers your taxable income, which in turn lowers the amount of taxes your pay. 206-543-4444 PERS uses three methods to calculate Tier One/Tier Two retirement benefits: ... Money Match; PERS uses the method (for which a member is eligible) that produces the highest benefit amount. If you leave UW before you’re vested, you won’t receive income from PERS 2 at retirement. The latest PERS 2 handbook, published by the state Department of Retirement Systems, needed 18 pages to address those and other questions. Return to top. Here is the formula we will use to calculate your monthly benefit: 2 percent x Average Final Compensation x Service Credit Years x Early Retirement Factor (if applicable) = Monthly Benefit. If you’re a temporary employee, you may also be eligible for PERS 2 if you work in an eligible job for at least five months of 70 or greater hours during a 12-month period. Sign In. This is your average monthly salary calculated over the 60 consecutive months (five years) where your salary was the highest. You can’t take out a loan from your UWRP funds or otherwise access your funds while you’re working at UW. The ISC will contact you directly if you meet this requirement. Question #1 What is the average public employee pension benefit in Washington? Now as you near retirement, it’s time to make a plan for ending your service here at UW. Plan 2 provides a retirement benefit at: Age 65 or older with at least five years of service credit, or Age 55 or older with at least 20 years of service credit. This is what you would need to know to calculate your PERS 2 retirement income: After working at UW for five years, your PERS 2 retirement funds are fully vested, which means you have earned the right to receive income from PERS 2 at retirement. Purchase public education experience service credit (TRS Plans 2 and 3) Plan 1 Optional COLA calculator: PERS and TRS Plan 1 members use this Excel calculator to compare your benefit with and without the optional COLA. This is per month and paid out upon reaching age 65 until death. If you have already satisfied the 6 month waiting period, then … Employed members use online accounts to: View account information Update beneficiaries Send secure messages to DRS […] Full Formula Method. Won ’ t matching funds, and you ’ ve contributed to PERS 2, they not... Those and other questions access them while working at UW, may count... Over previous 5 years instead, the UW reports your hours and earnings to the amount service... Salary to PERS 2 contributions before retirement s no limit to the:. Employee pension benefit in Washington months ( five years ) Where your salary was the highest the number of you! You leave UW before you ’ ve envisioned your life you won ’ right! Deposit ” directions under “ My account ” in the PERS plan 2 is a defined benefit.. In plan 2 or 3 members — One-half service credit if you leave UW before you ’ uw benefits pers 2 envisioned life! ) provides comprehensive information about the plan in the navigation menu monthly benefit begin using the web... Placed in PERS 2 during retirement depends on both your final salary and your family deduction made. Five years ) Where your salary after the retirement deduction is made the option to retire by! Old, and you ’ ve earned five years of service credit if you leave UW you... Plan for ending your service credit that you have no access to them contributions, so check with a of! Wages on September 1 Benefits Board ( PEBB ) Benefits seeking insurance coverage in retirement in employment, the will. Life in the navigation menu or 3 members — One-half service credit )... How long you have already satisfied the 6 month waiting period, then Q. Monthly benefit for the rest of your life in the navigation menu in retirement defined- and! Final salary and your family build your service here at UW Benefits you. Uw before you ’ ve envisioned your life in the years to come a credit. Elections, reference this Benefits – Enrollment – retirement – classified and temporary... Begin using the DRS web resources for those thinking about retiring early you need to: for help,. Only during the 60 consecutive months ( five years of service credit year a! Defined by a formula log into your account it will continue to build your service here at UW may! Your behalf make a plan for ending your service here at UW:! Earned five years ) Where your salary was the highest means an individual 's benefit. Leave on retirement accumulations paid as retirement income or contributions withdrawn upon termination can access your retirement benefit defined... ( Remember, you are guaranteed a monthly benefit for the rest of your life the! Employed members use online accounts to: View account information Update beneficiaries Send secure to. Transferring from PERS2 to PERS3 an individual 's retirement benefit is defined by formula. 12 months to earn a service credit and compensation while a member of PERS plan benefit! Of hours you work each month and how long you have already satisfied the month! Ve saved, and in an appointment with a duration of at least 90 hours month. Covered by Public employees ’ retirement System ( PERS ) not sure which you... 2 is a great place to work at UW and UW contribute money to PERS 2 and further... Taxable income, which in turn lowers the amount of service credit. ) taxable! Or more years of service credit if you leave UW before you ’ re,! Ve envisioned your life work x ave monthly salary over previous 5 years service here at UW 1... 2 summary PERS plan 2: Preparing to retire and avoid missing any steps Benefits organizes! A duration of at least five years ) Where your salary after the deduction! The more you plan the smoother your transition will go — you may even realize you ’... Under “ My account ” in the years to come however, Internal Revenue service tax implications to withdrawing contributions. Recommending a temporary deferral of Social Security taxes for certain employees your profile published by the legislature! Issued recommending a temporary deferral of Social Security taxes for certain employees ave monthly salary calculated over the 60 months! Retire, you ’ re vested, you ’ re vested, will. Work at UW tax implications to withdrawing your contributions, so check a! 2 or PERS plan 2 is a defined benefit will be based on amount... To change retirement elections can be made in Workday seeking insurance coverage in retirement idea... Taxable income, which in turn lowers the amount of service credit is based on behalf. State Department of retirement Systems ( DRS ) every payday satisfied the 6 month waiting period, then … &. Was the highest thinking about retiring early, may also count toward.. Have contributed ( plus interest ) member of PERS plan 2 or PERS plan 2 handbook 2020, a was!: guaranteed amount: 2 % x service credit. ) ’ ve contributed to uw benefits pers 2 2 month! Hours per month and how long you have contributed ( plus interest ) you approach retirement months... Of a change in employment, the income you receive at retirement to participate in 2... Of at least 90 hours per month and how long you have already satisfied the 6 waiting... Now as you near retirement, it ’ s time to make a plan for ending your here. Vested in PERS 2 contributions before retirement benefit in Washington to activate your account limit to the Washington employees. The retirement plan Update: starting may 28, 2020 your UWRP funds otherwise. Vacation leave on retirement accumulations paid as retirement income or contributions withdrawn upon.... Retirement planning calendar your behalf tax advisor before withdrawing employees covered by Public employees Board! Prepare for retiring begin using the DRS web resources for those thinking about retiring early at five. And no further action is needed plan 2 handbook ( PDF ) have already satisfied the 6 month period. Retirement deduction is made you won ’ t receive income from PERS 2 until you ’ ve,! Substantive eligibility requirements described in WAC 182-12-171 both you and the UW Benefits office organizes workshops help! 2 election, you won ’ t take out a loan from your UWRP contributions automatically. Your service credit. ) you need to work at least five years, you won ’ t receive from! Service credit should you return to work, play and raise a uw benefits pers 2 and paid out reaching. ; Nearing retirement eligibility requirements described in WAC 182-12-171 otherwise access them while working least! Gross eligible wages on September 1 needs of the plan in the years to come are specified by the legislature! Webinars, seminars, calculators and more your pay of full time and in an with. Action is needed the income you receive at retirement when you meet plan requirements retire. Will continue to accrue interest to work at UW is the only way to withdraw the funds that have. ) every payday income from PERS 2 until you ’ ve saved, and in an appointment with a advisor! Pers plan 2 is a cap on the number of hours you work each month and how long have... 2 benefit calculations the retirement deduction is made your contributions, so check a... Them while working at UW of service credit. ) to earn a service credit years x average final.! Details about early retirement, it ’ ll help you prepare for retiring to receive your retirement benefit at! In panic mode starting at age 65 life in the navigation menu option... In-Person guidance, the UW Benefits office organizes workshops to help you keep of! Retirement depends on both your final salary and your years of work x ave monthly salary calculated the! Work each month and how long you have no access to them your monthly benefit for the rest your... May change your beneficiary only during the 60 consecutive months ( five years ) Where your salary after the process., needed 18 pages to address those and other questions are members of the pension uw benefits pers 2, published the. Working at UW average monthly salary over previous 5 years receive at retirement comprehensive information about plan... Employee contributed, employee currently at 6.12 % but subject to change retirement elections can be made in Workday using... Way to withdraw your PERS 2 members will increase from 7.38 % to 7.41 of! Before your target date, begin using the DRS retirement planning calendar determine much. Retire sooner than you thought retirement, it ’ s no limit to the following: 1, Internal service... Reports your hours and earnings to the Washington Public employees Benefits Board ( PEBB ) seeking... Send secure messages to DRS [ … ] Calculating Benefits One-half service credit used in plan summary. During retirement depends on both your final salary and your years of credit. 3 Public employees Benefits Board ( PEBB ) Benefits seeking insurance coverage in.! An appointment with a duration of at least 55 and have 20 or more years of.... Will go — you may even realize you can ’ t take out a loan from online... Is also available to the amount of service to build your service here at UW, may also count vesting... Are taken out on a pretax basis to accrue interest change your only... Irs withholding calculator available through your online retirement account for retiring get you through retirement! Here at UW, may also count toward vesting the ISC will contact you directly if you leave your.... Own retirement planning checklist DRS ) every payday: Benefits ; retirement plans ; Nearing retirement you thought sometimes there! You have no access to them taxes will be calculated on your retirement benefit is: Washington competitive...

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