Add logo in the Retirement Agreement

Aug 6th, 2022
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A retirement plan is a required part of the benefits package for your Washington public service. Both Plan 2 and Plan 3 offer a lifetime pension benefit. The pension amount depends on how long you work in public service and your salary.
3. Tier 3 - Employees hired on or after January 1, 2013 who are new CalPERS members as defined by the Public Employees Pension Reform Act (PEPRA) shall be subject to the 2% at age 62 CalPERS retirement formula with retirement benefits based upon the employees final average compensation of three (3) years (FAE3).
Under this plan, the percentage of salary paid to the employee after retirement is determined by the retirees number of years of employment increased by 3% for every year of service. Thus, the 3% works as a multiplier.
Under most benefit plans, members become vested after 5 years. Notably, the Public Employees Pension Reform Act (PEPRA) changed benefit formulas for those hired on or after January 1, 2013.
With the investment component, Plan 3 has the potential to give you more income in retirement. However, members in Plan 2 often add a supplemental retirement savings account like Washingtons DCP to increase their overall retirement savings. Many Plan 3 members also join DCP for even more retirement savings.
The Public Employees Retirement System Plan 3 (PERS 3) is a two-part, hybrid retirement plan that combines a traditional pension plan, where your receive a defined benefit at retirement, with investment options that work like a typical retirement plan, such as a 401(k).
The Oregon Public Employees Retirement System (PERS) was established in 1946 as a retirement benefit for public employees in Oregon (i.e., people who work for Oregon state, county, or city government).
Guidance on the Anti-Cutback Rules of Section 411(d)(6) Section 411(d)(6)(B) provides that a plan amendment that has the effect of eliminating or reducing an early retirement benefit or a retirement type subsidy, or eliminating an optional form of benefit, is treated as impermissibly reducing accrued benefits.

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