The defined benefit part of Plan 3 is funded by mandatory contributions made by your employer and invested by the Washington State Investment Board. The one-percent defined benefit part of your plan is guaranteed and is not dependent on investment performance. Employer contribution rates change over time, based on funding needs of the plan.
The defined contribution part of Plan 3 is funded by the mandatory contributions you make. You choose how much to contribute from one of these six rate options:
| Plan 3 Mandatory Member Contribution Rates | |
|---|---|
| Option A: | 5% all ages |
| Option B: | 5% up to age 35; 6% ages 35 through 44; or 7.5% age 45 and older |
| Option C: | 6% up to age 35; 7.5% ages 35 through 44; or 8.5% age 45 and older |
| Option D: | 7% all ages |
| Option E: | 10% all ages |
| Option F: | 15% all ages |
| If you don’t choose a contribution rate, the mandatory default rate will be chosen for you: Option A: 5% all ages. | |
Once you choose or are defaulted to a rate, you can change it only when you change public sector employers. Changing means working for a different public sector employer, not another division or department where you currently work.
Once you choose or are defaulted to a rate, you can only change it when you change public sector employers or during your contribution rate flexibility period each January, subject to continued approval by the Internal Revenue Service.