Frequently Asked Questions

General Information

Q1: Deciding between PERS Plan 2 and PERS Plan 3 is an important decision. What resources are available to assist me in making the best choice?
A1: Several resources are available to help you evaluate your individual situation and make the choice that is best for you. The following resources are available:

• Review the Journey to Retirement Transfer Decision booklet that was mailed to you. You may review a side-by-side comparison of PERS Plan 2 and PERS Plan 3 on pages 18-19, or view the chart online.
• Review the Transfer Education website for all important aspects of PERS Plan 2 and PERS Plan 3 at http://www.icmarc.org/xp/plan3/perstransfer/ (this site).
• Review the Transfer Decision video which is available at http://www.icmarc.org/xp/plan3/perstransfer/videos.xml. You may also obtain a copy of the video for check-out from your employer.
• Call the Phone Support Center at 1-888-711-8773. The representatives are available to help you between 5:30 a.m. and 6:00 p.m. Monday through Friday. If you call at other times, you can leave a message and a representative will return your call on the following business day.
• You can email your questions or requests to pershelp@icmarc.org. You will receive a response within one business day.

Q2: What is PERS Plan 3?
A2: PERS Plan 3 is the new benefit plan created by the legislature during the 2000 legislative session and added to the Public Employees’ Retirement System. It comprises both a defined benefit component and a defined contribution component.

Q3: When does PERS Plan 3 go into effect? Who will be affected by this bill?
A3: For state and higher education employees, PERS Plan 3 went into effect March 1, 2002, and for local government employees, September 1, 2002. The bill affects all current PERS Plan 2 members employed by state agencies, higher education and local government employees.

Q4: What is an active member?
A4: To be considered an “active” member you must be currently employed in a retirement system eligible position. Only “active” members are eligible to transfer to PERS Plan 3.

If you are retired, or if you have separated from eligible employment, even though you may still have funds in the state retirement plan, you are not considered an “active” member.

Q5: What is a defined benefit plan?
A5: A defined benefit plan is a guaranteed retirement benefit based on service credit and average final compensation. The amount you or your employer contributes does not determine your retirement benefit.

Q6: What is a defined contribution plan?
A6: A defined contribution plan is a retirement benefit based on the amount contributed and the performance of the investments. Investment returns (both gains and losses) are credited to your Defined Contribution account.

Q7: Can PERS Plan 1 members transfer to PERS Plan 3?
A7: No. PERS Plan 1 members will remain in Plan 1.

Q8: How do I obtain a copy of my Transfer Information Letter and/or the Journey to Retirement Transfer Decision Booklet?
A8: To receive a copy of your Transfer Information Letter, please call DRS at 1-800-547-6657 or (360) 664-7000. Please be ready to provide your Social Security Number and current mailing address.

The Journey to Retirement Transfer Decision Booklet is available on the Web at http://www.icmarc.org/pers/transfer/pubs/TransferBooklet.pdf or from your employer.

Q9: I have completed my paper work to join PERS Plan 3. Can I review my Plan 3 account through the Internet? Will I be able to establish my allocations through the Internet?
A9: Yes, you can access your PERS Plan 3 account online. Visit www.icmarc.org/pers and select the Account Access link. To access your account, you will need a password. To request a password online select the link "Request an Initial Password." One of the identifying items to request a password is the 6 digit plan number which is 107182 for the Self-Directed program and 107181 for the WSIB program. Please also note that your user ID is your social security number.
If you are in the Self-Directed program, you may establish your allocations online through Account Access. If you are ready to review your account online now, you may select account access here.

Q10: What are the differences between PERS Plan 2 and PERS Plan 3?
A10: PERS Plan 2 is a defined benefit plan. PERS Plan 3 consists of two components: 1) a defined contribution plan and 2) a defined benefit plan. See the comparison chart between PERS Plan 2 and PERS Plan 3.

The formulas for calculating a retirement benefit for each of the defined benefit plans are as follows:

• Plan 2 = 2% × Average Final Compensation × Service Credit Years
• Plan 3 = 1% × Average Final Compensation × Service Credit Years

The defined benefit portion is guaranteed, regardless of the contributions made by the member or the employer.

As a Plan 2 member you are eligible to receive a full retirement benefit at age 65 if you have at least five service credit years. You are eligible for a reduced benefit as early as 55 if you have 20 service credit years. Under Plan 2, if you terminate and withdraw your contributions, you forfeit your right to a retirement benefit unless you return to eligible employment and re-establish service credit.

Under Plan 3, you are eligible to receive a full retirement benefit from the defined benefit component if you:

• Are age 65 and have at least 10 service credit years or
• Are age 65 and have 5 service credit years including 12 service credit months after reaching age 54 or
• Are age 65 and have 5 service credit years by June 1, 2003 under PERS Plan 2 and transferred to PERS Plan 3.

You are eligible for a reduced benefit as early as 55 if you have 10 years of service.

The Plan 3 defined benefit component also has a provision for members with 20 service credit years who wish to leave covered employment prior to age 65. This provision helps protect the value of your defined benefit by adjusting it for inflation (approximately 3 percent per year) until you begin collecting it (or at age 65, whichever is less).

Once you begin drawing your defined benefit, both PERS plans provide for a cost of living adjustment (COLA) each July 1, of up to 3 percent per year. The COLA begins once you have been receiving your defined benefit for one full year.

The defined contribution component of Plan 3 is based entirely on your contributions, the investment earnings on those contributions, and, if an annuity is taken, the age at which you decide to take payment. If you terminate and withdraw your contributions, you still have a right to the defined benefit component.

Q11: How much is the transfer payment and how do I qualify for it?
A11: For state and higher education employees, the transfer payment is equal to 110 percent of the employee contributions and interest in their accounts on March 1, 2002; and for local government employees, it is equal to 111 percent of the employee contributions and interest in their accounts on March 1, 2002.

State and higher education employees who transferred during the initial transfer window (March 1, 2002 to August 31, 2002) and earned service credit in June 2002, will receive a transfer payment.

Local government employees who transfer during the initial transfer window September 1, 2002 to May 31, 2003) and earn service credit in June 2002 or February of 2003, will receive a transfer payment.

Q12: How do I calculate the 111% transfer payment?
A12: If you are a local government employee who transfers to PERS Plan 3 during the initial transfer window from September 1, 2002 through May 31, 2003, and have earned service credit in June 2002 or February 2003, you will receive a transfer payment equivalent to 111 percent of your March 1, 2002 account balance. The transfer payment will be credited to your Defined Contribution account in June 2003.

The transfer payment is in addition to your account balance or a possible retroactive gain sharing payment.

Example: You are a local government employee who has accumulated $10,000 in member contributions and interest in your account on March 1, 2002, and you transfer to PERS Plan 3 in September 2002. The $10,000 would go into your Defined Contribution account at the time you transfer. If you earn service credit in either June 2002 or February 2003, an additional $11,100 (111 percent of $10,000) will be added to your Defined Contribution account, for a total of $21,100.

Calculation:

$10,000	=	Your total contributions and interest in your account on March 1, 2002
+$11,100	=	Your transfer payment of 111% ($10,000 × 111% = $11,100)
$21,100	=	Total amount to be added to your PERS Plan 3 account

Q13: Will my PERS Plan 2 or Plan 3 contributions impact my ability to maximize my contributions to a separate deferred compensation plan?
A13: DCP participants will be able to contribute the lesser of (1) the full 100% of their gross compensation less any section 414 (h) picked up contributions (mandatory contributions to 401 qualified retirement plans made with pre-tax dollars) or (2) a dollar limit in effect that year (for year 2003 = $12,000).

What this means to you:

• Members who earn $15,520 or more annually are able to defer the maximum amount to their deferred compensation plan. These members will also be able to contribute the maximum to Plan 3 (15%) and not impact their maximum deferred limit ($12,000) in a deferred compensation plan, like Washington State’s Deferred Compensation Plan (DCP).
• Members, who earn less than $15,520 annually, should know that their maximum deferral might be impacted by their PERS contributions. The amount of the impact, if any, depends on the member's contribution rate.

To calculate the impact:

• Multiply the FICA rate (7.65%) by your annual salary.
  This is the amount you will contribute to FICA each year.
  (Annual Salary × .0765 = Annual FICA Contributions)
  


• Multiply your PERS contribution rate by your annual salary.
  This is the amount you will contribute to PERS each year.
  (Annual Salary × PERS Contribution Rate = Annual PERS Contributions)
  


• Subtract your Annual FICA Contributions and your Annual PERS Contributions from your annual salary; this is your Adjusted Gross Salary.
  (Annual Salary - Annual FICA Contributions - Annual PERS Contributions = Adjusted Gross Salary)
  


• Compare your Adjusted Gross Salary to $12,000. Which is less? The lesser number is your maximum deferral limit.

See the examples below:

Existing PERS Plan 2 Members Transfer Eligibility and Transfer Process

Q14: Will I automatically become a member of PERS Plan 3?
A14: No. As a current PERS Plan 2 member, you will have the option of remaining in PERS Plan 2 or transferring to PERS Plan 3.

Q15: When can I transfer to PERS Plan 3?
A15: If you are a PERS Plan 2 member employed by a state agency or higher education employer, your transfer window was March 1, 2002 - August 31, 2002. If you are a PERS Plan 2 member employed by a local government employer, your transfer window is September 1, 2002 - May 31, 2003.

Q16: Can I stay in PERS Plan 2?
A16: Yes. The choice of transferring to PERS Plan 3 or remaining in PERS Plan 2 is up to you.

Q17: Can I transfer to Plan 3 after my transfer window is closed?
A17: If you do not transfer to PERS Plan 3 during the transfer window, you will have an opportunity each January to transfer, provided you earn service credit that January.

If you are a PERS Plan 2 member employed by a state agency or higher education employer, your transfer window closed on August 31, 2002. Your next opportunity to transfer to PERS Plan 3 will be January 2004. Members transferring during the annual January opportunity will not receive a transfer payment or retroactive gain sharing.

If you are a PERS Plan 2 member employed by a local government employer, your transfer window is from September 1, 2002 - May 31, 2003. Phase 2 members transferring during their transfer window will be eligible for the transfer payment and eligible retroactive gain sharing. If you are a Phase 2 member and do not transfer during the transfer window, your next opportunity to transfer to PERS Plan 3 will be January 2004. Members transferring during the annual January opportunity will not receive a transfer payment or retroactive gain sharing.

For more information, including a list of resources, visit www.drs.wa.gov/member/plan3.

Q18: I am an active PERS member and I want to remain in PERS Plan 2. What do I need to do?
A18:

Phase 1 members
If you were originally hired in an eligible position prior to March 1, 2002 and you are currently an active PERS Plan 2 member there is no need to fill out any paperwork to remain in PERS Plan 2; you will automatically remain in PERS Plan 2.

Phase 2 members
If you were originally hired in an eligible position prior to September 1, 2002 and you are currently an active PERS Plan 2 member there is no need to fill out any paperwork to remain in PERS Plan 2; you will automatically remain in PERS Plan 2.

Q19: If I transfer to PERS Plan 3, can I transfer back to PERS Plan 2 at a later date?
A19: No, the decision to transfer to Plan 3 is irrevocable.

Q20: If I am a local government employee, when do I need to turn in my PERS Transfer paperwork?
A20: As a Phase 2 member the law states you must submit your Member Information Form (119K PDF) to your employer by Saturday, May 31, 2003. It is a good idea to update your Beneficiary Designation Form (224K PDF) and send it to DRS at the same time. Both of these forms are available in the back of your Transfer Decision Booklet (225K PDF) and in the Investment Education materials.

Q21: After I turn in my paperwork, how long does it take for my account balance to transfer from PERS Plan 2 to PERS Plan 3?
A21: The amount of time to process your transfer varies. Different factors contribute to the amount of time from when you turn in your paper work to the date you are able to access your account information. Here’s why:

Example of steps in the transfer process • A member turns in the Member Information Form to their employer. • Employer sends the member's information to DRS at the employer's next reporting cycle. This can take up to six weeks. • DRS sends the member's information to the record keeper. This takes a minimum of two days. • The record keeper sends a "Welcome to PERS Plan 3" letter to the member's home two days after the record keeper receives the data. • The time line for the member to review their account information depends on the member's investment program choice: The Self-Directed Investment Program or the WSIB Investment Program.   The Self-Directed Investment Program Members can view account balance information the second business day of the month following the month the employer sends information to DRS. This is possible as long as the information was transmitted to the record keeper on or before the third to the last business day of the month. The total length of the transfer process for a Self-Directed Investment Program member can be up to eight weeks. The WSIB Investment Program Members can view account balance information two business days after the member information is transmitted to the record keeper. The total length of the transfer process for a WSIB Investment Program member can be up to seven weeks.

Q22: If I qualify, when will the transfer payment be applied to my defined contribution account?
A22: The transfer payment will be applied to eligible Plan 3 member accounts beginning June 2, 2003. DRS will apply the transfer payment to member accounts which meet the requirements for receiving the transfer payment. These requirements include:

• transferring to PERS Plan 3 during the members transfer window,
• earning service credit during the specified month,
• processing of transfer information complete.

Members who meet these criteria after June 2, 2003 will have the transfer payment applied to their account on the day after they meet the requirements.

Q23: If I meet transfer payment eligibility criteria, but I separate from service and take payment of my defined contribution funds, will I still be entitled to the transfer payment?
A23: Yes, if you meet the eligibility requirements for a transfer payment, you will be entitled to the transfer payment in June 2003, even if you are no longer working for a PERS employer and have withdrawn your contributions. The transfer payment is based on your March 1, 2002 account balance. Example:

• Phase 1 member transfers to PERS Plan 3 during their transfer window (March 1, 2002 - August 31, 2002)
  
• Phase 1 member earned service credit in June 2002 to meet the service credit month requirement.
  
• Member separates from service in July, 2002.
  
• Member received refund of defined contribution funds in October 2002.
• Member will receive their transfer payment, credited to their account in June 2003.
  

Q24: If I qualify for the transfer payment, separate from service and take payment of my defined contribution funds before June 2003, what do I have to do to get the transfer payment once it is applied to my account?
A24: Since you already took payment of your defined contribution funds you will need to request payment from Plan 3 for your transfer payment by completing another copy of the Plan 3 Request for Payment of Defined Contribution Funds. Turn in this paperwork after June 2003 when the transfer payment is applied to your account.

Q25: I am a Phase 2 local government employee and I quit my job in July 2002. I do not plan to return to work for a PERS-covered employer. Since I worked in June 2002, can I transfer to PERS Plan 3 and receive the 111% transfer payment?
A25: No. In order to qualify for the transfer payment a Phase 2 local government employee must transfer during their initial transfer window, which is September 1, 2002 through May 31, 2003 and must earn service credit in either June 2002 or February 2003. Since you separated from service in July 2002, you were not eligible to transfer during the initial transfer window.

Q26: I was just hired into a PERS position, and I see that there are two different kinds of materials for PERS members. What is the difference between "Transfer Decision" and "New Member Plan Choice"?
A26: The 2000 Washington State Legislature wanted to provide both current and future PERS members with the opportunity to choose between the two retirement plans. The rules for current PERS Plan 2 members and new PERS members are different. To accommodate this, two sets of educational materials (including educational packets, videos and web sites) have been developed; these are the "Transfer Decision" materials and "New Member Plan Choice" materials.

Q27: How do I know which materials apply to me, "Transfer Decision" or "New Member Plan Choice"?
A27: PERS members can consult the table below to see which materials will apply to them. In some cases, eligibility can be complicated by previous employment in another DRS Retirement System or Plan. If you have questions about your eligibility, you can discuss your concerns with your employer or DRS. You can call DRS at 1-800-547-6657. Local callers can call 360-664-7000 and TDD at 360-586-5450.

Q28: I've heard about the Transfer Decision and Investment Education videos. What is the quickest, easiest way to view them?
A28: You may be able to view the Transfer Decision and the Investment Education videos online. If you do not have the software available on your computer to operate the video, instructions are included for downloading the software. If you are unable to use the online video, VHS tapes are also available from your employer.

Comparison of Plan 2 and Plan 3

Q29: What is my contribution rate in Plan 2? What contribution rate will I have to pay in PERS Plan 3?
A29: PERS Plan 2 members currently contribute .65 percent of their compensation earnable (salary that can be reported into PERS). View a history of employee contribution rates dating back to 1989.

The Employee Retirement Benefits Board (ERBB) determines the contribution rate options available to PERS Plan 3 members. Members are allowed to elect any one of the following contribution rate options:

If you transfer to PERS Plan 3, you must choose a contribution rate at the time of transfer. If you are a Plan 3 member who is changing employers, you have up to 90 days from the date you begin working in an eligible position to select a contribution rate. If you do not select a rate option within the time allowed, the law requires that Option A (5 percent of pay at all ages) be assigned automatically. Fifteen percent is the maximum contribution rate.

Q30: Who sets member Defined Benefit contribution rates for Plan 2 and Plan 3?
A30: The Office of the State Actuary recommends actuarial assumptions to the Pension Funding Council based on the most recent actuarial valuation. The Pension Funding Council reviews the valuation with the assistance of an independent actuary and adopts the contribution rates.

Q31: Do my Plan 3 contributions to my defined contribution impact my employer’s contribution to my defined benefit?
A31: No, the amount you contribute to Plan 3 does not affect what your employer contributes. The amount your employer contributes funds the Defined Benefit portion of your benefit.

Q32: How are new Plan 3 Defined Contribution investment funds established?
A32: The Washington State Investment Board (WSIB) establishes fund options based on recommendations received from the Employee Retirement Benefits Board (ERBB).

Q33: When can I withdraw my balance under Plan 3?
A33: You can elect to withdraw the funds in your PERS Plan 3 defined contribution account any time you separate from all PERS-covered employment.

Q34: Will I be able to change my contribution rate?
A34: Once selected, your contribution rate can be changed only if you change employers. Changing employers means working for a different employer — not just working for a different division or department of your current employer.

Q35: If I choose PERS Plan 3, how will my contributions be invested?
A35: As a PERS Plan 3 member you will have a choice to invest your contributions with two different investment programs: the Washington State Investment Board (WSIB) Investment Program or the Self-Directed Investment Program.

The WSIB Investment Program is invested in the Total Allocation Portfolio (also called the TAP Fund). The TAP Fund is a diversified portfolio of U.S. and international stocks, bonds, private equity and real estate investments and is a monthly valued fund.

The Self-Directed Investment Program has a menu of funds and pre-set portfolios. PERS Plan 3 members will be able to choose among several different investments that will have varying degrees of risk and rates of return.

Q36: What is the Employee Retirement Benefits Board?
A36: The Employee Retirement Benefits Board, or ERBB, was created in 1995 as part of the Teachers’ Retirement System (TRS) Plan 3 law and established an eight-member benefits board appointed by the Governor and chaired by the director of the Department of Retirement Systems (DRS). The ERBB’s responsibilities include authorization for investments and distribution options and establishing additional contribution rates. With the passage of the School Employees Retirement System (SERS), the board membership was expanded to include three additional members representing SERS, bringing the total to eleven. The make-up is as follows:

• Two members with experience administering defined contribution plans
• Three members representing TRS (one retired and two active members)
• Three members representing PERS (one retired and two active members)
• Three members representing SERS (one retired and two active members)

Q37: Can I receive continuing health coverage when I retire? Is there a difference in coverage between PERS Plan 2 and PERS Plan 3?
A37: There is no difference in coverage between PERS Plan 2 and PERS Plan 3; however, there is a difference in how you qualify for health care coverage.

If you are employed by a Public Employees Benefits Board (PEBB) covered employer, then you (and your dependants) may be eligible for the PEBB Retiree Health Coverage offered through the Health Care Authority. Please confirm with your employer that PEBB Health Care Coverage is offered through your employer.

If qualified, you must:

You can also contact the Health Care Authority at 1-800-700-1555, or their Web site (www.pebb.hca.wa.gov)

Gain Sharing

Q38: What is “gain sharing”?
A38: “Gain sharing” is a process for passing on to PERS Plan 3 members a portion of extraordinary investment returns earned by the state on invested retirement trust funds. While not distributed as a cash dividend, the gain-sharing amount goes into the members’ PERS Plan 3 investment account. In January of even numbered years if the earnings from the PERS Plan 2/PERS Plan 3 Combined Trust Fund average more than 10 percent over 4 fiscal years, 50 percent of the amount over 10 percent will be distributed to Plan 3 members based on their service credit. The gain sharing process will be applied in January of even-numbered years when there are extraordinary returns. Members must meet specific criteria to receive the gain sharing payments.

Q39: What is retroactive gain sharing?
A39: A retroactive gain sharing payment is the payment that may be made to the Defined Contribution account of eligible PERS Plan 2 members who transfer to PERS Plan 3 during their initial transfer window. This payment is in addition to their accumulated account balance and transfer payment.

PERS Plan 2 members who transfer to PERS Plan 3 and meet the eligibility requirements for gain sharing may receive retroactive payments for the 2000 extraordinary investment returns on June 1, 2003.

Q40: The Phase I transfer letter I received from DRS indicated that the gain share had not been finalized. Is it finalized yet?
A40: There was no gain sharing declared for 2002 due to market performance. A 2000 retroactive gain sharing payment has been declared. Your updated April transfer letter reflects the most current information.

What happens if I die?

Q41: What happens if I die in service?
A41: The defined benefit is different for Plan 2 and Plan 3:

Plan 2 — Defined Benefit
If you die while in service, your designated beneficiary may be eligible for benefits as follows:

Fewer than 10 service credit years and ineligible to retire:
If you die before you have 10 service credit years and before retirement eligibility, your beneficiary(s) receives your contributions, plus interest.

Ten or more service credit years or eligible to retire:
If you die after becoming eligible to retire or after accumulating 10 or more service credit years, your surviving spouse, or if none, the guardian of your minor children, may choose between the following two benefits:

• The sum of your contributions, plus interest, or
• A monthly benefit calculated as if you had:
  • Elected a Joint and 100 percent Survivorship option, and
  • Retired on the date of your death. The benefit is actuarially reduced if you are under age 65 at death.

A Joint and 100 percent Survivorship option provides a benefit that is actuarially reduced. If your designated beneficiary survives you, the benefit amount remains the same and your beneficiary receives it for his or her lifetime.

If your spouse dies while receiving a survivor’s retirement benefit and leaves a minor child or children, the children will continue to receive the benefit that was paid to your spouse. The benefit will be shared equally among the children and paid until they reach the age of majority.

If there is no surviving spouse at the time of your death, and you have minor children, their guardian will choose between the two payment options.

If there are no minor children or surviving spouse, your designated beneficiary will receive your accrued contributions plus interest.

Plan 3
There are two parts to the Plan 3 benefit, the Defined Benefit and the Defined Contribution. The benefits are different for each:

Plan 3 — Defined Benefit
If you die before you retire, your surviving spouse, or if none, your minor children will receive a benefit calculated as if you had:

• Elected a Joint and 100 percent Survivorship; and
• Separated from service on the date of death.

A Joint and 100 percent Survivorship option provides a benefit that is actuarially reduced. If your designated beneficiary survives you, the benefit amount remains the same and your beneficiary receives it for his or her lifetime.

If your spouse dies while receiving a survivor’s retirement benefit and you have a minor child or children, the children will continue to receive the benefit that was being paid to your surviving spouse. The benefit will be shared equally among the children and paid until they reach the age of 18. If you have no surviving spouse or minor children at the time of death, no defined benefit will paid.

Plan 3 — Defined Contribution benefit
If you die before initiating payment of your defined contribution account, your spouse can take payment in a lump sum or roll it over into an approved Individual Retirement Account (IRA) or a qualified employer retirement plan— if they are your beneficiary. Beneficiaries who are not spoused cannot roll over defined contribution funds; they must take payment of the funds.

Q42: What happens if I die after I begin receiving benefits?
A42: The Defined Benefit is the same in both PERS Plan 2 and PERS Plan 3. However, PERS Plan 3 has a second benefit, the Defined Contribution.

Defined Benefit for PERS Plan 2 and PERS Plan 3:
If you die after you begin retirement, your survivors are eligible to receive benefits according to the retirement option that you choose.

When you apply for a service or disability retirement, you must select a benefit option. If you are married, the law requires that you provide the written consent of your spouse for the benefit option you choose. This consent must be witnessed by a notary. If consent is not provided, the law requires that an Option 3 benefit be paid with your spouse as beneficiary.

Option 1 Standard Option
This option pays you a benefit for your lifetime. If you die before the total benefits you receive equal your contributions plus interest at the date of retirement, the balance will be paid in a lump sum to your designated beneficiary.

Option 2 Joint and 100 percent survivorship
This option provides a benefit that is actuarially reduced. If your designated beneficiary survives you, the benefit amount remains the same and you beneficiary receives it for his or her lifetime.

Option 3 Joint and 50 percent survivorship
This option provides a benefit that is actuarially reduced. If your designated beneficiary survives you, 50 percent of your benefit is paid to your beneficiary for his or her lifetime.

Option 4 Joint and 66.67 percent survivorship
This provides a benefit that is actuarially reduced. If your designated beneficiary survives you, 66.67 percent of your benefit is paid to your beneficiary for his or her lifetime.

PERS Plan 3 also has a Defined Contribution benefit: If you die after initiating payment of your defined contribution account and you still have money in the account, your beneficiary should contact DRS. DRS and the record keeper will work together to pay your beneficiary the remainder of the defined contribution funds. If retirement funds are in the form of an annuity, payments continue or stop based on the terms of the annuity.