Introduction
As a PERS Plan 2 member, you will soon reach a pivotal crossroad in your journey to retirement. You will need to choose whether you want to remain in PERS Plan 2 or transfer to the new PERS Plan 3.
It is important to have a thorough understanding of the differences between the two PERS Plans before deciding. We will begin with a brief overview of PERS Plan 2 and PERS Plan 3.
Public Employees’ Retirement Systems
(PERS) |
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PERS Plan 2 |
PERS Plan 3 |
Defined Benefit (Pension)
2% × SCY × AFC
Guaranteed Lifetime Benefit |
Defined Benefit (Pension)
1% × SCY × AFC
Guaranteed Lifetime Benefit |
Defined Contribution Benefit based on amount contributed and performance of investments |
SCY = Service Credit Year
AFC = Average Final Compensation
Plan 3: Dual Benefit Structure
PERS Plan 3 has a dual benefit structure. It retains pension benefit features similar to PERS Plan 2 and adds a component in which members choose the level of their contributions and how they are invested.
Defined Benefit 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.
Defined Contribution is a retirement benefit based on the amount contributed and the performance of the investments. Investment returns (both gains and losses) are credited to the Defined Contribution account.
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