Summary of Plan 3

The Teachers Retirement System (TRS) Plan 3, created by the Washington State Legislature in 1995, became effective on July 1, 1996. Anyone who became a TRS member between July 1, 1996 and July 1, 2007, automatically became a TRS Plan 3 member. Anyone first hired on or after July 1, 2007 has 90 days to choose between Plan 2 and Plan 3.

TRS Plan 3 is designed to provide increased flexibility in retirement planning.

Plan 3 has a structure composed of two separate retirement benefit components—defined contribution and defined benefit.

The defined contribution component is member financed and provides a tax-deferred investment program that you may access any time after you separate from TRS-covered employment. The amount of retirement income generated by the defined contribution component depends on how much you contribute and the investment performance. You choose how much you contribute, where your contributions are invested, and how and when you take payment.

The defined benefit component is employer financed and— once you meet service credit requirements— provides for a lifetime monthly benefit at age 65, an unreduced lifetime benefit at age 62*or a reduced lifetime monthly benefit as early as age 55. The amount of the benefit is based on your years of service credit and your average final compensation. See the TRS Plan 3 Member Handbook for additional details regarding the defined benefit component.