EP 2 - How TRS & PERS Plan 2 Work In Washington

In this episode of the Washington State Retirement Planning podcast, host Ethan Meikle breaks down the Plan 2 pension for Washington state employees in the TRS and PERS systems.



He discusses in detail how the pension system works, including how to calculate the benefit formula, vesting requirements, and the age at which pension benefits can be accessed. He explains that Plan Two provides a 2% increase for every year worked with no cap on the number of years, unlike Plan 1.



Furthermore, the amount you receive is calculated based on the average of your top five years of income. This amount is guaranteed for life and subject to an annual increase of between 0% and 3% to cover inflation.



Lastly, Ethan highlights the importance of setting up an outside retirement account to supplement the fixed income provided by the plan.








Outline of this Episode








00:15 Introduction to the Podcast



00:47 Understanding Plan Two



01:26 How Plan Two Works



02:07 Calculating Your Benefits



03:10 When Can You Start Collecting Benefits



04:52 Vesting Period in Plan Two



06:38 Survivorship Options in Plan Two



07:39 Downfalls of Plan Two



08:08 Importance of Outside Retirement Account



08:36 Conclusion and Additional Resources



09:11 Legal Disclosure