The federal government of the state of Washington provides benefits for its citizens through various plans. Most of the state employees are part of the Washington Public Employees Retirement System or PERS. Three plans were put in place for the three kinds of public employees of Washington.
The first PERS plan is for state employees who became members before October 1977. It has disability benefits, interruptive and non-interruptive military service credit, and a post 30-year program, among others.
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The second and third plans are for state employees who became members after Oct. 1, 1977. Plan 2 is a defined-benefit plan through and through. Retired benefits are set based on a formula and how much participation a member puts in. PERS Plan 3 is more or less a combination. It is comprised of a reduced defined-benefit plan based on how much an employer puts in, and a defined-contribution plan determined by the member’s contribution.
When members believe they won’t be working in a PERS post long enough to be eligible for retirement benefits, and when they want to access their savings post-retirement, they usually choose Plan 3. People also choose Plan 3 if they want to handle their own investments. Plan 2 is more secure, with fewer risks involved.
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James A. Foster is part of the Poulsbo, WA-based firm Foster Financial Services Inc. that assists federal employees in navigating their benefits and making sound investment decisions to reach their financial goals. For more about government benefits and making sound investments, check out this blog.
James A Foster Washington 
