“Can I change my Plan 3 contribution rate?” It’s one of the most common questions I hear from Washington public employees, whether you’re a teacher in TRS 3, a state or local government worker in PERS 3, or a school employee in SERS 3. People assume that because it’s their own retirement money, they should be able to adjust it whenever they want.
The short answer is no, you can’t change it whenever you like. But there is one real exception that can open the door again, and knowing how it works can save you from feeling stuck with a choice you made years ago. Let’s walk through exactly how this works and what you can do about it.
The Short Answer: You’re Locked In
Once you pick a contribution rate for your Plan 3 account, that rate sticks. You can’t call the Department of Retirement Systems (DRS) every January and bump it up or down like you might with a 401(k) at a private company. Whatever percentage you’re currently putting in is the percentage you’ll keep putting in.
This surprises a lot of people, especially teachers who have been in the system for a long time. That’s because this rule wasn’t always true, and knowing what changed explains why.
What Changed in 2015
Before 2015, TRS 3 members had it easier than everyone else. Every January, a teacher could log in and change their contribution rate for the coming year. Want to save more this year? Bump it up. Need a little more take-home pay? Dial it back down. It was flexible, and a lot of teachers built their planning around that flexibility.
Members in PERS 3 and SERS 3 never had that option. From the very beginning, once they picked a contribution rate, they were stuck with it (with one exception we’ll get to). The state decided it wasn’t fair for one group of public employees to have more control over their contributions than another group doing similar work for the same state.
So in 2015, the rules were made consistent across all three plans. TRS 3 lost its yearly change option, and now all three systems, TRS 3, PERS 3, and SERS 3, follow the same locked-in approach.
Why Plan 3 Gives You a Contribution Choice at All
It helps to understand why this choice exists in the first place. Plan 3 is different from Plan 2 because it’s a hybrid. Part of your retirement comes from a traditional pension, funded by your employer, that pays out based on a set formula. You don’t control that part, and you don’t need to.
The other part of Plan 3 is a defined contribution account, similar to a 401(k). That money comes from your own paycheck, and it’s invested and grows (or shrinks) based on how the investments perform. Because this piece is funded by you, DRS lets you choose how much of your paycheck goes into it, within a set range of options.
Plan 2 doesn’t have this second piece at all, so there’s no contribution rate to pick. Plan 3 members get that choice, and the 2015 rule change was about how often you’re allowed to revisit it, not about taking the choice away entirely.
The One Exception: Changing Employers
Here’s the part that most people don’t know about. If you leave one employer and start working for a different one, that counts as a new hire in the eyes of DRS, even though you’re still in the same retirement plan. For example, a teacher who moves from one school district to another has technically had a change in employment.
That change in employment reopens your contribution rate choice. You get a 90-day window from your new hire date to select a new rate. If you don’t make a change during those 90 days, you’re automatically locked back into whatever rate you had, and you’ll stay there until your next employer change.
This is worth remembering if you’re ever considering a move between districts, agencies, or eligible employers within the same retirement system. It’s a built-in opportunity to reconsider your contribution rate, and a lot of people don’t realize it’s there.
A Simple Example of Why This Choice Matters
To see why this decision is worth thinking through carefully, let’s look at a simple example. Imagine two teachers, both earning $55,000 a year, hired on the same day. One picks the lowest contribution rate the video mentions, 5%. The other picks the highest rate mentioned, 15%.
| Contribution Rate | Annual Contribution | Approximate Monthly Amount | Extra Take-Home Pay at 5% vs 15% |
|---|---|---|---|
| 5% | $2,750 | $229 | $458 more per month |
| 15% | $8,250 | $687 | Baseline |
That’s a difference of about $458 a month in take-home pay, every single month, for as long as both teachers stay with the same employer. Since neither one can adjust that rate except by changing jobs, this single choice made early on can shape a household budget for years.
A higher rate isn’t a bad idea by itself. It just deserves real thought before you pick it, since you won’t get an easy do-over.
What Should Guide Your Decision
Since you’re stuck with your choice until your next employer change, it’s worth thinking through a few things before you pick a rate. How many years do you have left until retirement? A younger employee has more time to adjust course through other savings if a lower Plan 3 rate turns out to be too conservative.
What does your household budget look like right now? If a higher contribution rate would stretch your paycheck too thin today, that’s a real cost, even if it means more retirement savings down the road. There’s no universally right answer, only the right answer for your own situation.
It also helps to think about how this rate interacts with your other savings. If you’re already maxing out a 403(b) or DCP account, you may be comfortable with a higher Plan 3 rate. If those accounts are empty, a lower Plan 3 rate paired with contributions elsewhere might give you more flexibility overall.
How to Check Your Current Contribution Rate
If you’re not sure what rate you’re currently contributing at, there are a few easy ways to find out. Your pay stub usually lists your retirement contribution as a line item, either as a dollar amount or a percentage of your pay.
You can also log into your online DRS account to see your contribution history and current rate. Your employer’s payroll or HR department can confirm it as well, since they’re the ones submitting your contributions each pay period.
Knowing your current rate matters even if you can’t change it right now, since it tells you exactly how much of your own savings effort needs to come from other accounts like a 403(b) or DCP.
If You’re New to Plan 3, Start Low
If you’re just starting out in Plan 3 and trying to decide on a contribution rate, a common recommendation is to start with the lowest option, often 5%. This locks you into the smallest required commitment out of your paycheck.
Here’s the reasoning. Life changes. Your budget today might look completely different in five years. If you start at a high contribution rate and later need that money in your paycheck instead, you’re out of luck until you switch employers. Starting low keeps your options open, and you can always find other ways to save more if your finances allow it.
You Have Other Ways to Save Too
Plan 3 isn’t the only retirement savings tool available to Washington public employees. Most employers also offer a 403(b) plan, which works similarly to a private-sector 401(k), letting you set aside additional money from each paycheck on top of your Plan 3 contributions.
There’s also the Deferred Compensation Program, usually called DCP, which is another optional savings account available to public employees in Washington. Both of these accounts give you flexibility that your Plan 3 contribution rate doesn’t, since you can typically raise, lower, or pause your contributions to them much more easily.
So if you’re locked into a Plan 3 rate that feels too low for your retirement goals, a 403(b) or DCP account can help you close that gap without waiting for a job change.
Figuring out how Plan 3, a 403(b), and DCP fit together isn’t always straightforward, and the right mix depends on your income and your timeline. If you’d like help sorting through those pieces for your own situation, you can schedule a free personal planning call here and we’ll walk through it together.
Frequently Asked Questions
Can I change my Plan 3 contribution rate every year?
No. That was possible for TRS 3 members before 2015, but the rule changed so that TRS 3, PERS 3, and SERS 3 all work the same way now. Once you pick a rate, you keep it unless you qualify for the employer-change exception.
What happens if I switch employers?
Switching to a new employer counts as a new hire event with DRS. You get a 90-day window from your new hire date to choose a different contribution rate. If you let that window pass, you’re locked into your existing rate again.
Why did Washington change this rule in 2015?
The state decided it was unfair for TRS 3 members to have yearly flexibility that PERS 3 and SERS 3 members never had. Making the rules the same across all three plans put every public employee on equal footing.
What contribution rate should I choose if I’m new to Plan 3?
Many people are better off starting at the lowest available rate, such as 5%, since you can’t easily raise or lower it later without changing jobs. You can always save more through other accounts if you want to contribute beyond that minimum.
Are there other ways to save for retirement besides Plan 3?
Yes. Most Washington public employees also have access to a 403(b) plan and the Deferred Compensation Program (DCP). Both give you more flexibility to adjust your contributions than your locked-in Plan 3 rate does.
How do I find out what contribution rate I’m currently on?
Check your pay stub, log into your online DRS account, or ask your employer’s payroll or HR office. Any of these will show you the exact rate currently being taken out of your paycheck.
Does this rule apply the same way to TRS 3, PERS 3, and SERS 3?
Yes. Since the 2015 change, all three plans follow the same locked-in structure with the same 90-day exception for a change in employer. There’s no difference between the systems on this specific rule.
P.S. If you’re not sure whether your current Plan 3 contribution rate makes sense for your retirement timeline, or how it should work alongside a 403(b) or DCP account, our free community is a good place to start learning without any pressure.
