Short answer: Plan 3 pays a pension of 1% × years × AFC from your employer's money (see the formula), plus an investment account built from your own contributions. You choose a contribution rate option, and the account is yours to withdraw under the rules below. See Plan 2 vs Plan 3, leaving teaching and taxes. Estimate the Plan 3 pension.
Two parts
- The pension: 1% × years × AFC, paid for life once you're vested. DRS's example is $1,242 a month for 23 years at a $5,400 AFC, half of Plan 2's 2%. RCW 41.32.840(1); DRS Washington TRS Plan 3 page, Your income: Washington TRS Plan 3 pension formula
- The investment account: everything you contribute, invested. What it pays depends on you and the markets. DRS Washington TRS Plan 3 page, How much will your investment retirement be?
Plan 3 has two parts. The employer funds the pension (1% formula). You contribute 5% to 15% of pay to your own investment account (rate options A-F chosen when you start; default Option A, 5%; changeable only when you change Plan 3 employers). You can withdraw from the investment account any time after you separate from employment; withdrawals are federally taxable and must start by age 73 (required minimum distributions). The amount depends on your contributions and investment returns, so this site does not estimate it. DRS Washington TRS Plan 3 page, Washington TRS Plan 3 intro and Member contribution rate options; What if you separate before retirement?; RCW 41.32.831(2)
Your contribution rate
| Option | Share of pay |
|---|---|
| A | 5% all ages |
| B | 5% up to age 35, 6% ages 35 through 44, 7.5% ages 45 and older |
| C | 6% up to age 35, 7.5% ages 35 through 44, 8.5% ages 45 and older |
| D | 7% all ages |
| E | 10% all ages |
| F | 15% all ages |
You choose when you start; if you don't, it's Option A. You can change it only when you change Plan 3 employers. DRS Washington TRS Plan 3 page, Washington TRS Plan 3 intro and Member contribution rate options; What if you separate before retirement?; RCW 41.32.831(2)
What it's worth
What the account is worth at retirement depends on the contribution rate you chose (or defaulted into), your pay and years of contributions, and how your investments perform. DRS Washington TRS Plan 3 page, How much will your investment retirement be?
Taking money out
- You can begin withdrawing from your investment account at any point after you separate from employment. You can also leave it invested for as long as you want. DRS Washington TRS Plan 3 page, Plan 3 investment withdrawals
- Withdrawal choices: one-time or regular payments in an amount and frequency you choose; buy an annuity such as the Plan 3 TAP annuity; or roll your contributions into another eligible employer plan. DRS Washington TRS Plan 3 page, Plan 3 investment withdrawals
- Withdrawals from the WSIB TAP fund are priced monthly and most take 6-8 weeks; other investment withdrawals can be faster. DRS Washington TRS Plan 3 page, Investment withdrawals
- The IRS requires you to begin taking payments by age 73, unless you are still employed. DRS Washington TRS Plan 3 page, Plan 3 investment withdrawals
- Plan 3 members can withdraw their investment account any time after separating; the employer-funded pension stays with the plan. DRS Washington TRS Plan 3 page, What if you separate before retirement?
Taxes
Withdrawals are subject to federal income tax. The IRS requires 20% withholding on a lump sum or on installments expected to last less than 10 years, and a payment before age 59 1/2 that is not rolled over may add a 10% IRS tax. A direct rollover (except to a Roth IRA) keeps taxes deferred. DRS Washington TRS Plan 3 page, How is my withdrawal taxed?
Buying service in Plan 3
When a Plan 3 member buys out-of-state or education experience service, half of the payment goes into the investment account (subject to market gains and losses) and half into the benefit fund (non-refundable). DRS Washington TRS Plan 3 page, What if I quit work and withdraw my contributions?
Who to ask
Voya Financial is the DRS record keeper for Plan 3 investment accounts (888-327-5596, TTY 711). DRS Washington TRS Plan 3 page, Investment Account Customer Service by Voya Financial
Questions
Does this calculator estimate my Plan 3 investment account?
No. Its value depends on what you put in and how your investments do, so we don't estimate it. Your account balance is online with DRS's record keeper.
When can I take money out?
Any time after you leave your job. You don't have to retire or reach a certain age, but taxes and IRS rules apply.
Can I change my contribution rate?
Only when you change Plan 3 employers (a new employer, not a new department).
What happens to my pension if I empty the account?
Nothing. The pension part stays in the plan, and if you're vested you can collect it at retirement.
Source: DRS plan pages for Washington TRS Plan 1, Plan 2 and Plan 3 (the DRS member handbook is now published as these web pages), retrieved Nov. 11, 2026, DRS plan page (Plan 3); RCW 41.32.831, 41.32.840. Last reviewed .