Retirement

Retirement participation is mandatory for eligible Clark College employees.  When you first become eligible for benefits you will be offered a choice between two retirement plans and that choice is normally irrevocable while you are employed at Clark.  The choices you are offered will depend on your position and whether you have had any prior participation in any Washington State sponsored retirement plans. Choice may be limited dependent on an employee's prior retirement plan history.

Effective January 1, 2017, all newly hired employees scheduled to work 40 hours per week will be automatically enrolled in the WA state Deferred Compensation Plan (DCP) at a rate of 3% of taxable salary in addition to the mandatory retirement plan. A welcome packet will be mailed to newly hired employees from Empower Retirement, the record keeper of the plan.  Employees who wish to waive participation need to call 1-888-327-5596 or log in at http://www.drs.wa.gov/dcp/dcp.htm within 30 days of the date of the initial notification letter. To find more information, please visit DCP Automatic Enrollment,  and to review the plan details, visit DCP Enrollment Guide.

Faculty

Faculty have the option to participate in the State Board Retirement Plan (SBRP) with the vendor being TIAA or the Teachers Retirement System (TRS) Plan 3 administered by the Department of Retirement System (DRS).  These options may be different dependent on the employee’s prior Washington State Retirement Plan history.

SBRP -TIAA – This is a Defined Contribution Plan. The employee contributes a mandatory defined amount and the state matches the employee’s contributions. Contribution rates are based on age as follows:

Under age 35:   5.0%    age 35 to 49:    7.5%    age 50+: 10.0%

TRS Plan 3 – This is a hybrid plan which has components of a Defined Contribution Plan and a Defined Benefit Plan.  The defined contribution portion of the plan is funded through mandatory employee contributions.  The employee may choose between six contribution options. The choice is irrevocable during the time the employee is employed, and the employee is responsible for their investment choices. 

Administrative/Exempt Employees

Administrators and exempt employees must participate in the State Board Retirement Plan (SBRP) with the vendor being TIAA or the Public Employees Retirement System (PERS) Plan 3 administered by the Department of Retirement Systems (DRS). These options may be different dependent on the employee’s prior Washington State Retirement Plan history.

SBRP -TIAA – This is a Defined Contribution Plan. The employee contributes a mandatory defined amount and the state matches the employee’s contributions. Contribution rates are based on age as follows:

Under age 35:      5.0%                     age 35 to 49:      7.5%   age 50+:              10.0%

PERS Plan 3 – This is a hybrid plan which has components of a Defined Contribution Plan and a Defined Benefit Plan.  The defined contribution portion of the plan is funded through mandatory employee contributions.  The employee may choose between six contribution options. The choice is irrevocable during the time the employee is employed, and the employee is responsible for their investment choices.

Classified Staff Employees

Full-time and part-time classified employees hired to work 70 or more hours per month in an eligible position, must enroll in the Public Employees Retirement (PERS) Plan 2 or 3 administered by the Department of Retirement Systems (DRS), unless they have previously been a member of PERS Plan 1.  Both the employee and the College contribute to the plan.  New employees must notify Human Resources if prior membership applies. Newly eligible employees have 90 days to make an election, however during that time they will be placed into PERS Plan 2 and payroll retirement contributions will begin immediately.

PERS Plan 2 – This is a Defined Benefit Plan with a guaranteed lifetime benefit based on 2% x service credit years x average final compensation.  Employees are vested in the plan after five years of service credit.  Employees pay a percentage of their salary each pay check toward the plan. The percentage is set by the state.

PERS Plan 3 -  This plan has two parts: a Defined Benefit and a Defined Contribution. The defined benefit part pays a guaranteed lifetime benefit based on the formula 1% x service credit years x average final compensation.  Employees are vested in the plan after 10 years of service credit in most cases or after 5 years depending on the age when the service credit was earned.  The defined contribution part of the plan is vested immediately and provides a benefit based on contributions and their investment returns. There are six contribution rate options that range from 5 to 15% and are irrevocable once chosen.

Resources

SBRP-TIAA
http://www1.tiaa-cref.org/tcm/sbctc/
Customer Service Phone: 1-800-842-2776 

Department of Retirement Systems (DRS)
http://www.drs.wa.gov/
Customer Service Phone: 1-800-547-6657

PERS 2 Handbook:
http://www.drs.wa.gov/member/handbooks/pers/plan-2/pers2hbk.pdf

PERS 3 Handbook:
http://www.drs.wa.gov/member/handbooks/pers/plan-3/pers3hbk.pdf  
 
TRS Plan 3 Handbook:
http://www.drs.wa.gov/member/handbooks/trs/plan-3/default.htm

SBRP -TIAA Plan Description:
https://www.sbctc.edu/resources/documents/colleges-staff/my-employment/sbrp-summary-plan-description.pdf