doranosaurus (![[info]](http://l-stat.livejournal.com/img/userinfo.gif){kind=small} doranosaurus) wrote, |
In "PERS 2", the employer contributes some and you contribute some (a predetermined amount) and then at retirement you get a set amount based on a formula, not based on the performance of investments. This is your typical, old fasioned pension.
In "PERS 3", you get the same pension plan but half as much and the other half you can invest as you choose. Basically a personal investment plan but the organization automatically deducts the amounts.
I really don't see the advantage of PERS 3 since you get half as much pension garuanteed and if you wanted to invest in you could do it on your own and not be locked into an amount deducted from your paycheck.
It's much mor complicated than that and if you are a masochist or an investment buff you can read more about it here:
http://www.washington.edu/admin/hr/bene
In "PERS 3", you get the same pension plan but half as much and the other half you can invest as you choose. Basically a personal investment plan but the organization automatically deducts the amounts.
I really don't see the advantage of PERS 3 since you get half as much pension garuanteed and if you wanted to invest in you could do it on your own and not be locked into an amount deducted from your paycheck.
It's much mor complicated than that and if you are a masochist or an investment buff you can read more about it here:
http://www.washington.edu/admin/hr/bene
