OLYMPIA, WA—At the end of July, Washington State employees under PERS may notice a 3% increase in their paychecks. This increase is thanks to legislation passed in March 2023 and is intended to help with the cost of inflation.
From the Washington Department of Retirement Systems:
One of the best things about getting a paycheck increase is that it gives you more flexibility with your budget.
You can use the extra money to:
- pay off credit card debt
- save for a big vacation
- open an account or add to a child’s 529 college savings fund
- increase your DCP contributions for retirement
No matter how you decide to use the extra funds, setting aside a small amount of $50 or $100 to an account every month can add up overtime and help you achieve any goal.
Consider a percentage increase for your DCP contributions
If you’re currently contributing a percentage of your paycheck to DCP, your account will already benefit from this increase. Just know that now is the perfect time to raise that number. By increasing your percentage, your DCP account will see faster gains in the upcoming years. At the same time, you’ll still see an increase in your take-home pay. It’s a win-win.
Example: if you’re contributing 3% now, consider increasing it to 4% or 5%.
How to change your contributions:
- Log in and select your DCP account
- At the Voya main menu select Accounts and then Washington State DCP
- Select Contributions & Savings, then Manage Contributions
- The page will show what your current contribution rate is. Select Update My Contributions to make the change.
