How to Retire from Washington State Employment: A Step-by-Step Timeline

Retiring from Washington state employment is not a single event—it is a 12-month sequence of administrative steps that must happen in the right order. Miss one deadline and you might lose health coverage permanently. File a form late and your first pension check could slip by months.

Here is the chronological process, condensed into the milestones that actually matter.

12 to 6 Months Before Retirement

Verify your service credit. Log into DRS Online Account Access at drs.wa.gov and review your complete service credit history. Look for missing months, incorrect employer records, or uncredited service. If anything is wrong, now is the time to resolve it—not the month before you leave.

Request your official benefit estimate. DRS generates official estimates within 12 months of your intended retirement date. The estimate shows your projected monthly pension under all four benefit options (Single Life, 100% Survivor, 50% Survivor, and 66.67% Survivor). This is the most important document in your retirement planning—everything else flows from these numbers.

Evaluate service credit purchases. If you have prior uncredited service, interruptive military service, or previously refunded contributions you want to restore, request cost calculations from DRS now. All service credit purchases must be paid in full before your effective retirement date. You can use 457 DCP or 403(b) funds for direct trustee-to-trustee transfers, but these take time to process.

Start thinking about your separation date. Your effective retirement date is the first of the month following complete separation from all DRS-covered employment. For school employees, the choice between July 1 and September 1 retirement has significant implications for health coverage and your first COLA.

6 to 3 Months Before Retirement

Attend a DRS seminar or schedule a counselor appointment. DRS offers retirement planning webinars and one-on-one counselor appointments. The seminars provide an overview; the counselor appointments address your specific account. Neither will tell you which benefit option to choose, but both clarify the rules.

Start Medicare enrollment if you are approaching 65. Contact the Social Security Administration three months before your 65th birthday (or your retirement month, whichever comes first) to enroll in Medicare Part A and Part B. This is mandatory for PEBB retiree health coverage if you are Medicare-eligible.

Resolve any divorce-related pension issues. If a Domestic Relations Order (DRO) exists from a prior divorce, confirm that DRS has a current, approved copy on file. If a DRO needs to be drafted or updated, submit it to DRS well before retirement to allow time for review and any revisions.

Review your Plan 3 balance (if applicable). If you are in PERS Plan 3, TRS Plan 3, or SERS Plan 3, log into the Voya portal and review your defined contribution account balance. Start considering your distribution options: systematic withdrawals, lump-sum, rollover to an IRA, or TAP Annuity purchase.

3 Months to 5 Weeks Before Retirement

Submit your DRS retirement application. File through Online Account Access at least 5 weeks before your target retirement date. The application requires your separation date, your chosen benefit option (1, 2, 3, or 4), survivor information (if applicable), and direct deposit details.

Handle spousal consent. If you are married or in a registered domestic partnership, notarized consent is required if you choose Option 1 (Single Life) or name someone other than your spouse or partner as the survivor. Without notarized consent, DRS may delay or reduce your benefit.

Submit IRS Form W-4P. This sets your federal income tax withholding on your monthly pension payments. Washington has no state income tax, so federal withholding is your only tax consideration.

Submit your resignation to your employer. Coordinate your last working day with HR and payroll. Discuss how your accrued annual and sick leave will be handled—annual leave is cashed out on your final paycheck, and sick leave may be partially converted to service credit depending on your employer's policy.

Retirement Month

Complete your final working day. After your last shift or the end of your terminal leave, your employer submits your final separation dates, compensation, and hours to DRS through the Employer Reporting Application (ERA). DRS cannot calculate your final pension until this reporting is complete.

Start your PEBB health coverage enrollment. Submit PEBB Form A (or complete enrollment through Benefits 24/7) within 60 days after your employer-paid coverage or applicable COBRA continuation coverage ends. If you have qualifying alternative coverage, file a deferral within the same 60-day window.

This is a hard deadline. Missing the 60-day window causes you to lose PEBB retiree coverage eligibility unless you later regain eligibility, such as by returning to a PEBB/SEBB benefits-eligible position.

After Retirement: The First 90 Days

Wait for your first pension check. DRS processing typically takes 60 to 90 days from the date your employer submits final separation data. Your first payment arrives on the last business day of the month following your effective retirement date, assuming processing is complete. If there are delays in employer reporting, the first check comes later.

Pay your first PEBB premiums manually. Pension deductions for health premiums take 60 to 90 days to establish. In the interim, you must send a check to HCA for your first premium payment within 45 days after the 60-day election period ends. If this payment is late, your coverage may be canceled.

Review your benefit option within 90 days. You have 90 days from the date DRS issues your first payment to change your benefit option or substitute a different survivor. After 90 days, your choice is permanent, subject to limited exceptions such as the pop-up provision, a court-approved DRO, or a qualifying one-time option change after a later marriage.

For the complete retirement timeline with worksheets, benefit option comparisons, and PEBB enrollment instructions, see the Washington DRS Retirement Guide.

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