The goal of retirement is to
live off your
assets-not on them.
- Frank Eberhart
Whether just starting your career or approaching retirement, it is always a good time to save for your future. The Chelan PUD retirement plan provides two excellent ways to save for retirement: The 457/401(a) matching plan and the Public Employees Retirement System.
About the Retirement Plans
Public Employees Retirement System (PERS) - This plan, through the State of Washington Department of Retirement Systems (DRS), pays a monthly income at retirement. You are required to contribute to the plan. Contribution levels are set by the DRS and are deducted from your pay.
Learn more about this plan
Chelan PUD 457 plan and 401(a) - This matching plan offers an easy and convenient way to put money aside for retirement. This plan gives you a way to reduce your current income taxes with voluntary pre-tax contributions and a wide choice of investment options.
If you enroll in the 457 plan, you must also enroll in a 401(a) plan. The 457 is where your contributions go and the 401(a) is where matching contributions from the District go.
Learn more about these plans
The 457/401(a) matching plans include three types of contributions:
Your before-tax contributions (which go to your 457 account) – You can contribute from 1% of your salary to the IRS-set annual maximum:
Under age 50: $22,500 (2023)
Ages 50+: $30,000 (2023)
District matching contributions (which go to your 401(a) account)
Here are some key features of the plan:
Contributions are taken from your pay before federal income taxes are withheld, allowing you to defer paying taxes on these contributions while investing in your future
District 401(a) plan contributions match your before-tax contributions at $0.50 for each $1.00 you contribute, up to 5% of eligible pay
District contributions are fully vested immediately