You may choose to receive your TAP Annuity under one of the following four options:

• Option 1 - Single Life:

  Your annuity will be paid to you for as long as you live.  No ongoing monthly benefit is available for anyone after your death.  This provides the largest monthly amount to you.

• Option 2 - Joint Life 100% Survivorship:

  Your annuity is reduced for your lifetime.  At your death, your survivor will continue to receive the same amount for the remainder of his or her life.

• Option 3 - Joint Life 50% Survivorship:

  Your annuity is reduced less than under Option 2, but your survivor receives only 50 percent of your monthly annuity payment when you die.

• Option 4 - Joint Life 66 2/3 Survivorship:

  Your annuity is reduced; and your survivor receives 66-2/3 percent of the amount at your death.

The dollar amount of a Plan 3 Defined Contribution account that is to be converted into a Total Allocation Portfolio (TAP) Annuity provided by the State of Washington.   Only assets that are held within the TAP can be converted to a TAP Annuity.  The minimum required to purchase a TAP Annuity is $25,000.   All or part of the total value held in the TAP can be converted to a TAP Annuity.  Any of the assets in your Plan 3 Defined Contribution account can be converted to an Annuity, if they are first moved into the TAP.

Since holdings in the TAP are in shares, while the Annuity Purchase Amount is expressed in dollars, TAP shares must first be given a dollar value before they can be converted into a TAP Annuity.  This valuation will take place at the next opportunity after you have committed to the conversion.  If you specify that the entire value held in the TAP is to be converted, the dollar equivalent of this amount will not be known until the next valuation is complete.

This is a label or name to be given to the particular set of data and assumptions that you are entering. This label will appear in saved or printed work. You must make an entry in this field.

For the purpose of this software, this is the person designated to receive a continuing benefit payment after your death.  The amount the joint annuitant receives depends on which annuity payment option you select.

It is possible to use the lump sum accumulated in your Plan 3 defined contribution account to purchase a TAP Annuity.  A TAP Annuity provides a guaranteed income stream for the rest of your life.  You also have options for naming another person to continue receiving annuity payments if that person outlives you.  In these ways the TAP Annuity is similar to a defined benefit pension.  Just as with the defined benefit pension, the monthly payment is smaller if you choose a survivor option.

Unlike the defined benefit pension, the TAP Annuity can begin at any time after you have separated from service covered by the Washington State retirement systems.  As with other distributions from your defined contribution account, you must be aware of tax consequences that may depend upon the age at which you begin distribution.

The amount you must pay for each dollar of monthly life-long income depends mostly upon your age (and, if you select Annuity Option 2, 3 or 4, your joint annuitant's age) when you purchase the annuity.  The price of an annuity reflects assumptions about life expectancy and about yield of investments.

The WSIB Total Allocation Portfolio (TAP) Annuity provides a member with a guaranteed lifetime monthly benefit that includes an automatic 3 percent annual cost of living adjustment (COLA).  It also guarantees the purchaser's estate will receive the balance of the original annuity purchase price, minus the payments made to the member (and joint annuitant if chosen), should the payments made amount to less than the purchase price of the annuity.  More information about the WSIB TAP Annuity can be found in the Plan 3 Annuity Guide.   The pricing reflects only the cost of providing the benefit.  Prices are subject to adjustment at any time.

The TAP Annuity Cost of Living Adjustment (TAP Annuity COLA) is a fixed 3 percent per year benefit increase that is applied to a member's TAP Annuity payment.  The COLA is increased annually, after the first year; on the anniversary of the payment begin date.

This is the date that you would begin receiving payments from the TAP Annuity.

A selection of investments held and managed primarily for the state's pension funds by the Washington State Investment Board (WSIB).  Plan 3 members can hold shares of the TAP as part or all of their Plan 3 Defined Contribution accounts.  The dollar value of TAP shares is determined once each month.