Defined Benefit Information
Shown below is a chart to help you determine what benefit may be available: Click on the links for more detailed information about the benefit for which you may qualify.
Benefit | Qualifications |
| Return of Contributions and Interest (Refund) | Class T-C or T-D member: Class T-E or T-F member and Defined Benefit (DB) component of Class T-G or T-H member: |
| Vesting or Deferring Retirement (Postponing receipt of your retirement benefit) | Class T-C* or T-D member: Class T-E or T-F member and DB component of Class T-G or T-H member: |
| Disability Retirement | 5 years of credited service; meet medical eligibility and application submission requirement |
| Early Retirement (Age Penalty Applied) | Class T-C* or T-D member Class T-E or T-F member and DB component of Class T-G or T-H member: Special Early Retirement For Class T-C, Class T-D, Class T-E, Class T-F, and Class T-H members, a special early retirement is available if you are at least age 55 and have 25 or more years of credited service (“55/25”). A “55/25” retirement is reduced by one quarter of one percent per month for each month you are under normal retirement requirements. Class T-G members have a special early retirement available if you are at least age 57 with 25 years of service. |
| Normal Retirement (Superannuation) | Class T-C or T-D Member: - 35 years of service regardless of age Class T-E or T-F Member: Age 65 with at least three (3) years of credited service, or any age/service combination that totals 92 (“Rule of 92”) with a minimum of 35 years of service. Example: A member age 57 with35 years of credited service (57 [age] + 35 [service] = 92) would total 92 and, therefore, would be superannuated. Class T-G Member: Age 67 with at least three (3) years of credited service, or any age/service combination that totals 97 (“Rule of 97”) with a minimum of 35 years of service. Example: A member age 62 with 35 years of credited service (62 [age] + 35 [service] = 97) would total 97 and, therefore, would be superannuated. Class T-H Member: Age 67 with at least three (3) years of credited service. |
* Special rules apply if you terminated public school employment before July 1, 2001. | |
Defined Contribution Information
Distribution Payments
If you are a former public school employee with a balance over $5,000 in the PSERS DC Plan, you may choose from the following distribution options. Partial distributions and full distributions may be taken as a direct distribution or a rollover to an individual retirement account or another employer retirement plan. Direct distributions are subject to 20% federal withholding taxes and if under age 59½ or a non-resident alien, additional federal withholding taxes will be withheld unless an exception applies.
- Full distribution – take a one-time lump-sum payout for the entire amount of your vested account balance.
- Partial distribution – take a portion of your vested account balance.
- Installments – have payments distributed monthly, quarterly, semi-annually, or annually. Installments can be changed and you may request a lump-sum distribution at any time. You may not roll over these distributions.
- Annuity – you may use the distribution of your account to purchase an annuity that will provide you with a guaranteed payment for a specified period of time. You have a variety of payout choices, frequencies, and durations.
Automatic Rollovers and Payouts
If you are a former public school employee with a balance of $5,000 or less in the PSERS DC Plan at the time of termination, you have up to 90 days after the date you are eligible for distribution to request a distribution or rollover of your vested PSERS DC account balance to another qualified plan (subject to that plan’s rules and restrictions) or to an individual retirement account (IRA). If you do not request a distribution or rollover, the following will automatically occur based on the balance in your account:
- More than $5,000 – retained in your PSERS DC Plan account
- $1,000.01 to $5,000 – rolled over to a Voya IRA in your name, where it will retain its tax-deferred status
- $1,000 or less – paid out directly to you in a lump-sum less applicable federal withholding taxes
Note: The rules governing distribution provisions may be different than the distribution rules in other qualified plans. A plan’s withholding rules for distributions may apply to rollover money from other plans. Prior to rolling money over, you should check with the plan receiving the money about any changes that may affect the distribution options of the rolled-in money.
Benefit Forfeiture
The right of a person to receive any retirement benefit from PSERS is subject to forfeiture as provided by the Public Employee Pension Forfeiture Act ("Forfeiture Act"). The law mandates that all service and benefits payable to a PSERS member be forfeited if the member is found guilty of, or enters a plea of guilty or nolo contendere to, any crime identified in the Forfeiture Act, when the crime is committed through the member's position as a public employee or official or when the member's public employment places the member in a position to commit the crime(s). More information