Contributions, Salary & Service

Employee Contribution Rates

During your career and as a requirement of membership, you must contribute a percentage of your base salary each paycheck.  Your contribution rate may vary each fiscal year depending on your Membership Tier and if you are in the DB Plan, DC Plan and/or hybrid DC Plan for Non-Social Security positions.

Membership Tier 1

Membership Date prior to 7/20/2011

DB Plan Only

Membership Date on or after 7/20/2011 through December 31, 2011

DB Plan Only

 7.65%¹

 11.65%¹

¹Membership Tier 1 Employee Contribution Rate Changes

As a result of 2011 S.B. 1609, employee contribution rates were gradually increased starting in FY 2011/2012 from 7.65% up to 11.65% until approximately April 2017. However, as a result of subsequent court rulings, employee contribution rates were rolled back to 7.65% for employees whose PSPRS membership date is prior to July 20, 2011.  For Tier 1 Members that qualified, the excess contributions, plus interest, have been returned to the employers and will be issued back to the employees from the employers.  For the latest information, refer to News & Publications. Employees with a membership date on or after July 20, 2011 will continue to pay the contribution rate pursuant to S.B. 1609, which is determined each fiscal year.

Membership Tier 2 - Membership Date on or after 1/1/2012

DB Plan Only

DB Plan + DC Plan (hybrid) for Non-Social Security positons

11.65%

14.65% (11.65% DB + 3.0% DC)

Membership Tier 3 - Membership Date on or after 7/1/2017

The employee contribution rate for DB Plan members will equal 50% of the cost of the benefit, so it may vary from year to year, and varies from employer to employer.  If you do not pay into Social Security, you will also contribute 3% to a supplementary DC Plan.

Average Monthly Benefit Compensation (aka Average Monthly Salary)

When you become eligible for a Retirement Benefit from the PSPRS, your average monthly benefit compensation is used in the calculation to determine your monthly benefit payment.

Membership Tier 1 Highest average of 36 consecutive months of salary within the last 20 years of service.
Membership Tier 2 Highest average of 60 consecutive months of salary within the last 20 years of service. 
Membership Tier 3 Highest average of 60 consecutive months of salary within the last 15 years of service. 

Service versus Credited Service

Your eligibility to receive a pension and how that benefit is calculated is based on two different service criteria’s:

Your eligibility for a normal pension, under most circumstances, is based solely on your service within the Plan.  Your service is all the time that is accounted for during your continuous employment and participation in the PSPRS.  Think of this as the running clock that starts when you first participate in the PSPRS and continues as long as you remain employed in a covered PSPRS position.

Credited service is that time while you participate in PSPRS that is covered by your contributions into the Plan, in addition to any redemption/transferring of eligible time.  So, any pay periods where you may have been on an unpaid leave is not considered credited service.

Additional Resources

For additional benefit information, you may access the PSPRS Member Handbook and for personal account information, you may access your account online via Members Only.