Member Benefits

As a participant in the PSPRS, the benefits that are available to you vary depending on your Membership Tier:

Retirement Benefits Eligibility and Calculation

For Tier 1, 2 and 3 DB Members, your retirement benefit is payable to you for your lifetime and is calculated using a formula that takes into consideration factors such as:

Membership Tier 1 - Normal Retirement Defined Benefit (DB) Plan

If a member attains the requirements for a retirement benefit, the member must make application by Applying for Benefits prior to termination of employment.

Age

Service

Calculation

62

15 years

Average monthly benefit compensation x 50% for the first 20 years of credited service.  The benefit is reduced by 4% for each year of credited service under 20 years.

Not required

20 years of credited service

Average monthly benefit compensation x 50% for the first 20 years of credited service.

Not required

20 years of service with less than 20 years of credited service

Average monthly benefit compensation x 50% for the first 20 years of credited service.  The benefit is reduced by 4% for each year of credited service under 20 years.

Not required

20 to 24.99 years of credited service

Average monthly benefit compensation x 50% for the first 20 years of credited service plus 2% of the average monthly benefit compensation for each year of credited service between 20 and 24.99.

Not required

25 or more years of credited service

Average monthly benefit compensation x 50% for the first 20 years of credited service plus 2.5% of the average monthly benefit compensation for each year of credited service above 20 years up to a maximum of 80% of the average monthly benefit compensation.

Membership Tier 2 - Normal Retirement Defined Benefit (DB) Plan

If a member attains the requirements for a retirement benefit, the member must make application by Applying for Benefits prior to termination of employment. However, if a member attains the service requirement, but not the age requirement, the member may elect to leave their contributions on account until reaching the age requirement and may then elect to receive a retirement benefit by Applying for Benefits.

Age

Service

Calculation

52.5

15 years of service

Effective August 9, 2017 pursuant to Senate Bill 1115: Average monthly benefit compensation x credited service x multiplier (below).

52.5

25 or more years of service

Average monthly benefit compensation x 62.5% for the first 25 years of credited service plus 2.5% of the average monthly benefit compensation for each year over 25 years of credited service up to a maximum of 80% of the average monthly benefit compensation. The benefit is reduced by 4% for each year of credited service under 25 years with a pro-rata reduction for any fractional years.

Membership Tier 2 (hybrid) Defined Contribution (DC) Plan

Employee contributions and earnings are immediately vested and are fully vested after ten years of service with employer contributions vesting at a rate of 10% per year.  For members participating in the 401(a) Defined Contribution (DC) Plan managed through Nationwide Retirement Solutions, please visit https://www.psprsdcplan.com

Membership Tier 3 Defined Benefit (DB) Plan

If a member attains the requirements for a retirement benefit, the member must make application by Applying for Benefits prior to termination of employment.  However, if a member attains the service requirement, but not the age requirement, the member may elect to leave their contributions on account until reaching the age requirement and may then elect to receive a retirement benefit by Applying for Benefits.

Age

Credited Service

Calculation

52.5

Early Retirement

15 years of credited service

Actuarially reduced benefit based on the average monthly benefit compensation x credited service x multiplier (below).

55

Normal Retirement

15 or more years of credited service

Average monthly benefit compensation x credited service x multiplier (below) up to a maximum of 80% of the average monthly benefit compensation.

Membership Tier 3 Defined Contribution (DC) Plan Only

Employee contributions and earnings are immediately vested and are fully vested after ten years of service with employer contributions vesting at a rate of 10% per year.  For members participating in the 401(a) Defined Contribution (DC) Plan managed through Nationwide Retirement Solutions, please visit https://www.psprsdcplan.com.  For members wishing to consult with a financial advisor for retirement planning and overall financial wellness, PSPRS partnered with Public Safety Financial/Galloway for assistance.

Multiplier

Credited Service

Multiplier

15 to 16.99

1.5%

17 to 18.99

1.75%

19 to 21.99

2.0%

22 to 24.99

2.25%

25 or more

2.50%

 

Deferred Annuity

Once a member attains the age requirement for a deferred annuity, the member must make application by Applying for Benefits

Membership Tier 1

Inactive members (not making contributions to the System) that have at least 10 years of credited service may elect to receive a Deferred Annuity at the age of 62.  This annuity is a lifetime monthly payment that is actuarially equivalent to the member’s accumulated contributions in the System plus an equal amount paid by the employer.  This annuity is not a retirement benefit; it is an annuity and, because of this, annuitants are not entitled to survivor benefits, benefit increases, subsidy (premium benefit), or participation in the group health insurance program.

Membership Tier 2

and

Membership Tier 3

DB Members Only

A deferred annuity is not available; however, if a member attains the service requirement, but not the age requirement, the member may elect to leave their contributions on account until reaching the age requirement and may then elect to receive a retirement benefit.

Note: “Inactive” members (not making contributions to the Plan), please see death benefit information in the “Inactive Members” section of Survivor Benefits.

Pension Reform under SB1428 (2016)

For an outline of the differences between the membership tiers, benefit eligibility, options, and other System-related information, click here for the PSPRS Matrix of Plan Provisions

Making the Choice

You may estimate potential benefits by creating an online account via Members Onlyor you may contact your Local Board for an estimate or retirement packet. For additional benefit information, you may access the PSPRS Member Handbook.