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 July 20, 2011 DB Plan Only |
Membership Date on or after July 20, 2011 through December 31, 2011 DB Plan Only |
|
|
|
Membership Tier 2 - Membership Date on or after January 1, 2012
|
DB Plan Only |
DB Plan + DC Plan (hybrid) for Non-Social Security positons |
|
|
|
Membership Tier 3 - Membership Date on or after July 1, 2017
The employee contribution rate for DB Plan members equal 50% of the cost of the benefit, so it may vary each year and from each employer. If you do not pay into Social Security, you will also contribute 3% to a DC supplement Plan.
- Employee Contribution Rates -- Fiscal Year 2023-2024 (pay periods July 1, 2023 - June 30, 2024)
- Employee Contribution Rates -- Fiscal Year 2022-2023 (pay periods July 1, 2022 - June 30, 2023)
- Employee Contribution Rates -- Fiscal Year 2021-2022 (pay periods July 1, 2021 - June 30, 2022)
- Employee Contribution Rates -- Fiscal Year 2020-2021 (pay periods July 1, 2020 - June 30, 2021)
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 resources, Plan summary, guide books and forms, you may access our Forms & Resources webpage and for the latest news and information, we encourage you to Sign Up for News and Updates. To estimate future benefits, you may access your Members Only online account, or contact your Local Board for an estimate, or retirement packet. If you are not certain who the Local Board contact person is, please Contact Us, or visit our Applying for Benefits webpage for retirement information.
