When you're vested
| Class | Vested when you have |
|---|---|
| T-C, T-D | At least five years of service with at least one year of qualifying service rendered; or Age 62 or older at termination with at least one year of qualifying service |
| T-E, T-F | At least 10 years of qualifying service; or Age 65 or older at termination with at least three years of service |
| T-G, T-H | At least 10 years of qualifying service; or Age 67 or older at termination with at least three years of service |
Not sure of your class? See which PSERS class you're in. Handbook p. 14, Becoming Vested (PSERS DB Plan)
If you're not vested: a refund
A refund of DB contributions and interest is your only option if you terminate from all school service and are not vested. Apply with PSRS-59. Multiple service members must apply separately to SERS and PSERS. 20% mandatory federal withholding on taxable refund; refunds are not subject to PA state or local tax for PA residents. Handbook p. 20, Refunding Your DB Contributions and Interest; Let's Talk About Taxes (Oct. 2024), p. 1, Refunds More in taxes on PSERS payments.
If you're vested: you can wait
Vested members who leave may defer (vest); the DB account keeps earning 4% interest compounded annually until refund or retirement. Benefits do not start automatically; IRS rules require distributions to begin by April 1 after the year you reach age 70 1/2 (handbook wording; the tax pamphlet refers to a Required Beginning Age by birth date). Handbook p. 20, Deferring Your Retirement Benefit; Let's Talk About Taxes (Oct. 2024), glossary 'Required Beginning Age'
DB accounts of active and vested members accrue interest at 4% compounded annually, posted at the end of the school year. Non-vested members' interest ceases at termination (up to 24 months for unpaid leave or not-yet-terminated). Handbook p. 15, Interest; p. 20, Refunding Your DB Contributions and Interest
More
- If you are vested you can leave your money in and take a pension later; your account keeps earning 4% interest a year. Benefits don't start automatically: you must apply.Handbook p. 20
- T-G and T-H members always own their own DC contributions; employer DC contributions vest after 3 eligibility points.Handbook p. 28
Multiple service membership combines PSERS and SERS service. Elect within 365 days of PSERS notification (or before termination, if earlier). Each system determines eligibility; the benefit uses the 3 or 5 highest years' salary in either system and combined service. Handbook p. 18, Multiple Service Membership
Questions
What happens to my PSERS money if I leave before I'm vested?
If you leave before you are vested, a refund of your contributions and interest is your only option. A refund of DB contributions and interest is your only option if you terminate from all school service and are not vested. Apply with PSRS-59. Multiple service members must apply separately to SERS and PSERS. 20% mandatory federal withholding on taxable refund; refunds are not subject to PA state or local tax for PA residents.
If I'm vested, should I take a refund or leave my money in?
If you leave it in, you keep the right to a pension later, and the account earns 4% a year. A refund gives up the pension for good. Compare what each is worth before you decide, and ask PSERS for an estimate.
Related: if you're vested and near retirement age, compare early retirement with waiting.
Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023), pp. 14-15, 18, 20, 28. Also: Let's Talk About Taxes (Oct. 2024), p. 1. Also: Obtaining Eligibility Points. Last reviewed .