Statement of Account
All active and vested members receive an annual Statement of Account For School Year YYYY - YYYY. The statement shows your total contributions, interest, years of credited service, a summary of debts against your account (if applicable), and an estimate of your monthly retirement benefits (if eligible). PSERS will mail your statement after all of your employer(s) report your salaries, contributions, and annual service for that school year (the process begins early September and ends by December 31, unless your employer reports are delinquent). Any adjustments or purchases of service credit that are transacted after the statement generation date will appear on the following year’s statement. If you terminated school service within the last two school years and have a balance in your retirement account, you will also receive a statement from PSERS.
While these statements are dated as of the end of the school year (June 30), the statements are not usually mailed to you until late fall. This gives the employers the opportunity to report year-end information and make any necessary adjustments, and allows PSERS time to process this information.
Any activity for the statement’s school year reported to PSERS after the printing of the current statement will appear on the following year’s statement.
The statement shows your membership class, total contributions, interest, your employer(s) that reported information during the school year (if applicable), years of credited service, a summary of debts against your account (if applicable) and an estimate of your monthly retirement benefits (if eligible).
Click here to view the Statement of Account Insert (PDF) mailed with your statement for the 2015-2016 school year. It provides additional information and answers to PSERS members’ most frequently asked questions regarding their
Statement of Account.
Verifying Your Statement Information
When you receive your statement, please take a moment to verify the information provided, such as your birth date, years of service, spelling of your first and last name, and mailing address.
For active members, changes to your mailing address, name, date of birth, and questions pertaining to service reported to PSERS by your employer during the referenced school year should initially be directed to your employer. If you are a vested member of PSERS or you have recently terminated all Pennsylvania public school employment, corrections or questions should be directed to PSERS.
Statement Beneficiary Information
Your principal beneficiary is listed unless you have requested confidentiality. Due to space limitation on the statement, the complete name of your beneficiary may not appear. If you named more than ten principal beneficiaries, only the names of the first ten listed on the
Nomination of Beneficiaries (PDF) form will appear. There is no need for concern that the additional names do not appear. In the event of your death, PSERS will refer to the actual
Nomination of Beneficiaries (PDF) form to determine the payment of any death benefit.
If you submitted a
Nomination of Beneficiaries (PDF) form before April 1975, your beneficiary does not appear on your annual Statement of Account. If you wish to have the name of your beneficiary appear on your statement, submit a new
Nomination of Beneficiaries (PDF) form to PSERS.
As a Dual Coverage member, you contribute at the full rate to both PSERS and Social Security. The majority of PSERS members have Dual Coverage.
Your Contributions – Taxable or Pre-Taxed
Your contributions are determined by your contribution rate and the salary reported to PSERS by your employer. PSERS credits contributions to your account based on the salary information your employer reports to us.
Employee contributions fall into two categories - taxable and pre-taxed.
Taxable contributions are tax-deferred. Taxable contributions include regular contributions made after December 31, 1982, and purchase of service payments made at any time via a rollover. You do not pay federal tax on this money until you withdraw these contributions. If you do not see contributions listed under Investment in Contract Pre-87 and/or Investment in Contract Post-86, all of your contributions are taxable.
Anyone who became a contributing member of PSERS on or after January 1, 1983, will have contributed all taxable contributions, with one exception – payments made to purchase service credit.
Pre-taxed contributions are your contributions where you already paid the federal tax due on the amount of the contributions. Pre-taxed contributions include Pre-87 Investment in Contract contributions and Post-86 Investment in Contract contributions.
Pre-87 Investment in Contract contributions consist of regular contributions made before January 1, 1983, and purchases of service payments made before January 1, 1987.
Post-86 Investment in Contract contributions include purchase of service payments made after December 31, 1986. You, however, cannot recover the total amount of the Post-86 pre-taxed money at one time, even though this money was previously taxed. It will be excluded as a portion of your taxable income (monthly benefit payments) and will be recovered by you over your anticipated lifetime. This is referred to as an exclusion ratio.
Interest on Your Contributions
You earn two (2) percent interest on your current year’s contributions. All prior contributions in your account earn four (4) percent interest annually. Your current year’s contributions earn two percent interest instead of four percent, because not all of your contributions are in your account for the full year.
You may not receive more than one year of service within a single school year (July 1 – June 30). There are two primary reasons why a partial year of credit may be reflected on your statement:
- You worked less than a full school year. The service calculation is based on the number of days or hours reported by your employer. For example, a full year of service credit is 180 days (if hired on a per diem basis) or 1,100 hours (if hired on an hourly basis). If you worked 170 days, PSERS calculates your service credit by dividing 170 by 180. You would receive .94 of a year or service credit.
- If you purchased service, the total service may have included a partial year of service.
If you do not agree with the service reported during the school year, contact your employer(s) to review the reported service. Any adjustments to your service would be made by your employer and then reported to PSERS by them.
Final Average Salary
The Statement of Account calculates your final average salary using the last 36 months of salary as reported by your employer. The salary used in the processing of the statement always starts with the last month of salary for the close of the most current year. This method may not result in your true final average salary, as would be used to calculate your retirement benefit. It is a generalized method used to cover as many different employer-reporting processes as possible and still result in a viable final average salary for a generalized calculation.
Example: As of June 30, the calculation will start with June and refer to the preceding 36 months of reported salary. For calculating the retirement estimate on your statement, this total is divided by 3 to arrive at the final average salary.
Benefit Estimate Not Provided
There may be several reasons a benefit calculation was not provided: data may be incomplete for the calculation of final average salary, your total service credit may not qualify you for a retirement benefit, or you may be a former PSERS retiree who has returned to service.
Decreasing Death Benefit or Monthly Retirement Benefit From Previous Year
As the present computerized information used to generate your Statement of Account is generalized to cover a broad spectrum of employer reporting methods and employee information, the system does not project your contributions and interest for future retirement dates.
Your death benefit and/or monthly retirement benefit may drop due to the amount of contributions and interest available for you to withdraw. The amount of contributions and interest available for withdrawal at retirement reduces your monthly benefit payment. Because the previous information provided did not update the contributions and interest, the estimated figures were showing a smaller withdrawal of funds.
Why You May Not Receive a Statement
The two main reasons would not receiving a Statement of Account would be due to an incorrect address on file for you or your account is in an inactive status.
If you left employment with fewer than 10 years of credited service prior to July 1, 2001, or with fewer than 5 years of service if you left after July 1, 2001, making your account inactive. If you are still working in a Pennsylvania public school and you’re not receiving your statement, please contact PSERS
to ascertain that we have the correct address on file for you.
If you are no longer working in a Pennsylvania public school, it may be to your benefit to withdraw your contributions and interest from PSERS. By law, PSERS may not continue to pay interest to inactive accounts.
Obtaining Copies of Your Statement
Once your statement is processed and mailed, a copy of that statement is available through the PSERS online member site, Interaction. You must have an Interaction account established to view or print a copy of your statement.
In some circumstances, the mortgage companies insist on more current information than what appears on your most recent Annual Statement of Account. This can be accomplished with the company submitting a form used throughout the lending community, entitled "Verification of Deposit
, (PDF)" along with the member's signed release. The approximate time frame for our response is 3 to 5 days.