Requesting a Payment
PSERS will not pay a refund of contributions or a retirement benefit without the completion and submission to PSERS of the proper application.
Notification of Pending Payments
PSERS sends written notification to a member notifying them of a pending payment prior to the payment of a refund or the initial retirement benefit. Payments are usually received within 15 days of the date of the letter.
Monthly benefit payments sent electronically on the last business day of the month and are due in the financial institution by 9:00 AM. Paper checks are mailed on or before the last business day of the month. No written notice is sent prior to these payments being made unless for some reason there is a change to the amount of the payment, such as retroactive money being added to the payment, a change in the federal withholding tax amount, or a change to the amount of a health insurance payment.
In accordance with the Pennsylvania Retirement Code, § 8534(b), if PSERS should send any type of overpayment to any recipient, the recipient is required to return the overpayment to PSERS. This includes monthly benefit payments paid after death.
The most common reasons for an overpayment are due to the unreported death of an annuitant or a delay in reporting a retiree’s return to Pennsylvania public school employment.
While an overpayment is a rare occurrence, PSERS realizes that the party who received the overpayment may not have expected that there is a law requiring reimbursement. In the event this should occur to a PSERS retiree, PSERS will provide two repayment options – a lump sum payment in the full amount of the overpayment, or an actuarial deduction.
If a retiree elects to repay the amount in a lump sum, a check or money order made payable to PSERS is due to PSERS within 30 days of the date of the written notification. PSERS may only accept a payment for the exact amount requested.
If PSERS does not receive the lump sum payment within 30 days, PSERS applies an actuarial deduction to the retiree’s retirement benefit. An actuarial reduction method will permanently reduce the retiree’s monthly benefit payment for the life of the annuity.
Non-retirees who receive overpayments will receive a letter informing them of their available repayment options.