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​Act 5 Current Member Election Sep. 1 through Nov. 30, 2019

No action is required to remain in your current membership class.

Open Election Period for Class T-C, Class T-D, Class T-E, and Class T-F Members

Act 5 of 2017 gives Class T-C, Class T-D, Class T-E, and Class T-F members a one-time option to elect prospectively into one of the new Act 5 membership classes that each have a lower defined benefit (DB) structure and adds a defined contribution (DC) component. Only members who are active on July 1, 2019, are eligible to elect one of the Act 5 membership classes. The election window is from September 1 to November 30, 2019. Before contacting PSERS to elect an Act 5 membership class, please thoroughly review the information contained within this article.

Public school employees who became PSERS members before July 1, 2019, are not required to elect one of the Act 5 membership classes (Class T-G, Class T-H, or Class DC).
No action is required to remain in your current membership class.

Key Benefit Differences Between Membership Classes

Class T-C, Class T-D, Class T-E, and Class T-F are DB membership classes that provide a guaranteed retirement based on a set DB formula (final average salary (FAS) x class multiplier x years of service). Retirement benefits in a DB plan are guaranteed for life.

Class T-G and Class T-H offer a lower guaranteed retirement benefit.
Class DC offers no guaranteed retirement benefit.

Act 5 of 2017 created additional classes of service that reduces the DB formula but adds a DC component. The DC component to a PSERS retirement benefit is based on the amount of contributions made by you and your employer and the investment performance on those contributions, with the overall balance being adjusted for fees and costs. Contributions have the potential to grow based on investment earnings but are not guaranteed against loss in declining investment markets.

PLEASE REMEMBER:

  1. By electing Class T-G or Class T-H, the defined benefit multiplier is lower than the defined benefit multiplier for your current membership class.
  2. By electing Class DC, you will not be entitled to a guaranteed defined benefit. Rather, as a Class DC member, your benefit will be comprised solely of your DC account value.

 

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Electing an Act 5 Membership Class
If you wish to elect an Act 5 membership class, call PSERS at 1.888.773.7748. A PSERS Retirement Representative will explain how your retirement benefit may be impacted and provide you with the necessary paperwork if you wish to continue with your election.

The election into one of the Act 5 membership classes is effective on January 1, 2020. All previous service credited with PSERS will remain with your current membership class.

Your decision to elect an Act 5 membership class or remain in your current membership class is irrevocable, even if you leave employment and later return to work for a public school employer.

Remember: No action is required if you wish to remain in your current membership class.