Life Expectancy Assumptions Changes
five years, the PSERS actuaries review the system’s experience with its
members. During the most recent review, it was recommended that the life
expectancy assumptions be adjusted. Effective July 1, 2018, PSERS will adjust
the life expectancy assumptions used in benefit calculations. Please note,
however, that this change will only affect members retiring on or after July 1,
impact on your pension benefit resulting from the change to the life expectancy
assumptions will depend on your age at the time of retirement if you retire
before normal retirement, and whether you choose a retirement option other than
the Maximum Single Life Annuity (MSLA). If you choose Option 2 or 3, your
survivor annuitant’s life expectancy will also impact the benefit calculation
but will be minimal – generally one percent or less of the amount before the
· If you are near the normal age of retirement
there will be a minimal change to your payment amount whether your retirement
occurs before or after the effective change.
· The younger you or your survivor annuitant
are at retirement, the more of a reduction there will be in your payment amount
if your retirement is on or after July 1, 2018.
·The older you and your survivor annuitant
are, the more of an increase there will be in your payment amount with a
retirement after the change is effective.
If you need
additional information about your retirement options, obtaining an estimate,
understanding your estimate, and the steps to take as you plan for retirement,
you may wish to attend a Foundations for Your Future (FFYF) program. The FFYF
presentation is also available here.