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Life Expectancy Assumptions Changes

Every 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, 2018.

The 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 assumption change.

 · 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.
If you are within 12 months of retiring, please see the Countdown to Retirement Checklist.