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Retirement Benefit Options

Monthly Benefit Options from Defined Benefit (DB)

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Your options when choosing to receive your DB retirement benefit are: Maximum Single Life Annuity, Option 1, Option 2, Option 3, and Customized.


Distribution Options for your Defined Contribution (DC) Account

If you terminate your public school employment, you may request a distribution of some or all of your vested balance in your PSERS DC Plan account at any time.  Your termination is reported by your employer to PSERS, who then notifies Voya when you are eligible for a distribution.

You can make a distribution request through Voya.  All distributions will be made in cash. If a distribution is an "eligible rollover distribution," as explained in the Public School Employees' Retirement System School Employees' Defined Contribution Plan Special Tax Notice Regarding Plan Payments, you may do a 60-day rollover or a direct rollover of all or a portion of the distribution to an individual retirement account or annuity or another employer retirement plan willing to accept the distribution as explained in the Notice.

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​Distribution options for a distribution of the vested balance in your PSERS DC Plan account:


Distributions via check will be generated 2 business days after the request has been processed. Checks will be mailed directly to your address of record. You also may elect to have the proceeds directly deposited to your bank.  Participants are restricted from requesting distributions via electronic transfer to your bank for seven (7) calendar days following any banking information updates. If a distribution is requested by the participant during the seven (7) calendar day wait period, a check will be issued instead.

Your payment from the PSERS DC Plan will be taxable income, excluding after-tax contributions, for federal income taxes if you do not roll it over. If you do not request a direct rollover, the PSERS DC Plan is required to withhold 20% of the taxable portion of the payment for federal income taxes. If you are a nonresident alien and you do not request a direct rollover to an eligible retirement plan, instead of withholding 20%, the PSERS DC Plan is generally required to withhold 30% of the taxable portion of the payment for federal income taxes.  If you are under age 59½ and do not request a rollover, you will also have to pay a 10% additional federal tax on early taxable distributions (generally, taxable distributions made before age 59½), unless an exception applies.  If, however, you request a rollover, you will not have to pay federal tax until you receive the taxable payments and the 10% additional tax will not apply if those taxable payments are made after you are age 59½ (or if an exception applies).

Whether you can rollover your distribution to another plan depends upon whether the plan receiving the money allows rollover money into the plan.

Note: The rules governing distribution in a transferee plan may be different than the rules governing the PSERS DC Plan from which a rollover originated. The PSERS DC Plan's withholding rules for distributions may apply to rollover money from other qualified plans.

Distribution choices and rules are complex. You are encouraged to talk with your tax advisor or financial planner before deciding how to take your distribution.  To read more about distributions, visit "Getting Your Money" in the "Retirement" section of Education & Tools on the Voya website.