Leaving Employment - PSERs

PSERS
Your Benefits
& Leaving Employment
Publication # 9580 9/2012

Table of Contents
Benefits for Which You May be Eligible..........................................................................1
Before Leaving Employment...........................................................................................2
Purchase of Service..........................................................................................................2
Leaving Employment Choices.........................................................................................2
Deferring Retirement........................................................................................................3
How do I decide?..............................................................................................................3
Refund .............................................................................................................................4
Monthly Retirement Benefits...........................................................................................5
Normal Retirement.....................................................................................................5
Early Retirement.........................................................................................................5
Disability Retirement..................................................................................................6
About the Retirement Calculation...................................................................................6
Retirement Benefit Options..............................................................................................7
Making Your Decision.......................................................................................................8
Online Estimate Calculators............................................................................................8
Applying for a Retirement Benefit...................................................................................8
Deferring Retirement.........................................................................................................9
PSERS Health Options Program (HOP)..........................................................................9
Premium Assistance Reimbursement.............................................................................9
Returning to Public School Employment.....................................................................10
Contacting PSERS..........................................................................................................10
Leaving Employment Checklist.....................................................................................11
The Public School Employees’ Retirement System (PSERS) provides this document for educational
and informational purposes. Information in this document is general in nature, does not cover all factual
circumstances, and is not a complete statement of the law or administrative rules. The statements in this
document are not binding. In any confl ict between the statements in this document and applicable law or
administrative rules, the law and administrative rules will prevail.
This document is designed solely to provide an overview of benefi ts available to PSERS members and is not
intended to be a substitute for retirement counseling.
Information in this booklet pertains to employees who contribute or have contributed to PSERS and terminate
service after July 1, 2001. If you or your employer terminated your employment before July 1, 2001, you may
be subject to different credited service requirements to qualify for a monthly retirement benefi t.
For complete information, contact your nearest PSERS regional representative. A complete list of all PSERS
regional offi ces is found on the PSERS website under Regional Offi ces.

Benefits for Which You May be Eligible
If you are an active contributing member of PSERS who terminates all Pennsylvania public
school employment, a benefi t is likely available to you. Shown below is a chart to help you
determine what benefi t may be available:
Benefit
Deferring Retirement
(Postponing receipt of your retirement
benefi t)
Refund
(Return of Contributions and Interest)
Normal Retirement
(Superannuation)
Early Retirement
(Age/Service Penalty)
Early Retirement Factor is based on how far you
are from superannuation age.
Disability Retirement
Qualifications
Class T-C* or Class T-D member:
5 years of credited service
Class T-E or Class T-F member:
10 years of credited service
Class T-C or Class T-D member:
Fewer than 5 years of credited service
More than 5 years of credited service
(forfeiting a monthly benefi t). See
page 4.
Class T-E or Class T-F member:
Fewer than 10 years of credited
service
Class T-C or Class T-D Member:
35 years of credited service
Age 62 and at least one (1) year of
credited service
Age 60 with 30 years of credited
service
Class T-E or Class T-F Member:
Age 65 with at least three (3) years of
credited service
Any age/service combination that
totals 92 (“Rule of 92”) with a minimum
of 35 years of credited service.
Class T-C* or Class T-D member
5 years of credited service
Class T-E or Class T-F member
10 years of credited service
Special Early Retirement Factors apply if you are age
55 with at least 25 years of service.
5 years of credited service; meet medical
eligibility and application submission
requirement
* If you or your employer terminated your employment before July 1, 2001, you may be subject to different
credited service requirements to qualify for a monthly retirement benefi t. Please contact PSERS.
1

Before Leaving Employment
As you plan to leave public school employment, you will want to know what benefi ts
you have earned in your retirement system. You also want to make sure to submit
any purchase of service applications before terminating Pennsylvania public school
employment.
Purchase of Service
As a member of PSERS, you may be eligible to apply to purchase service credit. PSERS
must receive your properly completed purchase of service applications while you are an
active contributing member.
Some possible benefi ts of purchasing service credit are:
Qualifying sooner for vested status.
Reaching eligibility sooner for disability benefi ts.
Increasing your death benefi t.
Increasing your retirement benefi t.
Qualifying sooner for normal retirement.
Reaching eligibility requirements for Health Options Program (HOP) benefi ts and
premium assistance.
For more information about purchasing service credit and how to apply, refer to the PSERS
pamphlet, “Let’s Talk about Purchasing Credit for Service” (PSRS-9640).
Leaving Employment Choices
You have several options upon leaving Pennsylvania public school employment. Your
options may be limited depending on your membership class and your years of credited
service with PSERS.
Let’s review your choices…
Deferring Retirement
Refund
Normal Retirement
Early Retirement
Disability Retirement
2

Deferring Retirement
By deferring retirement, you become a vestee. You may defer your retirement benefi t if you
meet any one of the following requirements:
Class T-C or Class T-D member
Have at least fi ve years of credited service
Are age 62 or older at the time of leaving employment with at least one year of
credited service*
Class T-E or Class T-F member
Have at least 10 years of credited service
Are age 65 or older at the time of leaving employment with at least three years of
credited service
* For those age 62 or older, please refer to page 9 for additional information about applying for a future
benefi t.
Deferring postpones receipt of your monthly retirement benefi t until a later date. Your
contributions and interest remain in your PSERS account and continue to earn four percent
interest compounded annually. Deferring your retirement can reduce or eliminate penalties
of an early retirement. Typically, deferring also protects a death benefi t greater than the
value of your contributions and interest for your benefi ciary.
How do I decide?
The decision to defer the receipt of your retirement benefi t or to take an early retirement
is not an easy one. Within one year of when you plan to leave school employment, you
should request two retirement estimates from PSERS (one early retirement estimate using
the date you leave employment as your retirement date and a second estimate using the
date you would qualify for normal retirement) using the Request for Retirement Estimate
(PSRS-151) form. These comparison estimates will show the degree of difference between
taking an early retirement now versus waiting until you have reached normal retirement age.
If you do not plan to retire within the next year, use the PSERS online estimate calculators.
See “Online Estimate Calculators” on page 8. After you receive or prepare your estimate,
you will be better able to make a decision about applying for a monthly retirement benefi t.
3

Refund
A refund is the only benefi t available to you if you leave public school employment and any
one of the following situations applies:
Class T-C or Class T-D member
Have fewer than fi ve years of credited service
Are age 62 or older at the time of leaving employment with fewer than one year of
credited service
Class T-E or Class T-F member*
Have fewer than 10 years of credited service
Are age 65 or older at the time of leaving employment with fewer than three years of
credited service
*Class T-E and Class T-F members who have at least 5 years of credited service are also eligible to apply for
a PSERS disability benefi t. More information is found on page 6, “Disability Retirement”.
As a PSERS member, you have money deducted from your salary (contributions) and
credited to your account. Any payments you make for purchase of service are also credited
to your PSERS account. Four percent interest is credited annually on contributions of
members accounts that are active or vested. (For vested account requirements refer
to “Deferring Retirement” on page 3.) A refund is a return of any contributions plus any
interest earned on this money. PSERS automatically terminates accounts that have had no
activity or were placed on an unpaid leave for more than 24 months. Terminated accounts
will not continue to accrue interest.
If you are entitled to a monthly benefi t, you may choose to waive your monthly benefi t and
apply for a refund of your contributions and interest instead. By doing this, you forfeit your
lifetime monthly retirement benefi t with PSERS. This may be benefi cial if you are currently
working in another state that has regulations requiring the forfeiture of vested benefi ts
before purchasing out-of-state service.
You must complete an Application for Refund (PSRS-59) to receive a refund from PSERS.
If you wish to receive your money in installment payments, you must also complete
the Application for Refund - Installments (PSRS-1244). These forms are available by
contacting PSERS.
When you receive a refund of your PSERS contributions and interest, you may be required
to pay certain taxes upon withdrawal. Please refer to the PSERS pamphlet, “Let’s Talk
about Taxes on Your Retirement Benefi ts” (PSRS-9600).
When you elect to receive a refund and later return to qualifying public school employment,
you can reinstate your prior school service by applying to purchase credit for service. Refer
to the PSERS pamphlet, “Let’s Talk about Purchasing Credit for Service” (PSRS-9640) for
more information.
4

Monthly Retirement Benefits
The following are the types of retirement benefi ts whose calculation factors are based on
your years of credited service, age, or combination of both:
Normal
Early
Disability
Normal Retirement
Normal retirement is when you meet all age and/or service requirements and, therefore,
have no early retirement penalty. This no-penalty retirement is also referred to as “full
retirement” and “superannuation.”
You must meet one of the following qualifi cations for normal retirement benefi ts:
Class T-C and Class T-D Members
Age 62 at the time of leaving employment with at least one year of credited service
Age 60 with 30 years of credited service
35 years of credited service at any age
Class T-E and Class T-F Members
Age 65 with at least three (3) years of credited service
Any age/service combination that totals 92 (“Rule of 92”) with a minimum of 35 years
of credited service. Example: A member age 57 with 35 years of credited service (57
[age] + 35 [service] = 92) would total 92 and, therefore, would be superannuated.
Early Retirement
Early retirement is when you do not meet normal retirement requirements, but you do meet
the following requirements for your membership type:
Class T-C* or Class T-D and you have at least fi ve years of credited service.
Class T-E or Class T-F and you have at least 10 years of credited service.
* If you or your employer terminated your employment before July 1, 2001, you may be subject to different
credited service requirements to qualify for a monthly retirement benefi t. Please contact PSERS.
Under this type, normal retirement age and service requirements have not been met. Thus,
PSERS reduces the benefi t by applying an early retirement reducing factor (penalty). Your
membership class, years of service at termination, and your age at retirement determine
the early retirement factor used.
Special rules apply to members who are at least age 55 and have 25 or more years of
credited service. This special rule is also known as early or “55/25” retirement. PSERS
bases this penalty on how far you are from a normal retirement benefi t. PSERS reduces
your retirement benefi t by one quarter of one percent per month for each month you are
under normal retirement requirements.
5

Disability Retirement
To apply for a disability retirement you must:
Be disabled as of your last day of paid service.
Be disabled on the date you apply for disability retirement.
Be within two years of the end of the school year during which you last had qualifi ed
for service.
Example: Your last day of work was on March 10, 2010. That school year ended on
June 30, 2010. The next school year starts on July 1, 2010. You would have two school
years to apply for the disability retirement benefi t. The fi rst school year would be the 2010-
2011 school year and the second school year would be the 2011-2012 school year. You
would have to apply no later than June 30, 2012.
For more information, you should refer to the PSERS publication, “PSERS Disability
Retirement Benefi ts” (PSRS-9540).
About the Retirement Calculation
By law, PSERS is a 401(a), defi ned benefi t plan, which means that PSERS computes
the benefi t using a specifi c calculation. Your membership class determines the exact
calculation.
The basic calculation for Class T-C and Class T-E members is:
2.0 % X Final Average Salary X Credited Service = Yearly Benefi t Payment
The basic calculation for Class T-D members is:
2.5 % X Final Average Salary X Credited T-D School Service1
plus
2.0 % X Final Average Salary X Credited T-C or Non-School Service2
Yearly Benefi t Payment
The basic calculation for Class T-F members is:
2.5 % X Final Average Salary X Credited T-F School Service
plus
2.0 % X Final Average Salary X Credited Non-School Service2
Yearly Benefi t Payment
6
1 School service also includes purchased intervening and/or activated military service.
2 Non-school service consists of purchased service such as maternity leave, non-intervening military,
out-of-state, government, and county nurse.

Your yearly benefi t payment is reduced if you choose to withdraw your contributions and
interest. Withdrawing your contributions and interest is not available to Class T-E and
Class T-F members or disability retirees.
Final Average Salary is an average of compensation in the three highest school years
(July 1 through June 30). For terminations before the end of the school year, salary for
that part of the year may be used in combination with a proportionate percentage of a prior
school year. School years with part-time service may be annualized for salary calculation.
Retirement Benefit Options
You may choose your monthly retirement benefi t from several options. If you are a
Class T-C or Class T-D member and not a disability retiree, you have the option to withdraw
contributions and interest and receive a reduced monthly retirement benefi t. When you
withdraw any contributions and interest, you have a choice to receive the money directly or
to roll it over into a qualifi ed retirement plan.
You must decide which retirement option best fi ts your needs. For all retirement options
other than Maximum Single Life Annuity, PSERS applies an option reducing factor. The
following are the options available to you:
Maximum Single Life Annuity – This provides the maximum monthly benefi t amount
available. If at the time of your death you have not received an amount equal to your
contributions and interest, then the balance is paid to your benefi ciary or benefi ciaries.
Option 1 – Your monthly benefi t is reduced and a “Present Value” is assigned to
your account. If at the time of your death you have not received in monthly benefi ts
an amount equal to your account’s Present Value, then the balance is paid to your
benefi ciary or benefi ciaries.
Option 2 – Your monthly benefi t is reduced based on your age and gender and the age
and gender of your survivor annuitant at retirement. At the time of your death, the same
monthly benefi t is paid to your survivor annuitant throughout his or her lifetime.
Option 3 – Your monthly benefi t is reduced based on your age and gender and the age
and gender of your survivor annuitant at retirement. At the time of your death, one-half
of your monthly benefi t is paid to your survivor annuitant throughout his or her lifetime.
Option 4 (“Customized”) – You customize your benefi t in the event that none of the
other options meets your needs. This option is subject to certain conditions.
For details on the retirement options, you can refer to the PSERS “Active Member
Handbook” or the PSERS website. Not all of the above benefi t options apply to a disability
benefi t. For more information on disability retirement benefi t options, refer to the PSERS
publication, “PSERS Disability Retirement Benefi ts” (PSRS-9540).
7

Making Your Decision
If you have not already done so, when you are within fi ve years of retirement or when
you leave school employment PSERS recommends that you attend a Foundations for
Your Future (FFYF) meeting. These general meetings provide you with information about
leaving employment, purchasing service credit, and other important information.
When you are within one year of your retirement, PSERS strongly suggests that you
request a staff-prepared retirement estimate and attend a Retirement Exit Counseling
meeting. Contact PSERS to obtain a Request for Retirement Estimate (PSRS-151) form or
print it from the PSERS website.
Once you receive your staff-prepared retirement estimate, contact PSERS to schedule
retirement exit counseling. At this meeting, PSERS helps you complete your retirement
application and makes certain that you have all necessary forms. This meeting will also
cover important health insurance and return to service information.
Online Estimate Calculators
PSERS supplies a Customized and a Generic Retirement Benefi t Calculator for you to
prepare your own personalized retirement estimates online.
The customized calculator requires that you create an Interaction account. Interaction is
PSERS online source for member account information. To create an Interaction account,
click on “Online Applications” on the opening page of the PSERS website. The generic
calculator does not require an Interaction account; but you will need a copy of your most
recent Statement of Account.
For more information about the online calculators, you can refer to the PSERS publication,
“PSERS Online Estimate Calculators” (PSRS-9680).
In order to attend exit counseling, you must have a staff-prepared estimate. You can
request a staff-prepared estimate by submitting a Request for Retirement Estimate
(PSRS-151) form.
8
Applying for a Retirement Benefit
When you decide to retire, you need to complete an Application for Retirement
(PSRS-8). To make your retirement date the day after you end (terminate) all public school
employment, PSERS must receive your retirement application within 90 days of your
termination date. If you go beyond the 90-day time frame, your retirement date cannot be
earlier than the date PSERS receives your application.
If PSERS receives your retirement application after the 90-day time frame has passed, your
date of retirement becomes the day PSERS receives your application unless you selected
a specifi c future date. This means that you cannot collect an annuity retroactive to the day
after your termination date.

PSERS does not accept retirement applications more than 90 days before you terminate
service from your employer(s).
For information on how to apply for a disability retirement, you should refer to the PSERS
publication, “PSERS Disability Retirement Benefi ts” (PSRS-9540).
Deferring Retirement
You do not have to take any action to defer receipt of your retirement benefi t. Once you
decide to receive your retirement benefi t, however, you must submit an Application for
Retirement (PSRS-8) to receive your retirement benefit.
To have your retirement date be on your date of superannuation (normal retirement) or a
specifi c date, please submit your Application for Retirement (PSRS-8) within 90 days of that
date (for example, your birth date).
If you are deferring receipt of your retirement benefi t to any date other than your normal
retirement date, your Application for Retirement (PSRS-8) must be received by PSERS
prior to the alternate date. If your application is not received on or before that date, PSERS
will use the date the application is received as the retirement date.
PSERS Health Options Program (HOP)
PSERS offers a voluntary group medical insurance program to PSERS retirees, spouses,
spouses of deceased retirees, and their eligible dependents. Enrollment is available at
the time of qualifying events. The website, www.hopbenefi ts.com provides additional
information. You may also call toll-free, 1-800-773-7725.
Premium Assistance Reimbursement
As a PSERS retiree, you may be eligible to receive a reimbursement for out-of-pocket
expenses for your medical insurance coverage.
To qualify, your medical insurance coverage must be obtained through an approved
Pennsylvania public school employer plan or through the PSERS Health Options Program
(HOP) as well as meet one of the following conditions:
Receive a PSERS disability retirement
Be retired with at least 24.5 years of credited service
Be age 62 or older on your date of termination and retired with at least 15 years of
credited service
Your PSERS regional representative will provide you with further information regarding
HOP and premium assistance during the Exit Counseling Session. Information regarding
both are also sent to you as part of an information packet you receive after retirement.
9

Returning to Public School Employment
PSERS does not generally permit retirees to return to work for a Pennsylvania public
school employer without the loss of their monthly benefi t unless they qualify for specifi c
exceptions. Information regarding returning to public school employment exceptions may
be found in the PSERS publication, “PSERS Return to Service Guidelines” (PSRS-9682),
located on the PSERS website.
Contacting PSERS
You may contact PSERS toll-free at 1-888-773-7748 from 7:30 a.m. to 5:00 p.m., Monday
through Friday, except on major holidays. PSERS also has regional offi ces located
throughout the state. Their core operating hours are 8:30 a.m. to 5:00 p.m. A complete list
of all PSERS regional offi ces is found on PSERS website under Regional Offices.
Harrisburg Headquarters
5 N 5th Street
Harrisburg PA 17101-1905
Toll-Free: 1-888-773-7748
Local Telephone: (717) 787-8540
Email address: ContactPSERS@pa.gov
Website: www.psers.state.pa.us
10

Leaving Employment Checklist
If you are not vested*:
Submit a formal resignation to all Pennsylvania public school employers.
Contact PSERS to request an Application for Refund (PSRS-59) and submit your
completed application.
If you are vested*:
More than 12 Months to Retirement
Submit any purchase of service request, if applicable.
12 Months Prior to Retirement
Attend a Foundations for Your Future meeting. A complete schedule is available on the
PSERS website and published in the Active Member Newsletter.
Request a retirement estimate by submitting a Request for Retirement Estimate
(PSRS-151) form.
6-9 Months Prior to Retirement
Schedule a Retirement Exit Counseling meeting by contacting your PSERS regional
offi ce.
1-6 Months Prior to Retirement
Attend a Retirement Exit Counseling meeting. Bring your staff-prepared estimate and
any other requested necessary information such as direct rollover, direct deposit, or
survivor annuitant.
Submit a formal resignation to all Pennsylvania public school employers.
Submit your completed Application for Retirement (PSRS-8).
* Vested members have 5 years of credited service for Class T-C and Class T-D or 10 years of credited
service for Class T-E and Class T-F.
11

Public School Employees Retirement System
5 N 5th Street
Harrisburg PA 17101-1905