HARRISBURG, PA – The Pennsylvania Public School Employees’ Retirement System (PSERS) is providing an update regarding purchasing service credit for out-of-state public school service.
The Pennsylvania Supreme Court recently clarified that receiving employer contributions and/or interest when withdrawing from an out-of-state retirement system does not, by itself, disqualify an otherwise eligible member from purchasing credit for that service with PSERS. The Court found that the Retirement Code doesn’t address the specific situation in which a member received an employer’s contributions and interest and is no longer eligible to receive a retirement benefit from that system.
Members must still meet all other eligibility requirements, including fully withdrawing from the out-of-state retirement system and cannot be receiving, currently eligible to receive, or eligible to receive in the future a retirement benefit from that system.
Members who previously applied to purchase credit for out-of-state service and were denied solely because of withdrawn employer contributions or employer interest are encouraged to contact PSERS to request a review of their previously submitted application. Members must request the review while they are an active, contributing member of PSERS. They can contact PSERS toll free at 1-888-773-7748, send a secure message in their Member Self-Service (MSS) account, send a request in writing, or visit their regional office.
“We’re pleased that this clarification may give some of our members an opportunity to receive credit for service they had earlier in their careers,” said Uri Monson, PSERS Executive Director. “Helping our members understand what options are available to them is an important part of what we do, and we encourage anyone who may be eligible to contact us.”
To purchase out-of-state service credit, a member must have performed at least one year of service in a public school in another state and must have at least one full year of PSERS service credit before applying. Members may purchase out-of-state service credit equal to or less than the amount of PSERS service credit that they have earned, up to a maximum of 12 years. Additional information about eligibility, service limits, costs, payment options and the application process is available on PSERS’ website.
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About the Pennsylvania Public School Employees' Retirement System
PSERS, founded in 1917, began operations in 1919 to oversee a statewide defined benefit pension plan for public school employees. PSERS' role expanded upon the passage of Act 5 of 2017 to include oversight of two new benefit options consisting of defined benefit and defined contribution (DC) components and a stand-alone DC plan. As of June 30, 2025, PSERS had a total net position of about $83.7 billion and a membership of about 262,000 active, 255,000 annuitants and beneficiaries, and 26,000 vested inactive members.