As a school employee who first became an active member of PSERS on or after July 1, 2019, you are automatically enrolled as a Class T-G member. Class T-G provides both a Defined Benefit (DB) and a Defined Contribution (DC) component for your retirement benefit. If you wish to remain in Class T-G, no action is required. You have a 90-day election period to decide if you would like to remain Class T-G or elect one of two other membership classes: Class T-H or Class DC.
This guide compares the features and benefits of each membership class on the next page. Class T-G is the default Membership Class in which you contribute the most to your DB component of your retirement benefit and offers the highest monthly DB benefit at retirement. Class T-G also has the highest Employer DC Contribution Rate of the three Classes.
No action is required to remain in Class T-G. Remember, your decision to remain Class T-G or elect Class T-H or Class DC is irrevocable.
Membership Class Snapshot:
Class T-G offers the highest monthly DB benefit at retirement. You also have a DC component of your retirement, which is based on what you and your employer contribute to the DC Plan and the performance of those contributions based on the investment options you choose, subject to costs and expenses. Compared to Class T-H, Class T-G has a higher DB member contribution rate* and a higher employer DC contribution rate, but a lower participant DC contribution rate.
Class T-H offers a monthly benefit from the DB component that is lower than Class T-G. You also have a DC component of your retirement, which is based on what you and your employer contribute to the DC Plan and the performance of those contributions based on the investment options you choose, subject to costs and expenses. Compared to Class T-G, Class T-H has a lower DB member contribution rate* and a lower employer DC contribution rate, but a higher participant DC contribution rate.
Class DC offers the value of your DC account based solely on what you and your employer contribute to the DC Plan and the performance of those contributions based on the investment options you choose, subject to costs and expenses. The participant DC contribution rate is the highest and the employer DC contribution rate is the same as Class T-H, which is lower than that of Class T-G. Class DC provides no monthly DB benefit or PSERS disability retirement benefit. Class DC members cannot purchase service and cannot elect Multiple Service membership to combine PSERS credited service with service credited in the State Employees’ Retirement System.
* The DB contribution rate is subject to a Shared Risk/Shared Gain(opens in a new tab) contribution rate. Please the Contributions(opens in a new tab) page for the most current contribution rates.
Determining the Right Membership Class for You
To assist you in deciding which membership class is right for you, use this calculator and class election inserts to see what the different benefit amounts may be when you plan on retiring. You just need to enter your age, starting annual salary, and the number of years you plan on working.
