Member Contribution Information for New Members
Member Contribution Rates
An Explanation of Shared Risk
Earnings for Which Contributions Must Be Withheld
Maximum Earnings Subject to Contributions
Interest on Your Contributions
Taxes and Your Contributions
Additional Investment Information
As a member of PSERS, your employer withholds a percentage of your salary from your pay and submits it to PSERS. It is then posted to your retirement account. PSERS has four membership classes: Class T-C, Class T-D, Class T-E, and Class T-F. Your membership class, in part, determines your member contribution rate. The rate of the contribution you pay towards your account is based on the date you were hired and membership class. The member contribution rates are set by law. You cannot choose to lower or raise your contribution amount.
A Class T-C member who enrolled in PSERS before July 22, 1983, has a contribution rate of 5.25 percent. A Class T-D member who enrolled in PSERS before July 22, 1983, has a contribution rate of 6.50 percent.
A Class T-C member who enrolled on or after July 22, 1983, will have a contribution rate of 6.25 percent. A Class T-D member who enrolled on or after July 22, 1983 will have contribution rate of 7.50 percent.
Those who become members for the first time on or after July 1, 2011, may choose between two classes of membership in PSERS, and therefore, two different base contribution rates.
New members electing Class T-E:
- The base member contribution rate is 7.50% with “shared risk” contribution levels that may fluctuate between 7.50% and 9.50%.
New members electing Class T-F:
- The base member contribution rate is 10.3% (base rate) with “shared risk” contribution levels that may fluctuate between 10.30% and 12.30%.
With a “shared risk” program, Class T-E and Class T-F members benefit when investments of the fund are doing well and share some of the risk when investments under perform. With a Class T-E or Class T-F membership, your contribution rate will stay within the specified range (Class T-E - 7.50% and 9.50% or Class T-F - 10.30% and 12.30%), but may increase or decrease by 0.5% within the specified range once every three years, starting in July 1, 2015. Your member contribution rate will never go below the base rate or above the highest percentage rate. If however, it is determined that PSERS is fully funded at the time of the comparison, your member contribution rate will revert to the base employee contribution rate for your membership class.