This plan combines the security of a pension with the flexibility of a defined contribution plan. You’ll receive a guaranteed monthly pension based on your years of service, salary, and pension class, along with an investment account you can manage.  If you have prior service with SERS, you can carry that forward and stay in the same class and contribution rate. 

 In the SERS defined benefit pension plan, your benefit is defined by a calculation that considers your years of service and salary. Your benefit grows each year based on an annual benefit accrual rate and, when you retire, is paid to you in equal monthly payments for your lifetime. In this type of plan, the majority of the investment risk is on the plan provider – your employer – and the assets are managed centrally and professionally. 

In a defined contribution plan, you pick how your money will be invested for retirement and you assume the investment risk. You and your employer make mandatory contributions toward your investment plan and the amount you have for retirement depends on the accumulation of contributions and the performance of the investments you choose.

To compare these options and find what suits you best, use the SERS' New Member Plan Comparison Calculator. 

As a member of the SERS hybrid plan, a portion of your retirement benefit will come from the SERS defined benefit pension plan and a portion will come from the SERS defined contribution investment plan. Learn more about each plan, below. View the Hybrid Plan Handbook

Teachers Insurance and Annuity Association (TIAA) is a defined contribution plan. Retirement income is determined by your account balance at the time of retirement, comprised of your employee contributions (5% of salary), the College's contributions (9.29% of salary) and any earnings based on the performance of the investments you choose. Participants are 100% vested from their date of enrollment, which means from the date the monies are deposited into your TIAA account, they are yours to keep. The TIAA account is also portable, meaning if you leave employment before retirement, you can rollover those monies into a new employer’s retirement plan, or into a different retirement account such as an IRA. You decide how the benefit is paid at your retirement. You can take a one-time lump sum payment, partial distribution payments, or if you like the idea of receiving a guaranteed lifetime income that you cannot outlive, you can convert your TIAA retirement monies to a lifetime annuity. 

This plan combines the security of a pension with the flexibility of a defined contribution plan. You’ll receive a guaranteed monthly pension based on your years of service, salary, and pension class, along with an investment account you can manage.  If you have prior service with PSERS, you can carry that forward and stay in the same class and contribution rate. 

Depending on your membership class, you may have a Defined Benefit (DB) Plan, a Defined Contribution (DC) Plan, or both DB and DC components.

• In PSERS DB Plan, the retirement benefit is based on a formula.  The formula used by PSERS includes a pension multiplier, your credited years of service, and your final average salary. Class T-C, Class T-D, Class T-E, and Class T-F are defined benefit only plans.
• In PSERS DC Plan, the retirement benefit is based on the amount of contributions in your account and investment performance.  Your DC contributions and earnings, if any, are available for you to withdraw when you terminate your employment or retire. Class DC is a defined contribution only plan.
• PSERS also offers membership classes with both DB and DC components. Class T-G and Class T-H have a retirement benefit based on a formula and a separate benefit based on DC contributions and investment earnings, if any.

In addition to the informational packet, Class T-E and Class T-G members will receive a separate letter notifying them of the opportunity to elect a new membership class. Members who wish to nominate a new membership class must do so within the specified time frame. More information on Class Election.