Full-Time Faculty and Staff: You have 31 days from the effective date of your appointment to choose your retirement plan. If you do not make your decision within that time period, state regulations require that you automatically be enrolled in SERS. Once you are enrolled in a retirement plan, the enrollment is irrevocable. However, you may enroll in a TIAA supplemental retirement plan at any time. To assist employees in selecting a retirement plan, watch this video comparing SERS vs. ARP plans.
Regardless of the plan you choose, you are required to contribute a percentage of your income to the retirement plan. All Penn State retirement plan contributions are tax deferred. The 2024 IRS annual compensation limit for contributions into the mandatory plans is $345,000. This means that no employer or employee contributions will be made into these plans once an employee’s year to date compensation reaches this amount.
Selection of a retirement plan is part of your online benefits enrollment through Workday.
This is a defined contribution plan. Retirement income is determined by the amount you contribute (5%), the amount contributed by Penn State (9.29%), and the performance of the investments you choose. Therefore, there is no rule of thumb for calculating, far in advance, the amount of TIAA benefit that you might receive at time of retirement.
All questions regarding the Penn State Alternate Retirement Plan should be directed to TIAA at 1-800-842-2252, Mon through Fri, 8 am - 10pm and Sat from 9 am - 6pm.
As a new SERS member, you have the choice of two hybrid defined benefit pension/defined contribution investment plans, referred to as class A-5 and A-6. You will enter SERS in the class A-5 hybrid plan, with the option to choose the other hybrid plan (A-6) or the straight defined contribution plan within you first 45 days of membership. Failure to communicate a selection within 45 days is an affirmative action to remain in the A-5 classs of service.
If reach milestone:
3% reduction for each year under age 67
Age 62/10 years of service
Actuarial reduction for each year under age 67
10 years of service but NOT age 62
Standard Actuarial reduction from 62-67 plus special 7.375% rate actuarial reduction for each year under 62
If reach milestone:
3% reduction for each year under age 67
Age 62/10 years of service
Actuarial reduction for each year under age 67
10 years of service but NOT age 62
Standard Actuarial reduction from 62-67 plus special 7.375% rate actuarial reduction for each year under 62
Please Note: Members of University Police are exempt from the classes described above. SERS options available to these employees are as follows:
| Class A3 | Option Class A4 Selected Within 45 Days of SERS Membership | |
|---|---|---|
| Employee Contribution Rate | 6.25% | 9.3% |
| Employer Contribution Rate | Varies - determined by state legislature | Varies - determined by state legislature |
| Vesting | 10 years | 10 years |
| Benefit Formula | 2% years of service X average earning for 3 highest years | 2.5% X years of service X average earnings for 3 highest years |
| SERS Normal Retirement Age | Full retirement income at age 65 with at least 3 years of credited service, or your age plus years of credited service equal 92 or higher | Full retirement income at age 65 with at least 3 years of credited service, or your age plus years of credited service equal 92 or higher |
| Disability Benefit | Earned after 5 years of service | Earned after 5 years of service |