Established in 1923, the Pennsylvania State Employees' Retirement System is one of the nation's oldest and largest statewide retirement plans for public employees. We are proud to serve you and thank you for your work to make Pennsylvania great.
New members can use this website to learn about your retirement benefit, particularly some choices you need to make when you're first hired. Active members can run estimates to see how your retirement benefit grows as your years of service and salary change. Members who are getting ready to retire can read about payment options and get a check list for your counseling session. Retired members can get duplicate tax forms and click through to the Pennsylvania Employees Benefit Trust Fund - the PEBTF - for more about your health care.
The Pennsylvania State Employees' Retirement System manages the pension benefits of approximately 239,000 employees and retirees for 102 public sector employers. In 2017, SERS paid about $3.3 billion in benefits and managed $29.7 billion in assets.
If you just want current facts about SERS, check out our most recent snapshot.
Created in 1923 by the Pennsylvania State Employees' Retirement Code, SERS is a multiple-employer, cost-sharing defined benefit plan. The law requires that most state employees be SERS members and, typically, employers automatically enroll new hires.
While there are different classes of service, most employees contribute 6.25% of their salary to SERS. Then, for most employees, after working for five years, they become eligible for a lifetime pension based on a formula set forth in the law. (Employees hired on or after January 1, 2010 must work for 10 years to become eligible.
Generally, the annual benefit equals an employee's final average salary x years of service x class of service multiplier x 2%, adjusted for their age at retirement. The law does not provide automatic cost of living adjustments after retirement. When employees leave state service before becoming eligible for a lifetime pension, they can withdraw the amount they have contributed to SERS, plus 4% interest.
Employers also contribute to SERS. To pay for the retirement benefits earned by most employees this year, employers would need to contribute about 5% of payroll. Investment returns also add to the pension fund. In fact, from 2002 - 2013, investment earnings provided about 75% of the money contributed to SERS.
In addition to the defined benefit pension plan, SERS also offers a voluntary deferred compensation program. Employees can choose to use payroll deductions to build additional retirement savings in 457(b) investment accounts. Employees manage their own investments from an array of options and no employer contributions are provided.
SERS' work is guided by the 11-member State Employees' Retirement Board, managed by an executive director and chief investment officer, and carried out by approximately 165 public employees. The law charges each SERS board member with a fiduciary responsibility to act solely in the best interests of SERS members. Approximately a quarter of SERS professionals provide member services through a network of counseling centers statewide.
Researchers, journalists, and policymakers who are interested in SERS frequently also have interests in Pennsylvania's other large public pension plans, the Pennsylvania School Employees' Retirement System (PSERS) and the Pennsylvania Municipal Retirement System (PMRS).