Your retirement may be affected if you are retiring after July 1, 2013. By law, the Pennsylvania Employees Retirement System (PSERS) has an actuarial review completed every five years on the mortality rates of future retirees. As a result of that study, adjustments on benefit amounts of beneficiaries are determined. Because people are living longer, the amount you or your beneficiary, in event of your death, receives is adjusted based on these mortality tables. If you are retiring and plan on taking Option 2 or 3, there is a likelihood your benefits will be reduced if retiring after July 1, 2013. How much will depend on your age and the age(s) of your beneficiary. Because PA Principals Association staff members are not financial planners, we suggest you contact your school district business office, your financial planner and/or PSERS to determine the impact on your personal finances.

PA Principals Association will continue to work with PSERS and other education associations to better determine the impact of this change on school employees.

THIS CHANGE HAS NO EFFECT ON CURRENT RETIREES.

PSERS has added information to its web site to assist in helping members to understand this a little better. This information will also be shared with PSERS’ contacts within each of the school districts. You may find the information by following the link under Hot News on the PSERS web site, or directly at: http://www.psers.state.pa.us/factorchanges.htm.