Pennsylvania · PSERS · Formula

PSERS: salary × multiplier × years

Your PSERS pension at normal retirement is three numbers multiplied together. Here's each one, and a worked example from PSERS's own exit counseling deck.

The formula

Final average salary × class multiplier × years of service = your yearly Maximum Single Life Annuity

Handbook p. 14, About Your DB Plan; p. 21, Retirement Calculation; Exit Counseling 2025-26, PDF p. 4, Basic Retirement Formula

Same career, different class

A $60,000 final average salary and 30 years of service, at normal retirement:

T-C · 2% · 3-year salary$36,000/yr · $3,000/mo
T-D · 2.5% · 3-year salary$45,000/yr · $3,750/mo
T-E · 2% · 3-year salary$36,000/yr · $3,000/mo
T-F · 2.5% · 3-year salary$45,000/yr · $3,750/mo
T-G · 1.25% · 5-year salary$22,500/yr · $1,875/mo
T-H · 1% · 5-year salary$18,000/yr · $1,500/mo

Illustration only; it ignores each class's own retirement ages. Find yours in which class you're in. Handbook p. 21, Retirement Calculation; Let's Talk About PSERS Death Benefits (Mar. 2025), p. 1

PSERS's own example

Sample retiree, Class T-D$67,200 final average salary × (24 years × 2.5% + 1 year × 2%) = $41,664 a year, or $3,472 a month, before any early cut. She retires at 55 with 25 years, so the 55/25 cut applies: 15% off, $2,951 a month. See Retiring early.Exit Counseling 2025-26, PDF pp. 8-23

The three numbers

Final average salary

Years of service

Salaried or per diem: at least 5 hours a day and 180 days in a school year = 1 year. Hourly: 1,100 hours = 1 year (9- or 10-month full-time hourly positions requiring 900-1,100 hours: actual hours / expected hours). Partial years are days/180 or hours/1,100. No more than 1 year of credit in a school year. Handbook p. 15, Credited Service; Exit Counseling 2025-26, PDF p. 5 You may be able to add years by buying service credit.

Not settled in PSERS's booklets Check with PSERS

Class T-D earns 2.5% for school service but 2.0% for non-school service (and for any Class T-C years). PSERS doesn't say whether T-F has a similar split.

The calculator lets T-D members enter years at 2.0%. Other classes use one multiplier.

Let's Talk About PSERS Death Benefits (Mar. 2025), p. 1
Not settled in PSERS's booklets Check with PSERS

The law may cap the pension for Classes T-E to T-H at a share of final average salary. No PSERS booklet we have states it.

We apply no cap.

Handbook p. 21, Retirement Calculation

Questions

What is the PSERS pension formula?

Annual Maximum Single Life Annuity = Final Average Salary x membership class multiplier x years of service. This is the MSLA at normal retirement; other options, early retirement and withdrawing contributions and interest apply reducing factors.

What counts in my final average salary?

Extra compensation for additional duties such as overtime or coaching or department head work; use of accrued leave counts as compensation. Payment for unused leave and bonuses received because of retiring are NOT included.

Related: the formula gives the maximum amount; payment options with a survivor pay less.

Run the formula with your numbers →

Source: PSERS Active Member Handbook, Current pa.gov edition (PDF revised Sept. 2023), pp. 14-15, 21. Also: Retirement Exit Counseling 2025-2026, PDF pp. 4-5, 8-23. Also: Let's Talk About PSERS Death Benefits (Mar. 2025), p. 1. Last reviewed .