ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
Public School Employees
Retirement System (PSERS)
Handbook
Serving those who serve Georgia
E RSGA
Employees’ Retirement
System of Georgia
Updated 7/2019
Introduction ............................................................................................................................
3
Membership ...........................................................................................................................
5
Contributions..........................................................................................................................
6
Creditable Service ...................................................................................................................
7
Benets Eligibility ...................................................................................................................
9
Service Retirement .................................................................................................................
10
Service Retirement Benet Formula .......................................................................................
11
Disability Retirement ..............................................................................................................
13
Death Benets ........................................................................................................................
15
Refund of Contributions and Interest........................................................................................
16
Optional Forms of Payment ...................................................................................................
17
Benet Payment Details..........................................................................................................
19
Returning to Public School Employment .................................................................................
20
Designating a Beneciary .......................................................................................................
22
Appendix A : Departments and Agencies Participating in PSERS ................................................
23
Appendix B: Optional Form Factors ..........................................................................................
25
Table of Contents
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
2
About this Handbook
This Handbook summarizes the main provisions of laws that provide benets to certain employees of public schools
within the State of Georgia. Unless otherwise specically indicated, the Handbook describes these laws as in eect on
July 1, 2019.
It is important to remember that this Handbook is only a summary of the law, and therefore provides only general
information. A summary cannot deal with every possible set of circumstances. Also, from time to time, the laws will
be amended, and while we make every eort to update this Handbook in a timely fashion, there may be a period of
time during which the Handbook does not reect recent changes in the law. If something is not covered in detail in this
summary, or if this summary can be read to be inconsistent with the governing laws, the law will control.
It is important that you read the entire Handbook. Reading only portions can be confusing and misleading.
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
3
3
Introduction
About the Benets Described in this Handbook
The Public School Employees Retirement System (PSERS) was established in January 1970, for the purpose of providing
supplemental retirement plan benets for public school employees who do not belong to the Teachers Retirement
System of Georgia (TRS). These supplemental benets are intended to be in addition to other retirement income.
Laws governing PSERS, enacted through the Georgia General Assembly, provide for lifetime retirement benets,
disability benets, and death benets to PSERS Members who earn enough years of service to qualify. Members who
have terminated employment may also choose to receive a refund of their Contributions plus Interest, regardless of
the amount of service they earned. Employee and Employer Contributions are paid into the retirement fund for the
welfare of Members and their beneciaries. All benets are paid from this fund. Benet structures may have changed
over time, and any benet provisions which no longer apply to any active member or apply only to a small population
may not be covered in detail.
An independent actuarial rm specializing in pension and retirement plans examines the fund every year. The actuarial
rm prepares an annual valuation on the ability of the fund to meet future obligations, and every ve years performs an
actuarial experience study. The System is also examined annually by an independent accounting rm.
PSERS is administered by the Employees’ Retirement System of Georgia (ERSGA). A Board of Trustees is responsible
for the administration of PSERS. Daily operations are under the direct administration of the ERSGA Director and sta.
For more information about the Board of Trustees, please visit our website.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
4
Contacting ERSGA
ERSGA maintains a website at http://www.ers.ga.gov. Through this website, you can:
• Log in to see your personal account information
• Conduct transactions such as designating a
beneciary and estimating your retirement
benets
Terminated members with less than 10 years
of Creditable Service can request a refund of
contributions
• Download this Handbook, pamphlets, and various
forms
• Review frequently asked questions
• Obtain information about legislation under
consideration by the Georgia General Assembly
• Link to other websites
Inquiries related to retirement or general inquiries about
PSERS can be emailed to: [email protected].
Mailing Address:
Employees’ Retirement System of Georgia
Two Northside 75, Suite 300
Atlanta, GA 30318
Fax:
Member Services: (404) 350-6310
Seminars: (404) 350-6306
Phone:
General Number: (404) 350-6300
Toll free: 1-800-805-4609 (outside metro Atlanta area)
Hours of Operation: 8:00 am to 4:30 pm ET
To contact Peach State Reserves, call toll free: 1-866-694-2777
Other retirement systems included under the authority of ERSGA are:
• Employees’ Retirement System (ERS)
• Legislative Retirement System (LRS)
• Georgia Judicial Retirement System (GJRS)
• Georgia Dened Contribution Plan (GDCP)
• Georgia Military Pension Fund (GMPF)
ERSGA also administers:
• Group Term Life Insurance (GTLI) program
• Peach State Reserves (PSR) program — the State’s 457 and 401(k) Plans
Information about these plans can be found on our website.
5
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
5
Membership
Eligibility for Membership
Generally, membership in PSERS is a condition of employment for people who are employees of participating public
school systems and who are not eligible for membership in the Teachers Retirement System of Georgia (TRS) or the
Employees’ Retirement System of Georgia (ERS). For example, the following individuals are eligible for membership
in PSERS:
• School bus drivers
• School lunchroom personnel
• School maintenance personnel
• School custodial personnel
This Handbook refers to a person that meets these requirements as an “Employee”. However, a person is not considered
an Employee if he or she is classied by an employer as an independent contractor or a leased employee within the
meaning of Section 414(n) of the federal Internal Revenue Code, even if the person is later reclassied as a common law
employee by the Internal Revenue Service.
Some full-time managers in these positions are eligible for TRS or ERS membership and will not be PSERS Members so
long as they are TRS or ERS Members.
Employees who are employed by more than one Employer can only be a Member through one of the Employers. The
Employer who has employed you the longest should be the Employer through which you are reported as a Member.
You are responsible for making sure that your other Employers are aware that you are employed by another Employer
that is reporting your membership.
Public school systems which may participate in PSERS include day schools conducted within the state of Georgia under
the authority and supervision of a duly elected or appointed county or independent board of education. Also included
are postsecondary vocational-technical schools governed by the Technical College System of Georgia.
A list of public school systems participating in PSERS as of July 31, 2018 is provided in Appendix A. These participating
school systems are called “Employers” in this Handbook.
Please note: The nal conviction of certain crimes can aect a person’s PSERS status, as well as the claim to any
benets earned through PSERS. Please contact ERSGA directly with questions regarding the right to benets under these
circumstances.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
6
6
Contributions
The retirement benets paid through PSERS are funded through Employee Contributions and Employer Contributions.
This section of the Handbook describes the contributions made on behalf of each participating Member.
Employee Contributions
During the period each year beginning in September and ending in May (inclusive), for each month you receive pay
from the school system, you must make a monthly contribution to PSERS. For Members who rst joined PSERS prior
to July 1, 2012, the required contribution is $4 each month. For Members who rst joined PSERS on or after July 1, 2012,
the required contribution is $10 each month. This amount is xed; you may not make a smaller or larger contribution
at your discretion, and the amount of the contribution does not depend on your wages. This means that a Member
who rst joined PSERS prior to July 1, 2012 will contribute up to a total of $36 during each annual 9-month contribution
period, while a Member who rst joined PSERS on or after July 1, 2012 will contribute a total of $90 during each annual
9-month contribution period.
The Employee Contributions put into your Employee Contributions Account start earning 4% interest (compounded
annually) after being in your account for one year. Earned interest is posted on June 30 of each year to Employee
Contributions Accounts belonging to Members who are employed at that time. Interest is not posted to any Employee
Contributions Account belonging to a Member who has terminated employment.
Employer Contributions
In addition to the Employee Contributions you make to PSERS, the State of Georgia also makes additional contributions
in order to provide for your Plan benet. The Employer Contribution amount is an actuarially determined amount that
is approved by the Board. It is not applied to your Employee Contributions Account, and it is not refundable to you or
to any Member.
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
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7
Creditable Service
Creditable Service is used to determine:
• Whether a Member has earned a right to a retirement
benet (“vesting”)
• A Member’s eligibility for certain Plan benets
• The amount of benets payable upon a Member’s
retirement
Creditable Service is made up of Prior Service, purchased service, and
service credited as a Member.
Earning Creditable Service
Members earn Creditable Service during their years of PSERS membership. The Board is responsible for determining
how Creditable Service will be calculated. In making that determination, the Board takes into consideration the nature
of the employment being considered and the number of months, weeks, days, and hours normally worked to carry out
the normal duties associated with the employment.
In any case, services rendered by you during and throughout a full regular school year will be equal to one year of
Creditable Service.
Prior Service
Prior Service refers to service as an Employee between July 1, 1945 and June 30, 1970. You will have your Prior Service
counted as Creditable Service free of charge so long as your Prior Service plus your Creditable Service earned on and
after January 1, 1970 equals at least ten years of Creditable Service. You should contact your Employer for certication
of your Prior Service.
Credit for Service While a Member of the Teachers Retirement System of Georgia
You cannot receive PSERS credit for service performed in a position that is covered by TRS. Further, if you are working
in a TRS covered position at the same time as you are working in a PSERS covered position, you cannot be a member
of both plans at the same time – you would be covered solely under TRS.
However, once your TRS coverage ends, you can get credit under PSERS for the time that you also worked concurrently
in a PSERS position. You can buy the PSERS Creditable Service by paying PSERS an amount equal to the Employee
Contributions you would have paid while covered by PSERS, plus interest.
Service Credit Example:
Suppose that you have been a bus driver under PSERS for 15 years. You then decide to take a para-professional
position that is covered under TRS, while continuing your work as a bus driver. At that time, you would become
a member of TRS, and you would not be an active Member of PSERS.
Two years later, you leave your para-professional position and again maintain your position as a bus driver.
Your TRS membership becomes inactive, and once again, you become an active PSERS Member. At that
point, you may purchase your two years of bus driver time and apply it to your Creditable Service under PSERS.
For more information about how
a Member’s rights to retirement
benets are determined, please see
the Handbook section titled “Benets
Eligibility.”
For more information about how
retirement benets are calculated,
please see the Handbook sections
titled “Service Retirement” and
“Service Retirement Benet Formula.”
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
Job Related Temporary Disability / Leave Without Pay
If you return to employment with an Employer after a period of leave without pay (LWOP) due to a physical or mental
illness or disorder caused by a job-related disease or accident, you may establish Creditable Service for a portion of
the period of the absence. The maximum Creditable Service that you may receive in this manner is one year of such
absence during any ve-year period. You must:
• File a written request to establish the service
• Make a payment to PSERS equal to the applicable Employee Contributions, plus 4% interest
• Make the payment within six months of the date you return to employment
Your Employer must also verify that the cause of your disability meets the criteria noted above.
Refund Buyback
A Member who terminates employment before becoming eligible for
retirement can receive a refund of Contributions plus Interest (the Employee
Contributions Account). If you receive such a refund, you forfeit all Creditable
Service for the period of employment covered by the refund.
However, if you return to work for an Employer and complete two additional
years of PSERS membership, you can re-establish your Creditable Service via
a “buyback”. To do so, you must make a lump sum payment to PSERS equal
to the refund amount you originally received, plus 4% interest (compounded
annually from the refund date to the buyback date).
Military Service
The Uniformed Service Employment and Reemployment Rights Act (“USERRA”) provides you with certain rights
regarding your employment and retirement benets, if you perform qualied Military Service. If you return to
employment after a military leave, you may receive Creditable Service for your period of leave if:
• You apply with PSERS in writing to establish the service
• You pay the applicable Employee Contributions for the period of service (these Contributions must be paid
within a period up to the lesser of three times the length of your Military Service, or ve years)
Example: If you were deployed for 1 year, you have up to 3 years after returning to work to pay your Employee
Contributions. If you were deployed for 3 years, you have up to 5 years after returning to work to pay your Employee
Contributions.
If you left public school employment to perform Military Service before October 13, 1994, you should contact PSERS for
information about your rights to establish Creditable Service.
If you are called to active duty in the National Guard or Reserves, you are permitted to make Employee Contributions
to PSERS during your period of active duty. If you’d like to take advantage of this opportunity, you must provide PSERS
with a copy of your orders to active duty as soon as possible after receiving them.
8
8
For more information about
how to receive a refund of
your Employee Contributions
Account, please see the
Handbook section titled
“Refund of Contributions and
Interest”.
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
9
9
Benets Eligibility
The retirement benets available to a Member under PSERS are based upon a benet formula and are funded
through both Employee Contributions and Employer Contributions. You will always have a non-forfeitable right to
your Employee Contributions. However, you must earn a right to receive other benets. This right is referred to as a
“vested” right.
The word “vested” means that a Member has a non-forfeitable right. Your Contributions to PSERS are always 100%
vested. Once you earn ten years of Creditable Service, you have a vested right to a service retirement as early as age
60, even if you terminate employment before reaching age 60.
When you terminate employment, you may be eligible for one of the following types of benets from the plan,
depending on your hire date and your years of Creditable Service:
• Normal Retirement Benet
• Early Retirement Benet
• Terminated Vested Retirement Benet
• Refund of your Contributions and Interest
• Disability Benet
• Death Benet
Your Benet may be forfeited under two situations:
• Conviction of a state or federal public employment-
related crime, or
• A withdrawal of your contributions and interest
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
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Service Retirement
There are three dierent types of Service Retirement you can apply for in this Plan: Normal Retirement, Early
Retirement, and Terminated Vested Retirement.
Normal Retirement
You can begin receiving monthly Normal Retirement benets as early as the rst day of the month on or following the
date that you attain your Normal Retirement Age. Normal Retirement Age is dened as the attainment of age 65 and
ten years of Creditable Service.
Early Retirement
You can begin receiving monthly Early Retirement benets as early as the rst day of the month on or following the date
you attain age 60, provided you have at least ten years of Creditable Service. The benet payable at Early Retirement
will be an amount equal to your Normal Retirement benet earned at that time, reduced by 6% for each year (or ½%
for each month) you are commencing benets prior to age 65.
Terminated Vested Retirement
If you terminate employment with at least ten years of Creditable Service, but prior to age 60, you can begin receiving a
reduced retirement benet as early as age 60, or an unreduced retirement at age 65. You should contact ERSGA within
90 days prior to your selected retirement date.
Your eective retirement date will be the rst day of the month in which your retirement application is received at ERSGA
or, if later, the rst of the month following your nal month of employment.
If you withdraw your contributions and interest at any time, you will automatically forfeit the monthly
benet payable as early as age 60.
!
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
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11
Service Retirement Benet Formula
The benet formula used to calculate Normal Retirement benets under PSERS is:
Creditable Service x $15.50 = Maximum Plan Benet
As shown above, the benet formula calculates the amount payable
at Normal Retirement Age under the Maximum Plan Benet. The
“Maximum Plan Benet” is the highest monthly benet available,
and does not provide for a monthly benet to a beneciary(ies).
Your benet may be reduced if you apply for an Early Retirement
Benet or if you select an optional form of payment which provides
for a survivor benet to your beneciary(ies) upon your death.
Normal Retirement Calculation Example:
You choose to commence benets at age 65 and have elected benet payment Option A(b), which provides for a
monthly payment for your lifetime. Upon your death, your beneciary(ies) will receive a monthly benet for his
or her lifetime equal to 50% of the monthly benet you were receiving.
Age at Commencement
of Benets
Beneciary’s Age Years of Service
65 60 20
Step 1: Calculate the Normal Retirement Benet
Creditable Service x $15.50
20 years x $15.50 = $310.00 per month (Maximum Plan Benet)
Step 2: Calculate the Option A(b) Benet
Maximum Plan Benet x Option A(b) Factor
$310.00 x .9055* = $280.71, monthly benet payable to you
$280.71 x 50% = $140.36, monthly benet payable to your beneciary(ies)
*The Option A(b) factor is dependent on your age and the age of your beneciary(ies) as of your retirement eective date. Refer to
Appendix B for option factor table.
For a reduction in benet, you may
elect to provide survivor benets to a
beneciary(ies) in lieu of a benet for
only your lifetime. See the Handbook
section titled “Optional Forms of
Payment.”
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
12
Early Retirement Calculation Example:
You choose to commence benets at age 62 and have elected to receive the Maximum Plan Benet, which
provides for a monthly payment for your lifetime. Upon your death, no further monthly benets are payable.
Age at Commencement
of Benets
Years of Service
62 25
Step 1: Calculate the Normal Retirement Benet
Creditable Service x $15.50
25 years x $15.50 = $387.50 per month (Maximum Plan Benet)
Step 2: Calculate the Early Retirement Benet
Maximum Plan Benet x Early Reduction Factor
$387.50 x .18* = $69.75, reduction for early retirement
$387.50 - $69.75 = $317.75, monthly benet payable to you at age 62
*6% reduction for each year the Member is commencing retirement before age 65
Limitations on Benets
Section 415 of the federal Internal Revenue Code limits the amount of benets you can receive from PSERS. You will be
notied if the benet that you would otherwise be eligible to receive under PSERS exceeds this limit.
13
13
Disability Retirement
If you qualify for Disability Retirement, you will receive a PSERS benet based upon your years of Creditable Service.
This benet is not reduced for retirement earlier than age 65, regardless of your age at benet commencement.
You may qualify for a Disability Retirement if you:
• Have attained at least 15 years of Creditable Service
• Are an active employee when you apply for Disability Retirement
• Are on a leave of absence (with or without pay) while the Disability Retirement application is being processed
• Are unable to perform your job or any oered alternative position due to a permanent medical condition(s)
Once you have submitted a Disability Retirement application, your Employer must oer you an alternative position, if
one is available. The requirements for an alternative position are:
• The physical requirements are compatible with your physical limitations;
• The annual compensation and possibility for future advancement are the same as or greater than your current
position;
• The duties are reasonably compatible with your experience and educational qualications;
• The position is covered under PSERS
The position must be available and oered to you in writing no later than 45 days after your disability application is
submitted. If you are oered an alternative position, then within 30 days of the oer, you must either accept the oer
or dispute your ability to perform in the alternate position by submitting a written appeal to both the PSERS Medical
Board and your Employer. If you do not accept an oered alternative position or dispute your ability to perform in the
alternative position, your application for disability retirement will be denied.
The PSERS Medical Board evaluates Disability Retirement applications to determine whether the applicant is eligible
for Disability Retirement based upon the inability to perform the original position, and, if applicable, an alternative
position. If the Medical Board determines that the applicant is capable of performing the duties of either position, the
Disability Retirement application will be denied.
IMPORTANT APPLICATION INFORMATION: A Member’s Disability Retirement application and supporting
documentation must be received by ERSGA no more than 90 days in advance of and no later than 30 days in advance of
the Member’s eective retirement date. The Member’s Employer must also be supplied with a copy of the completed
application, including supporting documentation, at the same time the Member les the application with PSERS.
Incomplete submissions will not be accepted. Members who have applied for Social Security disability benets must
submit a copy of their Social Security application.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
14
14
Returning to a Gainful Occupation While Receiving Disability Retirement Benets
Disability retirees cannot go back to work for the school system in the same position from which they retired. Further,
if a Member who is receiving disability benets is engaged in or is able to engage in a gainful occupation, his or her
Disability Retirement may cease or be reduced. ERSGA performs audits of disability retirees on behalf of PSERS to
determine continued eligibility for disability retirement benets.
A Member who retires under Disability Retirement is subject to periodic medical re-examination. Refusal to submit to
the re-examination may result in a discontinuation of benets until the re-examination occurs. If the refusal continues
for one year, all rights to a Disability Retirement benet under PSERS may be revoked by the ERS Board of Trustees.
Disability Retirement Calculation Example:
Assume you have 15 years of Creditable Service and qualify to receive disability benets beginning at age 50 and
have elected the Maximum Plan Benet, which provides for a monthly payment for your lifetime. Upon your
death, no further monthly benets are payable.
Age at Commencement
of Benets
Years of Service
50 15
Creditable Service x $15.50
15 years x $15.50 = $232.50 per month (Maximum Plan Benet)
15
Death Benets
The benets payable to your beneciary(ies) upon your death are dependent upon your employment / retirement
status, age, and Creditable Service at the time of your death.
Death Before Retirement, Monthly Death Benet
Whether you are actively employed or inactive at the time of your death, your named, living beneciary(ies) will be
eligible to receive a monthly Death Benet if you meet both of the following qualications:
• Attainment of at least ten years of Creditable Service, and
• Attainment of at least age 60
The monthly Death Benet is equal to the amount the Member would have received if the Member had retired under
Option A(b) (50% Survivor Benet).
A non-living beneciary, such as an estate or trust, cannot receive a lifetime monthly benet. If you meet the
qualications above, but either have not named a beneciary(ies) or no living beneciary(ies) have survived you, then
the Death Benet will be a lump sum payment of your Contributions plus Interest, payable to your estate.
Death Before Retirement, Refund of Contributions plus Interest
If at the time of your death, you do not meet both of the qualications listed above for a monthly Death Benet,
then your Death Benet will be a lump sum payment of your Contributions plus Interest, payable to your named
beneciary(ies). If you have not named a beneciary(ies) or no living beneciary(ies) have survived you, then the lump
sum will be payable to your estate.
Death While Receiving Benets
If you are receiving your monthly retirement benet at the time of your death, then the benets payable to your
beneciary(ies), if any, will be based on the optional form of payment you chose at the time of your retirement. Please
see the Handbook section titled “Optional Forms of Payment” for more information.
Death on or After Normal Retirement Date and After Selection of an Optional Form of Payment
but Before Benet Commencement
If you die after reaching your Normal Retirement Date but before commencing your retirement benet payments, and
you have made an election to receive a benet under one of the options under Option A or Option B, then the Death
Benet payable will be based on your election, as if you had retired on the day before your death. Please see the
Handbook section titled “Optional Forms of Payment” for more information about Option A and Option B.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
16
Refund of Contributions and Interest
As a Member of PSERS, you are required to make Employee Contributions
into the System. You are always 100% vested in your Employee
Contributions and any interest to which you are entitled in your Employee
Contributions Account.
When you terminate employment, regardless of your age or years of Creditable Service, you are immediately entitled
to receive a refund of your Employee Contributions Account in a lump sum payment. Taking a refund, however, has
several consequences:
• You waive all other rights in the PSERS plan. No other benets
will be payable to you or to any beneciary(ies). If you have
ten or more years of Creditable Service and are vested in a
monthly benet, taking a refund cancels your right to receive
a monthly benet in the future.
• You end your plan membership. If you are later rehired, you will
become a Member again under the terms of the plan in eect
at your rehire date. This is true even if you later buy back your
refunded Creditable Service.
Employer Contributions are not refundable to you.
Please the ERSGA website for information about how to apply for a refund of your Employee Contributions Account.
For more information about
Employee Contributions, please
see the Handbook section titled
“Contributions”.
For more information about buying
back Creditable Service after taking
a refund, please see the Handbook
section titled “Creditable Service”,
subsection “Refund Buyback”.
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LRS
GJRS
PSERS
GMPF
PSR
GDCP
17
Optional Forms of Payment
When you retire, you have several ways in which to receive your benet payments. Every payment option provides a
monthly benet for your lifetime, and some options provide a benet to one or more beneciaries after your death.
Please see the section of this Handbook titled “Designating a Beneciary” for more information regarding how to
designate a beneciary.
The Maximum Plan Benet provides the highest monthly benet available to you, because it does not provide a
monthly benet to anyone after your death. Other benet options pay a reduced monthly benet to you, in order to
provide for certain specied beneciary payments. Detailed descriptions of the various options are shown in the table
below and on the following pages.
Actuarial tables are used to determine the amount of the reduction of your benet, in the event that you choose one of
the optional benets. Tables used to determine the benet payable under Options A and B are provided in Appendix B
to this Handbook. Please contact ERSGA if you need further information about the actuarial tables.
It is important that you think carefully about your decision before making a payment option selection. In most cases,
you cannot change your payment option after you receive your rst monthly benet payment. Before making your
decision, you should obtain an estimate calculation of the amounts payable to you under the various payment options.
If you are not married when you begin to receive your retirement benet, and you subsequently marry, you may change
your benet payment option, within six months of your marriage, to a benet that provides your new spouse with a
survivor benet.
Benet Payment Options
Maximum Plan Benet
(Life Annuity)
Payable to You: The highest monthly benet available to you, payable for your
lifetime.
Payable to Your Beneciary: No monthly benet is payable after your death. If
you die before you receive total payments which at least equal your Employee
Contributions Account, your beneciary(ies) will receive the dierence in a single
payment.
Who May Be a Beneciary: An estate, a charity, a trust, or a living person(s).
Changing a Beneciary: You may do this at any time.
Option A(a)
(100% Survivor Benet)
Payable to You: A reduced monthly benet, payable for your lifetime.
Payable to Your Beneciary: A monthly benet equal to 100% of the monthly benet
you received during your lifetime, payable for the lifetime of the beneciary(ies).
Who May Be a Beneciary: A living person(s). If multiple beneciaries are named,
each beneciary will receive a partial amount based on their respective ages. NOTE:
This option may not be available with the election of a non-spouse beneciary who
is more than 10 years younger than the Member.
Changing a Beneciary: You may not change your beneciary(ies) after you receive
your rst monthly payment.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
18
18
Option A(b)
(50% Survivor Benet)
Payable to You: A reduced monthly benet, payable for your lifetime.
Payable to Your Beneciary: A monthly benet equal to 50% of the monthly benet
you received during your lifetime, payable for the lifetime of the beneciary(ies).
Who May Be a Beneciary: A living person(s). If multiple beneciaries are named,
each beneciary will receive a partial amount based on their respective ages.
Changing a Beneciary: You may not change your beneciary(ies) after you receive
your rst monthly payment.
Option A(c)
(Member-Determined
Survivor Benet)
Payable to You: A reduced monthly benet, payable for your lifetime.
Payable to Your Beneciary: A monthly benet equal to an amount which
you determine at the time of your retirement, payable for the lifetime of the
beneciary(ies).
Who May Be a Beneciary: A living person(s). If multiple beneciaries are named,
each beneciary will receive a partial amount based on their respective ages. NOTE:
This option may not be available with the election of a non-spouse beneciary who
is more than 10 years younger than the Member.
Changing a Beneciary: You may not change your beneciary(ies) after you receive
your rst monthly payment.
Option A(d)
Payable to you: A reduced monthly benet, payable for your lifetime.
Payable to your beneciary: A monthly survivor benet, the amount of which is
determined at retirement to be the maximum amount allowed by the IRS for a non-
spouse beneciary. The survivor benet is payable for the life of the beneciary(ies).
Who May Be a Beneciary: A living person(s). If multiple beneciaries are named,
each beneciary will receive a partial amount based on their respective ages.
Changing a Beneciary: You may not change your beneciary(ies) after you receive
your rst monthly payment.
Option B
(Period Certain)
Payable to You: A reduced monthly benet, payable for your lifetime.
Payable to Your Beneciary: Your benet is guaranteed to be paid for a period of
time that you select at retirement (5, 10, 15, or 20 years). If you live longer than
the guarantee period, there is no benet payable to your beneciary(ies). If you
die before the end of your guarantee period, any remaining guaranteed payments
will continue to be paid to your beneciary(ies), and will stop when the end of the
guarantee period is reached.
Who May Be a Beneciary: A living person(s). If multiple beneciaries are named,
each beneciary will receive a partial amount based on their respective ages.
Changing a Beneciary: You may change your beneciary(ies) at any time.
19
19
Benet Payment Details
Cost of Living Adjustments
Each year, the Board of Trustees may consider the grant of a Cost of Living Adjustment (COLA) for retirees. The decision
will be based on the long term nancial soundness of the pension system. COLAs are not guaranteed, and you should
not base your nancial decisions on the possibility of a COLA until a COLA has been announced.
Protection of Benets
Your benets from PSERS are not subject to levy and sale, garnishment, attachment, or any other process or claim,
except with regard to an IRS levy, court-ordered child support, or court-ordered sanctions due to conviction of certain
criminal acts. Your benets are not assignable even with a Domestic Relations Order (DRO).
Correcting a Benet Error
The Board of Trustees of PSERS is in charge of all records of the retirement system. If you receive more or less than
the benet to which you are entitled due to an error, the error will be corrected upon discovery and your benet will
be adjusted accordingly. With errors, there is a potential for underpayments or overpayments. Underpayments will
be made to you as soon as possible. For any overpayments, your repayment is required and repayment options will be
discussed with you.
Deductions
Your PSERS retirement benet is generally not assignable. This means that only limited deductions may be made from
your retirement check, such as:
• Federal income tax
• Georgia state income tax
• Health insurance premiums
• Dental insurance premiums
• Some Credit Unions
Taxes
Employee Contributions made by a Member are contributed to PSERS on an after-tax basis, and the portion of the
retirement benets which are attributable to these Employee Contributions is determined on a pro-rated basis using
the tables found in the Internal Revenue Code to provide a partial tax exemption each calendar year.
However, Employee Contributions only provide a small portion of each monthly payment. The majority of the monthly
payment is taxable to the retiree and/or beneciary(ies). When the Employee Contributions are exhausted, the total
benet check is taxable. Each year a 1099-R is issued to every retiree and beneciary receiving benets to identify
taxable retirement benets when ling for income taxes.
Withholding election (forms W-4P for federal and G-4P for Georgia state taxes) is completed at retirement. Retirees
can change their tax withholding and direct deposit elections at any time by logging in to their account at the ERSGA
website, or by contacting ERSGA directly.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
20
Returning to Public School Employment
Re-employment after Commencement of Retirement Benets
If you return to PSERS-covered employment after retirement and you are over age 65 upon rehire, you must choose
whether to continue to receive your retirement benet or to become an active PSERS Member again. If you choose
to become an active Member, your retirement benet will be suspended, you will make Employee Contributions to
the System, and you will accrue additional Creditable Service. Once you retire again, the sum of all of your Creditable
Service will be used to determine your nal retirement benet.
If you are less than age 65 at rehire, you will automatically become an active Member upon rehire. Your retirement
benet will be suspended, you will make Employee Contributions to the System, and you will accrue additional
Creditable Service. Once you retire again, the sum of all of your Creditable Service will be used to determine your nal
retirement benet.
If you attain age 65 during your period of rehire, you will have the opportunity to elect whether to continue as an
active Member, or to resume receiving your retirement benets based on your new total Creditable Service accrued
up to age 65. If you choose to begin receiving your retirement benet again, then you will no longer make Employee
Contributions to PSERS or accrue additional Creditable Service while you remain actively employed.
You must have a one-month break in service between your retirement date and the date of your rehire.
Re-employment before Receiving a Refund of your Employee Contributions Account
If you leave public school employment and leave your Employee Contributions Account with PSERS, you have the
opportunity to retain your membership rights under PSERS in the event that you decide to return to active PSERS-
covered employment.
Any previously earned Creditable Service will be added to any Creditable Service you earn upon your re-employment.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
21
Re-employment after Receiving a Refund of your Employee Contributions Account
When you receive a refund of your Employee Contributions Account, you forfeit any Creditable Service attributable to
that same period of employment.
When you return to PSERS-covered employment, you receive a new PSERS membership date that disregards any prior
membership you had under PSERS. Your benets will be based on the plan rules in place for new hires at the time of
your re-employment.
You may re-establish the Creditable Service you forfeited when you received your refund, after you return to active
employment and complete two additional years of PSERS membership. To re-establish your Creditable Service, you
must make a lump sum payment to PSERS in an amount equal to the refund you originally received, plus 4% interest
compounded annually from the date of your refund.
Even if you establish forfeited Creditable Service by paying back the refund of your Employee Contributions Account,
your membership date will not be adjusted back to your original membership date, and your benets will be based on
the plan rules in place for new hires at the time of your re-employment.
22
22
Designating a Beneciary
Actively Employed
All active PSERS Members are strongly encouraged to designate one or more beneciaries to receive the PSERS benet
which may be payable at the Member’s death.
Failure to designate a beneciary(ies) will result in any applicable death benets for an active Member being paid to
the Member’s estate. In certain circumstances, the Death Benet payable to a living person is larger than the Death
Benet which may be paid to an estate. Please see the Handbook section titled “Death Benets” for more information.
You will be asked to designate a primary beneciary and a contingent (also known as a secondary) beneciary(ies) for
your PSERS plan benets. You may designate one or more primary and one or more contingent beneciary(ies). If you
want your Estate to be your primary beneciary, you do not need a contingent beneciary.
A primary and a contingent beneciary do not share benets. A contingent beneciary(ies) will only receive a benet if
there is no surviving primary beneciary(ies) at the time the death benet is to be paid, or if the primary beneciary(ies)
does not survive the Member by at least 32 days.
You may designate your retirement plan beneciary(ies) by logging in to your online account at the ERSGA website or
by contacting ERSGA directly.
All beneciary designations must be received in the ERSGA oce prior to the death of the Member in order to be
eective.
At Retirement
When you retire, you will be asked to choose the form of the benet you wish to receive and designate the applicable
beneciary(ies) at that time. Please see the Handbook section titled “Optional Forms of Payment” for more information.
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
23
23
Appendix A
Departments and Agencies Participating in PSERS as of July 31, 2012.
Appling County Schools
Atkinson County Schools
Bacon County Schools
Baker County Schools
Baldwin County Schools
Banks County Schools
Barrow County Schools
Bartow County Schools
Ben Hill County Schools
Berrien County Schools
Bibb County Schools
Bleckley County Schools
Brantley County Schools
Brooks County Schools
Bryan County Schools
Bulloch County Schools
Burke County Schools
Butts County Schools
Calhoun County Schools
Camden County Schools
Candler County Schools
Carroll County Schools
Catoosa County Board Of Education
Charlton County Schools
Chatham County Schools
Chattahoochee County Schools
Chattooga County Schools
Cherokee County Schools
Clarke County Schools
Clay County Schools
Clayton County Schools
Clinch County Schools
Cobb County Schools
Coee County Schools
Colquitt County Schools
Columbia County Schools
Cook County Schools
Coweta County Schools
Crawford County Schools
Crisp County Schools
Dade County Schools
Dawson County Schools
Decatur County Schools
Dekalb County Schools
Dodge County Schools
Dooly County Schools
Dougherty County Schools
Douglas County Schools
Douglas County Schools
Early County Schools
Echols County Schools
Engham County Schools
Elbert County Schools
Emanuel County Schools
Evans County Schools
Fannin County Schools
Fayette County Schools
Floyd County Schools
Forsyth County Schools
Franklin County Schools
Gilmer County Schools
Glascock County Schools
Glynn County Schools
Gordon County Schools
Grady County Schools
Greene County Schools
Gwinnett County Schools
Habersham County Schools
Hall County Schools
Hancock County Schools
Haralson County Schools
Harris County Schools
Hart County Schools
Heard County Schools
Henry County Schools
Houston County Schools
Irwin County Schools
Jackson County Schools
Jasper County Schools
Je Davis County Schools
Jeerson County Schools
Jenkins County Schools
Johnson County Schools
Jones County Schools
Lamar County Schools
Lanier County Schools
Laurens County Schools
Lee County Schools
Liberty County Schools
Lincoln County Schools
Long County Schools
Lowndes County Schools
Lumpkin County Schools
Macon County Schools
Madison County Schools
Marion County Schools
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
24
Mcdue County Schools
Mcintosh County Schools
Meriwether County Schools
Miller County Schools
Mitchell County Schools
Monroe County Schools
Montgomery County Schools
Morgan County Schools
Murray County Schools
Muscogee County Schools
Newton County Schools
Oconee County Schools
Oglethorpe County Schools
Paulding County Schools
Peach County Schools
Pickens County Schools
Pierce County Schools
Pike County Schools
Polk County Schools
Pulaski County Schools
Putnam County Schools
Quitman County Schools
Rabun County Schools
Randolph County Schools
Richmond County Schools
Rockdale County Schools
Schley County Schools
Screven County Schools
Seminole County Schools
Spalding County Schools
Stephens County Schools
Stewart County Schools
Sumter County Schools
Talbot County Schools
Taliaferro County Schools
Tattnall County Schools
Taylor County Schools
Telfair County Schools
Terrell County Schools
Thomas County Schools
Tift County Schools
Toombs County Schools
Towns County Schools
Treutlen County Schools
Troup County Schools
Turner County Schools
Twiggs County Schools
Union County Schools
Upson County Schools
Walker County Schools
Walton County Schools
Ware County Schools
Warren County Schools
Washington County Board of Education
Wayne County Schools
Webster County Schools
Wheeler County Schools
White County Board of Education
Whiteld County Schools
Wilcox County Schools
Wilkes County Schools
Wilkinson County Schools
Worth County Schools
City of Bremen Schools (Haralson)
City of Buford Schools (Gwinnett)
City of Calhoun Schools (Gordon)
City of Carrollton Schools (Carroll)
City of Cartersville Schools (Bartow)
City of Chickamauga Schools (W
City of Commerce Schools (Jackson)
City of Dalton Schools (Whiteld)
City of Decatur Schools (Dekalb)
City of Dublin Schools (Laurens)
City of Gainesville Schools (Hall)
City of Jeerson Schools (Jackson)
City of Marietta Schools (Cobb)
City of Pelham Schools (Mitchell)
City of Rome Schools (Floyd)
City of Social Circle Schools (Walton)
City of Thomasville Schools (Thomas)
City of Trion Schools (Chattooga)
City of Valdosta Schools (Lowndes)
City of Vidalia Schools (Toomb
Scintilla Charter Academy
GA Military College
Kipp Metro Atlanta Collaborative Inc
School For Arts Infused Learning Sail
Furlow Charter School
Georgia Magnet Charter School
25
25
Appendix B
Optional Form Factors
The percentages in the following tables show the proportion of the Maximum Plan Benet payable to you when
choosing a survivor benet. To calculate Options A(a), A(b), and B, nd the percentage relating to your age and your
beneciary’s age as of your retirement date and multiply the Maximum Plan Benet amount by that factor. For multiple
beneciaries or Member/beneciary ages not listed in the table, please contact ERSGA.
Because of certain limitations under the federal Internal Revenue Code, you might not be eligible to elect the 100%
Survivor Benet under Option A if you elect a non-spouse beneciary who is more than 10 years younger than you. If
this is applicable, you will be notied of the maximum permissible amount which can be allocated to the non-spouse
beneciary.
Option A(a): 100% Survivor Benet
The following table shows the percentage of the monthly Maximum Plan Benet as a result of receiving a monthly
benet in the form of Option A(a), eective July 1, 2019.
Option A(a) Factors
Beneciary Age Retiring Member’s Age
60 61 62 63 64 65
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
86.04%
86.55%
87.05%
87.57%
88.09%
88.61%
89.13%
89.64%
90.16%
90.67%
91.17%
91.67%
92.16%
92.64%
93.11%
93.57%
84.88%
85.40%
85.94%
86.48%
87.02%
87.57%
88.12%
88.67%
89.22%
89.76%
90.30%
90.84%
91.37%
91.88%
92.39%
92.88%
83.66%
84.20%
84.76%
85.32%
85.89%
86.47%
87.05%
87.63%
88.21%
88.79%
89.37%
89.94%
90.51%
91.06%
91.61%
92.14%
82.37%
82.93%
83.51%
84.09%
84.69%
85.29%
85.90%
86.52%
87.13%
87.75%
88.36%
88.97%
89.58%
90.17%
90.76%
91.34%
81.02%
81.60%
82.19%
82.80%
83.42%
84.05%
84.69%
85.33%
85.98%
86.63%
87.28%
87.93%
88.58%
89.22%
89.85%
90.47%
79.59%
80.19%
80.81%
81.44%
82.08%
82.74%
83.40%
84.07%
84.75%
85.44%
86.12%
86.81%
87.50%
88.18%
88.85%
89.52%
ERS
LRS
GJRS
PSERS
GMPF
PSR
GDCP
26
26
Option A(b): 50% Survivor Benet
The following table shows the percentage of the monthly Maximum Plan Benet as a result of receiving a monthly
benet in the form of Option A(b), eective July 1, 2018.
Option A(b) Factors
Beneciary Age Retiring Member’s Age
60 61 62 63 64 65
55
56
57
58
59
60
61
62
63
64
65
66
67
68
69
70
92.50%
92.79%
93.08%
93.37%
93.67%
93.96%
94.25%
94.54%
94.82%
95.11%
95.38%
95.66%
95.92%
96.18%
96.43%
96.68%
91.82%
92.13%
92.44%
92.75%
93.06%
93.37%
93.68%
93.99%
94.30%
94.60%
94.90%
95.20%
95.49%
95.77%
96.04%
96.31%
91.10%
91.42%
91.75%
92.08%
92.41%
92.74%
93.07%
93.41%
93.74%
94.06%
94.38%
94.70%
95.02%
95.32%
95.62%
95.91%
90.33%
90.67%
91.01%
91.36%
91.71%
92.06%
92.42%
92.77%
93.12%
93.47%
93.82%
94.16%
94.50%
94.83%
95.16%
95.47%
89.51%
89.87%
90.23%
90.59%
90.96%
91.34%
91.71%
92.09%
92.46%
92.84%
93.21%
93.58%
93.94%
94.30%
94.65%
94.99%
88.64%
89.01%
89.38%
89.77%
90.16%
90.55%
90.95%
91.35%
91.75%
92.15%
92.54%
92.94%
93.33%
93.72%
94.10%
94.47%
27
27
Option B: Period Certain Benet
The following table shows the percentage of the monthly Maximum Plan Benet as a result of receiving a monthly
benet in the form of Option B for various guarantee periods, eective July 1, 2018.
Option B Factors
Member Age
B-B05
5 Year
Certain & Life Option
B-B10
10 Year
Certain & Life Option
B-B15
15 Year
Certain & Life Option
B-B20
20 Year
Certain & Life Option
60
61
62
63
64
65
66
67
68
69
70
71
72
73
74
75
99.38%
99.28%
99.18%
99.07%
98.95%
98.81%
98.65%
98.46%
98.25%
98.02%
97.77%
97.48%
97.17%
96.82%
96.42%
95.97%
97.61%
97.28%
96.93%
96.54%
96.10%
95.62%
95.09%
94.49%
93.83%
93.11%
92.33%
91.46%
90.51%
89.46%
88.29%
86.99%
94.98%
94.36%
93.70%
92.97%
92.17%
91.31%
90.36%
89.31%
88.18%
86.97%
85.65%
84.23%
82.70%
81.04%
79.26%
77.35%
91.86%
90.96%
89.99%
88.95%
87.83%
86.62%
85.32%
83.91%
82.41%
80.83%
79.15%
77.38%
75.52%
73.57%
71.52%
69.40%