New Pension Law: Act 9 of 2001

On May 17, 2001, Governor Ridge signed legislation adopting a new multiplier of 2.5 % for retiring school employees and making a number of other changes to the Public School Employees' Retirement System ("PSERS"). Act 9 does not automatically apply the 2.5 % multiplier to active PSERS members. Rather, PSERS members are required to choose a new class of membership (Class T-D) in order to qualify. PSERS will be mailing election forms to all members in the beginning of June.

Following are some timelines that must be met or you could lose important rights:

ü      If you have already submitted a resignation of June 30, 2001, or earlier, you will need to submit a letter to the school district requesting to rescind the original resignation date and change the date to July 1.

ü      You will be an active member of PSERS until your last day of work and an inactive member through and including July 1.

ü      Your retirement cannot start before July 2, 2001.

ü      You must submit your written election prior to your resignation date.

Multiple Service Membership

¨                  If you have credited time with state employment (SERS) that you wish to combine with your PSERS credit, and if you are active on or after July 1, 2001, you can elect multiple service membership if you notify PSERS between July 1, 2001, and December 31, 2003.

¨                  To convert SERS membership to the higher benefit class (Class AA), you must be an active or inactive member of SERS on both June 30 and July 1, 2001, and you must file your election with SERS by December 31, 2001, or before the date you terminate school or state service, whichever is earlier.

PSERS is the agency authorized to interpret the law. Visit the PSERS web site at www.psers.state.pa.us. For more information on obtaining the higher benefit, visit the authoritative PSERS web site and consult with your PSERS regional representative.