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Glossary of Terms

Note:  The following explanations of terms used are practical statements of the terms' meanings.  To the extent that these explanations are inconsistent with terms defined by the Retirement Code, the Retirement Code prevails.

A  B  C  D  E  F  G  H  I  J  K  L  M  N  O  P  Q  R  S  T  U  V  W  X  Y  Z 
 

Account Adjustments:  Any modifications to your SERS account that you, your employer or SERS make. SERS will notify you of any adjustments to your account.


Account Balance Total Deductions:  Your contributions plus interest as of the last December 31st. The calculator will compute your Total Deductions as of your Anticipated Retirement Date based on your entry for Retirement Covered Earnings.


Accumulated Deductions:  Total of your Member Contributions plus Credited Interest earned on your Member Contributions.


Active Member:  An employee for whom contributions are being made to the Fund or who is on leave without pay.


Actuarial Debt:  See Actuarial Reduction.


Actuarial Reduction:  The method of purchasing service credit or satisfying a debt to SERS by reducing the Initial Present Value of your retirement account at the time of your retirement. An Actuarial Reduction allows you to satisfy a debt in lieu of making payroll deductions or a lump sum or other out-of-pocket payment.

Debts can arise as a result of various reasons, most commonly involving service credit purchases or eliminating a Frozen Present Value.

If the Actuarial Reduction is for the Purchase of Service Credit, SERS credits the service immediately and establishes the amount owed on your account, which is shown on your annual Statement of Account . However, the Actuarial Reduction is not applied until your Annuity becomes payable or, if you die before retiring, at the time of your death.

If the Actuarial Reduction is a result of eliminating a Frozen Present Value, the process is similar. SERS will assume that the amount owed is to be satisfied by an Actuarial Reduction unless you otherwise inform SERS in writing.

Actuarial Reductions for the Purchase of Service Credit, or other reasons accrue Statutory Interest at 4 percent per year throughout your SERS active membership. The rate of interest used to calculate the Frozen Present Value elimination debt is currently 8 percent. This rate, last modified in 2009, can vary from fiscal year to fiscal year, depending on the SERS Fund’s assumed investment rate of return as established by the SERS consulting actuary and adopted by the Board.


Alternate Payee:  Someone other than you, who is designated by a Domestic Relations Order to receive all or a portion of your retirement benefits. An Alternate Payee could be a spouse, former spouse, child or other dependent designated by the courts to receive a portion of your retirement benefits.


Annuitant:  A SERS retiree or that person’s Designated Survivor (and certain Beneficiaries, when the amount owed the Beneficiary qualifies) who is receiving monthly Annuity payments.


Annuity:  A series of periodic payments for a fixed period or for life. SERS Annuity payments are made on a monthly basis. Survivor Options are available.


Anticipated Retirement Date:  Enter the date you would like the calculator to use for determining your estimated benefit amounts. If the entered date is before you attain five years of total service (State plus Non-State) you will be warned and a zero amount will appear.


Arrears Balance:  The balance owed to SERS for a service credit purchase, Frozen Present Value elimination, joint coverage conversion or to satisfy another obligation to SERS.


Arrears Payment:  Actuarial Reduction, lump sum payment or member payroll deductions for monies paid to SERS for a service credit purchase, Frozen Present Value elimination, joint coverage conversion or to satisfy another obligation to SERS.



Beneficiary:  The persons or organizations whom you last designated in writing to the Board to receive any Death Benefit that may be payable. If you die in State service, the amount payable will equal your Accumulated Deductions if you are not Vested or your Option 1 Death Benefit (remaining Initial Present Value) if you are vested. If you die as a Vestee, your Death Benefit will equal your Option 1 Death Benefit. If you die as an Annuitant receiving an Option 1 benefit, the amount will equal the remaining Initial Present Value of your account at retirement less any payments made.


Board:  The State Employees' Retirement Board.



Calendar Year:  January 1 through December 31.


Classes of Service: see chart below

Class of Service
Class of Service Multiplier
Class Description
Annual Benefit Accrual Rate (Percent of Final Average Salary)
A
1.00
All members not assigned to Special Class
2.0%
AA
1.25

All members who became members on or after July 1, 2001 and all Class A members who elected Class AA membership through Act 2001-9

2.5%
A-3
1.00

All members who became employees on or after Jan. 1, 2011 and all Legislators who became members on or after Dec. 1, 2010; Capitol Police and Park Rangers who became members after July 1, 2011; and State Police Officers who became members after July 1, 2012, provided the member did not elect membership in the optional A-4 Class within 45 days of becoming a member

2.0%
A-4
1.25

All members who would be Class A-3 but who elect A-4 within 45 days of becoming a member

2.5%
C
1.00
(see note below)

Enforcement Officers assigned to PLCB and PA State Police prior to March 1, 1974 

2.0%
D4
1.50

Any legislator who elected Class D4 between May 17, 2001 and June 30, 2001 and any legislator who enrolled in SERS since June 30, 2001 

3.0%
E1
2.00 for the first 10 years service. After 10 years of Class E-1 service, the class multiplier is reduced to 1.50
Judges
4.0% (First 10 years E-1 service)
3.0% (After 10 years of Class E-1 service)
E2
1.50
Magisterial District Judges
3.0%
G
.417

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

.834%
H
.500

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

1.0%
I
.625

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

1.25%
J
.714

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

1.428%
K
.834

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

1.668%
M
1.10

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

2.2%
N
1.25

Special class under Act 1999-12 for Department 757 effective Jan. 1, 2000 

2.5%
T-C
1.00
Purchased PSERS service credited with SERS
2.0%
T-D
1.25
PSERS equivalent to Class AA
2.5%

Note: Currently all State Police with at least 20 years of service, regardless of age, have the following benefit calculations: 50% of the highest year’s earnings for those with at least 20 but less than 25 years of service; 75% of the highest year’s earnings for those with 25 years of service or more. The highest year’s earnings do not include the earnings in the year in which employment terminates. In addition, Class C members are entitled to the benefit that their Class C Accumulated Deductions would buy as though they were at least age 60 at retirement, plus any SSI benefit to which they are entitled.




Concurrent Service:  Service credited in more than one Class of Service during the same period of time. It may also involve service credited in both SERS and in the Public School Employees’ Retirement System (PSERS) for which you contribute to both systems at the same time during any year of membership. In no case may you receive more than one year’s service credit for any one year period.


Contribution Rate:  Your contribution rate is a percent of your gross pay and depends upon your Class of Service. The basic contribution rate is 5 percent of gross pay times your Class of Service Multiplier. Most members are Class AA or Class A-3 with a contribution rate of 6.25 percent of gross pay.


Credited (or Statutory) Interest:  The interest that your retirement contributions accrue. The statutory interest rate is 4% per year, compounded annually.


Credited Class of Service:  The calculator only supports Class AA-60 (Normal Retirement at age 60) and Class AA-50 (Normal Retirement at age 50) service. If you have split service or are in any of the following classes you must request an estimate from your SERS Retirement Counselor: C, D-3, E-1, E-2, PSERS, G through N, SSI-60, SSI-50


Credited/Creditable Service:  State or nonstate service for which you have made contributions or for which you may make contributions. The following types of credit may be available in SERS:
  • Prior State Service
     
  • Intervening military service
     
  • Nonintervening military service
     
  • Out-of-State and federal service in public school education
     
  • Multiple Service
     
  • Certain types of other governmental service
     
  • Cadet Nurse Corps service
     
  • Certain Merchant Marine service
     
  • Community College service prior to July 1, 1971
                  
  • Justice of the Peace service prior to January 1, 1970




Date of Termination:  The last day of service for which contributions are made for an Active Member or, in the case of an inactive member on leave without pay, the date of resignation or the date employment is formally discontinued by the employer.


Death Benefit (Non-Vested):  The total Accumulated Deductions in your account. Your Accumulated Deductions will be paid to your beneficiaries. Any Beneficiary to whom SERS owes $10,000 or more may elect to receive a lump sum payment or select from a variety of Annuity options. Any beneficiary to whom SERS owes less than $10,000 will receive a lump sum payment.


Death Benefit (Vested):  The Present Value of your retirement account if you die before retiring or, if you retired under Option 1, the Present Value of your retirement account on your date of retirement less any Annuity payments made. Any Beneficiary to whom SERS owes $10,000 or more may elect to receive a lump sum payment or select from a variety of Annuity options. Any beneficiary to whom SERS owes less than $10,000 will receive a lump sum payment.


Defined Benefit Plan:  A retirement plan, such as SERS, that provides a formula-based benefit. The SERS standard benefit formula is 2 percent times Final Average Salary times years of Credited Service times Class of Service Multiplier.


Defined Contribution Plan:  A tax-favored investment plan in which you voluntarily defer part of your current income to a future date (retirement) to avoid taxation until the monies are distributed (e.g., The Commonwealth of Pennsylvania’s Deferred Compensation Plan (SERS’ 457 Plan)).


Designated Survivor:  The person you name to receive a lifetime Annuity upon your death when retiring under Option 2, 3 or Option 4 with a Joint and Survivor Annuity.


Direct Transfer:  The transfer by SERS directly to an Individual Retirement Account (IRA) or other eligible plan of the taxable portion of your Accumulated Deductions when you terminate from State service and retire or, if non-vested, when you withdraw your Accumulated Deductions from the Plan.


Disability Retirement Benefit:  An unreduced retirement Annuity payable if the Board determines you are physically or mentally unable to perform the duties of your current position.


Disability Retirement Earnings Limitation:  Members receiving a SERS Disability Retirement Benefit may work for a non-Commonwealth employer or an agency at which SERS membership is not available.

Generally, you may not receive more in disability benefit payments and earnings than the equivalent of your salary at the time you retired. Disability Annuitants are required to report their earned income on a yearly reporting schedule. If you earn in excess of the limitation, your SERS disability Annuity will be reduced dollar-for-dollar by the amount of your excess earnings.


Disability Supplement:  Under an approved disability retirement, an additional benefit added to the member’s early retirement entitlement.


Domestic Relations Order (DRO):  A court order designating an Alternate Payee to receive all or a portion of your retirement benefits. Under Pennsylvania law, SERS retirement benefits earned during marriage are marital property. A court with jurisdiction over a divorce may issue an order attaching your account for payment of support and for equitable distribution of your SERS account.

Payments under a DRO or support order commence when you retire, die or terminate State service prior to becoming vested and withdraw your Accumulated Deductions.



Early Retirement:  Receiving retirement benefits prior to reaching your Normal Retirement Date. Actuarial Reductions will be assessed to your benefit if you retire prior to your Normal Retirement Date.


Early Retirement Reduction Factor:  The reduction for Early Retirement is calculated using Actuarial Reduction factors which are based on how far you are from your Normal Retirement Date. Once you reach your Normal Retirement Date, the Early Retirement Factor is 1. The reduction factor varies but averages about 3-6% for each year you are away from your Normal Retirement Date. The early retirement reduction is subtracted from 1 to find the Early Retirement Factor which indicates the percentage of Normal Retirement Annuity you are eligible to receive. In short, if you retire early your pension will be reduced. The earlier you retire, the greater the reduction.


Effective Date of Disability:  The date the Board determines the member became unable to perform his or her job duties.


Effective Date of Retirement:  The first day following the date of termination of service of a member if he/she properly files an Application for Annuity within 90 days of such date; in the case of a Vestee or other member who does not apply for an Annuity within 90 days after termination of service, the date the Application for Annuity is filed with SERS or the date specified on the application, whichever is later.



Final Average Salary:  The highest average compensation received during any three non-overlapping periods of four consecutive calendar quarters. Typically, it is the average of your last three years of compensation.


Fiscal Year:  July 1 through June 30.


Frozen Present Value:  If you retire from State service under Early or Normal Retirement and later return to service, your monthly retirement benefit will stop and the Present Value of your retirement benefit will be "frozen."



Inactive Member:  A member who:

  1. Is not currently making Member Contributions;
      
  2. Has Accumulated Deductions remaining in the Fund;
      
  3. Is not eligible to become or has not elected to become a Vestee; and
      
  4. Has not filed an application for an Annuity.



Initial Present Value:  When you retire you are entitled to receive a lifetime monthly Annuity determined by a formula that takes into account your service and compensation, as well as other variables. The Initial Present Value is the amount of money SERS will need to have at the time you retire (invested at an assumed rate of 4% annually) in order to pay you this Annuity for your expected lifetime.



Long Service Supplement:  A supplemental benefit provided to retirees who have 41 or more years of service credit. The supplement increases the standard single life Annuity by 2% for each year from year 41 through year 45. The supplement is only available for Class A or AA service credit. The supplement increases as listed below:
     
Total Years of
Credited Service
As a Member of
Class A and Class AA
Percentage of Standard
Single Life Annuity
35 - 40
100%
41
102%
42 104%
43 106%
44 108%
45 or more 110%




Mandatory Debt:  A debt to SERS to be satisfied through payroll deductions while you are an active employee or through an Actuarial Reduction of your present value at the time you retire.


Mandatory Membership:  Membership in SERS that is required of all full-time State employees and permanent part-time State employees, unless such employees are specifically exempted from membership or have the option of enrolling in another retirement system. For example, certain employees of The Pennsylvania State University, the State System of Higher Education and the Department of Education have the option of enrolling in alternate retirement plans (e.g. PSERS, TIAA-CREF, AIG, VALIC, ING, MetLife Resources).

SERS members, who terminate from State service and later return to State service, must re-enroll in SERS, even if they are not full-time or permanent part-time State employees.


Maximum Single Life Annuity:  This plan provides the maximum amount of pension per month to which you are entitled. Monthly pension payments will be made to you for life. When you die, your beneficiary(ies) will receive your accumulated deductions less the amount of pension payments that you received. If the total amount of pension payments you received exceeds the amount of your accumulated deductions, no death benefit will remain for your beneficiary(ies). Of course, if you withdraw your accumulated deductions (under Option 4 below), there also would not be a death benefit.


Maximum with a Withdrawal Option:  At retirement, you may withdraw an amount equal to all or any part of your Accumulated Deductions. You may elect to receive this withdrawal in up to four installments. If you elect this option, you must also elect a Monthly Pension payment plan. The calculator assumes you will elect the Maximum Single Life Annuity and withdraw the entire amount of your Accumulated Deductions.


Member Contributions:  Monies that your agency’s comptroller withholds from your salary and provides to SERS.


Member Share:  The amount members pay for retiree health insurance when qualifying for majority State-paid coverage.

Depending on your bargaining unit and date of retirement, this amount is based on either your final annual gross base salary at retirement or your Final Average Salary. For most members, it is 3% of your final annual gross base salary at the time of retirement, but it is subject to change according to collective bargaining. Contact your Retirement Counselor for more information.




Multiple Service:  Electing to combine your total Credited Service in both SERS and PSERS to receive a single retirement benefit.



Non-State Service:  Enter the amount of non-State service you have or expect to purchase before your Anticipated Retirement Date. Please note that the calculator does not adjust your estimate for the cost of any prior or future service purchases.

Creditable non-State service is limited to:

  1. Intervening Military Service

  2. Non-intervening Military Service

  3. Out-of-state and Federal Service in Public School Education

  4. Certain types of Other Governmental Service

  5. Cadet Nurse Corps Service

  6. Community College Service prior to July 1, 1971

  7. Justice of the Peace Service prior to January 1, 1970



Normal Retirement Date/Age (Superannuation):  The age at which you are eligible to receive an Annuity that is not reduced by an Early Retirement Reduction Factor.

If you are a member of one of the pre-Act 120 Classes, Normal Retirement Age, also called Superannuation age, is either age 60 or age 50 (depending upon your Class of Service and employment position) with at least three years of Credited Service, or any age upon attaining 35 years of Credited Service. Age 50 is the Normal Retirement Age for members of the General Assembly, enforcement officers, correction officers, psychiatric security aides, Delaware River Port Authority police officers and officers of the Pennsylvania State Police. Age 50 is also the Normal Retirement Age for Capitol Police Officers and Park Rangers with 20 or more years of service in that classification.

If you are a member of the new A-3 or A-4 Class, Normal Retirement Age is either age 65 or age 55 (depending upon your employment position) with at least three years of Credited Service, or a minimum of 35 years of Credited Service with a Superannuation Score (your age + years of Credited Service) of at least 92. Age 55 is the Normal Retirement Age for members of the General Assembly, enforcement officers, correction officers, psychiatric security aides, Delaware River Port Authority police officers and officers of the Pennsylvania State Police. Age 55 is also the Normal Retirement Age for Capitol Police Officers and Park Rangers with 20 or more years of service in that classification.

Credited
Class of
Service
Normal Retirement Age
A-60 60 (or any age upon attaining 35 years of Credited Service)
A-50 50
AA-60 60 (or any age upon attaining 35 years of Credited Service)
AA-50 50
A-3-65 65 (or a minimum of 35 years of Credited Service with a Superannuation Score of 92)
A-3-55 55
A-4-65 65 (or a minimum of 35 years of Credited Service with a Superannuation Score of 92)
A-4-55 55
C 50 as a State Police Officer or enforcement officer whose service began prior to March 1, 1974
D-4 50 as a member of the General Assembly
E-1
60 for members of the Judiciary
(or any age upon attaining 35 years of Credited Service)
E-2
60 as a Magisterial District Judge (or any age upon attaining 35 years of Credited Service)

G thru N

55 with 20 years of Credited Service

PSERS
T-C & T-D

Service with the Public School Employees' Retirement System - determined by PSERS

SSI-50

50

SSI-60

60 (or any age upon attaining 35 years of Credited Service)




Option 1:  Under this plan, you will receive a smaller monthly pension than your Maximum Single Life Annuity. Monthly pension payments will be made to you for life. When you die, your beneficiary(ies) will receive your account's present value at retirement, less the amount of pension payments that you received. If the total amount of pension payments you received exceeds the amount of your present value, no death benefit will remain for your beneficiary(ies).


Option 2:  This plan also provides you with a monthly pension that is less than the Maximum Single Life Annuity. This plan provides a lifetime monthly pension to you and, upon your death, to the survivor annuitant designated by you for that person's lifetime. Upon your death, your designated survivor annuitant will begin to receive the same monthly pension that you received. Under this plan, the younger your designated survivor, the lower your monthly pension amount will be.


Option 3:  This plan also provides you with a monthly pension that is less than the Maximum Single Life Annuity. This plan provides a lifetime monthly pension to you and, upon your death, to the survivor annuitant designated by you for that person's lifetime. Upon your death, your designated survivor annuitant will begin to receive one-half of the monthly pension you had received. Under this plan, the younger your designated survivor, the lower your monthly pension amount will be.



Post86 Non-Taxable Contributions:  Contributions made for the Purchase of Service Credit after December 31, 1986.


Power of Attorney:  A legal document by which you delegate legal authority to make decisions regarding your SERS account to one or more people you name as your agents. You may authorize your agents to perform, on your behalf, any SERS transactions that you could request yourself.  You may revoke your Power of Attorney at any time by notifying SERS in writing.
 
The SERS Power of Attorney (SERS-296) form, which is for SERS retirement transactions only, is available on SERS’ website: www.sers.state.pa.us, through the “Forms” link.  You can limit the powers you delegate to your agents and the duration of your agents’ authority.
                  
You should consult your attorney with any questions about any Power of Attorney.
 
Every Power of Attorney document is subject to review and approval by SERS. Submit the Power of Attorney document or completed SERS Power of Attorney (SERS-296) form to your Regional Retirement Counseling Center or mail to:
                     
                        State Employees’ Retirement System
                        30 North Third Street, Suite 150
                        Harrisburg PA  17101-1716



Pre87 Non-Taxable Contributions:  All Member Contributions made prior to January 1, 1982 and contributions to purchase service credit made prior to January 1, 1987.


Present Value:  The total value of a member's retirement account that funds annuity payments over his or her lifetime; this also is the amount paid to a vested member's beneficiary(ies) when a vested member dies in State service.


PSERS:  Public School Employees’ Retirement System.


Purchase of Service Credit:  Making contributions by Actuarial Reduction, payroll deductions or lump sum payment to increase the total number of years of Credited Service that are used to determine when you are Vested in SERS, your entitlement to Death Benefits, your monthly Annuity and other benefits. (See definition of "Credited/ Creditable Service.")



Regional Retirement Counseling Centers:  Seven field offices, located throughout the Commonwealth, which provide SERS information to active and retired members.


REHP - Retired Employees Health Program:  The Pennsylvania Employees Benefit Trust Fund (PEBTF) administers the retiree health program which is available to the majority of State employees at the time of retirement.  Members of agencies which participate in the Active Employees Health Program (AEHP) may enroll in the REHP at the time of retirement.  Typically, REHP participating agencies are those under the governor’s jurisdiction, plus a few others.


Required Minimum Distribution (RMD): This is an Internal Revenue Service (IRS) requirement that limits the amount a member, who elects to receive an Option 4 lump sum payment or an installment payment in or after the year they attain age 70½, may rollover to a qualified plan or IRA.


Retirement Code:  The State statute that authorizes and controls the administration, policies and procedures of SERS and the rights and benefits of its members. The SERS Retirement Code is set forth at:  71 Pa. C.S. §§5101-5956.


Retirement-Covered Earnings:  Compensation actually received as a State employee, which is credited to your account and used to calculate your retirement benefit. Clothing allowances, lump sum payments for unused vacation, sick and compensatory leave and severance payments (among other payments) are not retirement-covered earnings.



Service-Connected Disability:  A disability resulting from an injury arising in the course of State employment, and which is compensable under the applicable provisions of the act of June 2, 1915 (P.L.7, 36, No.338), known as "The Pennsylvania Workers’ Compensation Act," as amended.


Shared Risk Contributions:  Additional contributions owed by members of the A-3 and A-4 Classes of Service should the SERS Fund’s actual rate of investment return fall below the assumed rate of return over a three-year period. The rate will be established by SERS’ actuary every three years beginning July 1, 2014, never to increase by more than 0.5 percent in any three-year period and never to exceed 2 percent.


Social Security Integration (SSI):  Optional coverage available to most members between August 1, 1968 and March 1, 1974. Judges and magisterial district judges currently may elect SSI while they are active contributing members. Please refer to Social Security Integration Coverage for SERS Members (SERS-151).
 
Note: The SERS SSI program and the federal Supplemental Security Income program under Social Security are separate and distinct programs.



SSI Contributions:  The total contributions on earnings that exceeded the Social Security taxable wage base for all years of SSI coverage since January 1, 1956. This pertains only to members who elected Social Security Integration coverage.


SSI Non-Covered Earnings:  For members who elected SSI, the total earnings that exceeded the federal Social Security taxable wage base for all years since January 1, 1956.


State Service:  Enter the amount as of the last December 31st State Service. The calculator will project additional service to your Anticipated Retirement Date assuming you will complete one full year for each year until that date. If you work part time your estimate will be overstated.

Service credit is one of the factors that determines your eligibility for a retirement benefit. Credited service is defined as State service and/or non-State service for which contributions have been made. The various types of credited service are:

  • Current State Service

  • Prior State Service

  • Multiple Service (combining State and School Service)

Generally, one thousand six hundred and fifty (1,650) hours in a calendar year is credited as one year of service.




Statutory Interest:  The interest that your retirement contributions accrue. The statutory interest rate is 4% per year, compounded annually.


Superannuation Score of 92: For members of the A-3 and A-4 Classes of Service, when you have at least 35 years of Credited Service and the sum of your age in whole years as of your last birthday, plus whole years of Credited Service totals at least 92.


Survivor Annuitant:  The person you designate, under Option 2, 3 or Option 4 with a Joint and Survivor Annuity, to receive a lifetime Annuity upon your death.



Taxable Breakdown of Account:  SERS is a defined benefit plan that the Internal Revenue Service (IRS) treats as an Internal Revenue Code Section 401(a) plan. Member Contributions to SERS on current earnings are deferred from current federal taxation. All tax-deferred contributions and interest are subject to federal income tax withholdings when distributed to members or their beneficiaries. All payments for the Purchase of Service are made on an after-tax basis. Federal tax law requires that all after-tax dollars received by a qualified retirement plan after December 31, 1986 may only be recovered by the member over his or her lifetime. The IRS calls this the "General Rule." Refer to IRS Publication 575, "Pension and Annuity Income," for a more detailed explanation of the General Rule.


Taxable Contributions:  Member Contributions posted after January 1, 1982.



Vested:  Eligible to receive a SERS monthly pension.


Vestee:  A member who is under Normal Retirement Age (60/50 or 35 years of service) and:
  1. Is eligible to receive a SERS monthly pension;
      
  2. Has terminated State service; and
     
  3. Has elected to leave the total Accumulated Deductions in the Fund and temporarily defer receipt of a SERS Annuity.




Withdrawal Option:  If you are a member of one of the pre-Act 120 Classes, you have the ability to withdraw an amount equal to your Accumulated Deductions at the time you apply for your retirement benefit. You may elect to receive an amount equal to your Accumulated Deductions in one lump sum payment, the taxable portion of which may be rolled over to a tax-qualified plan. Alternately, you may elect to receive an amount equal to your Accumulated Deductions in up to four installment payments. Installment payments will earn interest at the Statutory Rate of 4 percent annually. Any amount that you do not elect to withdraw will provide you with larger monthly payments.