PSERS Membership Classes Explained: T-C Through T-H and DC Compared

PSERS has seven membership classes created by three different pieces of legislation over two decades. Reading the wrong class's rules — which happens constantly because PSERS handbooks cover all classes simultaneously — can give you a completely false picture of when you can retire and how much you'll receive.

How Classes Are Assigned

Your class is set by your original hire date and, in some cases, an active election you made (or didn't make):

• Class T-C: Hired before July 1, 2001, and did not elect T-D
• Class T-D: Hired before July 1, 2001 and elected T-D under Act 9, or hired between July 1, 2001 and June 30, 2011
• Class T-E: Hired July 1, 2011 through June 30, 2019 (Act 120 default)
• Class T-F: Hired July 1, 2011 through June 30, 2019, elected higher-rate option
• Class T-G: Hired on or after July 1, 2019 (Act 5 default)
• Class T-H: Hired on or after July 1, 2019, elected lower-DB option
• Class DC: Hired on or after July 1, 2019, elected DC-only

Once assigned, your class doesn't change even if the legislature creates new ones. A T-C member with 35 years of service still retires under T-C rules.

The Key Differences

Benefit Multiplier

This single number has the largest impact on your pension. It's the percentage of your Final Average Salary you earn per year of service.

• T-C and T-E: 2.00%
• T-D and T-F: 2.50%
• T-G: 1.25%
• T-H: 1.00%
• DC: N/A (no defined benefit)

The gap between 2.50% and 1.25% is enormous over a career. A member with 30 years of service and a $90,000 FAS receives $67,500/year under T-D versus $33,750/year under T-G — before accounting for T-G's DC component.

Contribution Rates (July 2024 – June 2027)

Legacy classes pay fixed rates. Post-2011 classes pay shared-risk rates that adjust every three years.

• T-C: 5.25% (hired pre-7/22/83) or 6.25% (hired post-7/22/83)
• T-D: 6.50% or 7.50%
• T-E: 7.50% base (shared-risk adjustment applies)
• T-F: 10.30% base (shared-risk)
• T-G: 5.50% DB + 2.75% DC = 8.25% total
• T-H: 4.50% DB + 3.00% DC = 7.50% total
• DC: 7.50% (all DC)

Final Average Salary Calculation

• T-C, T-D, T-E, T-F: Highest three non-overlapping four-quarter periods
• T-G, T-H, DC: Five calendar years

The longer window for Act 5 classes dilutes the impact of late-career raises or supplemental pay.

Superannuation (Unreduced Retirement)

• T-C, T-D: Age 62 with 1 year, or age 60 with 30 years, or 35 years at any age
• T-E, T-F: Age 65 with 3 years, or Rule of 92 (age + service = 92, minimum age 55, minimum 35 years)
• T-G: Age 67 with 3 years, or Rule of 97 (minimum age 57, minimum 35 years)
• T-H: Age 67 with 3 years (no "rule of" provision)

Vesting

• T-C, T-D: 5 years of service
• T-E, T-F, T-G, T-H: 10 years of service (DB component)
• DC component (T-G, T-H, DC): 3 eligibility points for employer match

T-C vs. T-D: The Act 9 Election

Members hired before July 1, 2001 had the option to elect Class T-D under Act 9 of 2001. T-D pays a higher contribution rate (roughly 1.25 percentage points more) in exchange for the 2.50% multiplier instead of 2.00%. Over a full career, the higher multiplier typically more than compensates for the extra contributions — but members who chose not to elect T-D (or who were close to retirement when Act 9 passed) stayed in T-C.

T-E vs. T-F: The Act 120 Choice

Members hired July 1, 2011 through June 30, 2019 defaulted to T-E (2.0% multiplier, 7.50% base rate) but could elect T-F (2.5% multiplier, 10.30% base rate). The logic mirrors the T-C/T-D choice: pay more now for a bigger pension later. T-F members pay nearly 3 percentage points more per paycheck for the 25% higher multiplier.

T-G vs. T-H: The Act 5 Hybrid Split

Both are hybrid plans with a DB pension plus a Voya DC account. T-G has a slightly higher DB multiplier (1.25% vs. 1.00%) but lower DC contribution (2.75% vs. 3.00%). T-H members put slightly more into their investment account at the expense of a smaller guaranteed pension. T-H also lacks the Rule of 97 provision — its only path to unreduced benefits is age 67.

The Pennsylvania PSERS Retirement Guide includes class-specific worksheets so you can calculate your benefit using only the rules that apply to your membership class.

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