Funding Your PSRS Benefits

PSRS' funding comes from three sources: member contributions, employer contributions and investment earnings. Investment earnings are the primary source of funding for PSRS benefits.

breakdown of PSRS funding sources per dollar
20-Year Average - Member portion includes contributions and funds to purchase service.

Contribution Rate

  • PSRS contributions are automatically deducted from your salary, pre-tax, to help fund your benefits.
  • Your employer contributes the same amount. Employer contributions are paid into a general fund used to pay monthly benefits for retirees and beneficiaries.
  • Your contributions and interest are always returned to you or to your beneficiary, in the form of monthly benefits or a refund of your contributions and interest.
  • The contribution rate is set each year by the PSRS/PEERS Board of Trustees. It is based on the recommendation of the Systems' actuary after the annual actuarial valuation has been completed.

The contribution rate for the 2018-2019 school year (July 1 to June 30) is 14.5% for members and 14.5% for employers.

Social Security

Most PSRS members do not pay Social Security taxes on their earnings while employed by PSRS-covered employers. Members employed in certain positions (determined by your employer and the Social Security Administration) pay into PSRS at a two-thirds rate, and also pay into Social Security at the full rate. See the Member Handbook for more information.