State Teacher Plans for Pennsylvania

Many teachers do not have access to low-cost choices in their 403(b) plans. Of the 382 district 403(b) plans that we have graded so far in Pennsylvania, 0 districts have an A rating, 1 district has a B rating, 237 districts have a C rating, 123 districts have a D rating, and 21 districts have an F rating.

If you are a teacher in Pennsylvania, here are the state teacher plan options that are available to you.

Pennsylvania PSERS

Most states still offer a traditional formula-based pension. Under this type of arrangement an educator would receive a percentage of their final year's salary until death that is based on some combination of years worked, age, and salary. Some states have made pension plans less generous to new hires, and some states have replaced traditional pensions with 401(k)-type plans.

More information about the Pennsylvania PSERS plan is available directly from the pension website, and Karl Fisch's book on the Pennsylvania pension is available here. Pension plan information for other states is also available for reference through this state pension search tool. This data is shared with us by Karl Fisch, and it is current as of January 1, 2025.

Applicable to All Teachers

Social Security

Pennsylvania teachers also pay into Social Security

Administrative Fee for Supplemental Plans

None other than defined contribution

New Teachers Hired On or After 1/1/2024

Choice of Hybrid or Defined Contribution

Employee Class TG 9%; 2.75% into defined contribution
Class TH 8.25%; 3% into defined contribution
Defined contribution 7.5% Employer 34.94%
Class TH: 2% into defined contribution
Class TG: 2.25% into defined contribution

Multiplier

Class TG: 1.25%; Class TH: 1%

Average Salary

Highest 3 years

Normal Retirement

Class TG Rule of 97 with 35 years of service (age plus years of service is greater than or equal to 97)
Age 67 with 3 years of service Class TH Age 67 with 3 years of service

Cost-of-Living Adjustment (COLA)

None

Veteran Teachers Hired Prior to 1/1/2001

There are 2 additional benefit tiers between the new teacher and veteran teacher tiers compared here. The exact transition dates between these tiers are not relevant to this comparison.

Defined Benefit

Employee: Class TC 6.25%, Class TD 7.5%; Employer: 34.94%

Multiplier

Class TC 2%; Class TD 2.5%

Average Salary

Highest 3 years

Normal Retirement

Any age with 35 years of service
Age 60 with 30 years of service
Age 62 with 1 year of service

Cost-of-Living Adjustment (COLA)

None

Pennsylvania 457(b)

Every state operates a 457(b) plan that serves governmental workers like police, fire, and state government officials. These plans are generally excellent, and in many cases they are superior to the 403(b) offerings available in school district plans. Most states allow educators to participate in these plans; unfortunately, about a dozen do not.

Find out more about how we rate state 457(b) plans and view plans in other states.

Green Pennsylvania Deferred Compensation Plan

Pennsylvania teachers are not eligible to contribute to this plan.

Fees

0.02% admin fee, $66.60 account fee, and a low index fee

Record Keeper

Empower

Target Date Fund

BlackRock

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