Employees have a choice of primary and supplemental retirement plans, as follows:
Primary Retirement Plans
Over ninety-five percent of Penn State employees participate in the following two primary retirement plans. Both plans require employee contribution.
SERS – State Employees’ Retirement System
A pension plan, SERS provides a fixed dollar annuity, with benefits determined by length of service and average salary for the three highest years of earnings.
Similar to a 401(k), TIAA-CREF is a 403(b) plan. Retirement income is determined by the amount of money contributed to the account by the employee and the University, the employee’s age at retirement, and the performance of TIAA-CREF investments in various investment vehicles (money market, common stock, etc.).
The individual features of the SERS and TIAA-CREF plans, including other features not mentioned here, may make one or the other plan preferable for you. Penn State provides employees with the necessary information for making an informed decision.
Supplemental Retirement Plans
In addition to the primary retirement plans, Penn State offers optional opportunities for deferring part of your salary as planned retirement income. These include a Tax-Deferred Annuity Plan/TDA – 403(b) and a Deferred Compensation Plan/DCP – 457(b). Penn State has contracted with TIAA-CREF to provide both the supplemental 403(b) and 457(b) plans.