Updated October 8, 2026. Quick answer: Georgia’s Public School Employees Retirement System (PSERS) covers public school employees outside the Teachers Retirement System, such as bus drivers and lunchroom and custodial workers. Its benefit is a flat dollar amount per year of service, set at $17.00 a month per year from July 2024. A pension needs ten years of service and age 60 (reduced) or age 65. The Maximum Plan Benefit pays the most but leaves a survivor no monthly benefit, while Options A and B pay less to provide for a beneficiary, and the choice is generally final after the first payment. A refund of contributions is available after leaving, but it cancels the monthly benefit and ends membership.
Who this page covers and what it draws on
This page covers members of the Georgia Public School Employees Retirement System (PSERS). Its Handbook describes the purpose as “providing supplemental retirement plan benefits for public school employees who do not belong to the Teachers Retirement System of Georgia (TRS)”, and says “These supplemental benefits are intended to be in addition to other retirement income”. The system’s brochure describes the members: “Members include bus drivers, food service workers, and maintenance or custodial personnel.” Some managers in those jobs are in another system (see Georgia TRS retirement decisions and Georgia ERS retirement decisions).
The sources are four Employees’ Retirement System of Georgia (ERSGA) documents read on October 8, 2026: the PSERS Handbook updated 7/2019, the Benefits at a Glance brochure dated 7/2024, the Retirement Options Information chart (form PRS 01/2012) and a web post on the benefit rate. The Handbook says “Unless otherwise specifically indicated, the Handbook describes these laws as in effect on July 1, 2019”. State tax questions are on Georgia retirement taxes and does Georgia tax pensions.
How the benefit is figured: a flat dollar amount per year
The brochure explains: “The amount you receive is calculated by years of Creditable Service multiplied by a Specific Dollar Amount.” “The dollar amount is set by the Georgia General Assembly.”
The rate has changed. The 2019 Handbook formula was “Creditable Service x $15.50 = Maximum Plan Benefit”. The system’s later web post says the rate “has been raised for PSERS members, retirees, and beneficiaries to $17.00 per month per year of service”, and that “This increase is effective 7/1/2024”. A computed example from an assumed 20 years of creditable service, not a PSERS figure for any one member: 20 years times $17.00 is a computed $340.00 a month before any early or option reduction, which matches the brochure’s own 20-year sample. The Handbook calls this unreduced amount the Maximum Plan Benefit, and every choice below starts from it.
When the pension can start
Normal retirement: “Normal Retirement Age is defined as the attainment of age 65 and ten years of Creditable Service.” Early retirement: “You can begin receiving monthly Early Retirement benefits as early as the first day of the month on or following the date you attain age 60, provided you have at least ten years of Creditable Service.” The price of starting early, per the Handbook, is that the benefit is “reduced by 6% for each year (or ½% for each month) you are commencing benefits prior to age 65”.
A computed example from an assumed 25 years of service and a start at 62, not a PSERS figure: that is three years before 65, so 25 years times $17.00 times (100 minus 3 times 6) over 100 is a computed $348.50 a month. The 2024 brochure says an early benefit is reduced but does not restate the percentage, so the 6% comes from the 2019 Handbook and is applied here to the newer rate.
A member who leaves before 60 can still qualify: “Once you earn ten years of Creditable Service, you have a vested right to a service retirement as early as age 60, even if you terminate employment before reaching age 60.”
The election: the options and what each does for a survivor
“Every payment option provides a monthly benefit for your lifetime, and some options provide a benefit to one or more beneficiaries after your death.” “The Maximum Plan Benefit provides the highest monthly benefit available to you, because it does not provide a monthly benefit to anyone after your death.” The table summarizes the Handbook’s descriptions.
| Option | What the member receives | What a survivor receives |
|---|---|---|
| Maximum Plan Benefit (life annuity) | The highest monthly benefit, for life | No monthly benefit; any shortfall refund can go to an estate, charity, trust or person |
| Option A(a) | A reduced monthly benefit, for life | 100% of the monthly benefit, for the beneficiary’s life |
| Option A(b) | A reduced monthly benefit, for life | 50% of the monthly benefit, for the beneficiary’s life |
| Option A(c) | A reduced monthly benefit, for life | An amount the member determines at retirement, for the beneficiary’s life |
| Option A(d) | A reduced monthly benefit, for life | The maximum amount allowed by the IRS for a non-spouse beneficiary, for life |
| Option B (period certain) | A reduced monthly benefit, for life | Payments guaranteed for 5, 10, 15 or 20 years as chosen; none after the guarantee period ends |
Under the Maximum Plan Benefit, “No monthly benefit is payable after your death”, with one exception: “If you die before you receive total payments which at least equal your Employee Contributions Account, your beneficiary(ies) will receive the difference in a single payment”. Under Option A(b), “If multiple beneficiaries are named, each beneficiary will receive a partial amount based on their respective ages”. Option A(a) carries a limit: “This option may not be available with the election of a non-spouse beneficiary who is more than 10 years younger than the Member”. For that case the options chart says “The maximum permissible amount will be available under Option A(c) Max Amount to Beneficiary”.
Option B works differently from a joint-and-survivor choice: “Your benefit is guaranteed to be paid for a period of time that you select at retirement (5, 10, 15, or 20 years).” For the general trade-off, see single-life versus joint-and-survivor pension.
How big the reduction is
There is no single published percentage. The Handbook says “Actuarial tables are used to determine the amount of the reduction of your benefit”, and that “The Option A(b) factor is dependent on your age and the age of your beneficiary(ies) as of your retirement effective date”. Its Appendix B tables list the proportion of the Maximum Plan Benefit payable under each choice by age.
The Handbook’s worked example is for a member starting at 65 with a beneficiary aged 60, 20 years of service and Option A(b), using “Maximum Plan Benefit x Option A(b) Factor” and a factor of 0.9055. A computed example from that sample factor and an assumed unreduced $340.00 a month (20 years at the current $17.00 rate), not a PSERS figure for any one member: $340.00 times 0.9055 is a computed $307.87 a month to the member, and 50% of that, a computed $153.94, continues to the beneficiary. The real factor depends on both ages at the retirement date, so an ERSGA estimate is needed.
What is irrevocable and the deadlines
“In most cases, you cannot change your payment option after you receive your first monthly benefit payment.” The options chart is firmer: “All retirement options are final when the first retirement allowance becomes due on the last business day of the effective retirement month or payroll month, except under very specific circumstances.” The one change the documents describe is for a member who was single at retirement: “If you are not married when you begin to receive your retirement benefit, and you subsequently marry, you may change your benefit payment option, within six months of your marriage, to a benefit that provides your new spouse with a survivor benefit”.
Beneficiary changes differ by option. The Handbook allows them at any time under the Maximum Plan Benefit and Option B, but for Options A(a) and A(b) “You may not change your beneficiary(ies) after you receive your first monthly payment”.
Is there a lump sum or DROP?
In the documents read, lump sums are not a way to take the pension as cash. They are the refund of contributions after leaving (below), the death benefit refund and the Maximum Plan shortfall payment. The pages read describe no lump-sum retirement option, no partial lump sum and no deferred retirement option plan (DROP). The refund is the only cash-out described; for the general framework see pension refund versus leaving it.
Leaving before retirement: leave the contributions or take a refund
Contributions are small and fixed. The Handbook says “For Members who first joined PSERS prior to July 1, 2012, the required contribution is $4 each month”, and “For Members who first joined PSERS on or after July 1, 2012, the required contribution is $10 each month”. A computed example from an assumed 10 years, not a PSERS figure: 10 years of the $90 a year later-hire contribution is a computed $900, and 10 years of the $36 a year earlier-hire contribution is a computed $360, before interest.
Interest has a catch for people who leave. Contributions “start earning 4% interest (compounded annually) after being in your account for one year”, but “Interest is not posted to any Employee Contributions Account belonging to a Member who has terminated employment”.
Leaving the money in place preserves options. “If you leave public school employment and leave your Employee Contributions Account with PSERS, you have the opportunity to retain your membership rights under PSERS in the event that you decide to return to active PSERS-covered employment.”
Taking a refund: what it ends
A refund is always available: “When you terminate employment, regardless of your age or years of Creditable Service, you are immediately entitled to receive a refund of your Employee Contributions Account in a lump sum payment.” The Handbook lists the consequences. First, “You waive all other rights in the PSERS plan”: “taking a refund cancels your right to receive a monthly benefit in the future”. Second, “You end your plan membership”, and on a later return the member gets “a new PSERS membership date that disregards any prior membership you had under PSERS”. Also, “If you receive such a refund, you forfeit all Creditable Service for the period of employment covered by the refund”.
A computed example from an assumed $900 refund (10 years at $90 a year) and an assumed monthly pension of $170.00 (10 years at $17.00, the brochure’s own sample), not a PSERS figure: $900 divided by $170.00 is a computed 5.3 months of the unreduced benefit. The pension would not start until 60 or 65 and could be reduced or shared with a survivor, so this shows only scale. A member with fewer than ten years of service has no pension vested to give up.
The Handbook is explicit about the timing: “If you withdraw your contributions and interest at any time, you will automatically forfeit the monthly benefit payable as early as age 60”. See pension refund versus leaving it.
Buying back refunded service
A refund can be partly undone. A member must return to work and “complete two additional years of PSERS membership”, and then “you must make a lump sum payment to PSERS equal to the refund amount you originally received, plus 4% interest (compounded annually from the refund date to the buyback date)”. A computed example from an assumed $900 refund repaid three years later, not a PSERS figure: $900 times 1.04 for each of three years is a computed $1,012.38. The 4% rate is the Handbook’s and the three years is assumed.
Rehire after a refund is a fresh start. “Your benefits will be based on the plan rules in place for new hires at the time of your re-employment.” “This is true even if you later buy back your refunded Creditable Service.”
Other ways to add service credit
For service in a PSERS job held while also covered by the Teachers Retirement System: “You can buy the PSERS Creditable Service by paying PSERS an amount equal to the Employee Contributions you would have paid while covered by PSERS, plus interest.” The Handbook also describes purchases for job-related leave without pay and for military service. The pages read give no price list; the pension buyback calculator shows how to think about a purchase.
If the member dies before retiring
The Handbook’s two tests for a monthly death benefit to a named, living beneficiary are “Attainment of at least ten years of Creditable Service, and” “Attainment of at least age 60”. The Handbook sets the amount: “The monthly Death Benefit is equal to the amount the Member would have received if the Member had retired under Option A(b) (50% Survivor Benefit).” If the tests are not met, the death benefit is instead “a lump sum payment of your Contributions plus Interest”.
Naming matters: “A non-living beneficiary, such as an estate or trust, cannot receive a lifetime monthly benefit.” “Failure to designate a beneficiary(ies) will result in any applicable death benefits for an active Member being paid to the Member’s estate.” “All beneficiary designations must be received in the ERSGA office prior to the death of the Member in order to be effective.”
Cost-of-living adjustments and rehire
“Each year, the Board of Trustees may consider the grant of a Cost of Living Adjustment (COLA) for retirees.” “COLAs are not guaranteed, and you should not base your financial decisions on the possibility of a COLA until a COLA has been announced.”
On rehire the brochure says “If you return to PSERS employment after retiring but before age 65, your monthly benefit will stop and you will start contributing to PSERS again”, and the Handbook requires “You must have a one-month break in service between your retirement date and the date of your rehire”.
How the monthly pension is taxed
The Handbook says “Employee Contributions made by a Member are contributed to PSERS on an after-tax basis”. “Withholding election (forms W-4P for federal and G-4P for Georgia state taxes) is completed at retirement.” For the state side, see does Georgia tax pensions.
What the IRS adds on tax
A refund or lump sum from a public pension is a distribution, so the IRS rules apply on top of PSERS’s own. On withholding, the IRS says that a taxable eligible rollover distribution paid to you “is subject to mandatory income tax withholding (generally at a rate of 20%), even if you intend to roll it over later”, and that if you roll it over yourself “you’ll have to add funds from other sources equal to the amount withheld”. The pages read do not describe a rollover of a PSERS refund, so confirm the payment form and withholding with ERSGA before choosing. The rollover clock, if the money is paid to you: “you have 60 days from the date you receive it to roll it over to another eligible retirement plan”.
On early distributions the IRS says “the law imposes a 10% additional tax on certain early distributions from certain retirement plans”. Its list of exceptions includes “Distributions made to you after you separated from service with your employer after attainment of age 55” and “Distributions made to a qualified public safety employee from a governmental plan” if the employee separated from service during or after the year they attained age 50 or 25 years of service under the plan, whichever is earlier. Whether an exception fits a particular refund depends on your own plan and facts, so confirm it with a tax preparer before you take one.
Where the sources disagree
The dollar rate differs. The Handbook, updated 7/2019, uses “Creditable Service x $15.50 = Maximum Plan Benefit”, while the later post says the rate “has been raised for PSERS members, retirees, and beneficiaries to $17.00 per month per year of service”. The post is the later document and states an effective date of July 1, 2024, so the Handbook’s dollar examples predate it, though the Handbook is the only source read for early reduction and option mechanics.
Refund eligibility is worded two ways. Listing what a member can do online, the Handbook says “Terminated members with less than 10 years of Creditable Service can request a refund of contributions”, while its refund section says a member leaving is “immediately entitled to receive a refund of your Employee Contributions Account in a lump sum payment” regardless of service. The pages read do not say how a member with ten or more years requests a refund, so ERSGA should confirm.
What this page could not settle
- The pages read do not state the current early retirement reduction under the $17.00 rate; the 6% a year figure is from the 7/2019 Handbook.
- The pages read do not give option factors for the current rate; the Handbook’s factor tables are dated 2018 and 2019 and were not reproduced.
- The pages read do not describe a lump-sum retirement option, a partial lump sum or a DROP.
- The pages read do not say whether a refund can be rolled over or what withholding applies to it; they say the refund is paid as a lump sum.
- The pages read do not describe the rules for new hires that apply after a refund and rehire.
- The retirement application, the benefit estimate request and the disability application were not worked through, and the statute text was not read.
Common mistakes
- Treating the payment option as changeable; the Handbook says that in most cases it cannot be changed after the first monthly payment.
- Naming a beneficiary under Option A and expecting to swap later; the Handbook says the beneficiary cannot be changed after the first payment.
- Taking a refund without weighing what ends; the Handbook says it waives all other rights, cancels a monthly benefit and ends membership.
- Assuming the 2019 Handbook dollar rate is current; the system’s later notice says $17.00.
- Leaving no beneficiary on file; the Handbook says death benefits for an active member then go to the estate.
Related on this site: Georgia retirement taxes, does Georgia tax pensions, Georgia ERS retirement decisions, Georgia TRS retirement decisions, pension refund versus leaving it and public pension retirement decisions by system.
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Answer againSources
- Employees’ Retirement System of Georgia, Public School Employees Retirement System (PSERS) Handbook (updated 7/2019): https://www.ers.ga.gov/sites/main/files/file-attachments/psershandbook.pdf
- Employees’ Retirement System of Georgia, Public School Employees Retirement System (PSERS) Benefits at a Glance (PSERS 7/2024): https://www.ers.ga.gov/sites/main/files/file-attachments/psers_informational_brochure.pdf
- Employees’ Retirement System of Georgia, PSERS Retirement Options Information (form PRS 01/2012): https://www.ers.ga.gov/sites/main/files/file-attachments/psers_retirement_options_information_chart.pdf
- Employees’ Retirement System of Georgia, PSERS Benefit Multiplier Increase, effective 7/1/2024 (web post dated April 21, 2023): https://www.ers.ga.gov/post/psers-benefit-multiplier-increase-1
- IRS, Topic no. 413, Rollovers from retirement plans (irs.gov): https://www.irs.gov/taxtopics/tc413
- IRS, Topic no. 558, Additional tax on early distributions from retirement plans other than IRAs (irs.gov): https://www.irs.gov/taxtopics/tc558
Sources: the primary documents linked above, read on October 8, 2026. General information from each system’s own published materials, not legal, tax or financial advice. Your own member statement and the system’s current rules decide your benefit, and a pension counsellor at the system or a fee-only adviser is the right place to confirm anything consequential.