The Value of SERS Benefits: Lifetime Pension

We’ve told you about many benefits of being a SERS member, including disability benefits, survivor benefits, and a three-year final average salary, but perhaps one of the most significant advantages is having access to a lifetime pension.

Because SERS is a defined benefit (DB) plan, employers and employees pay set retirement contribution rates, regardless of how underlying investments perform. SERS places the responsibility of investing employee contributions in the hands of investment professionals who have expertise in assembling and maintaining a diversified portfolio, a long-term approach to investing, and experience in choosing and overseeing good investment managers.

In other plans, such as a 401(k) or DC plan, individuals must make important investment decisions themselves and can see the immediate impact of stock market fluctuations. At SERS, stock market declines do not affect benefit amounts.

In addition, once you are eligible for and begin receiving a pension under a DB plan, you are paid for life. With other plans, your savings can be depleted if you live longer than expected.

In FY2025, of all 83,327 SERS benefit recipients, 4,788 (5.75% of the retiree population) were over the age of 90. This includes 158 retirees (0.19%) over the age of 100.

Even at these impressive milestones, SERS members and retirees don’t have to worry about their pensions running out.

Continue to join us here – on our website – and on our Facebook page as we discuss more benefits of contributing to SERS and how we are working for you.