Texas TRS Benefit Programs:
TRS-Active Care, the health benefit program for eligible public school employees
TRS-Care, the health benefit program for eligible retirees.
TRS long-term care insurance, available to eligible TRS members, retirees and certain members of their families.
TRS retirement planThese programs have different eligibility requirements
The Teachers Retirement System of Texas (TRS) is a pension fund that was established by the Texas Constitution in 1936. The following year, the Texas Legislature passed laws establishing TRS as the public entity to administer that trust fund.
The TRS retirement plan provides service and disability retirement benefits and death benefits.
Current TRS responsibilities for the retirement plan include:
Paying benefits to members and beneficiaries
Investing the pension trust fund prudently to pay benefits as provided by law
Administering the retirement plan to promote an actuarially sound system
Member contributions are made on a pre-tax basis, meaning that at the time you receive your salary, you do not pay Federal taxes on the portion of your salary used to make the contributions. Federal income tax on the contribution is deferred until you receive a distribution.
Interest that is added to member contribution accounts each year is tax-deferred until it is distributed.
The retirement benefit that you may be eligible to receive is taxable income only for the year in which it is paid.
Certain benefits payable to a member, retiree, spouse or alternative payee may be eligible for continued tax deferral through provisions of Federal tax law that allows rollovers to other eligible qualified plans.
TRS RETIREMENT ANNUITIES
The standard annuity is the maximum payment for TRS retirement benefits. It enables the retiree to receive a maximum amount each month and ends upon the retiree’s death.
Years of Service times Percentage Factor times Average Highest 5 Years equals Yearly Maximum Standard Annuity
EXAMPLE: 28 years x 2.3%=64.4% x $55,000=$35,420
Maximum Standard Annuity for 12 monthly benefit amounts of $2,952
The standard annuity may be reduced due to early age, retirement annuity payment option selected, PLSO or other reductions required by law.
NOTE: Certain members are considered “grandfathered” and therefore, eligible to have their standard annuity calculated using the average of the highest 3 years annual salaries. To be eligible to be “grandfathered,” you must have met at least one of the following requirements as a member:
Attained the age of 50
Had at least 25 years of service credit
Age and years of service credit total at least 50
As you can see, the average retired teacher makes quite a bit less than their normal paycheck.
For more information regarding your TRS Plan contact Ruben Ruiz.