understanding your retirement benefits when can i retire?
TRANSCRIPT
Understanding your Retirement Benefi ts
WHEN CAN I RETIRE?
The “Rule of 80” is the standard used to determine whether an employee meets the requirements to retire with insurance benefits. Years of service + Age = 80 Example:
Worked 9/1993 – 08/31/2014 = 21 years of service As of 08/31/2014, employee is 59 years old 21 + 59 = 80
Employees that are 65 years or older, must have at least 10 years of service to qualify Called the Rule of 65 + 10
RULE OF 80
TRS service year is based on the fi scal year 9/1 – 8/31Employees must work at least 90 days in the service year
to receive credit If an employee uses vacation/comp/sick leave or any other form of
paid time off including holidays, those days are included If employee works on weekends or on days that are outside of
normal schedule, those days are included in the reporting to TRSExamples:
Employee works 9/1/13 – 2/28/14 = 130 working days = employee receives credit for the service year 9/1/13 – 8/31/14
Employee works 5/1/14 – 8/31/14 = 87 working days = employee does NOT receive credit for the service year 9/1/13 – 8/31/14
Employee works 4/21/14 – 8/31/14 = 95 working days = employee receives credit for the service year 9/1/13 – 8/31/14
WHAT COUNTS AS A YEAR OF SERVICE?
TRS: NORMAL-AGE SERVICE RETIREMENT ELIGIBILITY
Became member or returned beforeSeptember 1, 2007
Age 65 with 5 or more years of service credit
orAge and years of service credit total 80 and you have at least 5 years of service credit
Members not vested by 08/31/2014
Age 65 with 5 or more years of service credit
orAge and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 62
Became member or returned on or after September 1, 2007
Age 65 with 5 or more years of service credit
orAge and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 60
ERS: LEGISLATIVE CHANGES 83RD LEGISLATURE
SB 1 & SB 1459 Retiree health insurance based on tenure. For members
with less than 5 years of GBP participation as of 8/31/2014, the state contribution for retiree health insurance will be: 100% after 20+ years of service 75% after 15 years of service 50% after 10 years of service
Tobacco premium becomes “opt out” rather than “opt in” Employees will only have to work 75% FTE (30 hours per
week) to qualify for 100% employer contribution for medical
Calculation of Benefits
Members age 55 or older with 20-24 years of service credit –early retirement reduction is “not subsidized”
Members age 55 or older with 20-24 years of service credit – early retirement reduction is “subsidized”
Partial Lump Sum Option - Rule of 90 – either unreduced benefit or reduced for early age
Partial Lump Sum Option – eligible for normal-age (unreduced) service retirement benefit
Average of the highest five annual salaries
Average of the highest three annual salaries
“Grandfathered” “Non-Grandfathered”
CALCULATING YOUR STANDARD ANNUITY
Average of highest “three”or “five” annual salaries
Total years of service credit x 2.3% = Total %
Total % x average salary = Annual Annuity
Annual Annuity -:- 12 = Monthly Standard Annuity
MYTRS ACCOUNT
Obtain personalized retirement estimates
View & print copy of your most recent annual statement
View your account balance, including current year contributions received YTD by TRS
Request a bill for reinstatement of withdrawn service
www.trs.state.tx.us