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