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Benefits & Welfare
Teacher Retirement System (TRS)
The Teacher Retirement System
of Texas (TRS) is a state non-profit organization established in 1937 to provide benefits for employees of state colleges and universities and public schools in Texas. For each employee participating in the Teacher Retirement System, the state contributes a fixed percentage of salary, and the employee contributes a fixed percentage of salary through payroll deduction. Benefits in the Teacher Retirement System include:
Vested Rights: A member of the Teacher Retirement System has a vested right for retirement benefits upon completion of at least five years service.
Retirement Annuities: Members are eligible to retire with
regular unreduced TRS benefits at age sixty-five with at least five years service or any age when age plus years of service equals
at least 80 (Rule of 80). Early age retirement with a reduced annuity is also available beginning at age 55
with at least five years service. Retirement benefits are based on a member's total years of creditable service and the average of
either the three or five (depending on "grandfathering" status) highest annual salaries.
Disability Benefits: Members who become permanently disabled are eligible to apply for disability retirement benefits.
Death Benefits: Members are covered by death benefits beginning on their 91st day of employment. The designated beneficiary is entitled to receive a lump sum payment equal to twice the members annual salary not to exceed $80,000.
Return of Deposits: Members who terminate employment are entitled to receive a return of employee deposits plus five percent interest less tax and penalty (if drawn before age 59 1/2).
Special Service: Members have the opportunity of increasing benefits by purchasing credit for eligible special service. Special service may include:
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withdrawn service
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military service
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developmental leave
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out-of-state service
Beginning September 1, 2001, a TRS member may purchase one year of membership service credit for 50 days of accumulated state sick leave as of the last day of employment before retirement.
To Purchase Service
Rollover
Effective January 3, 2002, a TRS member may use an eligible rollover distribution from any eligible retirement plan to purchase creditable years of TRS service as permitted by law
Eligible Retirement plans are:
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IRA or individual retirement annuity (other than an endowment contract) under IRC 408(a) or 408(b
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401(a) qualified plan, including a 401(k) plan, ESOP, Keogh plan, profit- sharing plan, defined benefit plan, and money purchase plan
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403(a) annuity plan
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Eligible 457(b) governmental deferred compensation plan
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403(b) plan (tax-sheltered account or “TSA”)
Direct Trustee-to-Trustee Transfers
Effective January 3, 2002, TRS may also accept a direct trustee-to-trustee transfer from a 457(b) governmental deferred compensation plan or a governmental 403(b) plan in payment of some types of TRS service credit.
Service that can NOT be purchased with a trustee-to-trustee transfer are:
Difference between Rollover and Direct Trustee-to-Trustee Transfers
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For a Rollover, you must have a “distributable event” such as termination of employment or reaching age 59½
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For a direct trustee-to-trustee transfer, the plan may allow fund transfers without a “distributable event”
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A rollover is accepted from any eligible retirement plan, but
a transfer must be from a governmental 403(b) or 457(b) plan
More Information
Call TRS at 800/223-8778 or see the TRS website to get more information.
Once you are ready to begin the rollover or transfer process, please call or write TRS to request form TRS-551, “Eligible Rollover or Direct Trustee-to-Trustee Transfer to Purchase TRS service Credit.”
