Teacher Retirement System - Mandatory
Teacher Retirement System (TRS) is a defined benefit retirement plan governed by Internal Revenue Code Section 401(a). This type of plan provides a set monthly retirement benefit to eligible employees based on a formula determined by the state legislature.
In comparison, a defined contribution plan, such as a 401(k), 403(b) or 457(b), provides a retirement benefit that is determined by market performance.
- Extremely rich plan, rarely offered by companies
- Established benefit allows members to easily plan for retirement and explore other retirement plans with more risk
- Disability, death and survivor benefits available to TRS members
- Variety of retirement benefit options
All eligible employees, known as active TRS members, are automatically enrolled in TRS on their first day of employment. Members are guaranteed a retirement benefit after five years of service.
Eligibility for a Retirement Benefit
To receive a full retirement, most members must meet one of the following requirements:
- Be at least 65 years of age if you have at least five years of service credit OR
- Any combination of age and service totaling 80 with at least five years of service
Other employees whose current TRS employment began on or after Sept. 1, 2007, may have additional criteria. Early retirement benefits are also available. To verify your eligibility, please call TRS at 800-223-8778 or log in to My TRS.
Contributions are pre-taxed through payroll deduction with the following rates for FY15:
- Employee: 6.7% of pay
- MD Anderson: 6.8% of pay
The amount of your monthly annuity depends on several factors including your years of creditable service and highest average salaries. To verify this amount, please call TRS at 800-223-8778 or log in to My TRS.
Working after Retirement
TRS retirees working at MD Anderson or another TRS covered institution, should follow the return to work restrictions to avoid forfeiting their monthly annuity. Your retirement date and length of separation may require you to work within a maximum number of hours to maintain your full annuity. See schedule below.
Teacher Retirement System
Sr Applications Sys Analyst
Administrative & Financial Services
The TRS retirement plan provides financial security to my family and me. Knowing that throughout my retirement I will receive a set amount of money each month from TRS provides a good safety net and allows me to look into other types of investing. Very few of my family or friends have this type of benefit anymore.