You are automatically enrolled in the Teacher Retirement System on your first day of employment. The Teacher Retirement System (TRS) is for all persons who opt not to be in ORP or are not eligible to be in ORP. TRS is a traditional defined benefit state retirement program in which investment risks and responsibilities are generally assumed by the state. This TRS plan provides stability and does not require any investment decisions by individual members. The TRS plan generally favors a long-term investment strategy, viewed from the perspective of benefits in relation to employee contributions. It also may benefit individuals who begin employment at an older age with a high salary and who intend to complete their careers with a TRS-covered employer.
State law requires both the employee and the state to make contributions to TRS based on percentages of the employee's salary. State contribution rates are established biennially by the Texas Legislature and may fluctuate over time. The TRS retirement benefits are based on formulas established by the Legislature that use the number of years of service credit and salary earned. Unlike a "defined contribution plan" such as ORP, the TRS benefit amount has no direct relationship to the actual amount of contributions made.
You are automatically enrolled in the Teacher Retirement System on your first day of employment.
In TRS you and the A&M System each contribute each pay period, unless you are eligible and elect to participate in the Optional Retirement Program. The contribution amounts to TRS are based on a percentage of your salary, are set by the Texas Legislature and can change over time.
You do not pay current federal income tax on contributions you and the A&M System make to TRS. However, your retirement benefit will be taxable when you receive it.
You always have full ownership of your contributions to TRS and can withdraw them when you leave state employment. After five years of plan participation, you become vested in employer contributions provided by A&M System, which means you have a right to plan benefits when you retire if you have not withdrawn your contributions.
Your retirement benefit will be calculated using the following formula: 2.3% X average pay X TRS years of service
Average pay is the average of your five highest annual salaries while you were a TRS participant (if you were a TRS participant before Sept. 1, 2005, your average salary may be calculated differently). The age at which you begin receiving your benefit and the payment method you choose also affect the amount of your monthly benefit. You may also visit the TRS website (www.trs.state.tx.us) and use the Retirement Estimate Calculator (accessed from the Resources menu) to estimate future TRS retirement benefits, using various age, salary, and years of service credit assumptions.
You or your beneficiary receives a benefit upon:
- Retirement
- Disability
- Death
- Separation from Service - You may receive payment of your employee contributions plus interest. However, if you have at least five years of service, withdrawing your contributions means giving up your rights to future TRS benefits. If you have less than five years of service, you have no right to TRS employer retirement benefits.
Hardship withdrawals and loans are available in the TRS plan while you are employed with a Texas institution of higher education.
In the event of a discrepancy between this website and the plan documents, the plan documents preside.
For more information, visit TRS online at www.trs.state.tx.us or contact your MetLife Resources Representative
Feedback