Tuesday, August 17, 2021
The contribution rates for the Teacher Retirement System (TRS) are changing. These changes impact pay received on or after Sept. 1, 2021.
New rates:
Employee 8.0% (pre-tax)
Old rates:
Employee 7.7% (pre-tax)
The Texas legislature passed these changes in the 2019 legislature. Future increases passed include:
Date: Sept. 1, 2023
Employee: 8.25%
The contributions deducted from your paycheck fund the TRS pension. They do not determine how much your retirement income will be – your TRS retirement annuity is calculated using a formula:
2.3 x years of service = percentage
Average of highest five salaries x percent = annuity
Example:
- 20 years of TRS service x 2.3 = 46%
- $50,000 x 46% = $23,000 annuity pre-tax
- $23,000/12 = $1917/month pre-tax
Learn more: Retirement plans and TRS
Contact a benefits' coordinator in your campus HR group to schedule your retirement meeting, or for a benefit consult to help you plan for retirement in the future/understand your benefits: