TRS is a defined benefit plan, which means that your retirement benefit (annuity) is defined by a formula, not by the amount that you contribute to the pension plan.
- Average top five salaries = A
- Years of service x 2.3 = % = B
- A x B = annuity
Example: $50,000 (A) x .575 (B) = $28,750 (annuity).
(For this example, the employee has 25 years of TRS service and the average of their highest five salaries over their entire career in TRS jobs is $50,000).
- Of note, service years in TRS are not the same as State service. State service is counted by month. TRS service years are 9/1/xx-8/31/xx. An employee who works at least 90 working days in a TRS service year will receive a year of TRS service for that year.
Employees participating in TRS contribute a percentage of income monthly and the employer contributes a percentage as well. These amounts are determined by the State.
Current rates are:
- Employee contribution: 8.0%
- Employer contribution: 7.75%
Rates on September 1, 2022 will be:
- Employee contribution: 8.0%
- Employer contribution: 8.0%
Retiring Under TRS:
- If you are retiring from an UNT System institution as a TRS member, the retirement process should ideally begin about six months prior to your planned departure date. Contact a Benefits Advisor for your campus to schedule your retirement meeting. We will help you with your TRS retirement application and also explain other important benefits, such as health insurance.
- To be eligible for retiree health insurance: you must meet retirement eligibility AND must have 10 years (120 calendar months) of service with a Group Benefit Plan employer (employer participating in ERS administered insurance. All UNT System campuses participate). Determining eligibility and enrolling in retiree health insurance benefits is part of your Retirement Meeting with your Benefits Advisor.
- Retirement eligibility: Meet “Rule of 80” (age plus years of service = 80) OR be 65 with 5 years of service to be eligible to draw an annuity. Note, "Rule of 80" may include an age minimum based on the employee’s “TRS Tier”.
- If retirement is a few years in the future, contact a Benefits Advisor for your campus to help you determine when you are eligible to retire and how to navigate the retirement process. We’ll be glad to do a planning meeting with you to help you plan ahead for your future retirement.
Employees can access their own retirement account information, including which TRS "tier" they are in, by creating a "MyTRS" account. Use "MyTRS" to help plan for retirement and keep track of your information. The "MyTRS" portal also includes a retirement benefit calculator tool that can be helpful in planning towards your ideal retirement date.
If you have not registered for the newly updated "MyTRS" portal
- Go to https://www.trs.texas.gov/Pages/Homepage.aspx
- Click on MyTRS on the top right of the page
- Once on the MyTRS page, under the "Welcome" header - "click here" to create your login account.
New employees will need to wait approximately 60 days after their hire date to register an account with "MyTRS".
- TRS Handbook of Benefits for more in-depth information, including information on tiers; also watch for your annual TRS statement from TRS (which is usually mailed in early October each year) which includes your tier, service years, and projected retirement dates and annuity estimates.
- ERS (not TRS) administers our retiree health insurance. Information about retiree health insurance can be found here. Retirees must have 10 years of service with a Group Benefit Plan employer AND meet retirement eligibility for the retiree health insurance benefit. State agencies listed here are also GBP employers. Meet with your Benefits Advisor to determine eligibility. Enrollment in retiree benefits is part of your retirement meeting process, so be sure to schedule a meeting when you are getting ready to retire.