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TRS contribution rate changes are coming soon

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 benefits consult to help you plan for retirement in the future/understand your benefits: