You are eligible to retire if you:
Vested TRS members may use service credit earned in a public teachers’ retirement system in another state to qualify for retirement. Out-of-state service is not used in your benefit calculation. It affects only your retirement date. If you use out-of-state credit to qualify for retirement, your benefit will be reduced to reflect the use of the out-of-state service. Contact DRS for an information packet on out-of-state service credit.
You may use up to 45 days of unused sick leave to help you qualify for retirement. Sick leave not cashed out by your employer may be converted to a maximum of .25 years of service credit. This service credit is not used in the calculation of your benefit. It can only be used to qualify for retirement.
Your monthly retirement benefit is the sum of:
If you do not withdraw any of your contributions, the overall amount of your “maximum monthly retirement benefit” is calculated using the formula below:
2 % × service credit years (max. of 30 years)
× average final compensation (AFC)
÷ 12 months
Add the earnable compensation for your two consecutive highest-paid fiscal years (July 1 - June 30), and then divide by two to determine your AFC. See example below.
Though other formulas may be used, the formula shown above generally yields a higher benefit. Your benefit will be calculated using the formula that pays you the higher benefit. Contact DRS for details.
Suppose you retire at age 55 with 29 years of service credit and an average final compensation of $50,000. If you do not withdraw any of your contributions and interest (the annuity portion of your benefits), your monthly retirement benefit will be $2,416.66, calculated as follows:
2 % × 29 years × $50,000 ÷ 12 months
= $2,416.66
Your maximum monthly benefit would be $2,416.66.
When you retire, you may withdraw all or part of your contributions plus interest. Your monthly benefit is reduced based on the amount you withdraw.
Any part of the withdrawn amount that was tax-deferred when contributed, plus interest, is subject to a 20 percent withholding tax. You can avoid the tax by transferring the tax-deferred annuity directly into a qualified tax-deferred retirement account.
When you apply for retirement, you can increase your monthly benefit payment by making a one-time lump-sum payment to your annuity fund to purchase a larger annuity. You may roll over funds from another tax-deferred retirement account into TRS. You can purchase an amount up to the value of your existing annuity. Contact DRS for more information.
If you work for two years in a row at less than full time, DRS may calculate your AFC based on a full-time equivalency basis. Contact DRS for more information regarding full-time equivalency.
The service retirement benefit for dual members is the sum of the benefits they earned separately from each system. Dual members with a total of five or more years of service credit from all systems are entitled to a benefit from each system, even if they have less than five years of service credit in any of the systems.
If you retire under the provisions of dual membership, your average final compensation will be based on the following (whichever produces the better benefit):
Base salary is the salary or wages you earned, excluding lump-sum cashouts and severance pay.
Suppose you are 60 years old and have four years of service credit from PERS Plan 1 and 16 years of service credit from TRS Plan 1. Without dual membership, your PERS service would not qualify for a PERS benefit. With your TRS service, however, you have more than the five-year minimum needed for vesting. You will receive a benefit from each plan, calculated according to the rules of each system as follows:
2 % × 4 years of PERS service credit
× average final compensation ÷ 12 months
= PERS benefit
2 % × 16 years of TRS service credit
× average final compensation ÷ 12 months
= TRS benefit