How much am I required to contribute? TRS Plan 3

Teachers' Retirement System

How much am I required to contribute?

Contributions to your retirement plan are mandatory. Once you have selected a contribution rate you may change it only if you change employers or during the rate change window each January as allowed by the IRS. Currently, there are six contribution rate options:

Option A:

5% fixed rate at all ages

Option B:

5% up to age 35
6% ages 35 through 44
7.5% ages 45 and older

Option C:

6% up to age 35
7.5% ages 35 through 44
8.5% age 45 and older

Option D:

7% fixed rate at all ages

Option E:

10% fixed rate at all ages

Option F:

15% fixed rate at all ages

Choosing a contribution rate

You must decide your rate option at the time you become a member of TRS Plan 3.

If you changed employers or are a returning Plan 3 member, you have 90 days from your date of hire to choose a rate. If you do not select a rate option within 90 days, the law requires that Option A be assigned automatically. Refer to the An Introduction to Plan 3 booklet for more information. This booklet is available through ICMA-Retirement Corporation (ICMA-RC), DRS’ contracted Plan 3 record-keeper, or your employer.

Limitations on annual contributions

If you are a contracted teacher, your contributions are tax-deferred. If you are participating in other tax-deferred plans, be aware that your tax-deferred contributions can be limited based on your annual taxable income. Tax-deferred contributions decrease your taxable income. Consult the IRS and/or a tax adviser for detailed information.