All public school teachers hired into an eligible position on or after July 1, 1996 until June 30, 2007, are covered by TRS and are required to join Plan 3. Also, Plan 2 members have the option to transfer to Plan 3. TRS members who first become hired on or after July 1, 2007, will have a 90-day window to choose Plan 2 or Plan 3. If no choice is made, the member will be mandated into Plan 3.

Contributions to TRS Plan 3 are mandatory. Once you select a contribution rate you may change it only if you change employers or during the rate change window in January as allowed by the Internal Revenue Service (IRS). Currently, there are six contribution rate options. See “How much am I required to contribute?”

Your member contributions are deposited in a defined contribution account. That money is invested according to your instructions and you can take payment of that account any time you terminate from all TRS-covered employment. See “Defined contribution component”.

You earn 12 service credit months for each school year (September 1 through August 31) in which you work in the month of September, work at least nine months and work at least 810 hours in that year. It is possible to earn service credit in smaller increments. See “What is service credit?”

TRS Plan 3 provides for a full retirement benefit at age 65 if you have:

• At least 10 service credit years; or
• Five service credit years, including 12 service credit months that were earned after your 44th birthday; or
• Five service credit years earned in TRS Plan 2 prior to July 1, 1996.

A reduced benefit is available as early as age 55.

Your AFC is the monthly average of your 60 consecutive highest-paid service credit months. Payments for any type of severance pay, such as lump-sum payments for deferred sick leave, vacation or annual leave are not included.

On July 1 of every year following your first full year of retirement, your monthly benefit will be adjusted by the percentage change in the Consumer Price Index (CPI-U, Seattle), to a maximum of 3 percent per year.

If you become totally incapacitated for continued employment with a covered employer, and leave that employment as a result of the disability, you may be eligible for a disability retirement benefit. See “What if I become disabled before I retire?”

• If you die before you have initiated payment from your defined contribution account, your beneficiary will receive the balance in that account.
• If you die before you retire, your surviving spouse, or if none, your minor children, will receive a defined benefit.