Chapter 3: Service Credit

TRS Service Credit

Rules

Plan 1-All Periods

TRS Plan 1 members earn service credit annually. A member earns a full year or a fraction of a year of service credit based on the number of days of employment.

• If employed for 144 full time days or more, the member earns one year of service credit for the fiscal year (July-June).
• If employed for at least 20 but less than 144 full time days during the year, the member earns a fraction of a year of service credit. The amount of service credit is based on the number of days of employment. For example, if a member has 120 days of employment, the member earns .67 of a year of service credit (120 divided by 180 days = .67).

Plan 2 or Plan 3-September 1, 2008, and After

A member employed in an eligible position earns service credit as follows:

If compensated in at least five months of a six month period and compensated for at least 630 hours = 6 months of service credit.

Plan 2 or Plan 3-September 1, 1991, and After

A TRS Plan 2 or Plan 3 member earns 12 months of service credit if the member is:

• employed in an eligible position;
• compensated in nine months of the school year;
• compensated for 810 hours or more in the year; and
• employed during the month of September.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

If the member works as a substitute, refer to the New Hire Pyramid for key information about Substitutes.

A TRS Plan 2 or Plan 3 member earns six months of service credit if the member is:

• employed in an eligible position;
• compensated in nine months of the school year; and
• compensated for at least 630 hours but less than 810 hours in the year.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

Beginning with the 2008/2009 school year, a member earns six months of service credit if the member is:

• employed in an eligible position;
• compensated in at least five months of a six-month period; and
• compensated for at least 630 hours.

If the member works as a substitute, refer to the New Hire Pyramid for key information about Substitutes and Chapter 5 of the Handbook.

A TRS Plan 2 or Plan 3 member who does not meet the criteria for earning a full year or 1/2 year of service credit earns service credit for each month of employment as follows.

• A member compensated for 90 hours or more in a month earns one month of service credit.
• A member compensated for at least 70 hours but less than 90 hours earns 1/2 month of service credit.
• A member receiving some compensation but for less than 70 hours in a month earns 1/4 month of service credit.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

If the member works as a substitute, refer to the New Hire Pyramid for key information about Substitutes and Chapter 5 of the Handbook.

Plan 2 or Plan 3-Prior to September 1, 1991

Before September 1991, a TRS Plan 2 or Plan 3 member earned a full year of service credit if the member was:

• employed in an eligible position;
• compensated in nine months of the school year; and
• compensated for 810 hours or more in the school year.

A TRS Plan 2 or Plan 3 member who did not meet the criteria to earn a full year of service credit earned service credit on a monthly basis. A member compensated for 90 hours or more in a month earned one month of service credit.

• A member compensated for less than 90 hours in a month did not receive service credit for that month.

A member cannot earn service credit for months before employment in an eligible position. For example, a member who meets the criteria for a full year of service credit but is not employed in an eligible position until October can receive only eleven months of service credit that year.

Note: Legislation passed in 1991 granted retroactive partial service credit to certain TRS Plan 2 members for the period from October 1977 through December 1986. Six months of service credit was granted for any school year in which a TRS Plan 2 member worked on a half time contract, if the member paid contributions.