Your future benefits are funded by contributions — made by you and your employer during your period of membership — and the investment earnings from those contributions. These contributions are held in trust and invested by the Washington State Investment Board (WSIB).
TRS Plan 1 is a defined benefit plan structured under Section 401(a) of the Internal Revenue Code. This means that you will receive a benefit based on your service credit and average final compensation (AFC) at retirement.
You are required to contribute six percent of your “earnable compensation” to TRS. This rate is set by law and may be changed as necessary to reflect the cost of the plan.
“Earnable compensation” means all salaries and wages paid by an employer to a member for services rendered during the “fiscal year.” This includes:
Contributions are required from all members contracted for 20 or more days during a fiscal year. If you are regularly employed, your contributions are deducted from your paycheck each pay period before federal income taxes are withheld. Prior to September 1984, contributions were deducted after taxes.
Substitute teachers have the option to join TRS and pay contributions at the end of the school year. For more information, see the publication, The Substitute Teacher’s Guide to Obtaining Service Credit.
Your contributions are credited to your annuity fund account. This account, with accrued interest, provides the annuity portion of your retirement benefit. At the time of retirement, you have the option to withdraw all or a portion of your contributions plus interest and receive a reduced benefit. Employer contributions are paid to the trust fund and are not refundable to you.