Department of Retirement Systems
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TRS PLAN 2: Key Plan Provisions

Membership Definition

You are a Plan 2 member if you established membership in TRS on or after October 1, 1977, and before July 1, 1996, unless you opt to transfer to Plan 3.
Contribution Rate TRS Plan 2 contribution rates are set by the Pension Funding Council. These rates may be changed as necessary to reflect the cost of the Plan.
Contributions Both you and your employer pay contributions that fund your retirement. Your contributions are refundable only if you leave TRS-covered employment. If you withdraw your contributions prior to retirement, you lose your right to future benefits. You cannot borrow from your contributions or withdraw contributions made by your employer.
How Service Credit Is Accumulated 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?”.
Eligible for Retirement

TRS Plan 2 provides for a retirement benefit when you are:

Age 65 or older,

  • If you have at least 5 service credit years.

Age 55 but younger than 65,

  • If you have at least 20 service credit years. The benefit will be actuarially reduced for the period prior to age 65.
  • If you have at least 30 service credit years, the benefit reduction is three percent for each year of retirement before age 65.
Average Final Compensation (AFC) 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.
Benefit Formula 2% × Service Credit Years × AFC = Monthly Benefit.
Maximum Benefit There is no percentage limitation on the size of your retirement benefit.
Cost of Living Adjustment (COLA) 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 three percent per year. See “Can my benefit increase after I retire?”
Disability Retirement 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?”
Death in Service Survivor Benefit If you have less than 10 years of service and are not eligible to retire, your contributions plus interest will be paid to your beneficiary(s). If you have at least 10 years of service or are eligible to retire, your spouse or guardian of your minor children can choose between a monthly benefit or a lump sum payment of member contributions plus interest. See “What benefits do my survivors receive?”