Montana Teachers' Retirement System
TRS Contribution Rates, Interest Rates, and Median AFC
Click on any of the the section titles below to view the associated rate tables. If you cannot find the information you need on this page, please contact TRS.
NOTE:
- The Median AFC table has been updated effective 7/1/2024. Retired TRS members working in TRS-reportable positions may earn up to 49% of their AFC at retirement or 49% of the median AFC, whichever is greater, with no reduction in their retirement benefit.
- Effective July 1, 2024, the interest rate paid on active member accounts is 4.25%.
- Employer contribution rates have not increased for FY 2025. Current rates are provided in the tables below.
Employee Contribution Rates — Current and Rate History
This table show the percentage an active TRS member pays on wages toward future retirement benefits. This rate is set by the Montana State Legislature; the current rates were set in the 2013 Legislative session.
| Start Date | End Date | Tier One* Member | Tier Two** Member |
|---|---|---|---|
| 7/1/2013 | – | 8.150% | 8.150% |
| 7/1/1999 | 6/30/2013 | 7.150% | – |
| 7/1/1983 | 6/30/1999 | 7.044% | – |
| 7/1/1977 | 6/30/1983 | 6.187% | – |
| 7/1/1975 | 6/30/1977 | 6.125% | – |
| 7/1/1973 | 6/30/1975 | 5.125% | – |
| 7/1/1937 | 6/30/1973 | 5.000% | – |
* Tier One: become a member of TRS before July 1, 2013
** Tier Two: became a member of TRS on or after July 1, 2013
Employer Contribution Rates — Current and Rate History: School Districts, Education Cooperatives, Counties, and Community Colleges
This table shows the percentage each School District, Education Cooperative, County, and Community College pays on employee wages toward their TRS members' future retirement benefits. This rate is set by the Montana Legislature; the current rates were set in the 2013 Legislative session.
| Start Date | End Date | Active Members | Working Retirees | Re-employed Working Retirees* (19-20-732, MCA) |
|---|---|---|---|---|
| 7/1/2023 | – | 9.47% | 11.85% | 20.11% |
| 7/1/2022 | 6/30/2023 | 9.37% | 11.75% | 20.01% |
| 7/1/2021 | 6/30/2022 | 9.27% | 11.65% | 19.91% |
| 7/1/2020 | 6/30/2021 | 9.17% | 11.55% | 19.81% |
| 7/1/2019 | 6/30/2020 | 9.07% | 11.45% | 19.71% |
| 7/1/2018 | 6/30/2019 | 8.97% | 11.35% | 19.61% |
| 7/1/2017 | 6/30/2018 | 8.87% | 11.25% | 19.51% |
| 7/1/2016 | 6/30/2017 | 8.77% | 11.15% | 19.41% |
| 7/1/2015 | 6/30/2016 | 8.67% | 11.05% | 19.31% |
| 7/1/2014 | 6/30/2015 | 8.57% | 10.95% | 19.21% |
| 7/1/2013 | 6/30/2014 | 8.47% | 9.85% | 19.11% |
| 7/1/2009 | 6/30/2013 | 7.47% | – | 17.11% |
| 1/1/1994 | 6/30/2009 | 7.470% | – | – |
| 7/1/1989 | 12/31/1993 | 7.459% | – | – |
| 7/1/1985 | 6/30/1989 | 7.428% | – | – |
| 7/1/1983 | 6/30/1985 | 7.320% | – | – |
| 10/1/1981 | 6/30/1983 | 6.463% | – | – |
| 7/1/1981 | 9/30/1981 | 6.432% | – | – |
| 7/1/1977 | 6/30/1981 | 6.312% | – | – |
| 7/1/1975 | 6/30/1977 | 6.250% | – | – |
| 7/1/1973 | 6/30/1975 | 5.250% | – | – |
| 7/1/1971 | 6/30/1973 | 5.125% | – | – |
| 7/1/1969 | 6/30/1971 | 4.500% | – | – |
| 7/1/1959 | 6/30/1969 | 4.000% | – | – |
| 7/1/1945 | 6/30/1959 | 3.750% | – | – |
| 7/1/1937 | 6/30/1945 | – | – | – |
*In limited circumstances, provisions of 19-20-732, MCA allow certain school districts to re-employ retired TRS members without loss or interruption of retirement benefits.
Employer Contribution Rates — Current and Rate History: State Agencies and State University System
This table shows the percentage each State Agency and State University System unit pays on employee wages toward their employees' future retirement benefits. This rate is set by the Montana Legislature; the current rates were set in the 2013 Legislative session.
| Start Date | End Date | Active Members | Working Retirees |
|---|---|---|---|
| 7/1/2023 | – | 11.85% | 11.85% |
| 7/1/2022 | 6/30/2023 | 11.75% | 11.75% |
| 7/1/2021 | 6/30/2022 | 11.65% | 11.65% |
| 7/1/2020 | 6/30/2021 | 11.55% | 11.55% |
| 7/1/2019 | 6/30/2020 | 11.45% | 11.45% |
| 7/1/2018 | 6/30/2019 | 11.35% | 11.35% |
| 7/1/2017 | 6/30/2018 | 11.25% | 11.25% |
| 7/1/2016 | 6/30/2017 | 11.15% | 11.15% |
| 7/1/2015 | 6/30/2016 | 11.05% | 11.05% |
| 7/1/2014 | 6/30/2015 | 10.95% | 10.95% |
| 7/1/2013 | 6/30/2014 | 10.85% | 9.85% |
| 7/1/2009 | 6/30/2013 | 9.850% | -- |
| 7/1/2007 | 6/30/2009 | 9.470% | -- |
| 1/1/1994 | 6/30/2007 | 7.470% | -- |
| 7/1/1989 | 12/31/1993 | 7.459% | -- |
| 7/1/1985 | 6/30/1989 | 7.428% | -- |
| 7/1/1983 | 6/30/1985 | 7.320% | -- |
| 10/1/1981 | 6/30/1983 | 6.463% | -- |
| 7/1/1981 | 9/30/1981 | 6.432% | -- |
| 7/1/1977 | 6/30/1981 | 6.312% | -- |
| 7/1/1975 | 6/30/1977 | 6.250% | -- |
| 7/1/1973 | 6/30/1975 | 5.250% | -- |
| 7/1/1971 | 6/30/1973 | 5.125% | -- |
| 7/1/1969 | 6/30/1971 | 4.500% | -- |
| 7/1/1959 | 6/30/1969 | 4.000% | -- |
| 7/1/1945 | 6/30/1959 | 3.759% | -- |
| 7/1/1937 | 6/30/1945 | -- | -- |
Actuarial Rates — Current and Rate History
This table shows the assumed rate of return for TRS investment earnings. The rate of return is set by the TRS Board based on data and recommendations from independent actuaries.
| Start Date | End Date | Percent |
|---|---|---|
| 7/1/2022 | – | 7.30% |
| 7/1/2018 | 6/30/2022 | 7.50% |
| 7/1/2004 | 6/30/2018 | 7.75% |
| Beginning | 6/30/2004 | 8.00% |
Member Account Interest — Current and Rate History
Active TRS members contribute a portion of their gross salary to TRS, and these funds are tracked in each member's contribution account. TRS pays interest on these funds each month at a rate set annually by the TRS Board. Current and past interest rates are shown below.
NOTE: In a defined benefit pension, a vested member's benefit is based on years of service and average final compensation, not the member's account balance.
| Start Date | End Date | Percent |
|---|---|---|
| 7/1/2024 | – | 4.25% |
| 7/1/2023 | 6/30/2024 | 4.00% |
| 7/1/2021 | 6/30/2023 | 0.25% |
| 7/1/2020 | 6/30/2021 | 0.85% |
| 7/1/2019 | 6/30/2020 | 2.30% |
| 7/1/2018 | 6/30/2019 | 1.40% |
| 7/1/2017 | 6/30/2018 | 0.75% |
| 7/1/2016 | 6/30/2017 | 0.55% |
| 7/1/2014 | 6/30/2016 | 0.20% |
| 7/1/2010 | 6/30/2014 | 0.25% |
| 7/1/2009 | 6/30/2010 | 1.00% |
| 7/1/2008 | 6/30/2009 | 2.00% |
| 7/1/2007 | 6/30/2008 | 5.00% |
| 7/1/2003 | 6/30/2007 | 4.00% |
| 7/1/2002 | 6/30/2003 | 4.50% |
| 7/1/1997 | 6/30/2002 | 5.50% |
| 7/1/1993 | 6/30/1997 | 6.00% |
| 7/1/1988 | 6/30/1993 | 7.00% |
| 7/1/1982 | 6/30/1988 | 8.00% |
| 7/1/1981 | 6/30/1982 | 7.00% |
| 7/1/1971 | 6/30/1981 | 5.50% |
| 7/1/1970 | 6/30/1971 | 5.25% |
| 7/1/1969 | 6/30/1970 | 5.00% |
| 7/1/1968 | 6/30/1969 | 4.75% |
| 7/1/1967 | 6/30/1968 | 4.50% |
| 7/1/1966 | 6/30/1967 | 4.25% |
| 7/1/1963 | 6/30/1966 | 4.00% |
| 7/1/1959 | 6/30/1963 | 3.50% |
| 7/1/1955 | 6/30/1959 | 3.00% |
| 7/1/1943 | 6/30/1955 | 2.50% |
| 7/1/1939 | 6/30/1943 | 3.00% |
| 7/1/1937 | 6/30/1939 | 4.00% |
Median AFC — Current and History
Each year, TRS calculates the median Average Final Compensation (AFC) of members who retired in the preceding fiscal year. This is used to calculate postretirement earnings limitations.
- Note: A legislative change effective July 1, 2023 increased the allowable earnings limitation for working retirees from one-third to 49 percent of median AFC.
| Year | Median AFC | 1/3 Median AFC | 49% Median AFC |
|---|---|---|---|
| 7/1/2024 | $69,216.94 | – | $33,916.30 |
| 7/1/2023 | $65,675.61 | – | $32,181.05 |
| 7/1/2022 | $65,371.42 | $21,790.47 | – |
| 7/1/2021 | $64,248.03 | $21,416.01 | – |
| 7/1/2020 | $67,170.59 | $22,390.20 | – |
| 7/1/2019 | $65,269.66 | $21,756.55 | – |
| 7/1/2018 | $61,554.21 | $20,518.07 | – |
| 7/1/2017 | $59,982.63 | $19,994.21 | – |
| 7/1/2016 | $60,240.13 | $20,080.04 | – |
| 7/1/2015 | $59,138.00 | $19,712.67 | – |
| 7/1/2014 | $60,737.70 | $20,245.90 | – |
| 7/1/2013 | $57,756.65 | $19,252.21 | – |
| 7/1/2012 | $57,510.85 | $19,170.28 | – |
| 7/1/2011 | $56,863.57 | $18,954.52 | – |
| 7/1/2010 | $55,887.49 | $18,629.16 | – |
| 7/1/2009 | $52,710.67 | $17,570.22 | – |
| 7/1/2008 | $53,311.55 | $17,770.52 | – |
| 7/1/2007 | $51,336.65 | $17,112.22 | – |
| 7/1/2006 | $48,353.45 | $16,117.82 | – |
| 7/1/2005 | $47,417.01 | $15,805.67 | – |
| 7/1/2004 | $47,942.54 | $15,980.85 | – |
| 7/1/2003 | $45,290.43 | $15,096.81 | – |
| 7/1/2002 | $45,304.46 | $15,101.48 | – |
| 7/1/2001 | $45,528.45 | $15,176.15 | – |
| 7/1/2000 | $43,945.06 | $14,648.35 | – |
| 7/1/1999 | $40,639.42 | $13,546.47 | – |
| 7/1/1998 | $40,465.86 | $13,488.62 | – |
| 7/1/1997 | $40,681.52 | $13,560.51 | – |
| 7/1/1996 | $36,846.00 | $12,282.00 | – |
| 7/1/1995 | $35,989.37 | $11,996.46 | – |
| 7/1/1994 | $37,209.19 | $12,403.06 | – |
| 7/1/1993 | $34,876.33 | $11,625.45 | – |
| 7/1/1992 | $33,704.42 | $11,234.81 | – |
| 7/1/1991 | $34,277.88 | $11,425.96 | – |
| 7/1/1990 | $30,512.28 | $10,170.76 | – |
| 7/1/1989 | $30,839.78 | $10,279.93 | – |
| 7/1/1988 | $30,274.51 | $10,091.51 | – |
| 7/1/1987 | $28,532.10 | $9,510.70 | – |
| 7/1/1986 | $26,867.50 | $8,955.84 | – |
| 7/1/1985 | $25,585.33 | $8,528.44 | – |
| 7/1/1984 | $23,136.83 | $7,712.28 | – |
| 7/1/1983 | $18,174.24 | $6,058.08 | – |
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