Understand Your Benefits

Understanding TRS Benefits

How Does TRS Work?

TRS knows how busy you are as an educator. Retirement might be the last thing on your mind, but it's important to understand the basics of TRS membership.

This short video explains why TRS is a valuable part of your overall compensation package!

Your TRS Member Account

If you are currently employed in a position reportable to TRS, you are contributing a fixed percentage (currently 8.15%) of your earned compensation to TRS each month through automatic payroll deduction. Those contributions are deposited into your personal TRS member account, where they earn interest each month.

Interest rate credited to member accounts

Effective 7/1/2025, the interest rate credited to TRS member accounts is 2.00%.

The TRS Board reviews the interest rate in May each year. An adjustment, if made, takes effect for the upcoming fiscal year (July 1 - June 30).

Your member account balance does not determine your future benefit

Your TRS member account holds all the contributions you have made and the interest accrued on those contributions. Your account balance is not subject to the risks of the stock market and will never decrease.

You can review your member account balance, designate one or more beneficiaries, review your service history, and more by logging into My TRS. (See the Using 'My TRS' webpage for details.)

Did you know that your TRS member account balance will not determine how much you will receive as a TRS retiree? Your years of service and your salary – not the amount you have contributed – will determine your monthly retirement benefit! Read on to learn how benefits are calculated.

When you have accrued 5.00 years of creditable service with TRS, you are a vested member.

This is an important milestone, because it means you are eligible for a future lifetime retirement benefit. That's right – Vested members who retire with TRS receive a monthly benefit for the rest of their life!

Some members are eligible to purchase additional service based on their work history. Here are some of the most common scenarios that may qualify:

  • They previously taught out of state or in a private school setting
  • They had a break in service between TRS-reportable positions
  • They took unpaid in-service leave, such as maternity/FMLA leave
  • They previously worked in positions reportable to PERS
  • They were active-duty military

In most cases, a member must be vested with TRS before they are eligible to purchase additional service. In other words, a member cannot purchase service to attain vested status. Service purchases are limited to five years total, with shorter limits by type of service purchase.

How much does it cost?

There is no set dollar amount for purchasing a given amount of service. It will depend on your specific circumstances, such as your salary, the type and duration of service being purchased, and other factors.

If you are a vested member and you think your previous work history may qualify, contact us right away. As your salary increases over your career, so too will the cost of paying the necessary contributions for the service you wish to purchase. Don't wait until you are ready to retire!

TRS can provide you a quote, based on your specific circumstances. Contact the TRS Active Benefits team to learn more.

Tier 1 and Tier 2 Membership

TRS membership is divided in two tiers.

Tier 1

If you became a member of TRS before July 1, 2013 – and you have not subsequently withdrawn your TRS member account balance – you are a Tier 1 member.

Tier 2

If you became a member of TRS on or after July 1, 2013, you are a Tier 2 member. (Tier 2 also applies to former Tier 1 members who withdrew their TRS account balance and returned to TRS-reportable employment on or after July 1, 2013.)

Retirement Eligibility

When Will You Be Eligible?

It depends on your membership tier.

Tier 1 Service Retirement

You can retire at:

  • age 60, if vested (5+ years of creditable service), or
  • any age with 25+ years of creditable service, or
  • any age as long as service was reported within 25 fiscal years

Tier 1 Early Retirement

  • Receive a reduced benefit as young as age 50, if vested (5+ years of creditable service)

Tier 2 Service Retirement

You can retire at:

  • age 60, as long as you are vested (5+ years of creditable service), or
  • age 55 with 30+ years of creditable service

Tier 2 Early Retirement

  • Receive a reduced benefit as young as age 55, if vested (5+ years of creditable service)

The standard formula applies to all vested Tier 1 members, and to vested Tier 2 members who retire with less than 30 years of creditable service.

The formula calculates the member's gross annual benefit amount, which is distributed in 12 equal monthly payments.

Years of Creditable Service x Average Final Compensation (AFC) x 1.6667%

AFC for Tier 1 is based on the 3 highest consecutive fiscal years of earned compensation. 

AFC for Tier 2 is based on the 5 highest consecutive fiscal years.

The following formula applies only to Tier 2 members who retire with 30 or more years of creditable service.

The formula calculates the gross annual benefit amount, which is distributed in 12 equal monthly payments.

Years of Creditable Service x Average Final Compensation (AFC) x 1.85%