Retirement Benefits Eligibility and Rules

Understanding the retirement benefits eligibility rules, including the Rule of 80 and Rule of 65, counting years of service, and retirement age criteria for TRS and ERS members. Learn about service year requirements, age thresholds, and legislative changes impacting retiree health insurance. Plan your retirement confidently with this comprehensive guide.

• Retirement Benefits
• Eligibility Rules
• TRS
• ERS
• Service Years

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Uploaded on Sep 16, 2024 | 0 Views

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Presentation Transcript

1. Understanding your Retirement Benefits WHEN CAN I RETIRE?

2. RULE OF 80 The Rule of 80 is the standard used to determine whether an employee meets the requirements to retire with insurance benefits. Years of service + Age = 80 Example: Worked 9/1993 08/31/2014 = 21 years of service As of 08/31/2014, employee is 59 years old 21 + 59 = 80 Employees that are 65 years or older, must have at least 10 years of service to qualify Called the Rule of 65 + 10

3. WHAT COUNTS AS A YEAR OF SERVICE? TRS service year is based on the fiscal year 9/1 8/31 Employees must work at least 90 days in the service year to receive credit If an employee uses vacation/comp/sick leave or any other form of paid time off including holidays, those days are included If employee works on weekends or on days that are outside of normal schedule, those days are included in the reporting to TRS Examples: Employee works 9/1/13 2/28/14 = 130 working days = employee receives credit for the service year 9/1/13 8/31/14 Employee works 5/1/14 8/31/14 = 87 working days = employee does NOT receive credit for the service year 9/1/13 8/31/14 Employee works 4/21/14 8/31/14 = 95 working days = employee receives credit for the service year 9/1/13 8/31/14

4. TRS: NORMAL-AGE SERVICE RETIREMENT ELIGIBILITY Became member or returned before before September 1, 2007 Became member or returned on or after on or after September 1, 2007 Members not vested by 08/31/2014 Age 65 with 5 or more years of service credit or Age and years of service credit total 80 and you have at least 5 years of service credit Age 65 with 5 or more years of service credit or Age and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 60 Age 65 with 5 or more years of service credit or Age and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 62

5. ERS: LEGISLATIVE CHANGES 83RD LEGISLATURE SB 1 & SB 1459 Retiree health insurance based on tenure. For members with less than 5 years of GBP participation as of 8/31/2014, the state contribution for retiree health insurance will be: 100% after 20+ years of service 75% after 15 years of service 50% after 10 years of service Tobacco premium becomes opt out rather than opt in Employees will only have to work 75% FTE (30 hours per week) to qualify for 100% employer contribution for medical

6. Calculation of Benefits Calculation of Benefits Non-Grandfathered Grandfathered Average of the highest three salaries three annual Average of the highest five salaries five annual Partial Lump Sum Option eligible for normal-age (unreduced) service retirement benefit Partial Lump Sum Option - Rule of 90 either unreduced benefit or reduced for early age Members age 55 or older with 20-24 years of service credit early retirement reduction is subsidized Members age 55 or older with 20-24 years of service credit early retirement reduction is not subsidized

7. CALCULATING YOUR STANDARD ANNUITY Average of highest three or five annual salaries Total years of service credit x 2.3% = Total % Total % x average salary = Annual Annuity Annual Annuity -:- 12 = Monthly Standard Annuity

8. MYTRS ACCOUNT Obtain personalized retirement estimates View & print copy of your most recent annual statement View your account balance, including current year contributions received YTD by TRS Request a bill for reinstatement of withdrawn service www.trs.state.tx.us