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Teacher Retirement System of Texas (TRS): What You Need to Know

Teacher Retirement System of Texas (TRS): What You Need to Know

May 24, 2020

Right now, individuals all over the nation have a lot on their plate. It is imperative that workers need to prioritize their retirement plan, especially those working for a TRS covered employer and working on the frontline. In this article, we are going to explain what you need to know regarding retirement in Texas. There are a few things you should know about the Teacher Retirement System of Texas (TRS). Keep reading!

  1. How Your Benefit is Calculated

Your retirement benefit is calculated in two parts: a defined benefit (pension) and a defined contribution. Wherever you accept your job, that employer will be the one to contribute to the defined benefit part. On the other hand, you are the one to contribute to the defined contribution part. Your retirement benefits are calculated based off your average salary at retirement (calculated based off your TRS Tier), your years of service in the TRS system and the TRS income replacement factor of 2.3%. To learn more and to calculate your TRS benefits, you can use this tool.

  1. Your Social Security May Be Affected 

For those that are switching jobs, you might want to consider your Social Security plan first. The Teacher Retirement System of Texas may not pay towards the Social Security fund. If you are newly employed, it is highly recommended that you speak to a financial professional to figure out how you can best manage the previous retirement benefits you were paying into previously. This way, you are able to discover other options you may have with your plan and how your Social Security might be affected. 

  1. Do Your Research

While this is a generic tip, it is also the most complex. By doing your research on the Teacher Retirement System of Texas, you will most likely have a better grip on what all your retirement benefits will look like and which options are best for you. All in all, the TRS is quite a complex system, and each employee is affected differently. For more information on the TRS, visit here.

If you are currently a teacher or TRS covered employee in the state of Texas, we would be happy to help explain the TRS more in-depth and figure out what options are available to you and your financial future. If you would like to schedule a call with us, please do not hesitate to reach out! You can call us at  (713) 527-8998  or send us an email at