When can I retire?

1. When can I retire? Understanding your Retirement Benefits

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. Became member or returned beforeSeptember 1, 2007 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 Trs: Normal-Age Service Retirement Eligibility Became member or returned on or afterSeptember 1, 2007 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 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, 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. Average of the highestthreeannual salaries Average of the highest fiveannual salaries 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” Calculation of Benefits “Non-Grandfathered” “Grandfathered”

7. Calculating Your Standard Annuity Average of highest “three”or “five” annual salariesTotal years of service credit x 2.3% = Total %Total % x average salary = Annual AnnuityAnnual 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