Understanding your Retirement Benefits WHEN CAN I RETIRE?

 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  = 80  Employees that are 65 years or older, must have at least 10 years of service to qualify  Called the Rule of RULE OF 80

 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 WHAT COUNTS AS A YEAR OF SERVICE?

TRS: NORMAL-AGE SERVICE RETIREMENT ELIGIBILITY Became member or returned before September 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 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 Became member or returned on or after September 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

ERS: LEGISLATIVE CHANGES 83 RD 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

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

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

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 