Participation in the Teachers’ Retirement System (TRS) is mandatory for employees. Effective October 1, 2014, the members’ contribution rate is as follows: 

 

 

New Hire Retirement Comparison (Act 2012-377)
	Tier 1 Employee	Tier 2 Employee
Date of Employment	Prior to January 1, 2013	On or After January 1, 2013
Member Contribution Rate	7.5% for Regular Employees 8.5% for FLC Employee	6.0% for Regular Employees 7.0% for FLC Employees
Employer Contribution	11.71%	11.05%
Retirement Eligibility	25 years of service at any age 10 years of service at the age of 60	No 25 year retirement 10 years of service at the age of 62 (56 for FLC Employees)
Average Final Salary	Average of the highest three years out of the last ten years	Average of the highest five years out of the last ten years
Sick Leave Conversion	Yes	No

 

After one scholastic year of service, (July—June) the beneficiary or estate of an active deceased member may be eligible for pre-retirement death benefits which include the following: (1) Up to $15,000.00 in group term life insurance, (2) the salary on which the member made retirement contributions for the previous scholastic year, (3) total ASU contribution, and (4) earned interest, as outlined in the TRS Member Handbook.

A member has vested interest (is eligible for deferred benefits) in the TRS after completing 10 years of creditable service. Upon attainment of age 60, with at least 10 years of service or twenty-five (25) years regardless of age, a member may apply for service retirement. To file for retirement benefits, the member must complete Form 10, Application for Retirement and ensure the TRS is in receipt of it no less than 30 days, not more than 90 days, prior to the effective date of retirement.

 

 

Member Age	Years of Service Credit	Preretirement Death Benefit
Ineligible to Retire
Under 60* or Over 60*	Between 1 and 25 Between 1 and 10	Member contributions, total interest earned, plus an amount equal to the member's salary for the prior fiscal year (July 1 - June 30)
Any Age*	Less than 1 year, death was job-related	Member contributions, total interest earned, plus an amount equal to the member's salary at time of death
Any Age	Less than 1 year, death was not job-related	Member fontributions, total interest earned, plus an amount matching the contributions and interest but limited to a maximum of $5,000
Eligible to Retire
Any Age* or Over 60*	25 or more 10 or more	Choice of: (1) Option 3 monthly benefit (50% of member's retirement benefit) to the spouse or beneficiary or (2) Member contributions, total interest earned, plus an amount equal to the member's salary for the prior fiscal year (July 1 - June 30)