What Is the Teacher Retirement System (TRS)?

The Teacher Retirement System (TRS) is a network of state and city-level organizations that collectively administer pensions and retirement accounts for public education employees within their states. They also provide educators with help and advice regarding their retirement planning.

Each state organization offers a different array of plans and benefits to its bene✃ficiaries, which may include not only teachers but other public-education staffers, such as maintenance wo♛rkers, janitors, and administrators.

The biggest such systems—the California State Teachers Retirement System, the Teacher Retirement System of Texas, and the New York State Teachers' Retirement System—are among the 10 largest pension plans in the U.S.

How the Teacher Retirement System (TRS) Works

A TRS typically provides a 澳洲幸运5官方开奖结果体彩网:defined-benefit pension plan, which guarantees a monthly benefit based on plan-specific features. Most pensions that use the TRS name are 澳洲幸运5官方开奖结果体彩网:qualified retirement plans under the 澳洲幸运5官方开奖结♒果体彩网:Employee Retirement Income Security Act (ERISA).

As with many pensions, TRS plans typically award benefits based on a pension factor that is multiplied by your age or years of service in the plan, which is then multiplied by your final average salary or an average of your highest-earning years of employment.

In addition to a TRS pension plan, many teachers are eligible for a 澳洲幸运5官方开奖结果体彩网:403(b) plan. A 403(b) operates much like a 401(k), which allows participants to defer some of their own salaries into the plan, offering an effective way for teachers to save in addition to their TRS pension plan.

Calls for Reform

Experts say the plans are in dire need of reform. In a recent study, 20 state Teacher Retirement Systems received an F grade, while none received an A grade. The situation is not improving; it's getting worse. New teachers are facing benefit cuts in order to make up the shortfall for older workers. This means that new hires need to work more years before they can receive benefits.

Reports also indicate that only 50% of teachers remain in a TRS long enough to receive minimum benefits.

The Bottom Line

A Teacher Retirement System is a state-level organization that administers ret🐎irement savings plans for workers in public schools and colleges.

The majority of state Teacher Retirement Systems receive low rankings. Only 1 out of 5 teachers receive their full pensions.

Experts recommend that teachers do not cross state lines for new jobs, as it is one of the sure-fire ways to lose out on their pension.