The Teacher Retirement System of Texas manages pension funds for Texas public education and some higher education employees, and it oversees the health insurance programs for active members (TRS-ActiveCare) and retirees (TRS-Care).
TRS is governed by a nine-member board of trustees, appointed by the governor and confirmed by the Texas Senate.
The TRS Benefits Handbook, available at trs.texas.gov, has full details on retirement eligibility.
Many changes to TRS occurred in 2013 during the 83rd legislative session. These changes have made determining an individual employee’s retirement eligibility and benefits very complicated. We encourage TCTA members to call or email TCTA with general questions, but to contact TRS directly for information about a specific situation.
TRS is funded by contributions from the state, active members and school districts, as well as investment returns. In 2025-26, pension fund contributions are based on a percentage of salary/payroll as follows:
*Districts also contribute at the state rate on salary paid above the state required minimum salary, on salary paid from federal funds, and the first 90 days of a new member’s employment.
Employees contribute 0.65% of salary to the TRS-Care fund (retiree health insurance). The state contributes 1.25% of payroll, and school districts contribute 0.75%.
Generally, a TRS member may retire with the standard benefit at:
Exceptions include:
A TRS member who entered the system prior to Aug. 31, 2007, and had at least five years of service credit as of Aug. 31, 2014, does not have to meet a minimum age requirement, but must meet the “Rule of 80” to retire with full benefits.
Provisions regarding “entering the system” consider a person who withdrew TRS funds, then subsequently returned to school employment, to have entered on the date of re-entry rather than the original date of membership.
An employee who has at least 30 years of service credit but does not meet the Rule of 80, or who is at least age 55 with five or more years of service can opt for early retirement.
Penalties for early retirement can be severe, but depend on the employee’s age, years of service credit, and whether they meet certain “grandfather” provisions established in 2005 when the penalties for early retirement were increased. Employees considering early retirement can consult with a TRS benefits counselor or use the retirement calculators through their MyTRS online account available on the TRS website.
If a member leaves TRS-covered employment before meeting the criteria for retirement with either full or reduced benefits, the member may withdraw the money contributed to date, plus interest earned, but will not receive an annuity. The interest earned on contributions was lowered from 5% to 2% in the 83rd legislative session; the lower rate applies to contributions made after Sept. 1, 2014.
Note: To be eligible to enroll in TRS-Care, you need at least 10 years of service credit in TRS, AND must meet the Rule of 80 or have 30 or more years of service credit. A service retiree is not eligible to enroll in TRS-Care if they are eligible for ERS, UT System, or Texas A&M System health benefit program coverage.
An employee regardless of age may apply for disability retirement if they are mentally or physically disabled from performing their job and the disability is probably permanent. An individual who qualifies for disability retirement and who has at least 10 years of service credit may opt for a disability retirement and receive an unreduced monthly annuity (calculated using the standard retirement formula), with a minimum annuity of $150.
An employee who qualifies for disability retirement but has fewer than 10 years of service credit will receive a monthly benefit of $150 paid for the number of months that the employee worked in a TRS-covered position prior to retirement, the duration of the disability, or the duration of the employee’s life, whichever is least.
Other key provisions affect how disability retirement works and whether it is the best option for an employee with a disability; members should review the TRS Benefits Handbook or speak to a TRS benefits counselor for more details.
Retirees can select a partial lump-sum distribution of cash in exchange for a lower future monthly retirement benefit. Eligibility for this program is based on your membership tier. If you fall under Tier 1, 4 or 6 you would need to be eligible for unreduced benefits. If you are under Tier 2, 3, or 5, your age plus your years of service must total at least 90, and you must meet the requirement for standard or early-age service retirement. For more information and to calculate the reduced standard monthly benefit under the PLSO, click here.
In general, retirees can return to work full time after a complete break in TRS-covered employment (substitute service counts as “employment” for this purpose as do some types of volunteer work) of at least 12 consecutive months without jeopardizing their monthly TRS checks. An employee working at a school in any capacity, paid or unpaid, during the 12 months after retirement should contact TRS regarding their eligibility to work.
A retiree can return to work up to half-time or as a substitute after only a one-calendar-month break in service without penalty (a disability retiree returning half-time or as a substitute may work no more than 90 days in the school year). “Half-time” is defined as up to 92 hours or 11 days in a calendar month.
An employee who retired prior to Jan. 1, 2021, can return to work full time with no loss of monthly TRS checks, even if the employee did not sit out 12 months before returning to work.
As of Sept. 1, 2025, districts are no longer required to make contributions to TRS (16.5% of salary for the 2025-26 school year) and TRS-Care (an amount set by TRS at $535 per month, due only for retirees participating in TRS-Care) on behalf of a rehired retiree. Districts may pass all or some of the monthly surcharge onto the rehired retiree. Pursuant to legislation initiated by TCTA, this surcharge is not required for employees who retired prior to Sept. 1, 2005.
A district participating in TRS-ActiveCare may be required to offer TRS-ActiveCare enrollment to a returning retiree, but the retiree may opt to remain in TRS-Care.
The laws governing employment after retirement have been eased under legislation, but there are important details that retirees must be aware of before making the decision to return to work. We strongly advise consulting with a benefits counselor at TRS (800-223-8778).
TRS is responsible for the separate state health insurance plans that serve active employees (TRS-ActiveCare) and retirees (TRS-Care). More information about these plans is here.
To calculate TRS retirement benefits, use the following formula:
*An individual who, as a TRS member on Aug. 31, 2005, was at least 50 years old, or met the Rule of 70, or had at least 25 years of service credit should use the three highest years of salary for this calculation.
Note the exceptions listed here that describe reductions in the standard annuity based on standard age at retirement.
If you have questions about your TRS benefits, call 1-800-223-8778 or visit the TRS website.
An employee must work at least 90 days during the school year to receive a year of service credit. An exception is made for individuals in their final year before retirement; they can receive the year of credit for working the full fall semester, even if it is less than 90 days. The “school year” for TRS purposes begins Sept. 1, so the 90-day count does not include any days worked prior to Sept. 1.
Purchase of credit
Teachers can purchase different types of service credit in the retirement system, including:
There are limits on the aggregate amount of time purchased, and the cost of different types of service credit varies among individuals (TRS can provide assistance in calculating the cost). Purchased service credit counts toward the requirement to meet the Rule of 80 for TRS-Care eligibility.
A person with unreported service (including substitute service) must verify the service within five years of when it was rendered for it to be creditable.
If your TRS annual statement excludes any eligible service or compensation credit, you must correct the error no later than May 31 of the year following the year in which the service was rendered to avoid paying an additional cost.
After that time (but within the five-year period) you will pay the actuarial cost of the service, which will increase every year — so take care of the issue as quickly as possible.
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