TRS Tiering Explained

As an educator, a critical part of planning for retirement involves calculating your pension payout. This can help you understand what percentage of your final salary you’ll be living on, and whether other supplemental income sources you’ve accumulated or to which you’re entitled will keep you comfortable throughout your golden years.Yet for many school district employees, the first hurdle to pinpointing your payout is identifying which Teacher Retirement System of Texas (TRS) tier you qualify for and how it will impact your retirement benefits.

How Your Benefit Is Calculated

Within TRS, there are currently 6 tiers. The tier you are in will determine your payout at retirement. Regardless of the tier, however, you must meet certain requirements in order to receive a lifetime benefit (normal or early age). You must:

  • Have at least five years of service
  • Meet age and service eligibility requirements
  • Terminate employment
  • Apply for the benefit
  • Complete a one month break in service

If you are confident you meet the criteria above, now’s the time to download our TRS tiering booklet. By filling out the form on this page, you can access the information needed to quickly determine which tier you qualify for and the instructions on the sample worksheet included for calculating your standard monthly benefit.

Identifying Your Income Gap

Keep in mind that determining your TRS tier and expected monthly benefit, while important, are only the first two steps toward a confident retirement. With your pension payment calculated, only then can you begin to understand how it fits with other resources that will determine your financial outlook. At Russ Ross Financial, we can help you:

  • Select the most appropriate pension payout option of the six available for your situation
  • Identify whether buying years of service from TRS is in your best interest and, if so, when to do it
  • Calculate how any retirement plans, including 403(b), 457(b), 401(k), IRAs and other qualified plan choices, may impact your retirement income
  • Determine how your savings and Social Security Income can help minimize your income gap
  • Ensure your living expenses and any emergencies are covered in retirement

Don’t spend another day wondering what your future will hold. Simply fill out the form to download your TRS tiering booklet, and we will get in touch to schedule a complimentary consultation for uncovering a path to the retirement of your dreams.

Fill out the form below to access a copy of our TRS tiering booklet for a better look at your retirement benefits!

TRS Tiering Booklet