Temple ISD wants to help all of our dedicated employees have a smooth transition to a much deserved retirement. Retirement is potentially stressful if an employee does not have the proper understanding of the paperwork and options available. Many decisions made at the time of retirement are non-reversible and will affect the rest of an employee’s life and that of their families.
The attached TRS handbook, is a 72 page document on everything from the DROP program to the TRS health care benefits. More specific information about TRS health care benefits can be found in another TRS handbook specific to that subject. Because TRS is based in Austin, it is difficult for some employees to travel to the TRS office, located at 1000 Red River Street, Austin.
Some of the decisions that must be made or considered at the time of retirement include the following:
| Selecting joint and survivor payout | Members can select from 5 different benefit options. This decision is IRREVERSIBLE. |
| Partial lump sum options | Some members can choose to receive 12, 24, or 36 months of their benefit payments up front. |
| Purchasing of service credits | Withdrawn service and other types of service can be bought in order to enhance retirement benefits. |
| Life after retirement | Many potential employees have the misconception that they can return to work after retirement without limitations. |
If you are thinking of retiring, you must work with the Temple ISD Human Resources Department for proper coordination of TRS and local benefits and pensions. Please contact Amy Hayes, Director of Wellness and Benefits, 254-215-6776 or amy.hayes@tisd.org.
You must sign the proper paperwork with Temple ISD in order to retire from the District. This includes a request to be paid for any leave time you are eligible for under DEC (Local), which is only payable upon retirement (not resignation)
Retirement does not happen automatically if you have worked only with TRS in this process.
TRS Life Event Resource Kit/Employer Toolkit–
This online toolkit provides many helpful links and resources to inform and guide you through any necessary actions during and after your employment. The toolkit consists of two categories: Personal Events and Career Events. Each category provides a list of events a member may experience over the course of their membership. To access information about a specific event, click on the title and additional resources will show on the screen.
TRS FAQ’s
When am I eligible for retirement?
To calculate your eligibility use TRS’s Retirement Calculator.
For persons who became members of TRS prior to September 1, 2007, had at least five years of service credit on August 31, 2014, and maintain membership until retirement, the following eligibility requirements must be met to qualify for normal age retirement:
- Age 65 with five or more years of service credit, or
- Any combination of age and service totaling 80 with at least five years of service credit.
For persons who first became members or returned to membership on or after September 1, 2007, but prior to September 1, 2014, had at least five years of service credit on August 31, 2014, and maintain membership until retirement, the following eligibility requirements must be met to qualify for normal age retirement:
- Age 65 with five or more years of service credit, or
- At least age 60, meets the Rule of 80 (combined age and years of service credit equal at least 80), and have at least five years of service credit.
Persons for whom any of the following apply: (1) first became a member or returned to membership on or after September 1, 2014, (2) had less than five years of service credit on August 31, 2014, or (3) had at least five years of service credit on August 31, 2014, but terminated membership in TRS on or after September 1, 2014, and resumed membership in TRS again at a later date, the following eligibility requirements must be met to qualify for normal age retirement:
- Age 65 with five or more years of service credit, or
- At least age 62, meet the Rule of 80 (combined age and years of service credit equal at least 80), and have at least five years of service credit.
Early Retirement: A member may receive a reduced annuity at age 55 with five or more years of service credit and the total age and service is less than 80, or by having at least 30 years of service credit and the total age and service is less than 80.
Persons who first became members or returned to membership on or after September 1, 2007, but prior to September 1, 2014, had at least five years of service credit on August 31, 2014, and maintain membership until retirement are subject to a five percent annuity reduction for each year under age 60 if they retire before age 60 and meet the Rule of 80. Members who meet the above stated criteria who retire with at least 30 years of service credit but do not meet the Rule of 80 also have a five percent annuity reduction for each year under age 60.
Persons for whom any of the following apply: (1) first became a member or returned to membership on or after September 1, 2014, (2) had less than five years of service credit on August 31, 2014, or (3) had at least five years of service credit on August 31, 2014, but terminated membership in TRS on or after September 1, 2014, and resumed membership in TRS again at a later date, are subject to a five percent annuity reduction for each year under age 62 if they retire before age 62 and meet the Rule of 80. Members for whom any of the above stated criteria applies who retire with at least 30 years of service credit but do not meet the Rule of 80 also have a five percent annuity reduction for each year under age 62.
While I am an active employee, what can I do to prepare for retirement?
As with any pension program, pension cost of living increases do not keep pace with the real world cost of living rate. Plan accordingly by investing in a 403B, 403B Roth, or 457. Even if you put $25 into a 403B when you first begin your career in education, you may be surprised at how this accumulates over the years. For many retirees, half of their post-employment income comes from some type of outside investment.
You can join your local or state retirement association before you retire. This association can provide you with information and a group of friends that will follow you into retirement.
All active Temple ISD employees are eligible to participate in the voluntary 403(b) and 457 retirement plans sponsored by the district. You may direct pre-tax contributions to your contract with one or more providers. For more information please visit, http://www.mybenefitshub.com/templeisd
What is a 403(b)? The 403(b) plan is available to employees of educational and non-profit organizations. The plan allows employees to save pre-tax dollars directly from their paychecks into their personal retirement accounts. Dollars accumulate tax-deferred interest or investment earnings until withdrawn. Pre-tax contributions growing tax deferred allows more money to accumulate until retirement.
Roth 403(b) after-tax contributions are allowed in the HISD plan. Roth 403(b) contributions are after-tax but the earnings and interest grow tax deferred while in the contract. Contributions and earnings are withdrawn tax-free when made both; after the employee attains age 59 ½, and after the Roth 403(b) account has been open at least 5 years.
What is a 457? The 457 plan is a deferred compensation plan with similar tax advantages and contribution limits as the 403(b). After-tax Roth 457 contributions are not available in the HISD plan. Three (3) financial service providers are eligible to open contracts for HISD employees. The eligible providers are indicated on the providers list under the column heading ‘457 Contract Provider’.
How do I enroll? You may start or change your voluntary retirement savings at any time in two easy steps! Local options????
Step 1: Contact a financial services company from the active providers list and ask to open an Temple ISD 403(b) or 457 retirement plan account. You may discuss both fixed and variable investment options and plan information with the financial services representative or agent.
Step 2: Once the retirement account is established, you must choose your contribution amount per payday and select your financial services provider(s). Contributions will be automatically deducted from your paycheck and sent to the selected provider(s).
Please contact the Temple ISD Human Resources Department for questions.
IRS Maximum Contribution Limits:
| 2020 | 2021 | |
| 403(b) Employee Deferral Limit | $19,500 | $19,500 |
| 415(c) Annual Contribution Limit (1) | $57,000 | $58,000 |
| 457 Employee Deferral Limit (2) | $19,500 | $19,500 |
| Age 50 Catch-Up Contribution (3) | $6,500 | $6,500 |
| 1. Limit of combined employee & employer contributions to 403b plan only. | ||
| 2. 457 & 403b limits are separate and do not count against each other. | ||
| 3. Age 50 catch-up contributions are available for both the 403b and 457 plans. | ||
When is the right time to start planning for retirement through TRS?
Planning ahead can help ensure a smooth transition into retirement. TRS experiences a high volume of retirements during the months of May through August, so it is recommended to start as soon as 12 months before your retirement date. TRS Planning for Retirement Guide
How can I talk to someone at TRS about retirement planning?
TRS offers video counseling sessions for those that cannot travel to Austin to meet with a Benefits Counselor, to schedule an appointment please call 1-800-223-8778.
I am ready to retire. What do I do first?
The first step is to call the Teacher Retirement System of Texas and request an Estimate of Retirement Benefits packet. The toll free number for TRS is 1-800-223-8778. Employees are responsible for requesting their own packet.
If you are an active employee, you must work with the HR department for the proper coordination of processes within TISD. You must sign the proper paperwork with the HR in order to be retired from TISD. This would include a request to be paid for any leave time you are eligible for, which is only payable upon RETIREMENT (not resignation).
Retirement does not happen automatically if you have worked only with TRS in this process.
How do I get my TRS packet?
Call the Teacher Retirement System at 1 (800) 223-8778 or e-mail at www.trs.state.tx.us to request a packet. Packets may take 4-6 weeks to be received.
I got my TRS packet in the mail, now what?
Once you receive your retirement packet from TRS, please call the Temple ISD Human Resources Department at 254-215-6776 to schedule an appointment.
DO NOT wait until the last minute to make an appointment.
How much of my accumulated leave is paid to me at retirement?
Employees who have completed ten or more years of continuous employment in the District and who retire under normal-age retirement eligibility qualifications with the Teacher Retirement System of Texas (TRS) shall be paid as set out in the current employee handbook for accumulated local leave and state leave.
The maximum number of days that shall be paid under this provision shall be 90 total days, e.g., 45 local days paired with 45 state days. Employees must have a “matching” state day for each day of local leave. For example, an employee with 12 days of local leave and 20 days of state leave at the time of resignation shall be paid for a total of 24 days—12 local plus 12 state. In addition, to qualify for the incentive, written notice of retirement must be submitted to the Superintendent in the form of a letter of
resignation/retirement:
- No later than 5:00 p.m. on April 1 of the final year of employment for end-of-school year retirees; or
- No later than 5:00 p.m. on October 1 of the final year of employment for midyear retirees.
Can I work after I retire?
Service retirees who retired before 1/1/2011 no longer have limitations on working in public education after retirement. This means that these retirees will not be subject to forfeiting their monthly TRS annuity payment. Basically, they have replaced January 1, 2001, with January 1, 2011.
Retirees who retired after 1/1/2011 will lose their monthly annuity if:
- Work greater than half-time without a 12 consecutive month break in service.
- Work more than half the number of work days in the calendar month when combining substitute and half-time employment in the same calendar month.
- Work full-time (greater than half-time) without a 12 consecutive month break in service.
NOTE: A TRS member must still have a one month break in service following the date of retirement before beginning employment after retirement.
Disability retirees, regardless of retirement date, continue to be limited to 90 days of work either as a substitute or on a one-half time basis or may substitute and work half-time in the same calendar month for no more than half the number of work days in the calendar month. They also have the opportunity to work full-time for three months. This is a one-time exception. The disability retiree will be returned to active status if they work full-time past the three month exception.
All full-time exceptions are GONE. The six-month, Acute Shortage Area, Principal/Assistant Principal, Bus Driver, and Nursing Faculty Exceptions no longer exist.
Retirees who retired after 1/1/2011 may work under the following conditions without loss of their TRS monthly annuity:
- Substitute – taking the place of a current employee
- Half-time or less – working 50% of less in each calendar month of what is required of a full-time employee.
- Substitute and half-time in the same calendar month for no more than half the number of work days in the calendar month.
- Full-time (anything more than halftime) – with a 12 consecutive month break in service (since the date of retirement) the retiree will not forfeit annuity payments, while working full-time, in any calendar month
NOTE: The 12 consecutive month break in service can be acquired anytime after the date of retirement. It does not have to be immediately following their retirement date.
The Pension Surcharge and the TRS-Care surcharges are applicable to any retiree who retired after 9/1/2005 and meets membership eligibility.
I left the District, and need TRS refund information. Where do I go?
For TRS refund information (return of retirement funds in a lump sum), please call 713-556-6440.
How do I change my name, address or beneficiary information with TRS?
All changes must be submitted to TRS in writing on the appropriate form. You may visit the TRS website at www.trs.state.tx.us and download the forms to make these changes.
- Form TRS 358 – Address Change
- Form TRS 11 – Designation of Beneficiary
- Letter – to change name. Include current and former name, social security number, reason for change, and current mailing address.
The forms, once completed, should be submitted to TRS, 1000 Red River Street, Austin, Texas 78701. Updating your information with TRS does not update TISD records.
How do I join TRTA and/or our local retirement organization?
You can join both your local retirement association, Bell County Retired School Employees Association (BCRSEA) and Texas Retired Teachers Association (TRTA) for $45/year. Contact Karen McGregor at missusa78@aol.com. If you wish to only join TRTA, contact www.trta.org.
Are retirement associations only for teachers?
No. Both BCRSEA and TRTA are for all individuals retiring from a public school, including auxiliary, bus drivers, etc.
Need More Information?
Contact Human Resources at 254-215-6776.
