Get answers to your questions about the Teacher Retirement System

Update 12/3/2019: THIS EVENT HAS BEEN POSTPONED. Check Campus Update for rescheduling details when they become available.

As part of the UT System, UT Southwestern provides exceptional retirement benefits to its employees that are not offered by many other organizations. The UT Southwestern Benefits Department strives to educate employees about the retirement options available to them, and how to best plan for retirement.

Do you have questions about the Teacher Retirement System (TRS)? Join the Benefits team for "Understanding TRS," 11 a.m.-noon Thursday, Dec. 5 on South Campus, D1.602. Here are some common questions about TRS that will be addressed; come prepared with your own questions.

The most commonly asked UTSW retirement questions

What retirement plans are available to employees?

Employees must participate in either the Teacher Retirement System (TRS) or the Optional Retirement Program (ORP). These are called Mandatory Retirement Plans. There are two voluntary plans, the TSA 403(b) and the DCP 457(b), which are available for all employees to save additional amounts for retirement, but these plans are not matched by the University.

Is Teacher Retirement System like a 401(K)?

No. The Teacher Retirement System (TRS) is a pension plan that guarantees a pension at age 65 (possibly earlier), which will be paid every month for the rest of the life of the retiree. 401(k) accounts are retirement accounts that must be invested and managed. TRS manages all contributions, and guarantees a monthly pension annuity when employees retire.

How is the deduction amount for TRS determined?

All contribution amounts are determined by the Texas State legislature. The employee contribution amount for 2019 is 7.7 percent of the employee’s salary, and UTSW contributes another 7.5 percent. Both amounts are sent directly to TRS after each payroll deduction. An employee cannot contribute any more or any less than the prescribed amount.

What is the Rule of 80?

The Rule of 80 exists to allow individuals to retire earlier than age 65, which is the normal retirement age for TRS. Once an individual reaches age 65, the Rule of 80 no longer has any meaning. The Rule of 80 is the total of an employee’s age and TRS (or equivalent ORP) service credit years. For example, if an employee is 60 years of age and has worked in a TRS/ORP eligible position for 20 years, then the person meets the Rule of 80, are eligible to retire and receive an unreduced, normal-age retirement annuity payment.