(A) multiplied by (# of Years of Service) multiplied by 2.3% = TRS Retirement Income

The calculation for retirement income is simple, what is complicated is (A), Tier Rules. TRS has had several changes over the years. The original contract (later called Tier 1) had the most generous benefits. (A) is the average of the employee’s three highest income years adjusted by the distribution options. If the average of the top three years was $60,000 and they worked for thirty-five years, the maximum income benefit would be $48,300 per year for the rest of their life. TRS income is in lue Social Security income. By comparison, had they contributed to Social Security instead of TRS, their benefit would be somewhere around $27,650 per year. However, to receive that full social security benefit, they would have had to wait or work another six to eight years.

Value of (A) Tier Rules

Tier 1 – Mostly for people born before 1956 who started working before September 1st, 2007. Value for (A) is the average of your highest 3 years. It is available as soon as your age plus years of service equal or exceed 80 (54 year old & 26 years of service) or your reach age 55.

Tier 2 – Mostly for people born after 1955 who started working before September 1st, 2009. Value for (A) is the average of your highest 5 years. It is available as soon as your age plus years of service equal or exceed 80 (54 year old & 26 years of service) or your reach age 55.

Tier 3 – Mostly for people born after 1955 and started after September 1st, 2009 but before September 1st, 2014. Value for (A) is the average of your highest 5 years. It is available as soon as your age plus years of service equal or exceed 80 (54 year old & 26 years of service) and you are at least 60 year old.

Tier 4 – Mostly for people born before 1956 and started after September 1st, 2007. Follow the rules for Tier 1.

Tier 5 – Mostly for people born after 1955 and started after September 1st, 2014. Value for (A) is the average of your highest 5 years. It is available as soon as your age plus years of service equal or exceed 80 (54 year old & 26 years of service) and you are at least 62 year old.

Tier 6 – Mostly for people born before 1956 and started after September 1st, 2014. Follow the rules for Tier 1.

There are other benefits available at different times and ages based upon your Tier. Also, these are just basic guidelines. Your specific situation may be different.