TRS and Supplemental Retirement Options
Learn about TRS membership, retirement benefits, calculating benefits, and how to bridge the gap with supplemental retirement options such as 403(b) and 457(b) plans provided by TSA Consulting Group for employees. Prepare for retirement with comprehensive information and step-by-step guidance.
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Understanding TRS and Supplemental Retirement Options Presented By: Brent McConico U.S. Employee Benefits Services Group
Establishing your membership with TRS Your membership with TRS begins on your first day of eligible employment with a TRS covered employer. Members receive a Welcome to Membership packet and a Designation of Beneficiary form. Member Contributions: The amount a member contributes is established by law; currently, the required contribution rate is 7.7 percent of credible compensation. Source: TRS Benefits Handbook January 2018 2
Your Retirement Benefits What is Included When am I eligible When you meet the requirements for retirement, you may apply to receive a monthly annuity calculated according to state law. These benefits may include: Regardless of tier, to be eligible to retire you must: Have at least 5 years service credit Meet the age and service eligibility requirements Service Annuity Terminate employment Monthly disability payments Apply for retirement, and Partial Lump Sum Payment (PLSO) Complete the required one-month break in service. Survivor Benefits Source: TRS Benefits Handbook January 2018 3
How to calculate your benefits Sample Calculation Standard Optional Forms of Annuity Tier 2 member, retiring at age 62 with 30 years of service Joint and Survivor Annuity Guaranteed Period Annuity Service Factor 2.3% X Years of Service 30 X Final Average Monthly Salary $4,708 = Monthly Retirement Benefit $3248 Source: TRS Benefits Handbook January 2018 4
What to do next If you are nearing retirement, it is recommended that you contact TRS at least 6 months prior to complete the required forms Submit a Request for Estimate of Retirement Benefits form (TRS 18) TRS will send you a retirement packet providing you with your options Submit and finalize your elections Source: TRS Benefits Handbook January 2018 5
How to bridge the gap TSA Consulting Group How to Enroll Seguin ISD contracts with TSA Consulting Group to act as their TPA for 403(b) and 457(b) plans. Pick your investment provider. Contact your selected provider and establish your account. TSACG manages contributions for all participants and remits premium to the investment providers. Complete the SRA to establish your desired contribution. Seguin ISD will then begin payroll deductions and funds will be sent to and applied to your account. Current participants can change their contribution utilizing a Salary Reduction Agreement (SRA). https://www.tsacg.com/individual/plan-sponsor/texas/seguin-isd/ 6
Who can I invest with? AIG Retirement Services (VALIC) National Life Group Americo Financial Life and Annuity PFS Investments (Primerica) Ameriprise Financial Plan Member Services ASPire Financial Services Randolph-Brooks Federal Credit Union Cetera-MG Trust Company ReliaStar Life - Subsidiary of VOYA Financial Security Benefit Group Equitable The Legend Group-A Lincoln Investment Co Fidelity Investments Thrivent Financial Franklin Templeton Mutual Funds Vanguard Investments GWN Securities VOYA Financial Horace Mann Insurance Company Waddell & Reed, Inc Invesco Oppenheimer Funds Lincoln National Life Insurance Company MetLife Tower Life (formerly General American) 7
Specifics of your employer plan Advantages Here is a pre-tax savings example Contributions can be pre-tax and grow tax deferred Post-tax Pre-tax Loan provision as allowed by the plan Gross Income per Paycheck Pre-tax contributions Standard tax deductions Post-tax retirement contributions Take-home pay $4,500.00 $4,500.00 Hardship distributions as allowed by the plan $0.00 $686.33 $266.666 $619.67 Catch up provisions Control over your plan $200.00 $0.00 Disadvantages $3,613.67 $3,613.67 59 Rule Some plans contain high fees Potential plan losses Distributions taxed as income 8
Additional Resources U.S. Employee Benefits Services Group has put together a self-help website providing tools and unbiased information Retirement Planning Saving for College Personal Finances Insurance and Protection Employee Benefit Health Plans Social Security & Medicare www.usrbpfinancialwellness.com National Wellness Institute - https://nationalwellness.org/ 9
245 Landa Street New Braunfels, Texas 78130 Phone: 830-606-5100 www.usebsg.com | info@usebsg.com
