1. Understanding your Retirement Benefits WHEN CAN I RETIRE?

2.  The “Rule of 80” is the standard used to determine whether an employee meets the requirements to retire with insurance benefits.  Years of service + Age = 80  Example:  Worked 9/1993 – 08/31/2014 = 21 years of service  As of 08/31/2014, employee is 59 years old  21 + 59 = 80  Employees that are 65 years or older, must have at least 10 years of service to qualify  Called the Rule of 65 + 10 RULE OF 80

3.  TRS service year is based on the fiscal year 9/1 – 8/31  Employees must work at least 90 days in the service year to receive credit  If an employee uses vacation/comp/sick leave or any other form of paid time off including holidays, those days are included  If employee works on weekends or on days that are outside of normal schedule, those days are included in the reporting to TRS  Examples:  Employee works 9/1/13 – 2/28/14= 130 working days = employee receives credit for the service year 9/1/13 – 8/31/14  Employee works 5/1/14 – 8/31/14= 87 working days = employee does NOT receive credit for the service year 9/1/13 – 8/31/14  Employee works 4/21/14 – 8/31/14 = 95 working days = employee receives credit for the service year 9/1/13 – 8/31/14 WHAT COUNTS AS A YEAR OF SERVICE?

4. TRS: NORMAL-AGE SERVICE RETIREMENT ELIGIBILITY Became member or returned before September 1, 2007 Age 65 with 5 or more years of service credit or Age and years of service credit total 80 and you have at least 5 years of service credit Members not vested by 08/31/2014 Age 65 with 5 or more years of service credit or Age and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 62 Became member or returned on or after September 1, 2007 Age 65 with 5 or more years of service credit or Age and years of service credit total 80, you have at least 5 years of service credit, AND you are at least 60

5. ERS: LEGISLATIVE CHANGES 83 RD LEGISLATURE  SB 1 & SB 1459  Retiree health insurance based on tenure. For members with less than 5 years of GBP participation as of 8/31/2014, the state contribution for retiree health insurance will be:  100% after 20+ years of service  75% after 15 years of service  50% after 10 years of service  Tobacco premium becomes “opt out” rather than “opt in”  Employees will only have to work 75% FTE (30 hours per week) to qualify for 100% employer contribution for medical

6. Calculation of Benefits Members age 55 or older with 20-24 years of service credit –early retirement reduction is “not subsidized” Members age 55 or older with 20-24 years of service credit – early retirement reduction is “subsidized” Partial Lump Sum Option - Rule of 90 – either unreduced benefit or reduced for early age Partial Lump Sum Option – eligible for normal-age (unreduced) service retirement benefit Average of the highest five annual salaries Average of the highest three annual salaries “Grandfathered” “Non-Grandfathered”

7. CALCULATING YOUR STANDARD ANNUITY Average of highest “three” or “five” annual salaries Total years of service credit x 2.3% = Total % Total % x average salary = Annual Annuity Annual Annuity -:- 12 = Monthly Standard Annuity

8. MYTRS ACCOUNT  Obtain personalized retirement estimates  View & print copy of your most recent annual statement  View your account balance, including current year contributions received YTD by TRS  Request a bill for reinstatement of withdrawn service  www.trs.state.tx.us www.trs.state.tx.us