TRS Retirement FAQ 2: Next Steps
What Decisions Will I Have To Make About My Retirement?
What are the decisions that I must make when I retire?
There are only three decisions:
- Do you want the TRS Care health insurance?
- What annuity do you want?
- Do you want the partial lump sum option? (You must meet the “rule of 90” to be offered the partial lump sum option.)
Which forms do I send to TRS and which go to my district?
The following forms are sent to TRS in Austin:
- Service Retirement Estimate TRS 25
- Application for Service Retirement TRS30
- Federal Income Tax Withholding Certificate TRS228A
- Partial Lump Sum Form TRS 30 (Send this to Austin only if you plan to take the Partial Lump Sum.)
In addition, send a copy of your driver’s license if you take the standard annuity, and send yours and your spouse’s driver’s license if you plan to take option 1, 2, or 5.
The TRS address is at the top left of each form (1000 Red River Street, Austin, TX 78701-2698).
The following is mailed or taken to your school district: check with your district on how to submit the TRS 7 form.
- Notice of Final Deposit before Retirement
- School Official Certification of Salaries TRS7
What retirement date should I use on my TRS paperwork?
You may only retire from TRS on the last day of the month. If you do not work past June 15, TRS will treat it as if you did not work in June, and you may put the last day of May as your retirement date. You will receive a June, July, and August retirement check and a check from the school district also for the three summer months (for most employees). If you work past June 15, say June 20, then you would put the last day of June as your retirement date, and you would not receive a June retirement check. If you retire at semester, your retirement date will be either the last day of December or the last day of January depending on when your district’s semester ends.
What is the difference between my retirement date and resignation date?
Remember you retire from TRS and you resign from the district. Your resignation date is the last day you work at your school. The retirement date from TRS for all employees not working past June 15 will be the last day of May. Your resignation date and retirement date may be two different dates.
What are the pros and cons of retiring mid-year?
The pro is that you get to resign at the end of the semester, but TRS will give you credit for working an extra year which will increase your retirement by 2.3% of your average salary. The cons are you will not be paid for the second semester of teaching, and your last year will not be counted as one of your highest three or five years when calculating your annuity amount since you will only be paid for half of the year. Remember the best three- or five-year average salary is used in the calculation of your annuity.