If you are the spouse or former spouse of a TRS participant, or are the attorney representing either the participant or spouse or former spouse, Section 825.507, Texas Government Code, allows you to obtain information on the participant's account or benefits if TRS determines that the requested information is relevant to the spouse’s interest in the participant’s account, benefits, or other amounts payable by TRS. You or your attorney must submit a written request identifying the participant by name and social security number (or Participant Identification Number), your relationship to the participant, the date of the marriage, what information you are requesting, and how the requested information relates to your interest. If your attorney is submitting the request, he or she also should include a statement of representation and a State Bar number. The request should identify the period of time you are interested in (for example, "from the date of the marriage June 4, 1985 through the date of separation July 17, 2004”). There is no need to have a subpoena issued in order to obtain the information. If you include in your request that you need a certification by the TRS custodian of records or a business records affidavit from the TRS custodian of records, TRS will provide the request certification without the need for a subpoena.
If you are the participant and need account information for a divorce proceeding, you should submit a written request with your name, social security number (or Participant Identification Number), what information you are requesting, the period of time you are interested in, the address to which the information should be mailed, and your signature. If a new address is given, indicate whether it is a permanent change of address that TRS may use for all future mailings of annual account balances and membership information. If your attorney is sending the request, he or she should include a statement of representation and a State Bar number in lieu of your signature. If you are requesting a permanent change of address, TRS asks that you sign the request yourself rather than having your attorney do so. Please discuss the need for account information from TRS with your attorney very early on in the divorce proceedings. You should submit a request for information at least four weeks before the information will be needed for trial and settlement, or mediation.
When a TRS participant is involved in a divorce proceeding, TRS usually is asked by one or both parties to provide information on the value or present value of the account of a participant or on the value of a retiree's benefits. The determination of the value of an account or benefits is a subjective process based on several assumptions. For this reason, TRS cannot provide a determination of the value or present value of an account or benefits, nor is such a determination needed for the model order. If you wish to obtain a valuation, you must consult with a private actuary or other expert witness who can provide advice or testimony on this matter. You should discuss with your attorney the need for and cost of such expert assistance.
TRS provides the parties with specific, objective information such as the balance in the participant’s account at the time of the divorce, the amount of member contributions during the marriage, the amount of interest attributable to the marriage, or a retirement estimate based on current service credit and salary. TRS will not provide estimates based on projected or assumed service credit and salary changes. If you wish to calculate such estimates, you may do so by using the basic standard annuity benefits formula: 2.3%X years of service credit X average of best five years' salaries (three years’ salaries if grandfathered) = annual normal age standard annuity. To calculate the monthly annuity, divide the annual amount by 12.
TRS also is frequently asked whether a member's account balance includes the state's contribution. It does not, and TRS cannot provide information on the state's contribution with respect to an individual member.State contributions are paid based on the aggregate of creditable compensation for all contributing TRS participants.A TRS member is not entitled to withdraw or otherwise receive a lump-sum payment of state contributions. For this reason, TRS does not maintain a ledger in the member's file showing the state's contributions. The account balance that TRS can provide shows only the member's contributions and any credited interest.
The TRS plan is administered as a qualified governmental retirement plan under the provisions of Section 401(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). Monthly member contributions are made on a pre-tax basis, meaning that at the time you receive your salary, you do not pay federal income tax on the portion of the salary used to make the contributions. Federal income tax on the contributions and interest credited to you is deferred until a distribution is made from TRS. As a governmental plan, TRS is not an “ERISA” plan under the federal Employees Retirement Income Security Act of 1974. Although member and state contributions, as well as the investment earnings on these amounts are used to fund a participant's retirement and death benefits, the amount of the benefit paid by TRS is not based on the amount contributed on behalf of the participant. Rather, the amount of the benefits is "defined" by statute as indicated in the type of plan, defined benefit plan, established for TRS. For this reason, there is not a dollar for dollar correlation between the total amount of contributions (state and member) and the total benefits that might be paid. It is also because of the nature of the plan that the amount awarded to the alternate payee who is also a TRS member cannot simply be transferred to the alternate payee’s account.
If you are the spouse or former spouse of a TRS participant, or are the attorney representing either the participant or spouse or former spouse, Section 825.507, Texas Government Code, allows you to obtain information on the participant's account or benefits if TRS determines that the requested information is relevant to the spouse’s interest in the participant’s account, benefits, or other amounts payable by TRS. You or your attorney must submit a written request identifying the participant by name and social security number (or Participant Identification Number), your relationship to the participant, the date of the marriage, what information you are requesting, and how the requested information relates to your interest. If your attorney is submitting the request, he or she also should include a statement of representation and a State Bar number. The request should identify the period of time you are interested in (for example, "from the date of the marriage June 4, 1985 through the date of separation July 17, 2004”). There is no need to have a subpoena issued in order to obtain the information. If you include in your request that you need a certification by the TRS custodian of records or a business records affidavit from the TRS custodian of records, TRS will provide the request certification without the need for a subpoena.
If you are the participant and need account information for a divorce proceeding, you should submit a written request with your name, social security number (or Participant Identification Number), what information you are requesting, the period of time you are interested in, the address to which the information should be mailed, and your signature. If a new address is given, indicate whether it is a permanent change of address that TRS may use for all future mailings of annual account balances and membership information. If your attorney is sending the request, he or she should include a statement of representation and a State Bar number in lieu of your signature. If you are requesting a permanent change of address, TRS asks that you sign the request yourself rather than having your attorney do so. Please discuss the need for account information from TRS with your attorney very early on in the divorce proceedings. You should submit a request for information at least four weeks before the information will be needed for trial and settlement, or mediation.
When a TRS participant is involved in a divorce proceeding, TRS usually is asked by one or both parties to provide information on the value or present value of the account of a participant or on the value of a retiree's benefits. The determination of the value of an account or benefits is a subjective process based on several assumptions. For this reason, TRS cannot provide a determination of the value or present value of an account or benefits, nor is such a determination needed for the model order. If you wish to obtain a valuation, you must consult with a private actuary or other expert witness who can provide advice or testimony on this matter. You should discuss with your attorney the need for and cost of such expert assistance.
TRS provides the parties with specific, objective information such as the balance in the participant’s account at the time of the divorce, the amount of member contributions during the marriage, the amount of interest attributable to the marriage, or a retirement estimate based on current service credit and salary. TRS will not provide estimates based on projected or assumed service credit and salary changes. If you wish to calculate such estimates, you may do so by using the basic standard annuity benefits formula: 2.3%X years of service credit X average of best five years' salaries (three years’ salaries if grandfathered) = annual normal age standard annuity. To calculate the monthly annuity, divide the annual amount by 12.
TRS also is frequently asked whether a member's account balance includes the state's contribution. It does not, and TRS cannot provide information on the state's contribution with respect to an individual member.State contributions are paid based on the aggregate of creditable compensation for all contributing TRS participants.A TRS member is not entitled to withdraw or otherwise receive a lump-sum payment of state contributions. For this reason, TRS does not maintain a ledger in the member's file showing the state's contributions. The account balance that TRS can provide shows only the member's contributions and any credited interest.
The TRS plan is administered as a qualified governmental retirement plan under the provisions of Section 401(a) of the U.S. Internal Revenue Code of 1986, as amended (the “Internal Revenue Code”). Monthly member contributions are made on a pre-tax basis, meaning that at the time you receive your salary, you do not pay federal income tax on the portion of the salary used to make the contributions. Federal income tax on the contributions and interest credited to you is deferred until a distribution is made from TRS. As a governmental plan, TRS is not an “ERISA” plan under the federal Employees Retirement Income Security Act of 1974. Although member and state contributions, as well as the investment earnings on these amounts are used to fund a participant's retirement and death benefits, the amount of the benefit paid by TRS is not based on the amount contributed on behalf of the participant. Rather, the amount of the benefits is "defined" by statute as indicated in the type of plan, defined benefit plan, established for TRS. For this reason, there is not a dollar for dollar correlation between the total amount of contributions (state and member) and the total benefits that might be paid. It is also because of the nature of the plan that the amount awarded to the alternate payee who is also a TRS member cannot simply be transferred to the alternate payee’s account.