The TRS retirement plan is a defined benefit plan. This means retirement benefits are determined using a formula established by Texas law.
As a TRS member, you’re required to contribute a percentage of your eligible compensation as your share in funding for your future retirement benefits.
| Contribution Rates for FY 2024-25 |
| Rate | Contribution |
|---|---|
| 8.25% | State of Texas |
| 8.25% | Active Employee |
| 2.00% | Public Education Employer |
Member contribution rates are set by the Texas Legislature, and your employer is required to deduct the contributions from your salary on a pre-tax basis and forward them directly to TRS each month of eligible employment. Keep in mind, your contributions continue to earn 2% interest per year. TRS credits interest on Aug. 31 of each year.
Contributions to TRS come from three sources – the State of Texas, public education employers, and active members. Our investment management teams carefully manage these contributions, and the earnings ultimately help fund TRS benefits.
Did you know?
More than three-fifths of fund revenue is generated by investment activity.