The following definitions are provided to help you understand terms we regularly use in our seminars, correspondence, and publications. These definitions are general, not technical, in nature. For detailed definitions, please see the Illinois Pension Code, Article 16.

C

Comprehensive Annual Financial Report

An annual financial report submitted to the State of Illinois that details membership trends and governmental, financial, and investment activities of TRS for a fiscal year.

Comprehensive Statement and Bill Package

A monthly package mailed by TRS to each TRS employer consisting of three main components: the TRS and THIS Fund Remittance forms, the Employer Statement, and the Employer Bill.

contributions

TRS members are required to make contributions towards the cost of their retirement, disability, and survivor benefits. The contributions are:

• Retirement and disability: 7.5 percent (less in years prior to July 1, 1998)
• Survivor benefits: 1 percent
• Automatic increase in base pension (AIBP): 0.5 percent (helps to pay for cost of living increases granted after retirement)
• Early retirement without discount: 0.4 percent (helps to pay for the cost of the early retirement option without discount)

Members also make a contribution to the Teachers’ Health Insurance Security (THIS) Fund. THIS Fund contributions are deposited in the fund, which is administered by the Illinois Department of Healthcare and Family Services (HFS), and are used to help subsidize the cost of health insurance for retired teachers.

Members may also make optional contributions to upgrade prior service to the 2.2 flat-rate formula, to purchase optional service, and to reinstate service cancelled by a prior refund.

Employers are also required to make contributions. The contributions are:

• Employer TRS contributions for member benefit increases: 0.58 percent of creditable earnings.
• Employer TRS contributions on salaries paid from federal funds: if any portion of a member's creditable earnings is paid from special trust or federal funds administered by the employer, then the employer pays TRS an employer contribution equal to 13.11 percent of the salary paid from the special trust or federal funds.

Employers also make a contribution to the Teachers' Health Insurance Security (THIS) Fund.

creditable earnings

The total amount of TRS-covered wages that a member actually earned during a school year.

creditable service

The total of prior service and membership service for which credit is allowed under the Illinois Pension Code, Article 16.

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