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.

A

ACH, automated clearing house

Banks sometimes refer to a direct deposit as an ACH transfer or EFT (electronic funds transfer).

actuarial calculation

A monthly benefit calculation based on a member’s contributions, interest, and an assumed employer contribution, using life expectancy tables. Also known as a "money purchase calculation." This calculation has been eliminated for teachers who become TRS members on or after July 1, 2005.

ad hoc increase

A one-time increase that is added to the original benefit.

administrative review

The process through which one may appeal a disputed staff determination to the TRS Board of Trustees.

Administrative Rules

Official rules adopted by TRS that identify the meaning of TRS benefit provisions or the processes concerning such benefits.

affidavit

A signed, notarized statement.

affidavit in lieu of death certificate

A signed, notarized statement that may be used in place of the death certificate of a named beneficiary when a death certificate is not available.

age discount

A reduction in the formula calculation amount of a retirement annuity equal to 0.5 of 1 percent per month for each month the member is less than age 60 at retirement. The discount is not applied if the member has 35 years of service credit or elects the Early Retirement Option at retirement.

AIBP, automatic increase in base pension

See contributions.

annual increases

Automatic increases in benefits. The most common is the 3 percent cost-of-living increase provided to retirees who are age 61 or older.

annual salary rate

For full-time or part-time contractual teachers:

The amount that would have been earned if a member worked his or her normal schedule with no dock for the entire school term or length of the employment agreement, if longer. The annual salary rate includes the annual contract rate, the value of any reportable flexible benefit plan in which a member participates, earnings for reportable extra duties, any TRS contributions paid on the member's behalf by the employer, and severance payments. For part-time contractual teachers, the annual salary rate is representative of the part-time schedule.

For part-time noncontractual teachers and substitute teachers:

The annual salary rate is equal to creditable earnings.

annuitant

A person receiving a monthly retirement annuity or disability retirement annuity from TRS. Survivor benefit recipients are not included in this definition.

annuity

A benefit paid in a series of monthly payments.

assistant regional superintendent

An appointed public official who assists the regional superintendent of a regional office of education (ROE). This position is covered by TRS.

authorization for deposit

The Depository Agreement for TRS Benefit Payments form, also known as the authorization for deposit, is completed by an annuitant and his or her bank to allow pension checks to be deposited directly into a checking or savings account. The authorization may also be used by survivor benefit recipients receiving a monthly check.

Automated Reporting System (ARS)

A computer software program that enables TRS-covered employers to file the Employer’s Annual Report of Earnings form on diskette. The Automated Reporting System contains basic reporting rules that prevent or identify and correct many potential data entry and reporting errors and allows resolution of errors prior to submitting the annual report to TRS. All employers with 50 or more TRS-covered employees are required to file their annual report using the ARS.

automatic designation

A section of the Member Information and Beneficiary Designation (MIBD) form that provides for the payment of a death refund or a survivor benefit to all eligible dependents at the time of death. If no dependent beneficiary survives, benefits will be paid to a member’s or an annuitant’s estate.

average salary

See final average salary.

Back to top