Retirement

We offer a maximum retirement benefit of 75 percent of your final average salary. Under the 2.2 formula, you will receive a 75 percent benefit after 34 years of service, compared to 38 years under the four-step formula.

You will receive a monthly retirement benefit if you meet the following service and corresponding age requirements:

* May use the Early Retirement Option to avoid a discounted annuity.

** If you are eligible to receive a retirement annuity of at least 74.6 percent of the final average salary and will reach age 55 between July 1 and December 31, we consider you to have attained age 55 on the preceding June 1.

TRS members who are employees of the State of Illinois may retire under the Rule of 85. Contact us for eligibility requirements.

If you have fewer than five years of service credit at age 65, you may receive a single-sum benefit.

2.2 Upgrades

You may upgrade your pre-July 1998 service under the four-step formula to the 2.2 formula by making an optional contribution. Contact us for the cost and an application.

Early Retirement Option (ERO)

The Early Retirement Option (ERO) was renewed with modifications that will allow the program to continue at least through 2012. ERO is a helpful way to avoid the substantial reduction in pension benefits if a member retires prior to age 60 with less than 35 years of creditable service.

The law requires a 0.4 percent salary contribution towards the cost of ERO. All member earnings are subject to the contribution requirement. The amount is refundable if the member does not retire using ERO.

Cost of Living Increases

You will receive an automatic 3 percent cost-of-living increase on the January 1st following your 61st birthday or your first full year in retirement, whichever is later. When your first monthly increase is calculated, it includes increases for the entire time you have been in retirement.

Reciprocal Service

If you have at least one year of service in one of 12 other public retirement funds in Illinois, you may select a reciprocal retirement. Reciprocal service often increases benefits and is helpful in meeting the service requirements necessary to receive a retirement benefit.

Post-Retirement Employment

You may work up to 120 days or 600 hours in TRS-covered employment each year starting in the school year following your last date of contributing service. There is a 30-day waiting period if you resume service with the same employer. Your retirement benefit will not be reduced, and you will not be required to make retirement contributions for such employment.

If you work more than 120 days or 600 hours in a school year, your pension benefits will be suspended and you must resume making regular retirement contributions on your wages.

Post-Retirement Insurance

If you have at least eight years of service credit when you retire, you and your dependents are eligible for health insurance coverage under the Teachers’ Retirement Insurance Program (TRIP). TRIP offers a traditional major medical plan and several managed care options.

You may join TRIP:

• when you retire,
• when you reach age 65 or become Medicare eligible,
• when group coverage provided by a former plan is terminated, or
• during the annual Benefits Choice Period (usually in May), if you have never been enrolled in TRIP.

Optional Service

You may make optional payments to establish credit for the following types of service. Limits apply. Unless marked with an asterisk (*), the optional service must be paid for before you retire.

• approved leaves of absence
• involuntary layoffs
• military service interrupting TRS-covered service
• military service not interrupting TRS-covered service
• pre-1983 pregnancy and adoption*
• pre-1990 part-time, substitute, and homebound teaching
• refunded service
• teaching in out-of-state public common schools

Sick Leave

Effective January 3, 2003, you may receive up to two years of service credit for unused, uncompensated sick leave certified by your former employers.

However, to be creditable for retirement purposes, sick leave must be available for your use if you become ill. Service credit is not available for sick leave days that are added to your record at or near retirement for the purpose of increasing your service credit.

Disability Benefits

Occupational disability benefits

Occupational disability benefits are available to you and require no minimum service. The benefit is equal to 60 percent of your salary, less worker compensation payments. You receive service credit while you are on occupational disability. Benefits continue until you retire or are able to return to gainful employment.

Nonoccupational disability benefits

Nonoccupational disability benefits are available if you have at least three years of service credit. The benefit is equal to 40 percent of your salary and is payable while you are disabled for a period equal to one-fourth of your total service credit under TRS, the State Employees Retirement System of Illinois, the State Universities Retirement System, and the Illinois Municipal Retirement Fund. You receive service credit while you are on nonoccupational disability.

Disability retirement annuity

Disability retirement annuity is available if you remain disabled after your nonoccupational disability benefits have ended. The benefit amount is equal to a minimum of 35 percent of your salary.

Death Benefits

Your Member Information and Beneficiary Designation (MIBD) form determines who receives death and survivor benefits. It is important to have a form on file and to update it as family circumstances change.

Death benefits prior to retirement

If you die before you retire, we will refund accumulated retirement contributions plus interest to your beneficiaries. In addition, your dependent beneficiaries (i.e., spouse, minor children, full-time students under age 22, disabled adult children, and dependent parents) may receive a monthly benefit based on your age and service or select a lump-sum payment. Your nondependent beneficiaries will receive a lump-sum payment.

Death benefits after retirement

If you die after you retire, your beneficiaries will receive a refund of accumulated retirement contributions, plus interest, minus amounts paid as retirement benefits. In addition to the refund, your dependent beneficiaries (i.e., spouse, minor children, full-time students under age 22, disabled adult children, and dependent parents) may receive a monthly benefit equal to 50 percent of your retirement annuity or select a lump-sum payment. Your nondependent beneficiaries will receive a lump-sum payment.

Refunds

If you leave TRS-covered employment, you may apply for a refund of retirement contributions. A refund forfeits TRS benefits and cancels all service credit.

Your TRS Benefits Report

We mail a personal statement of benefits to all active and inactive members during December of each year. The statement details your total earnings and contains other information.

Member Services

Our member services staff is available to assist you. You can reach them via the telephone, by attending large group meetings, and at some teacher institutes. They also provide private consultations at our Springfield and Lisle offices. Please call us to schedule an appointment at (800) 877-7896.

Questions?

If you have questions, please contact us.

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