Preparing for Retirement



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Assisting With Retirement Preparation

Presenter Aubrey Cherry, TRTA Past President

Texas Retired Teachers Association

What is TRTA?

It is a 73,000 Member, not for profit volunteer organization.

TRTA’s mission is a better life for retired educators.

The organization recognizes the importance of transition.

TRTA is involved because?

As retirees we recognize the environment.

After retirement, the district support cord is cut.

Retirement is a journey, not a destination.

Retirement planning schedule

Concern should be initiated the day of employment.

Typical semi-focus is 3 to 5 years prior to expected retirement.

Some wait as late as within the last few weeks.

Worry about retirement? Who, me?

There are too many other present concerns.

My retirement won’t be for 25 years – 20 years – 10 years – 5 years.

Retiring NOW??? How does that work?

I need answers

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How much money will I get? What are the options?

What is the payment formula?

Do I get free insurance?

Do I get a Cost of Living Adjustment?

No? Then when do I get a raise?

Can I draw my retirement and work for another district?

I’m glad I’m fully qualified for Social Security.

Information Sources

You and your district, especially for district related specifics.

Teacher Retirement System (TRS)

Website, published information and informed presenters

TRTA - Website, published information and informed presenters

Using a friend’s retirement transition experience is not always a good idea.

Information Dissemination

School District / H R Department

Group meetings / Individual counseling

Teacher Retirement System

Individual and group sessions / Individual contacts / publications

TRTA

Retirement education seminars

Distribution of printed material and current technological publications

How can TRTA help

TRTA can provide a retirement education seminar.

It is typically a 2 to 3 hour event after school, in the evening or Saturday morning.

If 100 or more attendees are expected, TRS will participate by sending a presenter.

If less than 100 are expected, a TRTA representative will serve as a facilitator.

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How does the TRTA Seminar work

In collaboration with the district, the district provides the location and publicizes.

Local and District TRTA leaders arrange the event & provide refreshments.

If the district doesn’t wish to be involved, the TRTA leaders will provide the event.

Call 800-880-1650 and tell TRTA you want a retirement seminar. Some way, one will happen.

Seminar discussion topics

Monthly contributions Account refunding Retirement eligibility

Service credit Available plan options Benefit calculation

Retirement date Retirement packet Disability retirement

TRS Health Care TRS Active Care Medicare

Obtaining TRS info Long Term Care Income Tax

Social Security Employment after retirement

and many more

TRS Annuity Fund

What is the annuity fund?

How much of my salary goes to the TRS Fund?

How much does the state contribute?

Why is my money being taken?

What happens to that money?

What is the amount in the annuity fund?

Why doesn’t the state provide more funding?

What to money the state provides?

What other money goes into the fund?

What if contributions were stopped?

Why can’t I take may money and invest it?

More Annuity Fund questions - Page 4 of 4

What is the defined benefit plan?

What is the defined contribution plan?

Are benefits proportionate to contribution?

What is the rate of annuity increase after I retire?

What is needed to provide a reasonable Cola?

Health Care

TRS Funding:

The state contributes a percentage of public education payroll.

Active members contribute 0.65% of employees salary.

School Districts contribute 0.55% times employees salary.

Participating retirees contribute premiums, co-pays and prescription costs.

Deductibles are involved.

Monthly individual premiums range from $0 to approximately $300.

TRS Care eligibility

Retiree must have 10 years service credit in the system.

(It may include up to 5 years military service credit, but not any other special service.)

The retiree must also meet one of the following requirements:

Age + years of service credit must = 80,

or

Must have 30 or more years of service credit.

(Disability retirees are special category.)

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