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Waiving Rights to Future TRS Benefits

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Retirement Corner

TRS
Life brings many changes, including different jobs and careers.  If you leave employment with the University or any other public education institution in the state, you’ll have to face the question of what to do with your Teacher Retirement System account balance.

Members who have less than five years of service credit with TRS who have terminated all employment with a TRS-covered employer will become inactive members after five years.  Inactive members are eligible to have their personal contributions and earnings refunded to them prior to the seventh anniversary of their last day of service.  If the account is not claimed prior to the seventh anniversary since last employment, your contributions may be forfeited to TRS.

However, you also need to consider that if you withdraw your account by receiving a refund, you have ended your membership in TRS.  By ending your membership, you lose your service credit and forfeit any retirement benefits you may have accrued.  Ending your TRS membership will also affect your eligibility for retirement under the Proportionate Retirement Program, if you have service under another Texas public retirement system, and your eligibility for transfer of service credit to or from ERS at the time of your retirement.  Withdrawal of your account also results in loss of eligibility you may have had for UT Health Insurance upon retirement.

Inactive members may avoid having their accounts terminated during the absence from TRS service by:

  • Performing military service that is creditable in TRS,
  • On leave of absence from employment in a public education institution;
  • Earning service credit in another Texas public retirement system that participates in the Proportionate Retirement Program, or
  • Working for a TRS-covered employer in a part-time position that is not eligible for TRS membership.

If you do refund your TRS account and later return to TRS covered employment, you may be eligible to purchase the service back, but it will be at a higher cost.  Take the time to review your options so that you make the best decision you can for you.

To learn more, please visit the TRS website at www.trs.texas.gov.