Teacher Retirement System (TRS)
Candlefocus EditorTRS offers a variety of retirement plans to help teachers cultivate the financial security they need when they step away from their career, including the increasingly popular defined-contribution plans, such as 401(k)s, and traditional defined-benefit plans, like pensions. These benefits provide teachers a source of income when they enter retirement. A defined-benefit plan guarantees a certain monthly paycheck to the retiree, providing financial security. A defined-contribution plan functions similarly to a 401(k), in which the teacher puts a portion of their money into a retirement account and the employer matches it. Over time, the contributions accumulate and can provide the retiree with a secure source of income.
Unfortunately, many retirees don't receive the full pension amount they may have expected from their ability to contribute to a TRS plan. This is because they don't make enough contributions while they are still working or they don't qualify for the full retirement benefits. Despite the shortcomings, TRS remains an important element of the retirement process for educators, allowing them to plan ahead for a future of financial security.
TRS plans offer the potential to help teachers accumulate a sufficient level of resources to live comfortably in their retirement. Educators can carefully analyze their own TRS plans to ascertain their retirement readiness and make informed decisions before they decide to retire. Moreover, they can benefit from additional assistance by taking advantage of resources provided by their school districts or states. Most importantly, however, TRS plans serve to demonstrate that the dedication and hard work of educators pays off in the form of greater financial security in their retirement years.