TRS offers a defined benefit plan of retirement, also known as a 401(a). As its name implies, your retirement benefit is “defined” by calculation using your years of membership service, the average of your highest 24 consecutive months of salary*, and a 2% multiplier. Under this plan, you assume no investment risk, plus you have survivor and disability protection while you are an active member. Also, you are guaranteed retirement income for the rest of your life.
Under TRS’s defined benefit plan, you are offered two plans of retirement, Plan A and Plan B, which are explained in the links to the right. Basically, Plan A provides a retirement benefit only to you. Plan B offers benefits to your beneficiary(ies) at your death.
Under Plan A and Plan B, you may also elect to receive a partial lump-sum distribution (cash payment) in exchange for a reduced lifetime benefit. For details on the Partial Lump-Sum Option Plan (PLOP), see the PLOP link to the right.
When you apply for retirement you must designate a plan of retirement on the application form. Your choice will determine if you receive the maximum benefit available to you (Plan A) or if monthly survivor’s benefits will be provided for your beneficiary(ies) after your death (Plan B). You will also elect or decline a PLOP at your time of retirement.
Your decision is very important. Once you start receiving a monthly retirement benefit you cannot change your plan of retirement except under limited conditions as covered in changing your plan of retirement.
If you die within 30 days of the effective date of retirement, you will be considered an active member at the time of your death in accordance with Georgia law. Your account will be settled as a death in service in accordance with the beneficiary designation(s) you have selected on your retirement application.
You may obtain an estimate with benefit calculations for each retirement plan by using any of the following methods:
- the Pension Calculator,
- if you are within 5 years of retirement, you may login to your TRS account and generate a benefit estimate using you current account information,
- make a pre-retirement counseling appointment, or
- call our office and request a benefit estimate.
*Georgia law and IRS regulations place certain limitations on earnable compensation, salary increases, and retirement benefits. See here for more information.