Teacher Retirement System Of Texas (T.R.S.)

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T.R.S. is a state-run retirement system for public education employees. T.R.S. delivers retirement and related benefits that have been authorized by the Texas Legislature, and manages the trust fund that finances member benefits.

As a T.R.S. member, a percentage of your pre-tax, eligible compensation must be contributed at a rate set by the Texas Legislature. Membership in T.R.S. is required by law for eligible employees. Eligible employees must set up a T.R.S. account to access their personal information and manage their benefits. Please visit the T.R.S. website (Opens in new window) for complete benefits information.

View the T.R.S. Benefits Handbook (Opens in new window).

403(b): Another Way To Plan For Retirement

The average T.R.S. pension benefit replaces only 68% of a career employee’s pre-retirement income. One way to supplement your T.R.S. pension is to save​ in a 403(b) plan​. A 403(b) is a tax deferred retirement plan available to employees of educational institutions and certain non-profit organizations as determined by section 501(c)(3) of the Internal Revenue Code. Contributions and investment earnings in a 403(b) grow tax deferred until withdrawal, at which time they are taxed as ordinary income.

How a 403(b) Works

Contributions to a 403(b) are made on a pre-tax basis through a Salary Reduction Agreement, an arrangement through which the participating employee agrees to take a reduction in salary. The amount by which the salary is reduced is directed to investments offered through the employer and selected by the employee. Such contributions are called elective deferrals and are excluded from the employee's taxable income.

Benefits include:

  • Tax deferred growth: no annual taxation on earnings
  • Investment options: fixed annuities, variable annuities, or mutual funds
  • Competitive interest rates
  • Flexibility: start, stop, and adjust your contributions as allowed by your employer's plan
  • Receive periodic account statements

Please review additional policy information and links:

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