- Another year adds service and can move you into a higher multiplier band, which then applies to all your years (for example, TRS 3 going from 26 to 27 years moves from 2.3% to 2.5%).TRS 1-3 Service Retirement bulletin p. 2
- If you are retiring early, each year closer to age 60 or to 27 years (30 for TRS 4) removes 5% or 6% of reduction.KRS 161.600(1)(b), (2)(d)
- TRS 4: each month you work past 60 adds to the age factor until 65.KRS 161.620(1)(f)1.
A TRS 3 example
A school-district member, age 56 with 25 years on July 1, 2034, $60,000 final average salary, then each later year. Our engine, not a TRS of Kentucky example; no raises.
The jump from 26 to 27 years is the big one: the 6% early cut ends and all 27 years move from 2.3% to 2.5%. That year alone adds $564.40 a month for life. TRS 1-3 Service Retirement bulletin p. 2; TRS 4 Service Retirement bulletin p. 1 ('When a higher multiplier is attained, it applies to all years'); KRS 161.600(1)(b)2.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2 ('Penalty (up to 30%)'); TRS 1-3 SPD (2011) pp. 56-57, Eligibility for Retirement
TRS 4: the age factor keeps rising to 65
TRS 4's age factor starts at 1.7% and rises 0.04% for each year over 60, counted monthly, to 1.9% at 65. Reaching 20 years adds a 0.25% career factor, and 30 years makes it 0.5%. KRS 161.620(1)(f); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers
The law says the TRS 4 age factor rises "incrementally each month" after 60, but TRS of Kentucky's chart only shows whole ages (1.74% at 61).
We add 0.04% / 12 for each full month past 60, so 61 and 6 months = 1.76%.
KRS 161.620(1)(f)1.; TRS 4 Service Retirement bulletin p. 1One more year and retiree health
If you joined after June 2008, staying until you have 15 years can decide whether you get retiree health coverage at all, and more years lower what you pay. See the 15-year rule.
The calculator shows your own numbers for the next three years and at every age to 70.
Questions
What does one more year add to a TRS of Kentucky pension?
A year of service, a possibly higher multiplier step (which then applies to all your years), and, if you're retiring early, a smaller early-retirement cut. In TRS 4, each month past 60 also raises the age factor.
Is it worth working to 27 years?
Often, for TRS 1-3. At 27 years the early cut ends, and TRS 3 school-district members move from 2.3% to 2.5% on every year.
Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 1-3 Service Retirement bulletin pp. 1, 2; TRS 4 Service Retirement bulletin p. 1; TRS 1-3 SPD (2011) pp. 55, 56-57; TRS 4 SPD p. 8. Also: TRS Basics 1-3 p. 2; KRS 161.600, 161.620. Last reviewed .