13th check
Also: supplemental payment
A one-time extra payment to retirees, not a permanent increase. The handbook doesn't mention it. A 2018 TRS study lists one paid in January 2008, equal to the August 2007 monthly annuity and capped at $2,400.
0-9
A
Accumulated contributions
The money in your TRS member account: what you paid in from your salary, anything you paid to buy service credit, and interest. TRS currently credits interest at 2% a year, on Aug. 31.
Active member
Also: active contributing member, active noncontributing member, inactive member
An active contributing member works for a TRS-covered employer and pays into TRS. If you've left with at least five years of service credit, you're an active noncontributing member and can still retire once you meet the age rules. With under five years, your membership ends after five years in a row without earning service credit.
Active member death benefit
What TRS pays a beneficiary when a member dies before retiring. The beneficiary picks one of five payment plans, such as twice the member's salary (up to $80,000) or, if the member had five or more years of service, 60 monthly payments or a lifetime annuity.
Adjusted age difference
A calculation TRS uses, based on IRS rules, when you name a beneficiary who isn't your spouse and is younger than you. If it's more than 10 years you can't choose Option One, and if it's more than 19 years you can't choose Option Five.
Alternate payee (QDRO)
Also: QDRO, Qualified Domestic Relations Order
A spouse or former spouse awarded part of your TRS benefit by a court, for example in a divorce. For TRS to pay them directly, the court must enter a Qualified Domestic Relations Order (QDRO) using one of TRS's model orders.
Annual statement
Also: Annual Statement of Account
The statement TRS provides each fall showing what's in your member account, with a projected retirement estimate and your tier. Tell TRS in writing promptly if anything on it is wrong.
Annuitant
Someone receiving a monthly TRS annuity. That's usually a retiree, but a beneficiary who gets monthly payments after a member or retiree dies is an annuitant too.
Average salary
Also: final average salary, highest average salary
The average of your highest five annual salaries, or your highest three if you're grandfathered (Tiers 1, 4 and 6). Your pension is mostly based on this and your years of service credit.
B
Beneficiary
Also: Designation of Beneficiary, TRS 15
The person (or people, trust, estate or organization) you name to receive TRS benefits after you die. You name them on a TRS form, such as the Designation of Beneficiary (TRS 15), sent straight to TRS, not your employer. TRS must receive it before your death.
Break in service
After your retirement date you must not work for any TRS-covered employer for one full calendar month. Working in the month right after you retire revokes your retirement. Service retirees who take a 12-month break can go back to work full time without restriction.
C
COLA
Also: cost-of-living adjustment, cost-of-living increase
An increase to retirees' monthly checks. TRS pensions don't get regular cost-of-living increases: each one must be authorized by the Texas Legislature. A COLA is typically figured on your annuity amount, so a check reduced by PLSO usually gets a smaller increase.
Creditable compensation
Also: annual compensation
Pay that counts toward your TRS pension: salary and wages for work in a school year, paid in normal periodic payments. Expense payments, allowances, most bonuses and payouts for unused leave don't count. Annual compensation is your creditable pay for one Sept. 1 to Aug. 31 school year.
D
DROP
Also: Deferred Retirement Option Plan
The Deferred Retirement Option Plan, an older TRS program. A 2018 TRS study says it closed to new participants on Dec. 31, 2005. The handbook still mentions it: grandfathered members who are DROP participants can't choose PLSO, and DROP payments are taxable.
E
EAR (employment after retirement)
Also: return to work, three strikes
TRS's rules for working for a TRS-covered employer after you retire. If your retirement date is after Jan. 1, 2021, you can lose that month's annuity unless the job fits an exception, such as substitute work, half time or less, or work after a 12-month break. Service retirees get a warning the first time they go over the limits ("three strikes").
Early-age retirement
Also: early-age reduction, reduced annuity
Retiring once you meet your tier's minimum age and service, but before you qualify for normal-age retirement. Your annuity is reduced, using actuarial tables or a flat percentage. With 5 to 19 years of service, the reduction can be as much as 53%.
Entry date
The first day of your current TRS membership, which helps set your tier. It stays the same if you leave teaching, unless you take a refund. After a refund, your entry date is when you came back, even if you reinstate the old service credit.
ERS
Also: Employees Retirement System of Texas
The Employees Retirement System of Texas. Service credit can be transferred between TRS and ERS, but only at retirement or when a preretirement death benefit becomes payable. If you're eligible for ERS health coverage, you can't enroll in TRS-Care.
G
Grandfathered
You're grandfathered if, as a TRS member before Sept. 1, 2005, you were at least 50, your age plus service totaled at least 70, or you had 25 or more years of service. Grandfathered members (Tiers 1, 4 and 6) get a three-year salary average and gentler early-retirement reductions.
Guarantee period
Also: guaranteed period annuity
Options Three and Four pay you for life, with 60 or 120 monthly payments guaranteed. If you die before they've all been made, your beneficiary gets the rest. You can name one beneficiary or joint beneficiaries, and change them any time during the guaranteed period.
J
Joint and survivor annuity
Options One, Two and Five: a reduced check for your life, then 100%, 50% or 75% of it to one surviving beneficiary for their life. The reduction depends on both your ages. If your beneficiary dies first and you tell TRS, your check goes up to the standard annuity amount.
Joint beneficiaries
Also: alternate beneficiary
Two or more people named to share certain death benefits in equal shares. If one dies before the member, the others get the whole benefit. An alternate beneficiary is paid only if no joint beneficiary is still living.
L
Lump-sum death benefit
Also: retiree survivor benefit, $10,000 death benefit
When a TRS retiree dies, their beneficiary gets a $10,000 lump sum, on top of any Option One to Five payments. Instead, the beneficiary can choose $2,500 plus a monthly payment, depending on who they are.
M
Minimum benefit
If the pension formula gives you a standard annuity under $150 a month, TRS pays $150. That minimum is still reduced for early-age retirement or a payment option.
Multiplier
The percentage you earn for each year of service: 2.3%, set by state law. Years of service × 2.3% × average salary = your yearly standard annuity.
MyTRS
TRS's secure online account. Members, retirees and beneficiary annuitants can view their account or benefit information. You can also use it to change your address, request a retirement estimate, apply for a refund and estimate your benefit.
N
Normal-age retirement
Also: normal age, unreduced retirement
Retiring with an unreduced pension. Every tier qualifies at 65 with five years of service; the Rule of 80 can get you there sooner, with a minimum age of 60 (Tiers 3 and 4) or 62 (Tiers 5 and 6). After that, getting older doesn't raise your pension; only more service and salary do.
O
Option One
Also: 100% joint and survivor
A reduced annuity for your life. If your beneficiary outlives you, they get 100% of it for their life. If they die first, your check goes up to the standard annuity once you tell TRS.
Option Two
Also: 50% joint and survivor
A reduced annuity for your life. If your beneficiary outlives you, they get half of it for their life. If they die first, your check goes up to the standard annuity once you tell TRS.
Option Three
Also: 60 monthly payments
A reduced annuity for your life with 60 monthly payments guaranteed. If you die before 60 payments, your beneficiary gets the rest. It isn't available if you retire at 104 or older.
Option Four
Also: 120 monthly payments
A reduced annuity for your life with 120 monthly payments guaranteed. If you die before 120 payments, your beneficiary gets the rest. It isn't available if you retire at 93 or older.
Option Five
Also: 75% joint and survivor
A reduced annuity for your life. If your beneficiary outlives you, they get 75% of it for their life. If they die first, your check goes up to the standard annuity once you tell TRS.
ORP
Also: Optional Retirement Program
The Optional Retirement Program, which some higher education employees can choose instead of TRS. It's a one-time, permanent choice, generally made before the 91st day after first becoming eligible.
P
Participant ID (PID)
The ID number on your TRS membership card. You can use it, your Social Security number or your date of birth to confirm who you are when you call TRS. Put your name and PID or Social Security number on anything you mail to TRS.
PLSO
Also: Partial Lump Sum Option
The Partial Lump Sum Option: cash equal to 12, 24 or 36 months of your standard annuity, taken at service retirement. In exchange, your monthly annuity is permanently reduced. Only some members qualify, depending on tier.
Proportionate retirement
Also: Proportionate Retirement Program
If you have service in more than one Texas public retirement system in the program (such as ERS, TMRS or TCDRS), you may combine it to qualify for TRS service retirement. TRS still pays only on its own service and salary. Combined service doesn't count for TRS-Care, and you can't take PLSO if you retire under this program.
Purchased service credit
Also: buying service credit
Service credit you pay for, such as out-of-state, military, substitute or withdrawn service. The cost generally rises over time, and there are deadlines if you want it to count at retirement, so start early.
R
Refund
Taking out the accumulated contributions in your account after leaving all TRS-covered jobs (form TRS 6). It ends your membership: you lose your service credit and any retirement benefits, including retiree health care. Pre-tax amounts have 20% federal tax withheld unless you roll them over.
Reinstatement
Also: withdrawn service credit
Buying back service credit you lost when you took a refund (withdrawn service credit). Reinstating restores the credit, but your entry date, and so your tier, still comes from when your current membership began.
Retirement date
Also: effective retirement date
The date your retirement takes effect, set by your application. It can be no earlier than the last day of the month you file, or the last day of either of the two months before, if you had left your job and were eligible by then. TRS doesn't pay benefits for any time before it.
RMD
Also: required minimum distribution, required beginning date
Federal rules make TRS benefits start by a "required beginning date". If you were born on or after July 1, 1949, it's April 1 after the year you turn 72 or leave TRS-covered work, whichever is later. Missing it can mean a 50% federal excise tax on what should have been paid.
Check with TRS This is the handbook's wording. Federal rules change; check current IRS rules with a tax professional.
Rollover
Moving an eligible TRS payment, such as a refund or PLSO, into another eligible retirement plan or a traditional IRA instead of taking it as cash. On a refund, rolling over all eligible amounts avoids the mandatory 20% federal withholding.
Rule of 80
Your age plus your years of service credit add up to at least 80, with at least five years of service. In Tiers 1 and 2 that alone qualifies you for normal-age (unreduced) retirement. In Tiers 3 and 4 you also need to be at least 60, and in Tiers 5 and 6 at least 62.
Rule of 90
The handbook doesn't use this name, but it's what people call the PLSO rule for Tiers 2, 3 and 5: you must be eligible for service retirement and your age plus years of service must total 90.
S
Service credit
Your years of TRS-covered work. You earn a year by working (or being on paid leave) in a TRS-eligible job at least 90 days in a school year (Sept. 1 to Aug. 31), and no more than one year per school year. It decides when you can retire and how much you get.
Standard annuity
The starting point for your pension and the largest monthly amount. Payments stop when you die, and no monthly benefit goes to a beneficiary. Every other payment plan starts from this amount and reduces it.
Surcharge
Also: employer surcharge, pension surcharge, health care surcharge
Extra contributions an employer owes TRS when it employs a retiree for more than half time in a month: a pension surcharge and, if the retiree is in TRS-Care, a health care surcharge. The employer may require the retiree to share the cost.
Check with TRS The handbook says surcharges apply to retirees who retired "on or after" Sept. 1, 2005 in one place and "after" Sept. 1, 2005 in another (p. 43). If you retired on Sept. 1, 2005 itself, ask TRS.
T
Termination of employment
Officially resigning and ending all work with all TRS-covered employers, including part-time work. You must do this to retire. Being on paid or unpaid leave, or having a contract for future work, can mean your employment hasn't ended.
Tier
One of six membership groups (Tiers 1 to 6), each with its own retirement ages and early-retirement reductions. Your tier depends on when you joined TRS, whether you're grandfathered, and how much service credit you had on Aug. 31, 2014.
TRS-ActiveCare
TRS's health plan for eligible active public school employees and their families. It's separate from TRS-Care and the pension fund. A retiree working 10 or more hours a week for a participating employer may be eligible.
TRS-Care
TRS's health program for eligible retirees and their dependents. Service retirees generally need at least 10 years of service credit plus either age plus service of 80 or more, or 30 years of service. TRS-Care has no annual enrollment period, so consider enrolling when you retire.
V
Vesting
Also: vested
The handbook doesn't use the word "vested". People usually mean having at least five years of service credit, the point where you can retire later and get a lifetime monthly annuity once you meet the age rules. Taking a refund gives that up.
W
WEP and GPO
Also: Windfall Elimination Provision, Government Pension Offset
Federal Social Security rules the handbook names as things that may reduce Social Security benefits for people with a TRS pension. TRS can't tell you about those reductions; ask the Social Security Administration. Your TRS pension isn't reduced by Social Security.
Check with TRS This handbook edition doesn't describe any later changes to these federal rules. See our Social Security page and check with the Social Security Administration.
No terms match. Try a shorter word, or .
Plain English, not the official wordingThese definitions put the TRS Benefits Handbook into everyday words. They aren't TRS's official definitions, and they aren't legal or financial advice. If the handbook and the law ever disagree, the law and TRS rules control, and TRS decides your benefit.
Source: TRS Benefits Handbook, September 2025, pp. 5-9, 11-16, 18-20, 22-24, 26-28, 30, 32-37, 39-43, 45, 47-49, 51-56. DROP, Rule of 90 and 13th check: TRS Pension Benefit Design Study (Dec. 2018), PDF pp. 43, 51. Last reviewed .