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The State Teachers’ Retirement System (TRS) was established on July 1, 1941 for the purpose of providing retirement benefits for teachers and school service personnel. TRS is a defined benefit plan that currently has approximately 19,313 active members and 26,050 retired members. An active member contributes 6% of his or her gross monthly salary into the retirement plan. The employer contributes an additional 15% of the member’s gross monthly salary into the plan for employees hired before July 1, 2005 and 7.5% for employees hired for the first time on or after July 1, 2005.
RETIREMENT BENEFITS
In order to qualify for regular retirement benefits, a member of TRS must meet eligibility requirements.
A member who is currently in covered employment may:
Retire with full benefits at age 60 with 5 or more years of service.
Retire with full benefits at age 55 with 30 or more years of service.
Retire with full benefits at any age with 35 or more years of service.
Retire with reduced benefits before age 55 with at least 30 but less than 35 years of service.
A member with 5 or more years of contributing service who terminates employment prior to retirement, but does not withdraw his or her employee contributions, will be eligible for retirement benefits at age 62, or at age 60 with 20 years of contributing service.
A regular retirement benefit, paid in equal monthly installments, is an amount equal to 2% of a member’s final average salary multiplied by the member’s years of service credit. Final average salary refers to the average of the 5 highest fiscal year salaries out of the last 15 fiscal years of contributing service. Normally, this figure will come from the last 5 years of employment.
Final Average Salary x Years of Service x 2% = Annual Retirement Benefit under Option A
Retirement benefits are not automatic. You must apply to the Board for your retirement benefits.
Distributions must start by April 1 of the year following the later of:
a) the date you reach age 70½, or
b) the date you terminate employment.
Retirement benefits are credited to retiree accounts by direct deposit on the 25th of each month. If the 25th falls on a weekend or holiday, checks are processed on the prior full business day.
CONTRIBUTIONS
TRS funding policy provides for member contributions based on 6% of members’ annual compensation. Contributions as a percentage of payroll for members and employers are established by State law and are not actuarially determined. The employers make the following contributions:
The county boards of education, utilizing funds made available through the State’s School Aid formula, contribute 15% of the compensation of their TRS-covered employees hired for the first time prior to July 1, 2005, and 7.5% for employees hired for the first time on or after July 1, 2005. The State contributes 15% of the compensation of TRS members employed by the State hired for the first time prior to July 1, 2005, and 7.5% for employees hired for the first time on or after July 1, 2005. Other employers contribute 15% of their TRS-covered employees’ compensation for the ones hired for the first time prior to July 1, 2005, and 7.5% for employees hired for the first time on or after July 1, 2005.
In addition, the State contributes a certain percentage of fire insurance premiums paid by State residents and an amount determined by the State actuary as being needed to extinguish the TRS unfunded liability by June 30, 2034. Counties contribute 15% of the compensation of TRS members’ salaries not covered under the State’s School Aid formula for the ones hired for the first time prior to July 1, 2005, and 7.5% for employees hired for the first time on or after July 1, 2005.
ANNUITY OPTIONS
Option A - Straight Life: A lifetime annuity payable monthly to the member determined under the regular benefit formula without adjustment. There are no death benefits under this option.
Option C - 100% Joint & Survivor: A reduced annuity payable monthly to the member for his or her lifetime. Upon the death of the member, the named survivor will receive the same amount for his or her lifetime.
Option D - 50% Joint & Survivor: A reduced annuity payable monthly to the member for his or her lifetime. Upon the death of the member, the named survivor will receive one-half of the monthly payment for his or her lifetime.
Option E - 120 Payments: A reduced annuity payable monthly to the member. If the member dies before receiving all 120 monthly payments, the remainder of those 120 monthly payments shall be payable to the member’s named beneficiary or the member’s estate.
With all the above options, any unpaid employee contributions, plus interest, remaining at the retiree’s or survivor’s death will be refunded to the named beneficiary or the member’s estate.
RETIREMENT BENEFIT ESTIMATE
Prior to retirement and upon request, an estimate of potential benefits under all four retirement annuity options can be provided so that the member can make an informed decision regarding his or her retirement options.
DISABILITY RETIREMENT
A member may qualify for disability retirement benefits if he or she has at least 10 years of service credit, left employment because of disability, and has been unable to work because of the disability for at least 6 months. Only 5 years of service credit is necessary if the disability is a direct and total result of an act of student violence directed toward the member. All disability retirement applications must be approved by the West Virginia Consolidated Public Retirement Board. If a member who retires on the basis of disability returns to service, the Board shall discontinue payment of his or her disability.
DEATH PRIOR TO RETIREMENT
If an active member 50 years of age or older with 25 years of credited service dies, the surviving spouse, if named as sole beneficiary, will receive a lifetime annuity based on Option C. If a member dies and does not meet these age and service requirements, all funds are paid to the designated beneficiary(ies).
If a member wishes to change his or her beneficiary,
he or she must complete a new beneficiary form.
CHANGING A BENEFICIARY PRIOR TO RETIREMENT
If a member wishes to change his or her beneficiary, he or she should complete a new beneficiary form and return it to the WV Consolidated Public Retirement Board. The member should keep a copy of this form for his or her records. If a member’s family situation changes (birth, death, marriage, divorce, etc.), he or she should re-evaluate their beneficiary designation.
MILITARY SERVICE
Members shall be given military service credit for service in any of the Armed Forces of the United States during any period of national emergency within which the Federal Selective Service Act (Draft) was in effect. A maximum of 10 years of non-contributory military service can be given; however, it cannot exceed 25% of the member’s total TRS service. Any member of the retirement system who is called to active duty in the armed forces of the United States During covered employment under TRS and returns to covered employment within 90 days following discharge may be eligible to purchase up to 5 years of military service credit for such duty. Military service credit under this retirement system may not be credited under any other retirement system administered by the Consolidated Public Retirement Board. Military service will be credited to the member’s account at the time of retirement.
LOANS
An active member who was hired before July 1, 2005 may borrow up to 50% of his or her contributions, but the total existing loan may not exceed $8,000. Refinancing existing loans is not permitted.
Any outstanding loan balance must be paid in full before a member can receive retirement benefits. A member may elect to receive a lifetime actuarial reduction of his or her monthly retirement benefit to payoff the outstanding loan balance.
SICK AND ANNUAL LEAVE AT RETIREMENT
A member may elect to use unused annual/vacation and/or sick leave toward an increase in retirement benefits, on the basis of two days of retirement service credit for each day of unused annual/vacation and/or sick leave. Such days will constitute additional service in the computation of the member’s retirement annuity. The additional credited service shall not be used in meeting initial eligibility for retirement criteria. Lump sum payments of annual/vacation leave shall not be used in the computation of retirement benefits under TRS.
In the alternative to increasing retirement benefits, any member who participates in a Public Employees Insurance Agency (PEIA) insurance plan may elect to use any unused annual/vacation and sick leave days at the time of retirement to purchase health insurance under the PEIA or to acquire additional credited service under TRS. Unused leave cannot be used for both options.
If an individual was enrolled in the PEIA insurance plan before July 1, 1988, and coverage has been continuous since that time, his or her unused annual/vacation and/or sick leave may be used to pay towards health insurance premiums. The retiree may purchase one month of single health coverage for every two days of unused annual/vacation and/or sick leave, or one month of family health coverage for every three days of used annual/vacation and/or sick leave. If an individual was enrolled in the PEIA insurance plan between July 1, 1988 and June 30, 2001, and coverage has been continuous since that time, the retiree may purchase one-half month of single health coverage for every two days of unused annual/vacation and/or sick leave, or one-half month of family health coverage for every three days of unused annual/vacation and/or sick leave. Members enrolled in the PEIA insurance plan on or after July 1, 2001 are not eligible to use unused annual/vacation and/or sick leave towards the purchase of health insurance.
WORKING AFTER RETIREMENT
Any retiree who accepts public school employment, other than as a college teacher, for a period of no more than 140 days during the school year, and who is not considered in any way a permanent or regular employee, is considered to be temporary and shall continue to receive his or her normal monthly benefit. The retiree will receive a reduction in their retirement annuity if the temporary employment exceeds 140 days. A retiree may teach college level courses on a non-contract basis for less than 7 hours of college credits per semester without a loss of benefits.
TERMINATION OF EMPLOYMENT
If a member terminates employment prior to the time he or she qualifies for retirement benefits and has accrued at least 5 years of contributing service, he or she may leave his or her contributions on deposit until they qualify for deferred retirement benefits. The member may also choose to withdraw his or her employee contributions and interest from the plan after termination of his or her employment. However, he or she may not withdraw the employer’s contributions. Employer contributions remain with the retirement system. Once the member withdraws contributions from the system, he or she forfeits all future retirement and disability benefits. A member who is terminating employment should consult with the WV Consolidated Public Retirement Board before deciding whether or not to withdraw his or her accumulated contributions.
TRS members may purchase service credit for “public” school teaching service performed in another state, or for service as a teacher for employment with the federal government of the United States. Service credit purchased shall not exceed the lesser of 10 years or 50% of the member’s total service at the time of his or her TRS retirement. Purchased out-of-state service may not be used to establish eligibility for retirement benefits in TRS. Additionally, such service must be withdrawn from the other State retirement system.
WORKERS' COMPENSATION
TRS members receiving Workers’ Compensation benefits may purchase credited service for time absent from work due to temporary disability if the member returns to work with a covered employer within 1 year following cessation of workers’ compensation benefits. A maximum of 2 years may be purchased by lump sum payment. Payment must be made within 2 years of the end of the disability period.
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