TRS outlines beneficiary process and disability benefits for Texas educators

Teachers' Retirement System (TRS) members in Illinois are being urged to take proactive steps regarding their retirement and disability benefits during a recent board meeting. Key discussions highlighted the importance of understanding beneficiary designations and the implications of disability benefits for educators.

Members were reminded that selecting beneficiaries is a crucial step in the retirement planning process. Beneficiaries will receive plan assets in the event of a member's death, and updates can be made online or via phone. After completing the necessary steps, members will receive a welcome email and a personal identification number (PIN) for added security.

The meeting also emphasized that disability benefits are included in the 9% contribution members already pay. Members may qualify for these benefits if two physicians confirm they cannot perform their job due to health reasons. If approved, members can receive 40% of their contract rate through direct deposit while continuing to earn service credit during their time on disability.

Additionally, the board discussed the structure of survivor benefits, which are also part of the 9% contribution. Members were informed that 1% of their contributions go toward survivor benefits, while the remaining 8% is invested for their retirement. The automatic designation option for beneficiaries allows for flexibility, especially for those with multiple dependents, ensuring that monthly benefits can be distributed appropriately without the need for constant updates.

The meeting concluded with a reminder that members should review their beneficiary forms carefully, as these designations can significantly impact their loved ones' financial security. Members without dependents at retirement may opt to refund their survivor benefit, but they should be aware that this option cannot be reversed if their circumstances change in the future.

Overall, the discussions underscored the importance of being informed and proactive about retirement and disability benefits, ensuring that educators can secure their financial futures and that of their families.