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How TRS Tier 2 pensions work: ages, formula, buying service and survivor rules
Summary
An instructional overview for Tier 2 Teachers' Retirement System members on how pensions are calculated (2.2% formula), routes to add service credit, early-retirement reductions, disability and survivor benefits, post‑retirement work limits, and where to get estimates.
Sandy Benhart, an outreach coordinator with the Teachers' Retirement System, outlined how Tier 2 pensions are calculated and how members can prepare for retirement.
Benhart said a TRS defined‑benefit pension is determined by a simple formula: service credit × the formula factor × final average salary. "It is just 1 thing, 2.2%," she said, referring to the formula factor that applies per year of service. Final average salary is the average of the eight highest consecutive salaries out of the last 10 years, subject to the annual salary cap (noted in the presentation as $127,283 for the coming year).
The formula means a common example: a member with 30 years of service and an $85,000 final average salary would calculate 30 × 2.2% × $85,000 to arrive at a $56,100 starting pension. Benhart showed how retiring earlier reduces that amount: "Anything under the age of 67 is going to be considered early retirement, and that will…
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