The Teacher's Retirement System (TRS) is a defined benefit plan, meaning participants are guaranteed a set monthly retirement income from the plan.  Eligible positions include: Certified Teachers, Administrators, Clerical Staff, Paraprofessionals, Department Leads, and Department Managers.

How Does It Work? All TRS employees contribute 6% of gross salary to TRS through monthly payroll deduction.  In addition, Thomas County Schools contributes 20.78% to each TRS employee’s retirement account monthly.

TRS members are vested with 10 years of creditable service and eligible to receive a monthly retirement benefit upon completion of the following:

• 10 years of creditable service and attainment of age 60.
• 30 years of creditable service, regardless of age.
• 25 years of service and before age 60, but with a permanently reduced benefit.

The amount you will receive at retirement is based on 2%, multiplied by your years of creditable service, multiplied by the average of your highest consecutive 24 months of pay.

Example:

2% x 30 years = 60%
Average of highest 24 consecutive months of pay = $70,000
60% x $ 70,000 = $ 42,000 / year

You may contact TRS at (800) 352-0650 to request a benefit estimate be mailed to you. You may also generate a benefit estimate online. The following documents are also available in the Resources section: TRS Member's Guide and TRS Retirement Checklist.

The district also offers supplemental retirement plan benefits to help you prepare for the retirement you deserve.

In addition to the mandatory state-sponsored Teachers Retirement System (TRS) and Public School Employees Retirement System (PSERS) plans, Thomas County Schools offers voluntary 403(b) and 457(b) retirement plans to help employees enhance their financial future. We encourage all employees to explore these options. In order to help you save for retirement, if you do not complete an active election in a supplemental retirement plan or opt out, you will be auto enrolled in the 403(b) with a 2% contribution. 

What is a 403(b) plan?

A 403(b) plan is a tax-deferred retirement savings option available to employees of public schools and certain tax-exempt organizations. It allows you to contribute pre-tax dollars through convenient payroll deductions, helping you save for retirement. Since 403(b) plans are designed to encourage long-term savings, you typically can only withdraw funds when you reach age 59½, leave your job, or in cases of death or disability. Some plans may also allow withdrawals due to financial hardship. Be aware that withdrawing funds before age 59½ may result in federal restrictions and a 10% tax penalty. Employees aged 50 and older can make additional contributions up to $7,500 annually.

What is a 457(b) plan?

A 457(b) plan is a type of supplemental retirement savings plan available to employees of state and local governments, including public school employees. Like a 403(b) plan, a 457(b) plan allows you to make contributions through payroll deduction, helping you save for retirement with pre-tax dollars. Unlike 403(b) plans, you can typically access your 457(b) plan savings without penalties if you leave your job, regardless of your age. There are no early withdrawal penalties, though standard income taxes apply to distributions. In addition, along with the standard $7,500 catch-up contribution for employees aged 50 and older, a special “catch-up" provision is available in the three years before retirement, allowing higher contributions under certain conditions.

Why Contribute to a 403(b) or 457 Plan? Participating in a supplemental plan offers several advantages:

• Lower Taxes Now: Contributions are made before taxes are deducted from your paycheck, meaning you pay taxes on a smaller income amount today, which reduces your current tax bill. For example, if your federal tax rate is 25% and you contribute $100 per month, your actual contribution cost is only $75 after tax savings.
• Tax-Deferred Growth: Your earnings and interest within the plans grow without being taxed until you make withdrawals. This tax deferral, combined with compounding interest, helps your savings grow faster compared to a taxable account, where earnings are taxed annually.
• Take Charge of Your Future: By contributing to a supplemental retirement plan, you're taking steps to secure your retirement. Other retirement income sources, Teachers Retirement System or Public School Employees Retirement System pensions or Social Security, often don’t fully replace your final salary. It’s important to take control of your financial future to ensure you have enough savings for retirement.

Contribution Details:

Employees can contribute between 1% and 100% of their pay, up to a maximum of $23,000 per year.

Employees age 50 or older can make an additional "catch-up" contribution of up to $7,500 annually.

Contribution limits are established by the IRS.

Contribution Types:

Pre-Tax Contributions: Made before taxes are deducted from your pay, allowing you to defer taxes until you withdraw the money in retirement.

After-Tax Contributions: Made after taxes are applied to your pay. You pay income tax on the earnings of your contributions when you withdraw money in retirement.

Investment Options and Vesting:

You have the flexibility to choose how your contributions are invested and can change your investment allocation at any time.

Your contributions are immediately 100% vested. 

All funds are invested through Empower with a variety of investment options, and local investment guidance is provided by Von Hellens and Partners. Contact information for Von Hellens and Partners is listed below. 

Erik Von Hellens
Founder, Managing Director
Phone: (229) 413-0026
Email: Erik@vonhellensandpartners.com

Melanie Cromartie
Partner, Financial Advisor
Phone: (229) 413-0026
Email: melanie@vonhellensandpartners.com