TEACHERS' RETIREMENT SYSTEM
TRS is a defined benefit plan. Benefits are based on age, final average salary (FAS)
and years of service.
Participants enrolled on or before June 30, 1973 to July 26, 1976 are Tier 1 & 2 members
and contribute 0%-15% of gross salary (known as the certified rate*).
Participants enrolled July 27, 1976 to present are Tier 3 & 4 members and contribute
3% of gross salary.
Tier 1 participants can vest* if the following requirements are met:
- Completion of 15 or more years of total creditable service (including any outside
time purchased) before termination of employment in a membership bearing position
by resignation or dismissal.
- Completion of five or more years of creditable service immediately before the severance
- Balance in Annuity Savings Fund* can not be withdrawn.
- Cancellation of Plan A and election of Plan B.
Tier 2 participants can vest if they meet the following requirements:
- Completion of 15 or more years of credited service* including at least five years
of such service on or after 7/1/73, before terminating employment by resignation or
dismissal, and prior to attainment of age 55.
- Have five or more years of credited service immediately before the severance of employment.
- Balance in Annuity Savings Fund can not be withdrawn.
- Cancellation of Plan C and election of Plan D.
Tier 3 and Tier 4 participants can vest if they meet the following requirements:
- Have five or more years of membership service.
TRS Tier 1 & 2 participants can take loans if they have at least three years of membership
with TRS. This time includes transfer from another retirement system. If an employee
resigns, does not withdraw his/her contributions and is reappointed within five years
from the date of resignation, pre-resignation membership service will count toward
the membership requirement for a loan.
Participants may borrow from their Annuity Savings Fund* a minimum of $250 up to the
maximum that is intended to avoid a taxable distribution of a portion of the amount
A loan application must be filed before the effective date of retirement. The maximum
repayment period is 48 months and the loan must be repaid through regular payroll
deductions from the employee's salary. Total outstanding loan balance in a lump sum
may be repaid at any time.
TRS Tier 3 & 4 participants must be in active service and have at least one year of
credited service before applying for a pension loan. The Teachers' Retirement System
must receive an employee's loan application before the effective date of retirement
or resignation. If the loan is approved, a participant may borrow from a minimum of
$1,000 ($250 if there is an outstanding loan) up to the maximum amount identified
to help you avoid a taxable distribution of a portion of the amount borrowed. Generally
speaking, the maximum amount is 75% of the value of the Member Contributions Accumulation
Fund (MCAF). *
Certified rate-Rate of contribution to the Qualified Pension Plan (QPP)* (during a
Tier I/II member's career) needed to reach the minimum accumulation.* This rate varies
based on age and credited prior service.*
Minimum accumulation - The minimum amount that Tier I and II members must contribute
to their QPP account to be eligible for full retirement benefits.
Qualified Pension Plan - a retirement plan administered under Section 401 (a) of the
Internal Revenue Code. All TRS members participate in the Qualified Pension Plan.
Prior Service - any creditable service rendered with New York City or New York State
before joining TRS that was not transferred to TRS.
Vest - refers to the right to receive pension benefits, even if there is a termination,
resignation, or dismissal before eligibility for payment of a service retirement.
Annuity Savings Fund - Tier 1 and Tier 2 members are required to make certain contributions
to an Annuity Savings Account. The value of the contributions, considering investment
results and any withdrawals, is called an Annuity Savings Fund.
Credited Service - is City service completed prior to the date of membership with
TRS. TRS counts creditable service as the sum of qualifying service, any outside teaching
service to which an employee is entitled and transferred service.
Qualifying Service - is equal to the sum of credited city service as a member of TRS;
any creditable city service completed prior to the date of membership with TRS (including
substitute teaching service) and any credited transferred service.
Member Contributions Accumulation Fund (MCAF) - the current value of your contributions
TRS Mailing Address:
55 Water Street
New York, New York 10041
TRS Main Phone Number: 1-888-869-2877