Retirement
Teachers' Retirement System Plan 1 (TRS 1)

UNDERSTAND

Teachers’ Retirement System Plan 1 (TRS 1) is a defined benefit retirement plan that provides a secure formula-driven income for retirement.

TRS 1 is no longer open to new participants.

Participation in the TRS 1 retirement plan starts on your first day of employment in an eligible position. In this 401(a) defined benefit plan, you and the University contribute money that funds your retirement income. Once you retire, you will receive your retirement benefit based on a formula which includes your years of service credit and average final compensation. Here is how it works:

You contribute 6% of your gross salary. Deductions are tax-deferred. Employee contribution rates are defined in state law.
The UW contributes to the plan by funding the employer contribution rate, which is currently 5.46% of your gross salary effective September 1, 2008. UW contributions are invested in the Retirement Trust Fund by the State Investment Board. These monies are not credited to your account and cannot be withdrawn.
Your future retirement benefit is set by the defined benefit formula used to calculate your benefit, and has no relationship at all to the amount you and the University of Washington contribute to the plan.

Eligibility

Teachers' Retirement System Plan 1 (TRS 1) is only available to employees who first established membership before October 1, 1977, as a certificated teacher in the public schools. It is closed to new participants. You may remain a member of TRS 1 if you have previously established TRS 1 membership and transfer to UW employment.

Your TRS 1 Benefits

Your monthly retirement income is calculated by this formula:
2% x service credit years x average final compensation ÷ 12 months
(where your average final compensation is the monthly average of your 2 consecutive highest-paid fiscal years).

In addition, when you retire you may:

withdraw all or part of your own contributions and interest, reducing or eliminating the monthly retirement income you receive,
increase your monthly benefit check by making a one-time lump-sum addition to your TRS 1 account.

Examples

Suppose you retire at age 55 with 29 years of service credit. Your average final compensation for your highest-paid two years was $36,000. If you do not withdraw any of your contributions and interest, which provide the annuity portion of your benefits, your monthly retirement benefit would be $1,740.

2% x 29 years x $36,000 ÷ 12 months = $1,740

This calculation results in the standard benefit. It will be lower if you choose to continue benefits to a survivor upon your death.

Effect of withdrawing contributions: If your contributions and interest equal $65,000 at retirement in the above example, and you withdraw the full amount, you would be paid a monthly benefit of $1,222, or about $469 per month less than the maximum retirement benefit.

In addition:

The amount of service credit that will count towards the size of your benefit is limited to 30 years.
If you are a member of more than one State of Washington retirement plan, you may be able to combine service credit from all the plans to qualify for retirement.
Temporary disability, disability retirement and survivor benefits are available if you meet the requirements.

ACT

Enrollment

Email Benefits & Work/Life for more information.

All UW employees participate in their applicable retirement plan from the beginning of employment. Retirement plan participation is a condition of employment.

Leaving Before Retiring

You can withdraw or transfer your employee contributions plus interest only if you completely separate from TRS employment. You are not eligible for a withdrawal if you enter into eligible employment with an employer covered by the same system.

If you withdraw your contributions prior to retirement, you lose your right to future benefits. You can restore your contributions and reestablish your benefits under certain circumstances. Processing a withdrawal may require 60 to 90 days.

Your choices are:

Withdraw your money plus interest. The IRS subjects withdrawals to a 20% withholding tax and may also require that you pay a 10% penalty.
Transfer 100% or a designated amount of your money to a qualified retirement account. no withholding tax is required on funds that are directly transferred, nor does the 10% penalty apply.
Leave your money in the retirement fund. When you have a minimum of five years of service credit, you have a vested right to a retirement benefit when you meet TRS 1 age requirements. Vesting means you have earned the right to a future benefit even if your covered employment ends. Your funds will continue to accrue interest. Your service credit will be preserved for you in the event you return to State of Washington employment.

For more information see the "Can I Withdraw My Retirement Money?" brochure and the "Withdrawal of Retirement Contributions" form, available from Benefits & Work/Life.

Retiring from the UW

See Retiring From the UW Under TRS 1 Rules.

EXPLORE

Contact the Social Security Office periodically to review your file's accuracy.

Refer to the TRS Plan 1 Member Handbook

Save even more for retirement with the Voluntary Investment Program (VIP).

Retirement Teachers' Retirement System Plan 1 (TRS 1)