Social Security benefits

The vast majority of Texas school districts do not participate in Social Security, so most employees are entitled to Social Security benefits only if they paid into that system through other employment (for at least 40 quarters) or through their spouses. However, federal law reduces, or in some cases eliminates, the amount of Social Security benefits received in those situations.

Government Pension Offset

If you retire from a district that does not participate in Social Security but are eligible for benefits through your spouse, the GPO will reduce the amount of your spousal or survivor Social Security benefits by two-thirds of the amount of your TRS pension. (See https://goo.gl/tUae7 for a more detailed explanation.) The GPO does not affect the amount of your TRS pension. An employee must work at least the last 60 months prior to retirement in a position that pays into both TRS and Social Security to be exempt from the GPO. See tcta.org/ssdistricts for an unofficial list of Texas school districts participating in Social Security. UNDERSTANDING YOUR TRS BENEFITS

Partial year of service

An employee who is not retiring must work at least 90 days during the school year to receive a year of service credit. An exception is made for individuals in their final year before retirement; they can receive the year of credit for working the full fall semester, even if it is less than 90 days. The “school year” for TRS purposes begins Sept. 1, so the 90-day count does not include any days worked prior to Sept. 1.

Purchase of credit

Teachers can purchase different types of service credit in the retirement system, including: 1. Previously withdrawn credit from prior service in Texas 2. Out-of-state service (up to 15 years) 3. Military service (up to five years) 4. Credit for accumulated state leave (one year of credit for 50 unused state leave days) 5. Developmental leave (up to two years) 6. Work experience (for career/technology teachers only; up to two years) There are limits on the aggregate amount of time purchased, and the cost of different types of service credit varies among individuals (TRS can provide assistance in calculating the cost). Purchased service credit counts toward the requirement to meet TCTA TRAINING ON SOCIAL SECURITY Watch TCTA’s free online continuing education video “Social Security Retirement Benefits: What You Need to Know,” at tcta.org/seminars to earn 1.25 CPE hours.

Windfall Elimination Provision

If you work in a district not participating in Social Security but are eligible for Social Security benefits because of previous employment in which you paid into Social Security, you may be subject to the WEP. The effect of this offset is not generally as severe as that of the GPO, but it may still be significant. See https://goo.gl/y4ZMr for more information. TCTA continues to urge repeal of the offsets through our Washington lobbying efforts and has supported federal penalty. Find a TCTA Q&A at tcta.org/node/14643.

legislation that would implement a fairer calculation of the WEP the Rule of 80 for TRS-Care eligibility. A person with unreported service (including substitute service) must verify the service within five years of when it was rendered for it to be creditable.

If your TRS annual statement excludes any eligible service or compensation credit, you must correct the error no later than May 31 of the year following the year in which the service was rendered in order to avoid paying an additional cost. After that time (but within the five-year period) you will pay the actuarial cost of the service, which will increase every year — so take care of the issue as quickly as possible. 2020-21 TCTA Survival Guide 57