The Teachers’ Retirement System (TRS) was established on August 1, 1927, and is administered in accordance with the State Personnel and Pensions Article of the Annotated Code of Maryland. Prior to January 1, 1980, membership in the TRS was a condition of employment for State and local teachers and certain board of education, public library and community college employees.
Effective December 31, 1979, the TRS was effectively closed to new membership when the Teachers’ Pension System (TPS) was established. Individuals who were members of the TRS on December 31, 1979, continued their TRS membership unless, or until, they elect to transfer to the newly created pension system.
Service Retirement Allowances
TRS members are eligible for full service retirement allowances upon attaining age 60 or upon accumulating 30 years of eligibility service regardless of age.
Full service retirement allowances equal 1/55 (1.818%) of the highest three years’ average final salary (AFS) multiplied by the number of years and months of accumulated creditable service. Allowances for members who fail to make all required contributions are reduced by the actuarial equivalent of the total unpaid contributions plus interest to date of retirement. Service is accrued based on a full normal school year (10 months).
All member contributions to the TRS are based on a specified percentage of annual earnable compensation. Members who elected in 1984 to receive unlimited future cost of living adjustments (COLA) contribute 7%. This option is referred to as Selection A (Unlimited COLA).
Members who elected in 1984 to receive limited future COLA’s contribute 5%. This option is referred to as Selection B (Limited COLA).
The member contribution rate for all other TRS members is the same as for members of the ACPS, under an option that provides a two-part benefit calculation upon retirement. This option is referred to as Selection C (Combination Formula).
Optional Forms of Payment
Same as for Teachers’ Pension System.
For more information regarding your retirement and pension benefits, please contact the State Retirement Agency at 410/625-5555 or 800/492-5909.
There is also a wealth of information on the State Retirement Agency’s website, which can be found at www.sra.state.md.us. For pension and retirement questions at MSEA, please contact Randal Mickens.