Retirement Basics
Teachers Retirement System (TRS)
Employees are currently divided into either Tier I or Tier II based on their hire dates. Tier I members are public educators that began participation in an Illinois public pension plan prior to January 1, 2011. Tier II members are public educators that started employment in a position covered by an Illinois public pension plan on or after January 1, 2011.
The Tier status of an employee impacts retirement eligibility:
TRS allows for an unreduced retirement annuity with the following:
-Age 55 with 35 years of service
-Age 60 with 10 years of service
-Age 62 with 5 years of service.
TRS Tier 2 requires age 67 and 10 years of service.
Tier 2 does allow for a permanently reduced annuity between the ages of 62-67 with 10 years of service. The reduction is equal to 6% a year for each year under the age of 67. For more information on TRS Tier I and II requirements, please see Tier I Member Guide or Tier II Member Guide.
TRS Supplemental Savings Plan
The TRS SSP automatically signs up all new teachers hired as of Jan 1, 2023, at 3% of their pre-tax earnings. This plan is also available for teachers who began service before then, but they’d have to opt in. Anyone can opt out once they either automatically or voluntarily opted in. The TRS SSP is a good choice for some, but for others, it may not be, especially for folks who may have been automatically enrolled—and they’re not aware. There are several fee structures with the TRS SSP plan explained in the below FAQ, along with additional information for all teachers.
SSP Member FAQs
Illinois Municipal Retirement Fund (IMRF)
Unlike TRS, IMRF contributions vary across the state as IMRF is a local program. Each individual employer contributes to an account specific to their employees.
Employees are currently divided into either Tier I or Tier II based on their hire dates. Tier I members are public educators that began participation in an Illinois public pension plan prior to January 1, 2011. Tier II members are public educators that started employment in a position covered by an Illinois public pension plan on or after January 1, 2011.
IMRF Voluntary Additional Contributions
IMRF’s Voluntary Additional Contribution (VAC) program is an easy way to help you save additional retirement income.
Voluntary Additional Contributions:
-Are limited to a maximum of 10% of your IMRF reportable earnings, up to the Tier 2 wage cap.
-Are after tax, not tax-deferred.
-Are a separate individual account consisting only of your contributions and any interest you earn on them. Employers do not make any contributions to your VA account.
-Accrue interest differently than traditional saving accounts.
Continue to earn interest for as long as they are left on deposit with IMRF
IMRF Voluntary Additional Contributions Information
(Source: https://www.zbftbuzzword.com/member-benefits.html)
Employees are currently divided into either Tier I or Tier II based on their hire dates. Tier I members are public educators that began participation in an Illinois public pension plan prior to January 1, 2011. Tier II members are public educators that started employment in a position covered by an Illinois public pension plan on or after January 1, 2011.
The Tier status of an employee impacts retirement eligibility:
TRS allows for an unreduced retirement annuity with the following:
-Age 55 with 35 years of service
-Age 60 with 10 years of service
-Age 62 with 5 years of service.
TRS Tier 2 requires age 67 and 10 years of service.
Tier 2 does allow for a permanently reduced annuity between the ages of 62-67 with 10 years of service. The reduction is equal to 6% a year for each year under the age of 67. For more information on TRS Tier I and II requirements, please see Tier I Member Guide or Tier II Member Guide.
TRS Supplemental Savings Plan
The TRS SSP automatically signs up all new teachers hired as of Jan 1, 2023, at 3% of their pre-tax earnings. This plan is also available for teachers who began service before then, but they’d have to opt in. Anyone can opt out once they either automatically or voluntarily opted in. The TRS SSP is a good choice for some, but for others, it may not be, especially for folks who may have been automatically enrolled—and they’re not aware. There are several fee structures with the TRS SSP plan explained in the below FAQ, along with additional information for all teachers.
SSP Member FAQs
Illinois Municipal Retirement Fund (IMRF)
Unlike TRS, IMRF contributions vary across the state as IMRF is a local program. Each individual employer contributes to an account specific to their employees.
Employees are currently divided into either Tier I or Tier II based on their hire dates. Tier I members are public educators that began participation in an Illinois public pension plan prior to January 1, 2011. Tier II members are public educators that started employment in a position covered by an Illinois public pension plan on or after January 1, 2011.
IMRF Voluntary Additional Contributions
IMRF’s Voluntary Additional Contribution (VAC) program is an easy way to help you save additional retirement income.
Voluntary Additional Contributions:
-Are limited to a maximum of 10% of your IMRF reportable earnings, up to the Tier 2 wage cap.
-Are after tax, not tax-deferred.
-Are a separate individual account consisting only of your contributions and any interest you earn on them. Employers do not make any contributions to your VA account.
-Accrue interest differently than traditional saving accounts.
Continue to earn interest for as long as they are left on deposit with IMRF
IMRF Voluntary Additional Contributions Information
(Source: https://www.zbftbuzzword.com/member-benefits.html)
