More information on minimum retirement age proposal
Date Posted: 4/12/2013 | Author: Jennifer Mitchell, CAE
The Teacher Retirement System (TRS) bills that have been filed in the Senate and the House, Senate Bill 1458 and House Bill 1884, are designed as an effort to make the TRS system actuarially sound. However, if passed, these bills would impose a minimum retirement age of 62 for approximately half of all current TRS members. ATPE is opposed to both bills as currently written. It is very important that you understand whether or not you would be affected by the age 62 proposal. The grandfather clause, as currently written, states that if by August 31, 2014, you are at least 50 years old, have at least 25 years of service credit, or meet the rule of 70, the age 62 requirement would NOT apply to you. Approximately half of the current school employee population would be grandfathered, and would not have to be 62 in order to retire with full benefits. To restate: If, by August 31, 2014, you are at least 50 years old, have at least 25 years of service credit, or meet the rule of 70, the age 62 requirement would NOT apply to you. You can find a rundown of all the provisions in the bills here. Making the TRS pension trust fund actuarially sound, meaning the system has enough funding to pay all promised benefits, is required by law before a cost of living adjustment for retirees can be granted. The last COLA retirees received was 12 years ago. Actuarial soundness is also important in deterring efforts to convert the TRS to a defined benefit pension plan, in which benefits are not guaranteed (as they currently are), and returns are subject to market fluctuations like a 401(k). ATPE is working with the Legislature to find a way to achieve actuarial soundness without reducing benefits. Stay tuned for updates as they develop.
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