Teacher's Retirement System of Georgia has 7 plan options to choose from at retirement. On this episode, we will review the options available to our members. TRS offers a defined benefit plan of retirement, also known as a 401(a). As its name implies, your retirement benefit is “defined” by calculation using your years of membership service, the average of your highest 24 consecutive months of salary*, and a 2% multiplier. Under this plan, you assume no investment risk, plus you have survivor and disability protection while you are an active member. Also, you are guaranteed retirement income for the rest of your life.
Under TRS’s defined benefit plan, you are offered two plans of retirement. Basically, Plan A provides a retirement benefit only to you. Plan B offers benefits to your beneficiary at your death.
Under Plan A and Plan B, you may also elect to receive a partial lump-sum distribution (cash payment) in exchange for a reduced lifetime benefit.
Your decision is very important. Once you start receiving a monthly retirement benefit you cannot change your plan of retirement except under limited conditions as covered in changing your plan of retirement.
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