Teachers Retirement System of Oklahoma (TRS)

Oklahoma Teachers Retirement System: The Basics

The Teachers Retirement System of Oklahoma (TRS) is a state-run retirement system that provides retirement, disability, and survivor benefits to public school teachers and other eligible employees in Oklahoma. The system is funded through a combination of employee and employer contributions, as well as investment returns.

As of 2021, TRS had over 140,000 active members and 70,000 retired members. The system's total assets were over $15 billion.

Benefits of TRS

TRS offers a number of benefits to its members, including:

• Retirement benefits: TRS members are eligible for a monthly retirement benefit based on their years of service, salary, and age at retirement.
• Disability benefits: TRS members who become disabled are eligible for a monthly disability benefit.
• Survivor benefits: TRS members' survivors are eligible for a monthly survivor benefit.

Eligibility for TRS

To be eligible for TRS, you must be a public school teacher or other eligible employee in Oklahoma. You must also be employed by a school district or other TRS-participating employer.

Contributions to TRS

TRS members contribute a percentage of their salary to the system each month. The current contribution rate is 9.25%. Employers also contribute to TRS on behalf of their employees. The employer contribution rate is 10.25%.

Investment of TRS Assets

TRS invests its assets in a diversified portfolio of investments, including stocks, bonds, and real estate. The system's investment goal is to generate long-term returns that will help to fund future benefits.

TRS Performance

TRS has a long history of strong performance. The system's investment returns have consistently exceeded the returns of other public pension funds. As a result, TRS has been able to provide its members with generous benefits while keeping contribution rates relatively low.

TRS Challenges

Like all public pension funds, TRS faces a number of challenges, including:

• Aging population: The number of TRS retirees is growing faster than the number of active members. This is putting pressure on the system's finances.
• Low interest rates: Low interest rates have reduced the returns on TRS's investments. This is also putting pressure on the system's finances.
• Political pressure: TRS is often under pressure from politicians to reduce benefits or increase contribution rates.

TRS Reform

In recent years, TRS has undergone a number of reforms to address the challenges it faces. These reforms include:

• Increasing the retirement age: The retirement age for TRS members has been increased from 62 to 65.
• Reducing the cost-of-living adjustment: The cost-of-living adjustment for TRS retirees has been reduced from 3% to 2%.
• Increasing the employee contribution rate: The employee contribution rate has been increased from 8.75% to 9.25%.

These reforms have helped to stabilize TRS's finances and ensure that the system will be able to continue to provide benefits to its members in the future.

Conclusion

TRS is a valuable retirement system that provides important benefits to Oklahoma's public school teachers and other eligible employees. The system is well-funded and has a history of strong performance. However, TRS faces a number of challenges, including an aging population and low interest rates. These challenges are being addressed through a number of reforms.

Frequently Asked Questions

What is the retirement age for TRS members?

The retirement age for TRS members is 65.

What is the employee contribution rate to TRS?

The employee contribution rate to TRS is 9.25%.

What is the employer contribution rate to TRS?

The employer contribution rate to TRS is 10.25%.

What is the monthly retirement benefit for a TRS member?

The monthly retirement benefit for a TRS member is based on their years of service, salary, and age at retirement.

What are the disability benefits for TRS members?

TRS members who become disabled are eligible for a monthly disability benefit.

What are the survivor benefits for TRS members?

TRS members' survivors are eligible for a monthly survivor benefit.

Tables

Table 1: TRS Membership and Assets

Table 2: TRS Contribution Rates

Table 3: TRS Investment Returns

Table 4: TRS Benefits