TRS Employer and Employee Contribution Rates Increase:
Effective July 1, 2012, the TRS Board of Trustees adopted the following employer and employee contribution rates for fiscal Year 2012 ‐ 2013:
- Employer Rate 11.41%
- Employee Rate 6.00%
Current TRS contribution rates are Employer Rate 10.28% and Employee Rate 5.53%. These rate changes were determined based on the results of the FY 2010 actuarial valuation of the plan. Affected employees will begin seeing the increased payroll deduction in July.
If you have any questions, please contact a member of the benefits department at 404-894-1417 or email@example.com.
Removal of 3% TRS Tax Offsets
In 1990, the General Assembly enacted the retirement income exclusion that allows specific dollar limits on retirement income to be excluded from state income tax. The limits have increased over the last 22 years, starting off at $8,000 in 1990. Today, the limits are $35,000 for retirees between age 62 – 65 and $65,000 for retirees age 65 and older.
Employees who retiree before 12-31-12 receive their calculated monthly benefit plus an additional 3% on the first $37,500 of annual earnings, which was designed as a tax offset to cover state income taxes.
Since the current retirement income exclusion far exceeds the TRS tax offset income limit, the State views this as "double dipping". As such, TRS is removing the 3% tax offset effective 1-1-13.
Active, vested faculty and staff considering retirement who are age 60 or older may contact TRS at 404-352-6500 to request a calculation of retirement to understand the financial impact of retiring this year versus 2012 or beyond.
To review the entire TRS communication release, please click here.
If you have questions related to retirement eligibility, health insurance or any other benefits related questions, please contact Kim Love directly at 404-385-2377 or firstname.lastname@example.org.