TRSL defined benefit plan
TRSL's defined benefit plan is funded through member contributions, employer contributions, and investment earnings of the retirement system. Members contribute a percentage of salary and employers contribute a percentage of payroll toward funding retirement benefits. The employer contribution to TRSL is made up of two parts: (1) the normal cost, which is the cost of funding the benefits all active employees will earn that year, and (2) that year’s payments for the unfunded accrued liability (UAL). Historically, the normal cost has ranged between five and seven percent. Payments for the UAL are determined by statute and designed to pay off the liability within no more than 30 years from the time it occurred.
To view historical rates for TRSL's Defined Benefit Plan, click the link below:
TRSL Defined Benefit Plan Contribution Rates from 1936-Present
Optional Retirement Plan (ORP)
An ORP account is owned by the participant, who contributes 8.0% of salary (less a 0.05% TRSL administrative fee). Prior to FY 2014-15, employers contributed the equivalent of the defined benefit normal cost, which changes annually (see above). Beginning in FY 2014-15, higher education boards are authorized to set the contribution amount, which cannot be less than the equivalent of the defined benefit normal cost. Effective for FY 2018-19 and thereafter, the employer contribution cannot be less than 6.2%. These contributions—the net employee contribution of 7.95% plus the "transfer amount" of the employer contribution—are transferred to the ORP carrier selected by the employee.
|ORP Contribution Rates|
|Higher Education (includes laboratory schools)||Non-Higher Education|
|Contribution rates from FY 2014-15 to Present|
ORP Contribution Rates from FY 1990-91 to FY 2013-14