Retirement Benefits

Regular Retirement Benefits for employees employed on or before August 31, 2009, or if employee has prior state service and left their retirement money with ERS:

The State retirement program is a defined benefit plan, which matches a 6.50% pretax monthly employee contribution with a 6.95% monthly State contribution.

Vested

Retiring from the State of Texas means that you will receive a check every month for the rest of your life. This is called your "annuity." You can start receiving an annuity payment in one of two ways:

You have at least five years of service and are at least age 60; or
Your age and your service add up to 80, and you have at least five years of service.

Some people call this becoming "vested." To become vested in ERS means to be securely qualified to receive a lifetime retirement annuity. This is true even if you stop working for the State and retire later, as long as you leave your retirement contributions on account with ERS.

Partial Lump Sum Payment

A Partial Lump Sum payment option is offered to employees at retirement to receive up to 36 months of their standard monthly annuity. Employees who take advantage of this option will have their monthly annuity recalculated using an actuarial reduction factor. This option is not available to employees retiring with a disability retirement, nor is it available to LECOS employees who retire before age 50 with a reduced retirement.

Retirement Annuity Calculation

Annuity percentage increases with additional years of service up to 100% maximum.

Formula: 2.3% (or 2.8% for LECOS Supplemental Retirement) for each year of creditable service multiplied by the highest 36 months average salary.

An employee may apply their unused sick or vacation leave to their service credit to reach retirement eligibility or to make their annuity larger.

Sick Leave Credit

One month of ERS service credit is allowed for each 160 hours of unused accrued sick leave at date of retirement, provided retirement and separation from employment occur in the same month.

Vacation Leave Credit

One month of ERS service credit is allowed for each 160 hours of unused accrued vacation leave at date of retirement, provided retirement and separation from employment occur in the same month.

Social Security Online

Visit the official website of the U.S. Social Security Administration for information and assistance regarding Social Security benefits and retirement.

Page updated: 12/07/2011