Retirement Eligibility

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

All TDCJ employees are, by law, contributing members of Employees Retirement System of Texas (ERS). The only exceptions are working retirees and Windham employees. Effective January 1, 2010, employees have 6.50% of their gross monthly salary deducted and placed in the ERS. LECOS (Law Enforcement and Custodial Officers Service) employees contribute an additional 0.5% for a total of 7.0% of their gross monthly salary deducted on a pre-tax basis and placed into the employee's personal State retirement account.

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.

90-Day Waiting Period

There is a 90-day waiting period for new hires and for rehires that have a break in service of more than one calendar month. The waiting period time does not count as service credit for retirement purposes unless the employee elects to purchase the waiting period time (See Service Purchase). The initial retirement contribution begins the first month following the 90-day waiting period.

State Retirement Program

The State Retirement Program is a defined benefits plan. At time of retirement, employees are eligible to select from several retirement options. The employee’s contribution plus 5% interest per year is refundable if employee leaves State employment prior to retirement. The employee contribution is made on a pre-tax basis.

Service Credit

Employees receive service credit for each month (or partial month) of actual service. Employees also receive one month of service credit for each 160 hours of unused accrued sick and vacation leave at time of retirement, provided retirement and separation occur in the same month.

Vested

An employee is eligible to retire with five years without retiree group insurance at age 60 or 10 years with retiree group insurance at age 65.

Table 1: ERS Retirement Eligibility Chart
Age	Years of Service	Type of Service	Insurance
60	5	Regular	No
60	10	Regular	Yes at age 65
55	10	LECOS	Yes
Rule of 80	Less than 10	Regular and LECOS	No
Rule of 80	More than 10	Regular and LECOS	Yes

For those that retire with no insurance, insurance is available through COBRA for 18 months. After the 18 months of COBRA has been exhausted and until the retiree reaches age 65, insurance may be continued with the individual paying the full cost of such insurance. At age 65, members with 10 or more years of service credit (and eligible dependents) may enroll in retiree health insurance without evidence of insurability.

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.

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