Frequently Asked Questions

 

Required Minimum Distributions 

This Fact Sheet describes requirements for a TRS member to begin receiving required minimum distributions (RMDs) from TRS on or before the member’s required beginning date (RBD), which occurs after the member has both (1) attained age 73 for members born on or after January 1, 1951 but before January 1, 1959 (or age 72 for members born July 1, 1949 through December 31, 1950 or age 70 1⁄2 for members born before June 30, 1949 or other applicable age as set forth in Internal Revenue Code Section 401(a)(C)(v)), and (2) terminated employment in all TRS reportable positions.

The RMD requirements arise under federal tax law (Section 401(a)(9) of the Internal Revenue Code (IRC)) and are applicable to TRS as a 401(a) tax-qualified retirement plan. If you are a TRS member, the RMD requirements apply to you, regardless of whether you are a vested or non-vested member on your RBD. Failure to comply with the RMD requirements may result in a substantial tax penalty for any RMD that you should have received but did not receive by your RBD.

Important Information for TRS Members Who Have Turned or Will Soon be Turning 73 Years of Age

If you have already terminated or will soon terminate all TRS reportable employment and you have not yet submitted an application to TRS for retirement benefits or for withdrawal and refund of your accumulated contributions, please contact TRS immediately.

Read all information in this Fact Sheet so that you are prepared to begin receiving RMDs in conformity with federal tax law. You may need to take action without additional prompting or instruction from TRS.

Frequently Asked Questions

What is a Required Minimum Distribution (RMD)?

Once you reach age 73 (or other applicable RMD age), you may be required to withdraw a certain amount of money from your tax-deferred retirement account each year. That amount is called a required minimum distribution (RMD).

What is my Required Beginning Date (RBD)?

Your RBD is the date by which you must receive your first RMD and is the later of:

• The April 1st following the end of the calendar year in which you turned or will turn 73 (or other applicable RMD age), or
• The April 1st following the end of the calendar year in which you terminated or will terminate employment in all positions reportable to TRS.

Example 1. If you terminated employment in all TRS reportable positions in 2024 but you did not turn 73 until 2025, your RBD would be April 1, 2026.

Example 2. If you turned 73 in 2024 but you continued to work in a position reportable to TRS until sometime in 2026, your RBD would be April 1, 2027.

Does the RMD requirement establish a mandatory retirement age?

No. It merely places a time limit on when you must begin receiving your TRS retirement benefit (or withdraw from TRS) after you have both attained age 73 (or other applicable RMD age) and terminated all TRS reportable employment.

Please note that the RBD requirement does not change the age at which you may be eligible for TRS retirement. If you meet TRS requirements, you may apply for and begin receiving a retirement benefit. Your RBD only establishes the latest date on which you may begin receiving payments without incurring a tax penalty once the RMD criteria have been met.

How do I begin receiving RMDs from TRS?

If you are a vested member, you will fulfill your RMD requirement:

• by applying for retirement and receiving your first monthly benefit payment on or before your RBD, OR
• by applying for withdrawal from TRS and receiving a lump-sum refund of your accumulated contributions account balance (your member contributions and applicable interest) on or before your RBD.
• Important Note: Upon withdrawal from TRS you will forfeit your right (or the right of a joint annuitant or eligible beneficiary on your behalf) to receive any retirement or death/survivor benefit from TRS. Your forfeited retirement benefit is guaranteed to be at least equal to your accumulated contributions account balance and may significantly exceed your account balance, as it is payable for your lifetime. As a rule of thumb, TRS retirees receive retirement benefits at least equal to their accumulated contributions account balance within approximately five years. TRS strongly advises that you give careful consideration and seek competent financial advice before deciding to withdraw from TRS as a vested member.

If you are a non-vested member, you are not eligible to receive a retirement benefit and will fulfill your RMD requirement by applying for withdrawal from TRS to receive a one-time, lump-sum refund of your accumulated contributions account balance on or before your RBD.

How do I apply for retirement or withdrawal?

• If you are a vested member who wants to receive a lifetime, monthly benefit: Access your MyTRS account to submit a Pre-retirement Information Verification to begin the retirement process. An estimate(s) of benefits and an Application for Retirement will be mailed to you. You must complete and submit all required documentation to TRS no later than the February 1st preceding your RBD.
• If you are a vested member who wishes to withdraw from TRS rather than receive a lifetime, monthly retirement allowance: Contact TRS to discuss your options. You will be provided an estimate of retirement benefits to ensure you have the information you need to make the best decision for you and your family. If you choose to forfeit the lifetime benefit, you may contact TRS and request an Application for Withdrawal. You must complete and return your signed, notarized application to TRS, along with any required documentation, no later than the February 1st preceding your RBD.
• If you are a non-vested member: You may contact TRS and request an Application for Withdrawal. You must complete and return your signed, notarized application to TRS, along with any required documentation, no later than the February 1st preceding your RBD.

Will TRS notify me when I am about to reach my RBD?

Not necessarily. Although TRS can readily determine when you will turn age 73 (or other applicable RMD age), TRS may not know whether you have terminated employment in all TRS reportable positions as of that date.

TRS does not assume you have terminated employment until no TRS employer has reported service on your behalf for at least 90 consecutive days. It is possible your RBD will have passed by that time.

How is the amount of a late RMD determined?

In every case, unless written documentation provided to TRS conclusively establishes a later date of termination of employment, TRS will deem you to have terminated employment in all TRS reportable positions as of the last day of the last month for which service was reported on your behalf by any TRS employer.

If you receive your RMD in the form of monthly retirement benefit payments, your late RMD will be the total of all payments you should have received as of the end of the month prior to the month in which you receive your first distribution from TRS and importantly is calculated on a calendar year basis.

For example, for 2024 RMDS with a required beginning date of April 1, 2025, if you receive your first monthly payment on May 1, 2026, the payments from April 1, 2025 to December 1, 2025 are considered late RMDs. The payments from January 1, 2026, to May 1, 2026, will be considered “caught up” for the 2026 tax year when paid on May 1, 2026, for late RMD and excise tax penalty calculation purposes.

If you receive your RMD in the form of a lump-sum distribution upon withdrawal, the portion of the distribution that constitutes a late RMD will be calculated in conformity with 26 CFR 1.401(a)(9)-6(d)(1).

What is the tax penalty for a late RMD? Are there other repercussions?

If you do not begin receiving distributions on or before your RBD, the portion that constitutes a late RMD is subject to up to a 50% tax penalty. TRS does not withhold the penalty tax from your distribution. You are responsible for reporting the late RMD to the IRS.

In addition, if you withdraw from TRS, any portion of the distribution that constitutes an RMD is not eligible for rollover to an IRA or another eligible plan. For additional information, please consult your tax advisor or accountant.

Can I take my RMD for the TRS plan from another qualified plan?

No. You must take your RMD for the TRS plan from TRS.

Questions?

If you have questions about any information provided in this Fact Sheet, please contact us at (877) 738-6365 or in Oklahoma City at (405) 521-2387, or by email at mail@trs.ok.gov. 

How should I notify TRS of my new home mailing address?

It is important you keep TRS advised of your current contact information. Active members should change their name and address with their employer, which will then be updated with TRS. Retired and inactive members can use the MyTRS Member Portal updates or may notify TRS in writing or by submitting a Personal Data Form 1R to TRS.

How do I change my beneficiary with TRS? 

It is important to keep your beneficiary designation up to date. Active members may update their beneficiary information by submitting a Beneficiary Designation Form 2A to TRS. Retired members may update their beneficiary information by submitting a Beneficiary Designation Form 2R to TRS. Forms are not valid until they are received by TRS. For more information on survivor benefits, please refer to the Member Handbook. 

Can I get an estimate of benefits with all plan options from this web site?

Members now have the ability to create retirement projections through the MyTRS Member Portal using these instructions. Alternatively, Members may submit a Pre-Retirement Information Verification Form 3 this form may also be found and electronically submitted on MyTRS Member Portal to TRS and your requested retirement projection or Application to Retire will be sent to you.

How can I find out about retiring?

Members should obtain a retirement projection at least one year before their expected retirement date. Members now have the ability to create retirement projections through the MyTRS Member Portal using these instructions. Alternatively, Members may submit a Pre-Retirement Information Verification (PIV) to TRS, or through the MyTRS Member Portal, and a retirement projection or application to retire will be sent to you. Members should also consider attending one of our virtual retirement planning seminars which are offered monthly from June – December. More information including retirement timelines, the retirement process, presentations, and virtual seminar dates and registration can be found on the TRS Retirement Seminars page.

If I want to retire this year, what do I have to do?

Generally, you should start the process approximately 6 months before the projected retirement date to ensure your account is free of outstanding balances or issues that are yet to be resolved. Please refer to the retirement timeline chart online to determine when you should begin your retirement process. Retirement is accomplished through the following three-step process.

Step One:

If you are planning to retire, TRS must receive a completed Pre- Retirement Information Verification (PIV) at least 90 days before your expected date of retirement. The PIV may be submitted through the MyTRS Member Portal. If the PIV is received less than 90 days prior to the projected retirement date, the retirement date will be delayed by at least one month. All pending balances owed must also be paid at least 90 days prior to the projected retirement date to ensure all available service is included in the benefit amount.

Step Two:

Upon receipt of the PIV, your Application To Retire (ATR) will be sent to you and must be received by TRS at least 60 days prior to retirement. If the ATR is received less than 60 days prior to the projected retirement date, the retirement date will be delayed by at least one month.

Step Three:

Upon receipt of the ATR, a Final Contract for Retirement will be mailed to you. Your Final Contract and required documents for retirement must be received by TRS no less than 30 days before your effective retirement date. If the Final Contract is received less than 30 days prior to the effective retirement date, the retirement date will be delayed by at least one month. Each member is responsible for filling out the proper application and completing all necessary paperwork in a timely manner.

The effective retirement date must begin on the first of the month. The first retirement benefit payment will be made on the first of the month following the effective retirement date. For example, for a June 1 retirement date, the Final Contract for Retirement must be filed with TRS by May 1 in order to process the first retirement benefit payment on July 1. You can request a retirement estimate through the MyTRS Member Portal or by phone, mail or email.

When can a TRS member retire?

A vested member of TRS is eligible to apply for retirement benefits:

• If you joined TRS prior to July 1, 1992, you are eligible to receive unreduced retirement benefits at age 62 or when your age and years of creditable service total 80 points, or at the minimum age of 55 to receive reduced benefits,

• If you joined TRS after June 30, 1992, and before November 1, 2011, you are eligible to receive unreduced retirement benefits at age 62 or when your age and years of creditable service total 90points, or at the minimum age of 55 to receive reduced benefits,

• If you joined TRS on or after November 1, 2011, you are eligible to receive unreduced retirement benefits at age 65 or when your age and years of creditable service total 90 points and you have reached a minimum age of 60, or at the minimum age of 60 to receive reduced benefits.

How do I make an appointment to discuss my retirement benefits?

You may contact TRS to talk to a TRS staff member or schedule an appointment after you receive a hypothetical estimate, projection or Application To Retire. Phone or video consultations are encouraged as many questions CAN be answered by telephone if you are unable to make an appointment. TRS responds to inquiries in a timely manner, providing estimates of retirement benefits under all options for the date(s) requested. 

Do I get a refund if I terminate my membership with TRS? 

Upon termination of employment, a member may withdraw their accumulated member contributions credited to their account. A member may request a withdrawal packet by secure messaging through the MyTRS Member Portal or by phone at (405) 521-2387 or toll free at 877.738.6365. Completed forms will not be accepted before member’s last day on the job. The earliest one can receive payment is 4 months after the termination date. The member’s termination date must be verified by their former employer(s). For more information on withdrawing your account, please refer to the Member Handbook. 

How can I obtain additional service credit?

Members may purchase service for certain employment to obtain additional service credit towards retirement. Purchased Service is subject to verification and documentation before a billing statement is prepared and may include:

• Substitute service (120-day minimum in same school year)

• Higher Education Adjunct service (18 or more credit hours in same school year performed before joining TRS)

• Military service (180-day minimum in same fiscal year)

• Out-of-state service (6 months of full-time employment in same school year)

• Prior Oklahoma service (non-contributory service).

• Optional service performed prior to July 1, 2021 (provided the member has not previously withdrawn such service or ceased making contributions to TRS while continuing working during the time period of such service)

• Service accrual during leave (various time limits may apply in which to notify Teachers' Retirement of intent to purchase and make payment to receive proper credit for leave taken under Workers’ Compensation, under USERRA for active, military duty, due to family leave (during child’s first year of life), or due to official sabbatical from an Oklahoma school (requires employer to remit contributions for full-time pay, commensurate with prior year, while member receives one-half pay during leave)).

For more information about Service Purchases, please refer to the Member Handbook.

What options do I have for health insurance after I retire?

Members who retire or terminate employment with at least ten years of creditable service may be eligible to continue the insurance provided by their employer. Depending on the member’s employer, this insurance may be the OMES Employees Group Insurance Plan offering or a private health insurance plan offered by the member’s school district. If the same insurance is continued into retirement, the System will pay a supplement of $100 - $105 (depending on length of service and final average salary at retirement) toward the members’ health insurance premiums. If you are enrolled in the state plan, TRS deducts the balance of monthly premiums, including dependent coverage, and forwards your premiums and the TRS supplement to the insurance plan. When you are covered by an employer health insurance plan other than the state plan, the TRS monthly premium supplement is paid directly to the local employer on your behalf, but TRS cannot deduct the balance of premiums from your monthly benefit check. 

For more information on post-retirement health insurance benefits, please refer to the Member Handbook and the OMES Group Insurance Division.

What happens to my benefits if I become divorced?

A court may order that your former spouse receive a portion of your retirement benefits. A copy of the court order or judgment must be approved by TRS. This type of order is commonly known as a Qualified Domestic Order (QDO) and the former spouse is referred to as an Alternate Payee. If you anticipate a divorce, you or your attorney should download the TRS Form QDO and must submit a draft of the proposed QDO to TRS for review prior to finalization in court. It is your responsibility to provide TRS with a file-stamped copy of the QDO after it has been approved by the court. You should also consider reviewing your beneficiary designations after a divorce. 

May I return to work after I retire with TRS?

TRS retirees cannot work at any TRS employer in any capacity for a 60 day period following the LATER of (1) their effective retirement date, OR (2) their last day of preretirement employment. After 60 days, TRS retirees can return to employment in a non-contributory status (not receiving any additional service years towards retirement benefits) subject to earnings limits and continue to receive their monthly retirement benefit from TRS. Retirees also may elect to return to employment in a contributory status, where their monthly retirement benefit is suspended and additional retirement credit is earned. For more information, please see our brochure on Returning to Work After Retirement as well as our Member Handbook. 

 

SB 683 (2021) modified eligibility requirements related to optional
employee membership in TRS after July 1, 2021. Under these
provisions, nonclassified optional employees are eligible for
participation in TRS upon their initial employment with a TRS employer
(previously, these employees had to wait one year to participate in
TRS). To accommodate this change, TRS’s provisions regarding optional
personnel were updated to reflect current IRS regulations. As part of
this revision, optional personnel are no longer permitted to “opt-in”
and “opt-out” of participation in TRS while remaining employed at a
TRS employer. Instead, any optional personnel who do not wish to
participate in TRS must opt-out of TRS participation within 30 days of
their original hire date or eligibility date to participate in TRS. If they
do not opt-out of participation, they are deemed to be a TRS
participant. This participation election will follow them throughout
employment with any TRS employer. A complete summary and list of
frequently asked questions can be found by clicking here.