Some current members and recent retirees have contacted TRS to ask if the increases in the salary schedules in HB 1023XX that were passed by the Legislature and signed by the Governor, will affect any applicable salary caps that apply to retirees who return to work. The short answer is “no” but this is a good time to talk about options.
HB 1023XX has had an impact on retirees and retirement decisions to be sure. We have not kept statistics, but clearly the increases in salary have led to many of our members putting off their retirements. The increase in salary helps their current income and certainly will increase their retirement benefit. Working more years at higher salaries will increase our members’ pension income.
A second impact is that many retirees have suspended their retirement benefit and have decided to come back to work to take advantage of the salary increase. There may not be a lot of our members who have done this, but they are also increasing their current income and it will have some impact on their retirement benefits. For these retirees, their original benefit calculation doesn’t change, however we will add individual yearly amounts based on the higher salary. The member doesn’t have all of their years in their career recalculated at the higher salary, but the pension benefit will go up.
But if you are retired, don’t want to stop your benefit, but want to come back to work, the general salary limitations will apply to you. See general provisions by clicking here. Also, don’t forget that if you retired on or before July 1, 2017, you “may” be eligible to come back to work without salary caps under SB 428 passed in 2017. To see if you fit these requirements, please click here.