Tier 2 members in Teachers' Retirement System of the State of Illinois first contributed to TRS on or after Jan. 1, 2011 and have no pre-existing creditable service with a reciprocal pension system prior to Jan. 1, 2011. Retired TRS Tier 2 members collect a lifetime monthly retirement benefit. Members cannot outlive their benefits.
POST-RETIREMENT EMPLOYMENT LIMITATIONS
Following the school year in which you last contributed to TRS, you may be employed in a TRS-covered position for up to 120 paid days or 600 paid hours per school year and still receive a retirement annuity. The 120 days/600 hours limit is in effect through June 30, 2026.
The law suspends your retirement benefits if you accept full-time employment in a position covered by another state of Illinois pension system that has reciprocal rights with TRS.
If you first became a Tier 2 member on or after January 1, 2012, the law suspends your retirement benefit if you accept a contractual position from the same employer from which you retired. Failure to notify TRS and your contractual employer about your retirement status prior to accepting contractual employment may result in a Class A misdemeanor and a fine of $1,000.
MONTHLY BENEFITS
TRS pays on the first of the month for the prior month. For instance, your December retirement benefit will be received on Jan. 1. Due to this, the December check is considered taxable in the tax (or calendar) year commencing Jan. 1. When the first of the month occurs on a weekend or holiday, your financial institution may not post your deposit to your account until the next business day.
ANNUAL INCREASES IN ANNUITY
Annual cost-of-living increases for members will be calculated using either 3 percent or one-half of the Consumer Price Index as of the preceding September, whichever is less, of the originally granted retirement annuity. If the increase in the Consumer Price Index for the preceding September is zero or there is a decrease, then the annuity will not be increased. When there is an increase, it will not be compounded.
You will receive an annual increase on the Jan. 1 occurring either on or after the attainment of age 67 or the first anniversary of the annuity start date, whichever is later. The increase is effective in January of each year and is reflected in the payment you receive in February. This increases your monthly benefit and is not a separate lumpsum payment.
