The Teachers Retirement System (TRS) is a defined benefit plan that guarantees participants a fixed monthly retirement income. Employees eligible to participate include those working half-time or more in roles such as teachers, administrators, supervisors, clerks, teacher aides, secretaries, paraprofessionals, public school nurses, and managers or supervisors in the lunchroom, maintenance, warehouse, and transportation departments.

How Does It Work? All TRS employees contribute 6% of gross salary to TRS through monthly payroll deduction.  In addition, Valdosta City Schools contributes 21.91% to each TRS employee’s retirement account monthly.

TRS members are vested with 10 years of creditable service and eligible to receive a monthly retirement benefit upon completion of the following:

• 10 years of creditable service and attainment of age 60.
• 30 years of creditable service, regardless of age.
• 25 years of service and before age 60, but with a permanently reduced benefit.

The amount you will receive at retirement is based on 2%, multiplied by your years of creditable service, multiplied by the average of your highest consecutive 24 months of pay.

Example:

2% x 30 years = 60%
Average of highest 24 consecutive months of pay = $70,000
60% x $ 70,000 = $ 42,000 / year

You may contact TRS at (800) 352-0650 to request a benefit estimate be mailed to you. You may also generate a benefit estimate online. The following documents are also available in the Resources section: TRS Member's Guide and TRS Retirement Checklist.

Click the flyer below to view a TRS Retirement Roadmap

Valdosta City Schools also offers a supplemental retirement plan benefit to help you prepare for the retirement you deserve.

In addition to the mandatory state-sponsored Teachers Retirement System (TRS) and Public School Employees Retirement System (PSERS) plans, Valdosta City Schools offers a 403(b) supplmental retirement plan to help employees enhance their financial future. We encourage all employees to explore these options. However, employees in a PSERS covered position are required to contribute at least 4% to the supplmental retirement plan.

What is a 403(b) plan?

A 403(b) plan is a tax-deferred retirement savings option available to employees of public schools and certain tax-exempt organizations. It allows you to contribute pre-tax dollars through convenient payroll deductions, helping you save for retirement. Since 403(b) plans are designed to encourage long-term savings, you typically can only withdraw funds when you reach age 59½, leave your job, or in cases of death or disability. Some plans may also allow withdrawals due to financial hardship. Be aware that withdrawing funds before age 59½ may result in federal restrictions and a 10% tax penalty. Employees aged 50 and older can make additional contributions up to $7,500 annually.

Why Contribute to a 403(b)? Participating in a supplemental plan offers several advantages:

• Lower Taxes Now: Contributions are made before taxes are deducted from your paycheck, meaning you pay taxes on a smaller income amount today, which reduces your current tax bill. For example, if your federal tax rate is 25% and you contribute $100 per month, your actual contribution cost is only $75 after tax savings.
• Tax-Deferred Growth: Your earnings and interest within the plans grow without being taxed until you make withdrawals. This tax deferral, combined with compounding interest, helps your savings grow faster compared to a taxable account, where earnings are taxed annually.
• Take Charge of Your Future: By contributing to a supplemental retirement plan, you're taking steps to secure your retirement. Other retirement income sources, Teachers Retirement System or Public School Employees Retirement System pensions don’t fully replace your final salary. It’s important to take control of your financial future to ensure you have enough savings for retirement.

Click here to see additional frequently asked supplemental retirement questions.

TRS Covered Employees

• Participation in the 403(b) program is optional for employees in TRS-covered positions.
• Employees contribute 6% of their earnings to TRS.
• Valdosta City Schools contributes 20.78% of earnings to TRS.
• In addition, Valdosta City Schools will match up to 4.5% of your gross earnings to your supplemental retirement plan.
• You are vested 100% and eligible to receive employer contributions to your supplemental retirement after three years of service with Valdosta City Schools.

PSERS Covered Employees

• Participation in the 403(b) program is required for employees in a PSERS covered position.
• PSERS participants hired before 7/1/2012 contribute $4 monthly from September to May. Those hired after 7/1/2012 without prior qualifying service contribute $10 monthly for the same period.
• The 403(b) supplemental retirement program requires a minimum employee contribution of 4% of gross pay.
• Valdosta City Schools contributes an additional 4.5% of gross pay to the 403(b) program.
• Employees are 100% vested in employer contributions from their hire date.

Valdosta City Schools has partnered with three supplemental retirement vendors for your 403(b) plan. Please contact one of the following vendors to participate.