transparency

Teacher Retirement System of Texas

Overview

Contact Information:
1000 Red River St
Austin, TX 78701
http://www.trs.texas.gov
Phone: (512) 542-6400
Fax: None Reported

Classification: Statewide
Year Created: 1937
Fiscal Year-End Month: 8

Total Members : 1,948,873

  Active Members: 928,418
  Inactive Members : 544,503
  Total Annuitants: 475,952
  (Effective Date: 8/31/2022)

Financials

(Effective Date: 8/31/2021)

Total Net Assets: $201,807,002,496

Total Assets : $223,172,755,137
Total Liabilities : $21,365,752,641
Total Additions : $48,967,089,837
Employer Contributions:
$2,124,027,701
4.34%
Employee Contributions:
$3,839,243,646
7.84%
Other Contributions:
$2,244,276,871
4.58%
Investment Income:
$40,756,410,833
83.23%
Other Income:
$3,130,786
0.01%

Total Deductions  : $12,576,332,584
Benefit Payments:
Benefit Tier Details
$449,135,634
3.57%
Withdrawals:
$11,811,565,514
93.92%
Administrative Expenses:
$71,359,850
0.57%
Investment Expenses:
$244,271,586
1.94%
Other Expenses:
$0
0.00%
Total Contribution Rate: 9.19%
(Effective Date: 8/31/2022)
Employer: 8.00%
Employee: 17.19%

Historical Investment Returns

(Report Date: 8/31/2021)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: 24.98%
  • 3-Year Return: 12.11%
  • 10-Year Return: 9.69%
  • 30-Year Return: N/A
  • Note: Rates of return are reported net of fees.
  • Investment Policy Details
  • Assumed Rate of Return : 7.00%

Actuarial

(Effective Date: 8/31/2022)
Actuarial Value of Assets : $184,185,617,796
Actuaries often select an asset valuation method that smooth the effects of short‐term volatility in the market value of assets. The actuarial value of assets is intended to give fund managers a more accurate picture of the fund’s ability to cover its liabilities.
Market Value of Assets: $193,908,589,662
Actuarial Assumption Details

Actuarial Funded Ratio : 78.97%

Market Funded Ratio: 75.01%

Amortization Period (Yrs) : 26
Unfunded Liability : $51,652,376,688
Unfunded Liability per Member: $26,504

Benefit Tier Details

Tier:
Tier 1
Eligible Members:
Most recently hired before 9/1/20007 and met 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 3 years
Automatic COLA:
None
Benefit Tier Options:
DROP closed 12/31/2005
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS
Tier:
Tier 2
Eligible Members:
Most recently hired before 9/1/2007 and did not meet 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 5 years
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS
Tier:
Tier 3
Eligible Members:
Most recently hired after 8/31/2007 with >= 5 YCS as of 8/31/2014 and did not meet 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80 with >= 60 years
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 5 years
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS
Tier:
Tier 4
Eligible Members:
Most recently hired after 8/31/2007 and had 5 YCS as of 8/31/2014 and met 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80 with >= 60 years
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 3 years
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS
Tier:
Tier 5
Eligible Members:
Most recently hired after 8/31/2014; or with < 5 YCS as of 8/31/2014; or withdrew contributions and rehired after 8/31/2014 and did not meet 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80 with >= 62 years
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 5 years
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS
Tier:
Tier 6
Eligible Members:
Most recently hired after 8/31/2014 or with < 5 YCS as of 8/31/2014 or withdrew contributions and rehired after 8/31/2014 and met 2005 grandfathering reqs
Vesting:
5 YCS
Age/YCS:
65/5 or Rule of 80 with >= 62 years
Benefit Formula:
Years of Credited Service x 2.3% x Final Average Salary
Final Average Salary:
Highest 3 years
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Varies
Note:
To satisfy 2005 grandfathering requirements, one of the following must be met prior to 9/1/2005: at least 50 years old OR age and YCS total at least 70 years OR at least 25 YCS

Investment Policy Details

Effective Date: 10/1/2019

Asset Class:
Real Estate
Minimum Allocation:
10%
Maximum Allocation:
20%
Target Allocation:
15%
Asset Class:
Equities
Minimum Allocation:
25%
Maximum Allocation:
55%
Target Allocation:
40%
Asset Class:
Fixed Income
Minimum Allocation:
0%
Maximum Allocation:
21%
Target Allocation:
16%
Asset Class:
Cash
Minimum Allocation:
0%
Maximum Allocation:
7%
Target Allocation:
2%
Asset Class:
Alternative Investments
Minimum Allocation:
10%
Maximum Allocation:
55%
Target Allocation:
33%