Multiplier Increased from 2 percent to 2.2 percent, resulting in an automatic 10 percent annuity increase for all TRS members. The 2.2 percent increase was applied retroactively to all current retirees and DROP participants. Included in the total amount are an inflation adjustment of 2 percent to 7 percent and a 10 percent increase related to the retroactive increase in the multiplier. TRS will actuarially reduce the member's lifetime annuity to reflect the lump-sum payout.
Members can choose to rollover the lump sum into eligible individual retirement annuities.
Members who retire early or participate in DROP are not eligible for the lump-sum option. Retirees may teach in an acute teacher-shortage area without experiencing a reduction in their annuities. They must be certified in the applicable subject areas and must not have been employed in public schools for the preceding 12 months. Insurance options for TRS members TRS' health insurance program, TRS-CARE, received a legislative appropriation that should be sufficient to keep it solvent for at least two more years, but retirees could see an increase in health insurance premiums. TRS will contract with various qualified vendors to offer optional life and long-term care insurance to all TRS members.