Mandatory Retirement Plan Contributions
The state of Texas provides a number of retirement plans: the Employees Retirement System (ERS), Teacher Retirement System (TRS), an optional retirement program (ORP) and the Judicial Retirement System of Texas.
The following table outlines who may participate in each system and the percentage of monthly compensation deducted:
| Retirement System | Eligible Participants | Percent of Monthly Compensation |
|---|---|---|
| Employees Retirement System (ERS) groups 1, 2 and 3 | State employees who were active or former members of ERS and who did not withdraw their account before Sept. 1, 2022 | 9.5 |
| Employees Retirement System (ERS) group 4 | State employees who became members of ERS after Aug. 31, 2022 | 6.0 |
| Teacher Retirement System (TRS) | Public education employees | 8.25 |
| Optional retirement program (ORP) | Faculty members of institutions of higher education | 6.65 |
| Judicial Retirement System of Texas JRS-1 | Judges, justices or commissioners of the supreme court, the court of criminal appeals, a court of appeals or a district court elected before Sept. 1, 1985, and never eligible for JRS-2 | 9.5 |
| Judicial Retirement System of Texas JRS-2 | Judges, justices or commissioners of the supreme court, the court of criminal appeals, a court of appeals or a district court elected after Aug. 31, 1985, and never eligible for JRS-1 | 9.5 |
Plan Membership
Membership is typically a condition of employment and mandatory for most employees. Membership continues until an employee retires, dies or withdraws his or her account balance after leaving state employment. An employee continues to be a member as long as he or she has an account with a system, regardless of whether he or she continues employment with the state. The participant contributions must be made through payroll deduction and are invested by the plan.
Sources
Texas Government Code, Sections 812.003(a)–(b), 815.402(a)(1), 820.002, 820.101, 821.001(8), 821.001(12), 822.001, 822.002(a), 825.402(5), 825.403(a), 830.002(b), 830.003, 830.101(a), 830.102(a), 830.201(a), 830.202, 830.202(a), 832.001(a–c), 835.101(a), 835.103, 837.001(a–c), 840.102(a), (b)(1), (g), 840.105(a–b); 34 Texas Administrative Code Sections 25.25(a), 25.171, 25.172(e), 69.1(2).