Teachers retirement system question

[CenTexSports]

My son works for the Texas A&M Health Science Center as an IT specialist. He pays both TRS and Social Security which I found on the TRS website is done by only about 20% of the TRS members. I also know that opting out of SS is a district or employer decision.

What are the benefits to the employee and employer to pay both? Instead of paying 6.3% into TRS the A&M system pays 12.5% and so does the employee. Most school districts opt out of SS and save the 6.2%. There must be an advantage to their employees for A&M to decide to pay both.

Anybody know about this?

[Phil C]

I would suspect the advantage will show up at retirement time.

[CenTexSports]

Well you would think so but I have had several teachers tell me that they CAN NOT draw both.

[j_dog]

Originally posted by Phil C
I would suspect the advantage will show up at retirement time.
You have that right!!! If you pay into both for the full time, you draw both. Where teachers get into trouble is when they retire from a teaching job where they DO NOT pay into social security. The teacher may get nothing, or a reduced benefit. It is very helpful to FINISH your career at a school which withholds social security. I know, we have had friends on both sides of this.

[jason]

Originally posted by CenTexSports
My son works for the Texas A&M Health Science Center as an IT specialist. He pays both TRS and Social Security which I found on the TRS website is done by only about 20% of the TRS members. I also know that opting out of SS is a district or employer decision.

What are the benefits to the employee and employer to pay both? Instead of paying 6.3% into TRS the A&M system pays 12.5% and so does the employee. Most school districts opt out of SS and save the 6.2%. There must be an advantage to their employees for A&M to decide to pay both.

Anybody know about this?

i have to do the same thing - social security will be bankrupt by the time im ready to retire though...

[CenTexSports]

My son will be 23 the 19th of this month. Not only will it be bankrupt but you will have to be 81 to retire and get SS.

[UPanIN]

You can draw both but SS will look at how much your drawing from TR and then reduce the amount of SS you will draw. They use a formula to reduce the SS so it doesn't amount to much.

BIG BROTHER AT WORK:foul:

[txkmom]

In the past, I was told if you paid into both, on retirement you would have to take the TRS and SS would not pay - the SS money would be lost. Now, I don't remember who told me this, and I would LOVE to know it is untrue, but expecting the right thing to be done is not necessarily indicative that the right thing WILL be done. I remember, at the time, our whole staff discussed the unfairness of it.

[Gontex]

If you have 30 years in ss, and make significant contributions (?)
you can draw both trs and ss. If you have less than 30 years in ss, your ss will be reduced by a certain percentage. I just retired from trs and have not chosen to start drawing ss at this time. When I choose to draw my ss, I will be able to draw 55%. I did not have the full 30 years in ss. I have a friend who is currently 66 years old and is teaching as a second career. He is drawing his full social security and will be able to continue drawing it when he retires from TRS. My suggestion would be to pay into both systems if you have that choice.

Originally posted by CenTexSports
My son works for the Texas A&M Health Science Center as an IT specialist. He pays both TRS and Social Security which I found on the TRS website is done by only about 20% of the TRS members. I also know that opting out of SS is a district or employer decision.

What are the benefits to the employee and employer to pay both? Instead of paying 6.3% into TRS the A&M system pays 12.5% and so does the employee. Most school districts opt out of SS and save the 6.2%. There must be an advantage to their employees for A&M to decide to pay both.

Anybody know about this?