Vesting

You become vested in TSERS once you have completed a minimum of five years of membership service. This means you are eligible to apply for lifetime monthly retirement benefits based on the retirement formula in effect at the time of your retirement and the age and service requirements described in this handbook, provided you do not withdraw or transfer your contributions. You may also be eligible for retiree health coverage. 

Service Retirement (Unreduced Benefit)

You may retire with an unreduced service retirement benefit after you:

• Reach age 65 and complete five years of membership service
• Reach age 60 and complete 25 years of creditable service
• Complete 30 years of creditable service at any age

Early Retirement (Reduced Benefit)

You may retire early with a reduced retirement benefit after you:

• Reach age 50 and complete 20 years of creditable service
• Reach age 60 and complete five years of membership service

Your early retirement benefit is calculated using the same formula as a service retirement benefit multiplied by a reduced percentage based on your age and/or service at early retirement. Because your benefit may be paid over a longer period than if you had waited until being eligible for service retirement, your benefit will be reduced. 

Vested Deferred Benefit

If you leave TSERS for any reason other than retirement or death, you can either receive a refund of your contributions, plus interest, or leave your contributions in TSERS and keep all the creditable service you earned to that date. You may be entitled to receive a deferred benefit at a later date once you meet eligibility requirements after you have completed five years of creditable service, provided you do not withdraw your contributions. Your benefit is calculated using the formula in effect on your retirement date. It is based on your average final compensation and years of creditable service at that time.

Severance Pay and Impact on Retirement Eligibility

Effective on January 1, 2025: Members who are in receipt of severance pay cannot apply to begin receiving their retirement benefit coincident with their severance pay. If the severance payment is made in a lump sum, but based on a certain period, such as a number of weeks or months, the member is not eligible to receive retirement during the period used to calculate the lump sum value.