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Retirement Eligibility

Please visit official website https://www.ers.texas.gov/active-employees/Retirement? for retirement eligibility information.

State Retirement Program

The State Retirement Program is a defined benefits plan.  At time of retirement, employees are eligible to select from several retirement options. The employee’s contribution plus interest per year is refundable if employee leaves State employment prior to retirement. The employee contribution is made on a pre-tax basis.

Using Unused Sick and Vacation Leave

Employees receive service credit for each month (or partial month) of actual service. Employees also receive one month of service credit for each 160 hours of unused accrued sick and vacation leave at time of retirement, provided retirement and separation occur in the same month. Only for employees hired on or before 08/31/2009.

Vested

An employee is eligible to retire with five years without retiree group insurance at age 60 or 10 years with retiree group insurance at age 65.

Table 1: ERS Retirement Eligibility Chart
Age Years of Service Type of Service Insurance
60 5 Regular No
60 10 Regular Yes at age 65
55 10 LECOS Yes
Rule of 80 Less than 10 Regular No
Rule of 80 More than 10 Regular Yes

For those that retire with no insurance, insurance is available through COBRA for 18 months. After the 18 months of COBRA has been exhausted and until the retiree reaches age 65, insurance may be continued with the individual paying the full cost of such insurance. At age 65, members with 10 or more years of service credit (and eligible dependents) may enroll in retiree health insurance without evidence of insurability.

20-Year Service Retirement Award Options

As a 20+ year retiree, you now have the opportunity to select a retirement award as a memento of your years of dedicated service.

options are oak state seal, etched acrylic, mantle clock, or wood serving tray with state seal

Partial Lump Sum Payment

A Partial Lump Sum payment option is offered to employees at retirement to receive up to 36 months of their standard monthly annuity. Employees who take advantage of this option will have their monthly annuity recalculated using an actuarial reduction factor. This option is not available to employees retiring with a disability retirement, retiring with a reduced monthly annuity due to age, or retiring under the proportionate retirement program.

Retirement Annuity Calculation

Group 1

Annuity percentage increases with additional years of service up to 100% maximum. Formula: 2.3% (or 2.8% for LECOS Supplemental Retirement) for each year of creditable service multiplied by the highest 36 months average salary.

Group 2

Annuity percentage increases with additional years of service up to 100% maximum. Formula: 2.3% (or 2.8% for LECOS Supplemental Retirement) for each year of creditable service multiplied by the highest 48 months average salary.

Group 3

Annuity percentage increases with additional years of service up to 100% maximum. Formula: 2.3% (or 2.8% for LECOS Supplemental Retirement) for each year of creditable service multiplied by the highest 60 months average salary.

Social Security Online

Visit the official website of the U.S. Social Security Administration for information and assistance regarding Social Security benefits and retirement.

Page updated: 09/20/2021