Option 1: leave your money in
Once you're vested, you can start a pension when you reach your tier's retirement age: 5 years for Tier 1, 10 for Tier 2. TRS Illinois Tier 2 slides, slide 60, Benefit Comparison (Minimum Vesting Period: 5 years)
Fewer than five years of creditable service: eligible for a single-sum retirement benefit at age 65, the actuarial equivalent of an annuity of 1.67% of final average salary per year of service. Must terminate TRS-covered employment and apply. Tier 1 Guide p. 19, Single-sum retirement benefit; Tier 2 Guide p. 19, Single-sum retirement benefit
Tier 2 members with under 5 years can get a one-time payment at 65, and members with 10 years get a pension. The guide doesn't say what 5 to 9 years gets.
What we use: We show 'not eligible' for 5 to 9 years in Tier 2 and point you to TRS Illinois.
Option 2: take a refund
Refund of retirement contributions at 7% of creditable earnings before July 1, 1998 and 8% after, without interest. The 1% survivor contribution and THIS Fund contributions are not refundable. Refund forfeits all TRS Illinois benefits. Paid when four months have passed since the final day of teaching. Tier 1 Guide p. 35, Refund of retirement contributions
Tier 2: refund of retirement contributions at 8% of creditable earnings without interest. Tier 2 Guide p. 34, Refund of retirement contributions
Tier 1, $200,000 before July 1998 and $300,000 after: refund $38,000.
The guide says your contributions earn 6% interest a year, but a refund is paid 'without interest'.
What we use: We show the refund as the guide states it: 7% or 8% of your earnings, no interest.
Refunds are not subject to Illinois individual income tax; the pre-tax portion is subject to federal income tax (20% withheld unless rolled over). Tier 1 Guide pp. 35-36, Refunds eligible for rollovers; Taxability of refunds
Refunds may be repaid with interest; the service counts only after one more year of TRS Illinois service (two years if in a reciprocal system). Tier 1 Guide p. 36, Repayment of refunds; p. 13, Service canceled by a refund
What the guides say
- If you leave teaching you can take a refund of your retirement contributions, but it cancels all TRS Illinois benefits.Tier 1 Guide p. 35
- Tier 1 refunds are 7% of earnings before July 1, 1998 and 8% after, without interest. Tier 2 refunds are 8% of earnings, without interest. The 1% survivor and health-fund contributions are not refunded.Tier 1 Guide p. 35; Tier 2 Guide p. 34
- Leaving the money in keeps your right to a pension: 5 years for Tier 1, 10 for Tier 2. With under 5 years you can get a one-time payment at 65.Tier 1 Guide pp. 19, 35; Tier 2 Guide pp. 19, 34
- Check with TRS IllinoisTier 2 members who leave with 5 to 9 years: the guide does not say what they receive.Tier 2 Guide pp. 19, 34Gap between the under-5 single sum and the 10-year annuity; check 40 ILCS 5/1-160.
- TRS Illinois pays a refund once four months have passed since your last day of teaching. You can repay it later with interest after one more year of TRS Illinois service.Tier 1 Guide pp. 35-36
Questions
If I leave teaching, can I get my money back?
Yes, you can take a refund of your retirement contributions. It cancels all TRS Illinois benefits, and it's paid without interest.
How many years until I'm vested?
Tier 1: 5 years. Tier 2: 10 years. Leave your money in and you keep the right to a pension.
What if I have fewer than 5 years?
At 65 you can get a one-time single-sum benefit instead of a monthly pension, if you leave your contributions in.
Source: TRS Tier 1 and Tier 2 Member Guides, September 2026, Tier 1 Guide pp. 19, 35, 36; Tier 2 Guide pp. 19, 34; Tier 2 meeting slide 60. Last reviewed .