TRS of Kentucky · Which account type?

TRS of Kentucky account types 1, 2, 3 or 4: which are you?

TRS of Kentucky has four account types. The date you first entered TRS of Kentucky decides yours, and with it your multiplier, your retirement ages and how many years you need for retiree health.

Kentucky specificsThe date you first joined decides your type: TRS 1 before July 1, 2002; TRS 2 to June 30, 2008; TRS 3 to Dec. 31, 2021; TRS 4 after. TRS 1-3 retire unreduced with 27 years; TRS 4 at 57 with 30. The multipliers are on the benefit formula page and the health rule on retiree health. The calculator picks your type from your membership date.
Which account type? (TRS of Kentucky)
TRS 1TRS 2TRS 3TRS 4
Entered TRS of Kentuckybefore July 1, 2002July 1, 2002 through June 30, 2008July 1, 2008 through Dec. 31, 2021on or after Jan. 1, 2022
Unreduced27 years of service at any age; age 60 with five years27 years of service at any age; age 60 with five years27 years of service at any age; age 60 with five yearsage 57 with 30 years; age 60 with 10 years; age 65 with five years
Early (reduced)Age 55 with 5 years; 5% a year, up to 25%Age 55 with 5 years; 5% a year, up to 25%Age 55 with 10 years; 6% a year, up to 30%Age 57 with 10 years; 6% a year, up to 18%
School district or agency (non-university)2% service before July 1, 1983; 2.5% up to 30 years; 3% each year over 302% under 10 years; 2.5% 10 through 30 years; 3% each year over 301.7% 10 years or less; 2% over 10 through 20 years; 2.3% over 20 through 26 years; 2.5% over 26 through 30 years; 3% each year over 30age factor 1.7% to 1.9%, plus career factor 0.25% at 20 to 29.99 years, 0.5% at 30 years or more
University or community college2% every year2% every year1.5% 10 years or less; 1.7% over 10 through 20 years; 1.85% over 20 but under 27 years; 2% 27 years or moreage factor 0.7% to 0.9%, plus career factor 0.25% at 20 to 29.99 years, 0.5% at 30 years or more
Final average salary5 highest years; 3 highest at 55+ with 27 years5 highest years; 3 highest at 55+ with 27 years5 highest years; 3 highest at 55+ with 27 years5 highest years
Minimum benefit$440 a year of service$440 a year of serviceNoneNone
Retiree health needs5 years5 years15 years15 years

Sources: KRS 161.600(1)(a), (c); TRS 1-3 Service Retirement bulletin p. 1, Service Retirement Eligibility; KRS 161.600(1)(b)1.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2 ('Penalty (up to 25%)'); KRS 161.620(1)(a); TRS 1-3 Service Retirement bulletin p. 2, Multipliers; KRS 161.620(1)(a); TRS 1-3 Service Retirement bulletin p. 2 ('The maximum multiplier used for university members is 2%')KRS 161.600(1)(a), (c); TRS 1-3 Service Retirement bulletin p. 1, Service Retirement Eligibility; KRS 161.600(1)(b)1.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2 ('Penalty (up to 25%)'); KRS 161.620(1)(b); TRS 1-3 Service Retirement bulletin p. 2 ('For TRS 2, the 2.5% begins at 10.0 years'); TRS 1-3 SPD (2011) p. 39, Step 2 note; KRS 161.620(1)(a); TRS 1-3 Service Retirement bulletin p. 2, Multipliers (University, TRS 1 and TRS 2: 2%)KRS 161.600(1)(a), (c); TRS 1-3 Service Retirement bulletin p. 1, Service Retirement Eligibility; KRS 161.600(1)(b)2.; TRS 1-3 Service Retirement bulletin p. 1; TRS Basics 1-3 p. 2 ('Penalty (up to 30%)'); TRS 1-3 SPD (2011) pp. 56-57, Eligibility for Retirement; KRS 161.620(1)(d)1.; TRS 1-3 Service Retirement bulletin p. 2, Multipliers; TRS 1-3 SPD (2011) p. 55, New Retirement Factors; KRS 161.620(1)(e); TRS 1-3 Service Retirement bulletin p. 2, Multipliers (University, TRS 3); TRS 1-3 SPD (2011) p. 55KRS 161.600(2)(a)-(c); TRS 4 SPD p. 13, Service retirement eligibility; TRS 4 Service Retirement bulletin p. 1; KRS 161.600(2)(d); TRS 4 SPD p. 13, Early retirement eligibility; KRS 161.620(1)(f); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers; KRS 161.620(1)(g); TRS 4 SPD p. 8, Multiplier; TRS 4 Service Retirement bulletin p. 1, Multipliers

School district or university?

Most teachers work for a school district or another education agency. TRS of Kentucky calls them non-university members. They don't pay Social Security on that pay, because TRS of Kentucky replaces it. University and community college members pay into both, so their multipliers are lower: 2% every year in TRS 1 and TRS 2, and 0.7% to 0.9% plus the career factor in TRS 4. TRS Basics 1-3 p. 1; TRS 4 SPD p. 6

What you pay in

TRS Basics 1-3 (Dec. 2021), p. 1: 8.185%. The bulletin predates the 2025 amendment, so the current statute is shown. Not used in any calculation.

TRS 4: two parts

The foundational benefit is the pension. Its multiplier is an age factor (1.7% up to age 60, rising each month to 1.9% at 65 for school districts) plus a career factor for 20 or more years. See the benefit formula.

The supplemental benefit is a savings account. TRS 4 also has a supplemental benefit (a savings component): mandatory contributions plus any voluntary contributions, with interest credited each June 30. At retirement or later it can be annuitized (minimum the greater of $10,000 or 10% of the balance), rolled over, paid directly (at least 20% federal withholding), or a combination. If refunded while vested, the member also gets employer supplemental contributions and interest. Not calculated here. TRS 4 SPD pp. 8-10, 15-16; TRS 4 Service Retirement bulletin p. 2

Risk controls. If the TRS 4 foundational benefit's funding level falls below 90%, the board must use one or more of: the stabilization reserve; redirecting future supplemental contributions to the foundational benefit; or prospectively adjusting interest credits, the retirement factors, the age and service requirements, the COLA, or disability provisions for TRS 4 members. KRS 161.633(3); TRS 4 SPD p. 9, Risk controls

If you took a refund and came back

A withdrawn account can be reinstated after at least one year back in a TRS-covered position by repaying the amount withdrawn plus interest. TRS 4 SPD p. 11; KRS 161.470(3) If you don't reinstate, you start again under the account type for the date you came back. See buying service credit.

Find your type and run your numbers in the calculator. TRS 4 members can also see the 57, 60 and 65 rules.

Questions

How do I know my TRS of Kentucky account type?

It's set by the date you first entered TRS of Kentucky. Pathway and your annual statement show it.

Does it matter if I work for a university?

Yes. University members pay into Social Security as well as TRS of Kentucky, so their multipliers are lower.

What is different about TRS 4?

TRS 4 has a foundational benefit (a pension with an age factor and a career factor) plus a supplemental benefit account. It also has later retirement ages: age 57 with 30 years, age 60 with 10 years, age 65 with five years.

Source: TRS Summary Plan Descriptions and Service Retirement bulletins, TRS 4 SPD January 2022; TRS 1-3 SPD 2011; Service Retirement bulletins March 2023, TRS 1-3 Service Retirement bulletin pp. 1, 1-2, 2; TRS 1-3 SPD (2011) pp. 38, 39, 55, 56-57; TRS 4 SPD pp. 6, 8, 8-10, 9, 10-11, 13, 15-16, 17; TRS 4 Service Retirement bulletin pp. 1, 2. Also: TRS Basics 1-3 pp. 1, 2; 2026 Turning 65 booklet p. 4; 2027 KEHP rate chart p. 1; TRS Basics 4 p. 1; TRS Basics 1-3 and 4 p. 1; KRS 161.220, 161.470, 161.540, 161.600, 161.620, 161.633, 161.675. Last reviewed .