How TCRS figures your pension

Short answer: a Legacy pension is 1.5% of your five-year average pay × your years of service (1.75% on any part of the average above the Social Security integration level), then 5% more for teachers. A Hybrid pension is 1% × average × years. Not sure which applies? Which plan am I in? Retiring before full age? See early retirement and one more year. Load the guide's 30-year example ($1,968.75 a month) in the calculator.

Legacy Plan for Teachers

Most teachers' average is below the SSIL, so the whole average gets 1.5%. The 5% is added after the formula; TCRS's flyer describes it as turning 1.5% into 1.575%. Legacy Member Guide p. 4, Benefit Improvement; p. 5, Service Retirement; Legacy flyer p. 1, footnote 1

TCRS's example: age 60, $50,000 average, 30 years

• $50,000 × 1.5% × 30 = $22,500 a year
• + 5% = $23,625 a year, $1,968.75 a month

TCRS's example above the SSIL: $100,000 average, 30 years

The guide uses an example SSIL of $95,400.

• $95,400 × 1.5% × 30 = $42,930
• $4,600 above it × 1.75% × 30 = $2,415
• $45,345 + 5% = $47,612.25 a year, $3,967.69 a month

The guide writes it as 1.5% of the whole average plus an extra 0.25% of the part above the SSIL. That's the same thing. Legacy Member Guide p. 7, Social Security Integration Calculation; Legacy actuarial valuation 2025 p. G-4, Benefit percentages

The integration level by year

• 2025: $98,400
• 2026: $102,000

The SSIL is calculated by TCRS from the 35-year average of the Social Security wage base, rounded to the nearest $600, for the calendar year the member retires. Legacy Member Guide p. 7, Social Security Integration Calculation; Legacy actuarial valuation 2025 p. G-1 ("The SSIL is $98,400 in 2025 and will be $102,000 in 2026")

The maximum

Maximum annual base benefit at retirement (service or early) is 94.5% of AFC, i.e. 90% before the 5% improvement. Legacy Member Guide p. 4, Maximum Benefit Accrual; Legacy actuarial valuation 2025 p. G-5, Maximum Benefit (90%#, # = 105%)

Hybrid Plan

TCRS's example: $30,000 × 1% × 30 = $9,000 a year, $750.00 a month. Hybrid Member Guide p. 6, Service Retirement Formula example

That's only the pension. The Hybrid Plan's 401(k) comes on top; see the Hybrid Plan. The maximum is 90% of your average or $80,000 indexed each year since July 1, 2014, whichever is lower. Hybrid Member Guide p. 7, Maximum Benefit Accrual; Hybrid actuarial valuation 2025 p. 29, Accrued Benefit

Your average final compensation

Average of the five highest consecutive years (60 consecutive months) of earnable compensation, subject to the IRS compensation limit. It's the same in both plans. Legacy Member Guide p. 3, Average Final Compensation (AFC)

From the sources

• Legacy Plan: 1.5% x your average final compensation x years of service, then increased 5% (a teacher benefit improvement). The flyer describes this as a 1.575% factor.Legacy Member Guide p. 4-5; Legacy flyer p. 1
• Example: age 60, $50,000 average, 30 years: 1.5% x $50,000 x 30 = $22,500 a year, or $1,875 a month; with the 5% improvement, $1,968.75 a month.Legacy Member Guide p. 5
• Legacy members whose average pay is above the Social Security integration level ($98,400 in 2025, $102,000 in 2026) get an extra 0.25% of the amount above it for each year of service.Legacy Member Guide p. 7; Legacy actuarial valuation 2025 p. G-1
• The Legacy maximum is 94.5% of average final compensation.Legacy Member Guide p. 4, Maximum Benefit Accrual
• Hybrid Plan: 1% x average final compensation x years of service. Example: $30,000 average, 30 years = $9,000 a year, $750 a month. The maximum is the lesser of 90% of average pay or $80,000 indexed since 2014.Hybrid Member Guide p. 5-7; Hybrid actuarial valuation 2025 p. 29
• Hybrid cost controls: if the plan's cost or unfunded liability passes limits set in law, the COLA, employer 401(k) money, member contribution, the 1% formula and future accruals can be changed, in that order. The June 30, 2025 valuation found no change needed.Hybrid Member Guide p. 16; Hybrid actuarial valuation 2025 p. 4
• The Hybrid 401(k) is separate from the pension: it pays whatever the account is worth, from the 5% employer and your contributions plus investment gains or losses. This calculator shows only the TCRS pension.Hybrid Member Guide p. 11, 401(k) Plan
• Average final compensation (AFC) is the average of your five highest consecutive years (60 consecutive months) of pay, limited by the IRS compensation cap.Legacy Member Guide p. 3; Hybrid Member Guide p. 4
• If you've been in more than one TCRS plan, your highest 60 consecutive months count no matter which plan or employer they were under.Separation from Service guide p. 1

Questions

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