Your two choices
Take a refund
You get your "accumulated contributions": what you paid in, plus interest. (Handbook pp. 7, 11)
- Cash, or a rollover to an IRA or other eligible plan
- You lose all your TRS service credit (p. 12)
- You give up any future TRS pension (p. 12)
- You give up TRS retiree health care, TRS-Care (p. 12)
- Your TRS membership ends, and member death benefits with it (pp. 3, 10)
- If you come back, newer and stricter retirement rules apply (p. 12)
Keep your account
Your money stays at TRS and keeps earning interest while your membership lasts. (Handbook pp. 8, 15)
- 5+ years: a monthly pension for life once you meet your tier's age rules (pp. 8, 23)
- You keep your service credit, your entry date and your tier (p. 24)
- Your beneficiary is covered by TRS death benefits (pp. 8, 22)
- Under 5 years: membership ends on its own after 5 years without service credit (p. 8)
- The pension is fixed on the salary and service you have when you leave (p. 32)
Example: 10 years, $55,000 average, leaves at 40
A made-up teacher who joined in 2016 (Tier 5) and leaves on June 1, 2026. Illustrative numbers, not a TRS quote. Assumptions are listed below.
$49,684
about, before taxes
| Contributions: 8.25% × $55,000 × 10 years | $45,375 |
| Interest at 2% a year | $4,309 |
| Account balance | $49,684 |
If you take it as cash
| 20% federal withholding (p. 12) | −$9,937 |
| Check you receive | $39,747 |
| Possible 10% additional tax, since you're under 59½ (p. 12) | up to $4,968 |
Rolling over all eligible amounts to a traditional IRA or eligible plan avoids the 20% withholding (p. 12). Not tax advice.
$1,054/mo
for life, starting at 65
2.3% × 10 years × $55,000 ÷ 12 = $1,054 a month (Handbook p. 32). Tier 5 gets a full benefit at 65 here (p. 30). Waiting past 65 doesn't raise it (p. 32).
At $1,054 a month, the pension pays back the whole refund in about 3.9 years, by around age 69. Every check after that is extra.
This ignores taxes on the pension, inflation, and what a rolled-over refund might earn if invested for 25 years. Those can matter a lot. It's a decision to make with your own numbers.
TRS-Care: in this example, 10 years isn't enough at 65. TRS-Care needs at least 10 years and age plus service of 80 (or 30 years) at retirement, so this teacher would qualify only by retiring at 70 or later (Handbook p. 53). TRS decides.
Assumptions
- Paid $55,000 every year, so the salary average is $55,000.
- 8.25% of pay every year (the handbook's current rate; earlier years were lower).
- 2% interest credited once a year on the balance at the start of that year.
- Salary average doesn't change while you wait (Handbook p. 32: only more service and salary raise the annuity).
Your real balance is on your Annual Statement of Account and in MyTRS (Handbook p. 7). The handbook says TRS credits interest on Aug. 31; it doesn't spell out how. Annuities are computed with this site's calculator engine and the reduction tables in 34 TAC §29.11.
When you can ask for a refund
You can take a refund if you (Handbook p. 11):
- end all work with all TRS-covered employers, and
- haven't applied for, or been promised, a job with a TRS-covered employer.
Higher-ed employees who elect the Optional Retirement Program (ORP) can also withdraw (p. 11). "All work" includes part-time jobs that don't count for TRS membership (p. 41).
If you go back to work, apply for a TRS-covered job, or get a promise of one while your refund is pending, you're not eligible. TRS won't pay it (p. 11).
How to request it, and how long it takes
- Apply in MyTRS ("Apply for a Refund" under the Benefits tab), or print form TRS 6 (p. 11).
- The paper form needs a notarized statement that your public school employment has permanently ended and you aren't looking for TRS-covered work (p. 11).
- With 5 or more years, you must sign a waiver giving up future retirement benefits. It's part of the form (p. 11).
- TRS checks your last day with your employer. Your employer's final payroll report is due by the 6th of the next month (p. 11).
- TRS pays after it has your forms, your termination is confirmed, and your final deposit is posted (p. 11).
The handbook doesn't name a fixed waiting period. The timing depends on when your employer's final report and deposit reach TRS.
Taxes and rollovers
Your contributions went in before tax, so they're taxed when they come out (Handbook pp. 7, 12).
- 20% withheld. TRS must withhold 20% for federal income tax unless you roll over all eligible amounts to another eligible plan or a traditional IRA (p. 12).
- 10% extra. The IRS may charge a 10% additional tax on early distributions if you're under 59½ (p. 12).
- Not a U.S. citizen or resident alien? TRS withholds 30% unless a tax treaty applies and you file IRS Form W-8BEN (p. 12).
The Special Tax Notice in the TRS 6 form explains rollover choices (p. 12). See our TRS taxes guide, and talk to a tax professional before you decide.
Under 5 years: your membership can end on its own
If you have fewer than 5 years of service credit and don't earn service credit for five school years in a row, your TRS membership ends automatically. It ends on the Sept. 1 after those five years (Handbook p. 8). After that your account stops earning interest (p. 15), and you or your beneficiary can get the contributions back (p. 8).
You can avoid that if you document one of these (p. 8):
- Performing military service that is creditable in TRS.
- Earning service credit in another Texas public retirement system that participates in the Proportionate Retirement Program.
- Working for a TRS-covered employer in a part-time position that is not eligible for TRS membership.
5 years or more: a pension waits for you
With at least 5 years of service credit, you're vested. Your membership doesn't end just because you stop working. You become an "active noncontributing" member (Handbook p. 8). You still:
- earn interest on your contributions (p. 8);
- can apply for a lifetime monthly annuity once you meet your tier's age rules (pp. 8, 23);
- can reinstate withdrawn service, and in limited cases buy service credit (p. 8);
- can still take a refund later if you change your mind (p. 8).
Your pension uses the age and service rules for your tier. You can start early with a reduction or wait for a full benefit. Once you reach normal age, waiting longer doesn't raise it. Only more service and salary do (p. 32).
Don't wait too long. Federal rules require benefits to start by April 1 after the year you turn 72 (or leave TRS-covered work, if later), for members born on or after July 1, 1949. TRS asks you to contact it at least three months before then (Handbook p. 9).
If you die before you retire
Your beneficiary gets at least your accumulated contributions. Larger active-member death benefits may apply in some cases, for example if you were eligible to retire, or would have become eligible without more service within five years of your last day of work (Handbook pp. 8, 22). See survivor benefits.
Coming back later
If you take a refund and later return to TRS-covered work, you start a new membership. The handbook warns (p. 12):
- new normal-age rules apply, including a minimum age of 62 for an unreduced pension;
- early-age reductions are larger;
- it can affect Proportionate Retirement and ERS transfers.
You can buy back refunded service. It's called withdrawn service credit (Handbook pp. 15-16). But your TRS entry date stays the date your new membership began, even after you reinstate (p. 24). A Tier 1 to 4 member who refunds and rejoins after Aug. 31, 2014 is placed in Tier 5 or 6 (pp. 26-31). So reinstating restores years, not your old tier. See buying TRS service credit.
Questions
Can I get my TRS contributions back if I quit teaching?
Yes. If you end all work with every TRS-covered employer, and you haven't applied for or been promised a new TRS-covered job, you can apply for a refund on form TRS 6 or in MyTRS. The refund is your contributions plus interest. It ends your TRS membership. (Handbook p. 11)
How long does a TRS refund take?
The handbook doesn't give a set number of days. TRS pays after it has your completed forms, your employer confirms you've left, and your final deposit is posted. Employers send payroll reports by the 6th of the following month. (Handbook p. 11)
How much tax do I pay on a TRS refund?
TRS must withhold 20% for federal income tax unless you roll over all eligible amounts to another eligible plan or a traditional IRA. If you're under 59½, the IRS may also charge a 10% additional tax. Ask a tax professional about your case. (Handbook p. 12)
What happens to my TRS account if I leave with less than 5 years?
If you don't earn service credit for five school years in a row, your membership ends on the Sept. 1 after those five years. Then your account stops earning interest and you can get your contributions back. Some exceptions apply, such as creditable military service. (Handbook pp. 8, 15)
If I have 5 years, can I leave my money in TRS and get a pension later?
Yes. With five or more years of service credit, you can leave your account in place and apply for a monthly annuity once you meet your tier's age requirements. Your account keeps earning interest while you wait. (Handbook pp. 8, 23)
Can I buy back TRS service I refunded?
Withdrawn service credit is one of the types TRS lets eligible members buy back. Reinstating restores the service, but not your old TRS entry date, so your tier may change. TRS quotes the cost. (Handbook pp. 8, 15-16, 24)
Do I lose TRS-Care if I take a refund?
Yes. A refund ends your membership and forfeits your retirement benefits, including retiree health care. (Handbook p. 12)
Source: TRS Benefits Handbook, September 2025, pp. 3-12, 15-16, 22-24, 32, 41, 53. Last reviewed .