2021-2022 Benefits Guide

Once an employee retires, he or she receives a benefit payment for life that is based on his or her final account balance and employer matching. Employer matching is 180% at retirement.



Vesting with TCDRS means the employee has the right to a lifetime monthly benefit that will include employer matching at retirement. Vesting with TCDRS is at 8 years of service.




With 8 Years; or With 20 Years; or

Any Age

Rule of 75

Your age plus your years of service equals 75

Other ways to earn service time

If you have previously served in the Military or USERRA; or contributed to a proportionate retirement program such as: ERS (State of Texas), JRS (Courts), TRS (Schools), TMRS (Select Cities), or COA (City of Austin) – your service time is counted towards retirement eligibility. If you have more than one TCDRS account, please contact TCDRS Member Services by calling 800-823-7782.

Retirement ICMA-RC 457 & IRA (Traditional & Roth)

These plans are voluntary and are contributed 100% by the employee. These voluntary plans allow you to contribute monies with pre-tax dollars and reduce your taxable income for the year. You may also choose to make after-tax contributions to a Roth IRA or 457 plans.


Plan 457

Normal Limit

“Age 50” Catch Up Limit

“Pre -Retirement ” Catch Up Limit

$19,500 $6,000

$6,500 $1,000




Retirement Health Savings (RHS)

The Retirement Health Savings Account program is administered by ICMA-RC. This program allows employees to rollover HRA funds for their use to off-set medical expenses after the employee has separated from employment from the EAA. Participation into this program is mandatory, and employees may not choose to opt out. Vesting for the RHS account is five years.


The RHS is an employer sponsored plan. Employees may not contribute directly into this plan. At the end of each plan year and after the run-off period has passed for the medical HRA, funds over $2,500 are rolled over from the employees HRA into an RHS account. The run-off period for the 2021 calendar year is January 1st – March 31st, 2021. The run-off period gives employees an opportunity to submit outstanding claims from the previous 2021 year. These funds are not available to the employee until the vesting requirement is met and the employee separates from employment. Additionally, the EAA will make a onetime mandatory contribution of accrued sick leave at the employee’s separation of employment for employees meeting eligibility requirements as specified in the EAA’s personnel policies. Employees who meet TCDRS retirement eligibility will also have the remainder of their HRA funds left after the runoff period transferred to their RHS account.

All contributions made to the RHS account are not subject to social security, Medicare, or income taxes.


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