Retirement Benefits and Employee Accounts

Questions and Answers

What is the minimum age and years of service required for retirement eligibility?

Any age with fifteen years of service

Age fifty-five with ten years of service

Age sixty with eight years of service (correct)

Age sixty-five with five years of service

Which of the following statements accurately describes the interest rate on employee accounts?

Employee accounts earn eight percent interest each year, compounded bi-annually

Employee accounts earn seven percent interest each year, compounded annually (correct)

Employee accounts do not earn interest

Employee accounts earn five percent interest each year, compounded monthly

If an employee leaves the District before becoming eligible for retirement benefits, what options do they have regarding their contributions?

They can only withdraw half of their contributions

They can withdraw all their contributions or leave the money in TCDRS for future retirement (correct)

They cannot withdraw any contributions

They can transfer their contributions to another retirement plan

What types of insurance benefits are provided to the employee at no cost?

Medical, dental, vision, and life insurance Signup and view all the answers

Which statement is true regarding the Deferred Compensation Plan offered by the District?

It is a voluntary plan without matching contributions from the District Signup and view all the answers

What are the retirement eligibility criteria based on age and years of service?

Age sixty with eight years, any age with twenty years, rule of seventy-five Signup and view all the answers

How is the annual interest for employee accounts calculated?

It is compounded annually based on the beginning balance of the year. Signup and view all the answers

Which insurance benefits does the District provide at no cost to the employee?

Health, Dental, Vision, Life Insurance Signup and view all the answers

What option does an employee have if they leave the District before retirement eligibility?

Withdraw their contributions or leave the funds in TCDRS. Signup and view all the answers

What is true regarding TCDRS deductions from employees' paychecks?

They are pre-tax and do not affect social security contributions. Signup and view all the answers

Study Notes

Retirement Eligibility

Minimum requirement: 60 years old with 8 years of service.
Alternative requirement: Any age with 20 years of service.
Rule of 75: Age plus years of service must equal 75 for eligibility.

Employee Accounts

Accounts earn 7% interest annually, compounded based on the starting balance.
Upon opting for retirement benefits, TCDRS combines personal account balance with District's contributions and credits.
This total is transformed into a life-long monthly annuity.

Leaving the District

Employees leaving before retirement eligibility can withdraw their contributions.
Alternatively, they may leave funds in TCDRS for future use.

Deductions

TCDRS contributions are pre-tax, deducted from bi-weekly paychecks.
Employees are exempt from Social Security contributions.
Medicare contributions are still required.

Deferred Compensation

The District offers a voluntary Deferred Compensation Plan for additional contributions.
The District does not provide matching for this plan.
Contributions are pre-tax, allowing for potential tax benefits.

Employee Insurance

Health benefits commence the month after completing 30 days of employment.
Employee costs for these benefits are covered entirely by the District.
Insurance offerings include:
- Medical Insurance
- Dental Insurance
- Vision Insurance
- Life Insurance

Dependent Insurance

Similar to employee insurance, dependent benefits begin after 30 days of employment.
Costs for these benefits are deducted bi-weekly from employee paychecks, pre-tax.
Available dependent insurance includes:
- Health Insurance for spouse and children
- Dental Insurance for spouse and children
- Vision Insurance for employee, spouse, and children

Policy Updates

Revised and adopted policy date: August 2023.

Description

This quiz covers the essential aspects of retirement eligibility, employee accounts, and the contribution process. It highlights the minimum age and service requirements for retirement, as well as options for employees leaving the district. Test your knowledge on TCDRS, deductions, and deferred compensation plans.