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TRS Retirement Income Example (see your $$$$)
The examples below illustrate the value of the Texas Teacher Retirement System (TRS) Basic
Annuity retirement income stream. These are shown at several "Final Average Salary" levels, ages
55 and 60, and different periods into retirement. They all represent large sums of income as they
are received over the years of life expectancy.
And large sums to forfeit by not living to or through life expectancy!
| Life Expectancy Value of |
| Basic Annuity* Retirement Income |
| Age Of Retiree & Spouse |
Final Average Salary |
Pension Year 1 |
Pension Year 10 |
Pension Year 20 |
At Year of Life Expectancy |
Total Value at Life Expectancy |
|
| 55 |
$50,000 |
$34,500 |
$42,100 |
$51,300 |
$54,700 |
$1,065,000 |
| 60 |
$50,000 |
$34,500 |
$42,100 |
$51,300 |
$50,700 |
$857,000 |
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| 55 |
$75,000 |
$51,700 |
$63,000 |
$76,800 |
$82,000 |
$1,597,000 |
| 60 |
$75,000 |
$51,700 |
$63,000 |
$76,800 |
$75,900 |
$1,285,000 |
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| 55 |
$100,000 |
$69,000 |
$84,200 |
$102,600 |
$109,400 |
$2,131,000 |
| 60 |
$100,000 |
$69,000 |
$84,200 |
$102,600 |
$101,400 |
$1,713,000 |
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The Pension Maximization Plan Advantage
If your personal, lifestyle, and financial objectives align positively with the What Is
Important To You section, then this table approximates the advantage your own
PenMax Plan may have over the TRS Basic Annuity. The TRS ceases
its Basic Annuity retirement payments to the retiree at his death, and likewise, ceases any
Spousal Reduction payments upon the death of the survivor (retiree/spouse).
However, it is likely that under your PenMax Plan there would still be a large
sum which could be used to benefit whomever you wish. The approximate range of
value is shown in the columns titled "PenMax Advantage" below.
It is this amount that may be "left on the table" simply by ignoring the opportunity, or
being unable to qualify for it.
| How Large is the PenMax Plan Advantage? |
| TRS, or TRS and PenMax Plan |
Age Of Retiree & Spouse
(both) |
Final Average Salary |
Standard Annuity
(monthly) |
Option 1
(monthly) |
The Pension Maximization Advantage at Life Expectancy |
|
| 55 |
$50,000 |
$2,875 |
$2,660 |
$175,000 to $275,000 |
| 60 |
$50,000 |
$2,875 |
$2,590 |
$160,000 to $250,000 |
| |
| 55 |
$75,000 |
$4,310 |
$3,990 |
$275,000 to $400,000 |
| 60 |
$75,000 |
$4,310 |
$3,890 |
$240,000 to $290,000 |
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| 55 |
$100,000 |
$5,750 |
$5,320 |
$400,000 to $475,000 |
| 60 |
$100,000 |
$5,750 |
$5,180 |
$350,000 to $525,000 |
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