If you are a teacher who lives in Illinois, you may be at the beginning of your career, approaching retirement, or anywhere in between. Regardless of where you find yourself on this spectrum, you may have questions about what retirement benefits you may be eligible for, including whether or not you can receive retirement benefits from the Social Security Administration. This is an understandable question to ask. After all, retirement benefits can be an important source of financial support at the conclusion of a long career. Knowing what to expect and being able to plan ahead can be tremendously helpful. Let’s take a closer look at the law together.
What is the Teacher’s Retirement System?
At the outset, the short answer to the question of whether teachers in Illinois receive Social Security retirement benefits is no. Ultimately, states get to make the choice on this issue, and Illinois is one of fifteen states that does not participate in Social Security retirement benefits for teachers.
Under the original Social Security Act of 1935, all public employees were excluded from receiving Social Security benefits. This is because they were assumed to have existing retirement coverage, often in the form of pensions, which would provide for them in their later years. As time progressed, however, some people felt that the retirement programs that existed for public employees did not provide the same level of benefits that Social Security did.
Subsequently, some states began extending Social Security coverage to public employees like teachers, while others did not. Illinois is a state that still continues to provide for teachers through its own state-provided pension plan, also known as the Teacher’s Retirement System of Illinois or TRS for short.
TRS was founded in 1939 and is the largest public retirement system in the state of Illinois. Essentially, TRS is a pension-based system. However, the teacher’s contributions, or those made on behalf of the teacher by the school district or the state, do not ultimately determine the value of the pension when the teacher retires. Instead, the final pension amount is determined using a formula based on the particular teacher’s years of experience and final salary. A variety of factors go into this calculation, and as a result, consulting with a professional regarding your particular circumstances and eligibility is always a wise decision.
A Few Commonly Asked Questions – Are All Teachers Eligible for TRS?
No, not all teachers are immediately eligible for TRS. Instead, a teacher must work for a certain number of years in the school system before qualifying. In Illinois, there is typically a ten-year vesting plan.
How Are TRS Benefits Calculated?
Generally, the longer that a teacher works, the more the pension will be worth. Most teachers cannot collect the pension until they reach the state retirement age. Teachers can choose to take early retirement, but doing so will result in a reduction of benefits.
What If A Teacher Works A Second Job?
Often, the question is asked – what if a teacher works another job? How will that affect whether or not the teacher can receive Social Security benefits? This is an understandable question, as many teachers may have other employment through which they do pay Social Security taxes, or may have previously worked in a school district in another state where Social Security benefits were paid.
Typically, the Social Security benefits for which such teachers may be eligible are diluted by the Teachers’ Retirement System pension. In fact, a law known as the Windfall Elimination Provision exists to ensure that Social Security benefits are recalculated to reflect those who receive pensions from “non-covered” work that did not require the payment of Social Security taxes. Understandably, this may seem complicated. For that reason, consulting with an attorney as well as a financial professional is always advised.
Without question, retirement issues can be confusing – and so can matters surrounding Social Security benefits. If you are a teacher in Illinois and you have additional questions about any matters surrounding these Social Security issues or any others, at GCC Law, we’re here for you.
GCC LAW – Here For You
If you are a teacher, you are someone who changes lives. At GCC Law, we believe that completely. Teachers deserve to be supported, encouraged and appreciated because the work they do is invaluable. That’s why we also believe that teachers deserve to understand the law and how it affects their eligibility for certain benefits. It is important to be able to plan ahead and know what to expect. That’s why we’re always here to help with any legal matters surrounding Social Security benefits that you may encounter. We’re here for you, and we’re only a phone call away. Reach out to us if you need us. We look forward to helping you soon.3