January 2008 Contribution Rate Flexibility

For members of Teachers’ Retirement System (TRS) Plan 3

Teachers’ Retirement System (TRS) Plan 3 members have an opportunity to change their contribution rate selection during January 2008. If you wish to change your TRS Plan 3 contribution rate, submit the TRS Plan 3 Contribution Rate Change form (199K PDF) to your employer. Otherwise, your current rate will remain in effect.

This opportunity is only available to TRS Plan 3 members during the period of January 1–31. Contribution Rate Change forms signed or submitted outside of the January time period, and those submitted for retirement plans other than TRS Plan 3, cannot be accepted.

This option is being offered according to provisions granted to TRS Plan 3 by the Internal Revenue Service (IRS). The contribution rate option you select should be considered binding and can only be changed when you change employers or during rate change windows as permitted by the IRS.

Things to consider

The right contribution rate option for you will be based on a variety of factors. Determining what’s best for your current and future circumstances may include an assessment of the following:

• Your current Plan 3 account balance
• Expected earnings on your account
• Length of time you will contribute to your account before you expect to retire
• Other savings and sources of income you expect to have during your retirement (including your Plan 3 defined benefit payments)
• Your life expectancy after retirement
• Your preferred retirement lifestyle
• Your estimated retirement living expenses
• Your current income and expenses
• Anticipated salary increases that might allow a higher contribution rate
• Anticipated changes in pre-retirement needs (such as college tuition, mortgage balloon payments, etc.)

Ultimately, you need to contribute enough to your defined contribution account to adequately fund your retirement.

You may contact your employer to verify your current contribution rate option or if you need a copy of the TRS Plan 3 Contribution Rate Change form.

The effective date for rate changes submitted in January will be based on your employer’s pay cycles and payroll processing cutoff dates.

To change your TRS Plan 3 contribution rate, submit the TRS Plan 3 Contribution Rate Change form to your employer during January 2008.

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