Texas Retirement System for Civil Servants
When you mention the State of Texas a number of unique things come to mind. Some of that uniqueness includes its reputation of being everything big, the Alamo, being its own nation at one time, oil, etc.
Another unique feature is that this state is known for its economy. This is due to the fact that the cost of living in Texas is moderate, its economy is progressive and there is no state income tax. These factors make the Texas retirement system an even more appealing option for the Texas retirement system civil servant.
Specifics of Texas Retirement Systems
The goal of a retirement system is to provide a portion of the retirement money needed for dedicated and faithful employees upon their retirement. Often, this provision includes monetary benefits as well as low cost access to health care. The Texas retirement system is no different.
Generally, within the Texas retirement system, the civil servant is eligible or vested after five years of uninterrupted service. In addition, a civil servant may choose to retire after 20 years or when that individual reaches the ages of 60. In addition, individuals who are hired have no choice as to whether they participate. That is because enrollment in the Texas retirement system is mandatory.
Funding for the Texas Retirement System
Funding for the retirement plan is a combination of the employee's wage and funding from the employer. In this case the employer is the State of Texas. In particular, the civil servant submits 7% of their gross salary and the state matches that contribution with a two to one ratio. Generally, this match has a cap or ceiling up to a certain amount.
In addition, there are annual increases built into the Texas retirement service program. This means that those who receive this pension will automatically receive annual increases in their benefits. These adjustments are an effort to keep pace with inflation.
The Benefits of the Texas Retirement System
In addition to the obvious benefits of a two to one match, the low cost of living in Texas., earnings not subject to state income tax and health care there maybe additional benefits. Some of those benefits include, at no cost, and life insurance benefit equal to the individual's yearly salary. In addition, a disability benefit may be included too.
Also, because of military commitments by some of the employees, there may be included a service credit for those who are called to active duty.
