TRS Contribution Rates Increase

August 18, 2021 • Cheryl Hoover

TRS Contribution Rates Increase

Increased contribution rates for Teacher Retirement System (TRS) go into effect September 1, 2021.

The TRS contribution rates were authorized by Senate Bill (SB) 12 during the 86th Texas Legislative session (2019). SB 12 provides gradual contribution increases each fiscal year through 2024 to make the pension fund actuarially sound. All contribution rates—the state, public education employers, active employees, and pension surcharge—will increase for pay received on or after September 1, 2021.

Employers will want to include this information when communicating 2021–2022 compensation and benefits to employees. Best practice is to annually issue a personal compensation and benefits statement to each employee along with an explanation of changes. A sample of a personalized compensation letter is available in the HR Library (member login required).

Employers who effectively communicate pay and benefits typically see higher employee job satisfaction than those who have poor communication strategies. Providing an explanation of the TRS rate increases and other changes will help employees understand their pay and deductions from their paychecks.


Cheryl Hoover is an HR consultant at TASB HR Services. Send Cheryl an email at cheryl.hoover@tasb.org.


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Tagged: Benefits, Compensation, "Teacher Retirement System", TRS, "TRS surcharge"