Ive heard about 401(k) plans and IRAs. What kind of plan is TRSL?
401(k) plans and IRAs are defined contribution plans used by private businesses to help employees save for retirement, in addition to Social Security benefits. These retirement benefits depend on the accumulated contributions in your personal account. TRSL is a defined benefit plan. Defined benefit means that your guaranteed lifetime benefit is calculated using a formula that is defined by state law. The TRSL formula is your years of service credit multiplied by your final average compensation multiplied by the appropriate benefit factor. TRSL members generally do not contribute to Social Security and do not gain eligibility for Social Security old-age benefits.
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- Ive heard about 401(k) plans and IRAs. What kind of plan is TRSL?
- Ive heard about 401(k) plans and IRAs. What kind of plan is TRSL?
