Retirement & Savings

The Dalton Public Schools retirement program is made up of multiple parts: Social Security and either the Teacher's Retirement System (TRS) or the Public School Employees Retirement System (PSERS), and the Dalton Public Schools personal retirement plan option of a supplemental 403(b) plan.  More information is below.

 

Important Documents

The Teacher's Retirement System (TRS) is a defined benefit plan, meaning participants are guaranteed a set monthly retirement income from the plan.  Eligible positions include: Certified Teachers, Administrators, Clerical Staff, Paraprofessionals, Lead Custodians, and School Nutrition Managers.

 

The Public School Employees Retirement System (PSERS) is the retirement system for public school employees who are not eligible to participate in TRS.  This is also a defined benefit plan, so participants are guaranteed a set monthly retirement income.  PSERS retirement income supplements income from Social Security for all employees in a permanent position, employed half time or more.  Positions include: Maintenance and Custodial Staff, School Nutrition, Bus Drivers and Monitors, Transportation, and Warehouse staff.

 

The personal retirement plan can help employees supplement their state retirement plan by offering enrollment in a 403(b).  These plans are available to all employees and are managed by Corebridge Financial (formerly AIG Retirement Services / VALIC). 

Teacher's Retirement System (TRS)


How Does It Work? All TRS employees contribute 6% of gross salary to TRS through monthly payroll deduction.  In addition, Dalton Public Schools contributes 19.98% to each TRS employee’s retirement account monthly.

 

TRS members are vested with 10 years of creditable service and eligible to receive a monthly retirement benefit at the:

  • Completion of 10 years of creditable service and attainment of age 60.
  • Completion of 30 years of creditable service, regardless of age.
  • Completion of 25 years of service and before age 60, but with a permanently reduced benefit.

The amount you will receive at retirement is based on 2%, multiplied by your years of creditable service, multiplied by the average of your highest consecutive 24 months of pay.

Example:

2% x 30 years = 60%
Average of highest 24 consecutive months of pay = $70,000
60% x $ 70,000 = $ 42,000 / year

You may contact TRS at (800) 352-0650 to request a benefit estimate be mailed to you. You may also generate a benefit estimate online by following the TRS Benefit Estimate Instructions found in the Resources section.

Public School Employees Retirement (PSERS)


How Does It Work?  Participants in PSERS hired before 7/1/2012 contribute $4 monthly for a 9-month contribution period of September through May each year.  Employees hired after 7/1/2012, without prior PSERS qualifying service, contribute $10 monthly for the 9-month period.


PSERS members are vested with 10 years of creditable service and eligible to receive a monthly retirement benefit at the:

  • Completion of 10 years of creditable service and attainment of age 60, at a permanently reduced benefit.
  • Completion of 10 years of creditable service and attainment of age 65 with full benefits.

The amount you receive in retirement is based on your years of creditable service multiplied by a set dollar amount. The current amount set by the Georgia General Assembly is $16.50.

For example, an employee with 30 years of creditable service would receive a monthly benefit based on the calculation of: $16.50 X 30 years of service = $495.00 per month.


You may contact PSERS at (800) 805-4609 to request a benefit estimate be mailed to you. You may also generate a benefit estimate online by following the PSERS Benefit Estimate Instructions found in the Resources section.

403(b) Retirement Savings Plan


A 403(b) retirement savings plan is available if you wish to supplement your retirement benefits.  The funds are managed by Corebridge Financial (formerly AIG Retirement Services / Valic).

 

403(b) Retirement Savings Plan

 

A Roth account can be a way to boost your savings or reduce your taxable income in the future.  The account will allow you to set aside after-tax money, and after five years, make tax-free withdrawals of principal, interest, and earnings if certain conditions are met.  Other benefits include:

  • No tax is paid on the money deposited.
  • No tax is paid on growth while money is in the account.
  • You get to choose where to invest the money.
  • The money you deposit is 100% vested at all times.
  • If you leave employment you can transfer the money to your new employer’s plan or to an individual IRA.
  • At retirement, you can get a monthly check - tax is due on each payment at that time.

 

Below is a chart showing how much money you will have to invest each year, depending on your age when you start saving in order to have at least one million dollars when you retire at age 65.  These figures assume that you’ll get a 9% average annual return and that you put the money into your 403(b).

 

Age

Per Month Per Year
20 Years $136 $1,902
25 Years $214 $2,960
30 Years $340 $4,636
35 Years $547 $7,337
40 Years $892 $11,807
45 Years $1,498 $19,547

 

Planning to Retire?


For more information on your retirement options, please review the SHBP Retirement Presentation available here.