Retiring in Texas: How Charter Schools Can Help Teachers Prepare Beyond TRS Pension Plans

Quick look: While the Teacher Retirement System (TRS) of Texas provides pension benefits to retirees, charter schools have an opportunity to go further and support staff through their own internal programs. In this blog, learn about the TRS of Texas and what strategies school leaders can use to help teachers and staff achieve their retirement goals and strengthen financial security.

Every educator and staff member eventually reaches the stage where it’s time to trade lesson plans for personal pursuits. Before that transition, peace of mind and financial clarity are essential.

Most teachers rely on the TRS of Texas to build retirement savings and access healthcare benefits. Charter school leadership teams, however, can also improve the retirement process by offering valuable resources and support.

Here’s a look at how TRS benefits charter school employees and what leadership can do to empower staff along the way.

What is the Teacher Retirement System (TRS) of Texas?

Established in 1937, the TRS of Texas helps local educational professionals secure and receive pension benefits after retiring. Employees of TRS-covered public schools, charter schools, and regional education service centers become active members on their first day of work.

Pension funds come from monthly deductions of members’ pre-tax salaries, plus direct contributions from education employers and the Texas state government. In 2025 alone, 523,657 retirees and their dependents received over $14.2 billion in benefits from TRS. Covered employees who joined on or after September 14, 2014 are eligible for payments if they are:

• 65 years old with 5 years of service credit
• At least 60 years old with 5 years of service credit and meet the Rule of 80 requirement (combined age and years of service equal 80 or more)

Additionally, the TRS of Texas offers two health benefit programs. TRS-Care delivers medical care to eligible retirees and their dependents, while TRS-ActiveCare helps cover non-retired public educators’ personal and family health needs. Disability retirement and survivor benefits are also available for qualified members.

Retirees’ challenges with TRS

Though the state’s teacher retirement system helps stabilize educators’ financial stability, some retirees may encounter challenges with their TRS pension plan.

A strict vesting period

Years of service are TRS measurements used to determine membership eligibility. To receive pension benefits, a teacher must have at least 5 years of service credit in the Texas school system. Educational employees also need to work full-time, or at least 15 hours per week, during each service period to remain an active member and eventually collect retirement income.

Nonportable pension

TRS members need to reside in Texas and work as an educational professional for a covered employer to participate in the program. Educators risk losing most, or even all, of their pension savings and benefits if they move to another state or switch to a non-TRS district or employer.

Healthcare limitations

Both TRS-Care Standard and TRS-Care Medicare Advantage offer non-customizable medical, dental, and vision coverage. Additionally, most retirees need at least 10 years of service credit to enroll in either health plan. This setup reduces retirees’ ability to tailor and access inclusive healthcare packages that meet their specific expectations.

Cost-of-living gaps

When inflation outpaces TRS pension contribution limits and interest rates, many retirees find that their savings fall short of cost-of-living needs. This can make it difficult to rely solely on pension funds to maintain their lifestyle.

How Texas charter schools improve staff retirement

Charter school leadership teams have an opportunity to support staff in preparing for retirement by implementing compensation and employee benefits practices. Here are key strategies that can set educators on a stronger path toward life after their careers.

Add financial wellness perks to employee benefits

The key to a sustainable financial future is understanding your savings options. Financial wellness benefits like employer-sponsored tuition reimbursement, legal services, health savings accounts (HSAs), and flexible spending accounts (FSAs), can help staff adopt smarter spending practices and maintain their savings longer.

Develop a 403(b) plan

Retirees often need additional savings with their pension to uphold a viable income. A 403(b) savings plan supplements TRS by having educational professionals contribute money to a separate retirement account. Like a 401(k), this strategy lets employees deduct pre-tax funds from their paychecks and contribute them to their 403(b) plan for use during retirement. Charter school leaders can boost this option’s worth by matching their staff’s contributions. This option is also valuable for charter school employees who don’t meet teacher retirement system requirements.

Establish fair pay standards

Annual pay equity audits help identify compensation gaps or discrepancies by comparing wages against cost-of-living rates. Pay transparency practices, such as listing a position’s compensation range in an open job posting, enable educators to effectively plan their financial future and savings strategies.

Offer competitive healthcare packages

Comprehensive health benefits give staff greater confidence in planning for retirement. Beyond standard medical coverage, consider offering plans that include non-traditional health perks such as family-forming resources, preventive cancer care, employee assistance programs (EAPs), and telehealth. Tiered coverage options give staff members the power of choice, while allowing charter schools to manage costs by funding only selected benefits. Also, offering post-retirement healthcare that’s accessible gives educators more flexibility to put their own and their dependents’ health first.

Outline retirement plan details in school policies

Your staff should know what retirement options are available. Whether you implement a new strategy or update an existing one, be sure to store all policy details in employee handbooks and portals. Along with personal school protocols, share info about TRS resources, state regulatory expectations, and contribution limits to ensure educational professionals understand their benefit options and comply with regulatory standards.

Help staff start retirement on the right foot

Supporting your staff’s retirement readiness not only complements their TRS plans but can also boost job satisfaction, which helps strengthen your charter school’s academic success and reputation as a top choice in the local education community.

Partnering with a PEO like ExtensisHR gives schools the resources and expertise needed to design and manage retirement programs. Through our SchoolCloud® solution and technology platform, charter schools receive:

• Access to education-focused HR and retirement plan experts
• Deep familiarity with the Texas HR and regulatory landscape
• Guidance on retirement plan design, compliance, and ongoing administration
• Comprehensive benefits services that help put school employees on a path toward long-term financial security

Together, we can tailor an HR strategy that sets your staff on a confident path toward retirement.

Contact our team today to learn how our PEO solution for charter schools can elevate your approach to supporting teacher retirement.