A few days ago

Should I sign up for the teacher retirement system?

I just got my first teaching job and I don’t know if I should sign up for the teacher retirement system. I heard they take out around 9% per paycheck. My financial advisor thinks that it would probably be better off to invest that money into an IRA. Are there benefits to the teacher retirement system compared to an IRA? I will be teaching in Illinois, if that helps any.

Top 3 Answers
A few days ago

Favorite Answer

if you are teaching in Illinois you don’t have a choice – they just take the money out – so get over it and realize you are going to see 9% of your money taken out whether you want the plan or not. The IRA would be extra – I have both and a 403B.

Good Luck!!!


A few days ago
The teacher retirement system is administered through the state. In Texas, it is called Texas Retirement System. State, county and municipal employees are all on the system; judges, trash collectors, police officers and firefighters, etc…

Same as in Illinois, Kansas, Rhode Island, et al.

Basically, instead of giving money to the government in Social security, you put your money into a state sponsored fund. However, when you retire, it works just like social security. I don’t trust social security to be there when I retire, therefore I have a SEP plan for me and my wife. Your financial adviser is giving good advice to sock money away into a different vehicle then just you teacher’s retirement. Just make sure to get several plans from a few financial planners in order to make a good comparison.

Oh, by the way, if an adviser plans on putting you into anything that has the word “variable” in it, he is just trying to line his pockets. Good luck, be a good teacher, you are with those kids more often then their parents.


A few days ago
TRS is part of your future contract in all public schools in IL unless you are going to teach in Chgo which has its own system, CTPF, or for a private school.

You can also sign up for a tax free annuity. After retirement you can pull out funds at a lower tax rate than you would pay while working.