PenMaxExampleJanice
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TEXAS TEACHER RETIREMENT SYSTEM PENSION MAXIMIZATION
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Information About You
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TRS ParticipantJaniceFemale48years old
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SpouseBobMale52years old
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Janice has Participated in the TRS for
19
continuous years.
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Janice's current annual salary is
$48,622$48622 is the average for 19 years of service here in Hays county.
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Scenarios
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Changing the inputs in green text will allow you to see how they affect financial outcomes for you and your family illustrated in the box below.
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Janice Plans to retires at age65
after 36 years of service.
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Janice survives15years past retirement. Janice lives to be 80 years old.
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Who survives whom? Janice, Bob, or Neither (both die in same year).Janice
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Janice Survives Bob by5years. Bob lives to be 79 years old.
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TEACHER RETIREMENT SYSTEM JOINT AND SURVIVOR BENEFIT
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Annual Cost to Janice and Bob of a 100% Joint & Survivor benefit is:$5,819which equals $485 per month. Beginning at retirement.
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Total Cost$58,194
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Value to Bob$0
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Value to your kids, grandkids, and great grandkids$0
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VERSUS
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PENSION MAXIMIZATION
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Annual Pension Maximization Contribution$5,023
which equals $419 per month.
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Option 1 - Continue Pension Maximization until Janice's passing
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Total Contribution$160,736
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Value to your kids, grandkids, and great grandkids at time of Janice's passing.$471,637
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Option 2 - Terminate Pension Maximization at Bob's passing
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Janice would withdraw her Pension Maximization account balance of:$119,486
and no longer pay $419 per month.
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Making her net cost for Pension Maximization: $16,135
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Projected average of Janice's 5 highest annual salaries at the time of her retirement is:$61,705
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Janice's projected Standard Annual Retirement benefit (without Joint & Survivor Benefit) is:$51,092
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Estimated Annual Retirement benefit if Janice and Bob elect a 100% Joint & Survivor benefit is:$45,273
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Discount Rate6%
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Cola Rate0.015
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There are assumption made in this worksheet that will affect the performance of both the TRS Joint and Survivor Benefit and projections for Pension Maximization. This is for illustration purposes only. This is not an offer, contract, or promise of future performance.
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