Definition of Terms

A refund of a member’s account balance that is issued at the request of the member and in accordance with TRS Laws and Rules. At the member’s request, membership in TRS is terminated and all of the member’s pension contributions plus any interest credited to the account are refunded. All service credit associated with the contributions is also terminated. State and employer contributions, however, are not part of the member’s account and remain in the TRS fund.

A member is eligible for a refund when the member has permanently terminated all employment with TRS-covered employers, including any employment that is not eligible for TRS membership, does not have a promise or agreement for future employment, and has not applied for employment with a TRS-covered employer. The only exception to the requirement that all employment with a TRS-covered employer must cease is if a member is serving only as a substitute. For TRS purposes, the definition of substitute is someone who takes the place of a current employee and is paid at the daily rate of pay as set by the employer.

If an employee has earned a year of service credit for the school year and then drops to a position that is not eligible for membership, the employer is required to continue to report and make contributions for the employee for the remainder of that school year.

TRS Rules 27.2, 27.3, and 27.4.

A person who serves on a temporary basis in the place of a current employee and is paid at the daily rate of pay as set by the employer.

For the purposes of Employment After Retirement only, retirees are also allowed to serve in a vacant position or positions for no more than 20 days in each vacant position and still be considered a ‘substitute,’ provided the retiree is not serving the vacant position created by that retiree’s retirement