Retirement & Financial Planning
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The Teacher Retirement System (TRS) is the public pension plan for Texas school districts. Although you will be making monthly contributions to your retirement, for many employees, their TRS pension income will not be sufficient in retirement because it is not automatically adjusted for inflation.
BISD offers additional financial savings options for retirement to help you plan for your future.
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Teacher Retirement System (TRS)
As you approach your years of service and the age required to retire, financial experts recommend that retirees aim for 80–90% of their pre-retirement income for a comfortable retirement. It's important to assess whether you are on target for this goal.
TRS offers a wealth of information for its members. This includes details on normal and early retirement, information for grandfathered members, and guidance on disability retirement.
For employees considering retirement, it is advised to contact TRS at 1-800-223-8778 or visit Planning for Retirement. TRS can provide guidance and outline the necessary steps for retirement.
Additional information can be found by visiting the TRS Retirees and Beneficiaries website.
TRS also offers Education Membership videos that provide answers and information to the most commonly asked questions about TRS member pension benefits. No matter where you are in your career, you will find something useful in each video. Watch each video in the series here.
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National Benefit Services 403(b) and Roth 403(b)
403(b) - National Benefit Services
A 403(b) plan, also known as a tax-sheltered annuity, is a tax-advantaged retirement savings plan available for public education organizations. Contributions are made on a pre-tax basis and investment earnings grow tax-deferred until withdrawal, assumed to be retirement.
403(b) - Retirement Account Setup
A 403(b) plan allows you to contribute a portion of your compensation as a pre-tax or post-tax (Roth) contribution to save for retirement. Participation in the 403(b)plan is completely voluntary. if you are already contributing, if you are already contributing, you can increase or decrease your contributions at any time.
Roth 403(b) - National Benefit Services
Roth is an option under the current 403(b) plans. The Roth 403(b) provides you with an option to make voluntary contributions on an after-tax basis. You get no current-year tax deduction for your Roth contributions. However, qualified distributions (funds in an account for 5 years after the first deferral and done after age 59 ½) will allow participants to withdraw their money tax-free. Employees can enroll for this option or stop contributions at any time.
More information about each plan can be found on the Employee Benefits Portal in the Financial Planning section.
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National Benefits Services - 457(b)
A 457(b) is an employer-sponsored, voluntary retirement plan that allows you to save money in a pre-tax account.
Contributions to the plan are salary-deducted from your paycheck and automatically deposited into your 457(b) retirement savings account. Once separated from service, withdrawals from a 457(b) account are not subject to a 10% early withdrawal penalty.
The 457(b) plan offers employees personalized guidance and flexible strategies to start.
To get started, visit National Benefit Services and establish your account. Once you have established an account with a Vendor, please complete the Salary Reduction Agreement form indicating how much you would like to contribute. After that, please return it to the NBS (National Benefit Services) address or fax number provided on the bottom of the form and they will take care of the rest.
View 457(b) forms here.
More information about each plan can be found on the Employee Benefits Portal.
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FICA Alternative Plan for substitute, tutor, seasonal and temporary employees
This plan is for substitute, tutor, seasonal, and temporary employees.
The Federal Insurance Contributions Act (FICA) Alternative Plan is a qualified retirement plan under Federal tax law that covers part-time, seasonal, and temporary employees of the school district except for Texas Retirement System (TRS) retirees.
The plan provides an alternative benefit to Social Security and exempts individuals from FICA (Social Security) payroll taxes. Employees can continue to pay Medicare taxes on their wages.
Enrollment in the plan is automatic for every employee who works in a position covered by the plan.
Employees can contribute 7.5% of their wages on a pre-tax basis (for income tax purposes) instead of paying social security taxes that otherwise would be determined and paid by the employee on an after-tax basis. The plan contribution amount is reflected on the employee's paycheck stub. Contributions are credited to an individual account in the employee's name under the plan.
Review the FIAC Alternative Plan Summary
To review your account balance or request a distribution, and access your account on the National Benefit Services website. For additional information, contact NBS administrators at 855-399-3035.
Retirement and Financial Planning FAQ
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I am considering retirement and have questions about my TRS. Who do I call?
Contact TRS at 800-223-8778 or visit the TRS website to read about “Planning for Retirement.”
TRS also has a TRS Education Membership video series intended to provide answers and information to the most commonly asked questions about TRS member pension benefits. No matter where you are in your career, you will find something useful in each video.
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How do I start, change, or stop my contributions?
The 403(b) is a plan allowed by the IRS to set aside money on a pre-tax basis for retirement purposes. To start, change, or stop contributions, contact NBS:
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Phone: 800-274-0503 (extension 5)
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Fax: 800-597-8206
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Email: 403bservice@nbsbenefits.com
To make changes, complete and submit a Salary Reduction Agreement form.
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