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Answers to Common Retirement Questions from Tier 1 Annuitants

This brochure was written for members who have been retired for more than one year. It covers some common questions TRS receives from annuitants.

Annual Occurrences

Expect a 1099-R Form

If you received a TRS benefit in the last year, the Office of the Comptroller will mail an IRS Form 1099-R to you by January 31 in the new year. This form will report your income received from TRS during the previous year and the taxable portion of that income.

Box 5 on your 1099R form sometimes causes confusion for members. The text in Box 5 states “employee contributions or insurance premiums.” The monetary amount listed in Box 5 is actually the non-taxable portion of your TRS benefit. It represents the contributions you made as an employee that were already taxed before you retired. If you subtract the taxable income from the gross distribution listed in Box 1, the resulting difference should be the amount in Box 5.

Increases in annuity

As an annuitant, you will receive a 3 percent annual increase in your annuity if you have made contributions equivalent to one year of creditable service after June 30, 1969. You will receive the increase on the later of:

  • January 1 following your first anniversary in retirement or
  • January 1 following the date you reach age 61.

The increase is effective in January of each year and is reflected in the payment you receive in February. When we calculate the first increase, we include increases for the entire time you have been in retirement. This first increase is calculated by determining the number of years that have elapsed since you retired and the effective date of your initial increase. This increased benefit continues until the next annual increase of 3 percent is applied.

Post-Retirement Limits

While you are receiving a retirement annuity, certain restrictions apply. These restrictions include: where you may accept employment, the types of positions in which you may be employed, and the number of days and hours you may work.

Employment limitation

You may be employed by any college, university, or private school without limitation. In addition, you may be employed by a school district in a position not covered by TRS without limitation. You may also be employed in public school systems outside the state of Illinois without limitation.

If you retired under the Retirement Systems Reciprocal Act, you should contact each system for the employment limitations that apply.

This section does not cover specific limitations for annuitants in their first year of retirement because this brochure targets members who have been retired for more than one year.

120 days/600 hours limitation

Following the school year in which you last contributed to TRS, you may be employed in a TRS-covered position for up to 120 paid days or 600 paid hours per school year and still receive a retirement annuity. The 120 days/600 hours limit is in effect through June 30, 2026.

If you exceed the employment limitations during any school year,

  • we must be notified,
  • your retirement annuity will be suspended,
  • you will re-enter active membership, and
  • your employer must remit TRS contributions on all creditable earnings after the employment limitations are exceeded.

Teachers’ Retirement Insurance Program (TRIP)

TRIP is a comprehensive program of quality health care coverage for retired teachers and their eligible dependents. The program offers two types of plans: standard plans and Medicare Advantage (MAPD) plans. Benefit recipients enrolled in TRIP have prescription drug coverage available. 

In order to join TRIP, you must be receiving a monthly benefit from TRS and have at least eight years of creditable service.

Enrollment Periods

There are four times when you may enroll in TRIP:

  • at retirement,
  •  when coverage is involuntarily terminated by a former plan,
  • when turning the age of 65,
  • during an annual Open Enrollment Period.

Annual Open Enrollment Periods are held twice a year. The Benefit Choice Period is held the month of May for enrollment into standard TRIP plans. The Annual TRAIL Open Enrollment Period is held mid-October through mid-November for enrollment into Medicare Advantage (MAPD) plans.

You may enroll dependents when you enroll in the program or when your dependent experiences a Qualified Change in Status (see “Enrollment Periods” above).

Social Security Offsets

TRS will never reduce your TRS benefit because of Social Security benefits.

However, the Social Security benefits of many eligible members will be reduced because of public employment not covered by Social Security. Only the SSA can provide this information.

The Windfall Elimination Provision (WEP) may reduce your Social Security benefit based on your record. The Government Pension Offset (GPO) may reduce your Social Security benefit based on your spouse’s record.

You must report changes in your TRS benefits (such as your annual increases) to the SSA because such changes may affect the Social Security amount you receive.


If you are eligible for Social Security coverage on your own work record, you will receive Medicare Part A coverage at age 65. You may have Medicare Part A coverage (hospital insurance) at age 65 if your spouse is at least age 62 and has worked in Social Security-covered employment long enough to be insured, even if your spouse is still working. Anyone may enroll in Medicare Part B (medical insurance); there is no work requirement.

Three months prior to your 65th birth month, contact the SSA and apply for Medicare benefits. The SSA will determine if you are eligible for Medicare. If deemed eligible, the SSA will enroll you into Medicare Parts A and B and mail you a Medicare identification card or award letter with the effective dates of your Medicare coverage.

If you are currently enrolled in TRIP, you must send TRS a copy of your Medicare identification card or Medicare award letter upon receipt. Benefit recipients who enroll in Medicare Parts A and B are required to transition from a standard TRIP plan into a Medicare Advantage (MAPD) plan. Failure to turn in documentation timely may result in a loss of TRIP coverage and additional out of pocket expenses. For additional information on the transition from a standard TRIP plan to a Medicare Advantage (MAPD) plan, telephone the TRS Call Center at 877-927-5877.

Medicare coverage is not reduced in any way because of the WEP or the GPO.

Death Benefits

The Beneficiary Designation form allows you to designate beneficiaries to whom death benefits will be distributed. Periodically check your designation, especially if you have changed your marital status. Verify your designation by reviewing it online in the secure member area of the TRS website or by calling us at 877-927-5877 (877-9-ASK-TRS).


For more information about the topics covered in this brochure, please visit our website, or call us toll free at 877-927-5877 (877-9-ASK-TRS).



BRO49 | 6/23