Understanding Your Georgia TRS Pension: Survivorship Options, Taxes, and Key Considerations
For Georgia educators, the Teachers Retirement System (TRS) pension is one of the most valuable benefits when planning for retirement. Whether you're approaching retirement or just starting your career, understanding how your pension works—especially survivorship options and tax implications—can help you make the best financial decisions for your future.
How the Georgia TRS Pension Works
The Georgia TRS pension provides a lifetime income for eligible educators based on years of service and salary history. The longer you work and contribute to the system, the higher your pension benefit will be.
Educators qualify for full retirement benefits under TRS if they meet one of the following criteria:
30 years of service at any age
At least 10 years of service at age 60
Once you retire, you’ll need to choose a pension payout option, which determines how your benefits are distributed and whether they continue to a beneficiary after your passing.
Survivorship Options: Choosing the Right Plan
When you retire, Georgia TRS offers several payout options, allowing you to structure your pension based on your financial needs and whether you want to provide for a spouse or loved one after you pass away.
Plan A: Maximum Plan
🔹 Provides the highest monthly benefit
🔹 Stops at your death—no survivor benefits
🔹 Best for retirees who don’t need to provide income for a spouse or dependents
Plan B Option 2: 100% Joint & Survivor
Provides a slightly reduced monthly benefit
Your beneficiary receives 100% of your pension for life after your passing
Ideal for retirees who want to ensure their spouse has continued income
Stuck at the reduced amount in the event your beneficiary passes away.
Plan B Option 2 Pop-up: 100% Joint & Survivor
Provides a lower monthly benefit than Option 2 but allows you to pop-up to your Max benefit in the event your beneficiary passes before you.
Your beneficiary receives 100% of your pension for life after your passing
Ideal for retirees who want to ensure their spouse has continued income
Plan B Option 3: 50% Joint & Survivor
Provides you a larger monthly benefit than the option two’s but your spouse only receives 50% of what you’re receiving.
Great for retirees who’s spouse does not need that 100% benefit, allowing the retiree to receive more upfront.
Stuck at the reduced amount in the event your beneficiary passes away.
Plan B Option 3: 50% Joint & Survivor
Provides you a larger monthly benefit than the option two’s but your spouse only receives 50% of what you’re receiving.
Great for retirees who’s spouse does not need that 100% benefit, allowing the retiree to receive more upfront.
In the event your beneficiary passes away, you pop-up to your maximum option.
Taxes on Your Georgia TRS Pension
Your Georgia TRS pension is subject to federal and state income taxes, but Georgia offers tax advantages for retirees.
Federal Taxes
Your pension is considered taxable income at the federal level. You can choose to have federal income tax withheld from your pension payments.
Georgia State Taxes
Georgia does not tax Social Security income
Georgia offers a Retirement Income Exclusion, allowing retirees over 62 to exclude up to $35,000 ($65,000 for those 65 and older) of pension and other retirement income from state taxes
If your TRS pension plus other retirement income exceeds the exclusion amount, the excess may be subject to state taxes
Additional Considerations for Educators
While your TRS pension is a great foundation for retirement, it’s important to consider:
Supplementing your income – If your pension alone won’t meet your retirement income needs, consider an Indexed Universal Life (IUL) policy or an annuity for additional financial security.
Long-term care planning – Your pension doesn’t cover long-term care expenses. A life insurance policy with living benefits can help protect your assets.
Estate planning – Choosing the right pension option ensures your spouse or loved ones are taken care of financially.
Final Thoughts
Your Georgia TRS pension is a key part of your retirement, but making the right choices on survivorship options, taxes, and supplemental income can make a big difference in your financial security. If you have questions about how your pension fits into your overall retirement plan, it’s important to work with a financial professional who understands the needs of educators.
Need Help Planning for Retirement?
At Teacher Focused Advisors, we specialize in helping educators make the most of their TRS pension and build a secure financial future. Whether you're evaluating pension options, considering additional retirement savings, or looking for tax-efficient strategies, we’re here to guide you.
Schedule a free, no-obligation consultation today!
