2014 Additional Earnings Credit
The Teacher’s Retirement Board has the statutory authority to declare a credit when the Defined Benefit Supplement and Cash Balance Benefit programs show substantial investment earnings. The programs met the thresholds for a credit for the fiscal year ending June 30, 2014. The board declared the credit on June 11, 2015, for fiscal year 2013-14.
By policy adopted by the board, members and beneficiaries receiving a Cash Balance or Defined Benefit Supplement annuity, or both, will no longer receive an annuity credit.
Amount of the Credit
The credit will be applied to eligible active and inactive members who had funds in the Defined Benefit Supplement or Cash Balance Benefit programs, or both, as of June 30, 2014, based on their account balance on that date.
All recipients will receive the credit at the following rates:
- 4.5 percent credit for funds in a Defined Benefit Supplement account
- 4.0 percent credit for funds in a Cash Balance Benefit account
How the Credit is Distributed
If you are an active or inactive member and eligible to receive the credit, the credit will appear in your 2016 Retirement Progress Report, available online in September 2016.
If you were eligible to receive the credit but retired after June 30, 2014, but before June 11, 2015, you will receive a payment equal to the credit.
If you were eligible to receive the credit but began receiving an annuity on or after June 11, 2015, your Defined Benefit Supplement or Cash Balance annuity, or both, may be recalculated to include the credit. You will receive an adjustment letter detailing the recalculation of your benefit.
If you were eligible to receive the credit but have since refunded your account, you will receive a one-time payment in 2016.
For additional information, see the Additional Earnings Credit Frequently Asked Questions.