Comprehensive Annual Financial Report Ending June 2011

NOTE N- RETIREMENT PLANS
Fayette County Board of Education
NOTES TO FINANCIAL STATEMENTS - CONTINUED
Teachers Retirement System of Georgia (TRS)
Plan Description
June 30, 2011
Substantially all teachers, administrative and clerical personnel employed by local school systems are
covered by the Teachers Retirement System of Georgia (TRS), which is a cost-sharing multiple employer
public employee retirement system.
TRS provides set-vice retirement, disability retirement and survivor's benefits for its members. A member
is eligible for retirement after 30 years of service, regardless of age, or after 10 years of service and
attainment of age 60. A member is eligible for early retirement after 25 years of creditable service. If an
employee retires under this provision, the benefit will be permanently reduced by the lesser of one-twelfth
of 7% for each montl1 you are below age 60, or 7% for each year or fraction of a year by which you have
less tl1an 30 years of creditable service. Retirement benefits paid to members are equal to 2% of ilie
average of ilie member's two consecutive highest paid years of service multiplied by the number of years
of creditable service up to 40 years. The normal retirement pension is payable monilily for life. Options
are available for distribution of the member's monilily pension at a reduced rate to a designated
beneficiary on the member's death.
Retirement benefits also include death and disability benefits whereby the disabled member or surviving
spouse is entitled to receive annually an amount equal to the member's service retirement benefit or
disability retirement, whichever is greater. The benefit is based on the member's creditable service
(minimum of 10 years) and compensation up to the date of death.
Members become fully vested after ten years of service. If a member terminates with less than ten years
of set-vice, no vesting of employer contributions occurs, but the member's contributions are refunded with
interest.
TRS issues a publicly available financial report that includes financial statements and required
supplementary information. That report may be obtained by calling (404) 352-6500.
Funding Policy
Employees of the School System who are covered by TRS are required to pay 5.25% of their gross
earnings to TRS (5.25% in 2010 and 5.0% in 2009). The School System makes monthly employer
contributions to TRS at rates adopted by the TRS Board of Trustees, as advised by their independent
actuary. The employer contribution rate was 10.28% for fiscal year ending June 30, 2011, 9.74% for fiscal
year ending June 30, 2010 and 9.28% for fiscal year ending June 30, 2009.
The School System's actual and required contributions to TRS for the years ending June 30, 2011, 2010,
and 2009 were approximately $11,539,365, $10,998,048, and $11,231,030, respectively.
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