Managing Multiple TCDRS Accounts

Managing Multiple TCDRS Accounts

Some TCDRS members have more than one account, usually because they worked for different TCDRS-participating employers over the years. If that's true for you, it helps to understand how those accounts work together and what options you may have.

Each time you work for a new TCDRS participating employer, a separate account is created for you. Your previous accounts remain intact until you choose to close them.

Having more than one TCDRS account can give you some extra flexibility as you plan for retirement. When you understand how service time, deposits, and benefit options work across those accounts, it's easier to make informed choices.

Combining Service Time

If you have more than one TCDRS account, you may be able to use your combined service time to qualify for retirement and survivor benefits.

You can count service time from both open and closed accounts, even if you withdrew money or retired and closed one of them. That may help you become eligible for benefits sooner, even though the account balances stay separate.

If you have service time with another Texas public retirement system, you may be eligible for the Proportionate Retirement Program (PRP), which lets you combine service time across participating Texas retirement systems to meet eligibility requirements. Go here for more information.

Account Statements and Balances

You can't combine account balances, even if you can combine service time. Instead, you will receive a separate annual statement for each account, showing that account's balance, benefit estimates and your total combined service time.

Re-Establishing a Closed Account

If you previously withdrew money and closed an account, you may have the option to make a one-time deposit to re-establish it.

You can deposit up to the amount you withdrew, plus the employer matching on that amount. Here are a few important things to keep in mind:

• You can make only one deposit per closed account (no installments).

• The re-established account earns 7% annual compound interest going forward.

• The amount you pay back does not qualify for employer matching when you retire.

Re-establishing an account is optional, and it may not make sense for everyone.

Retirement Options with Multiple Accounts

Once you're eligible to retire, you can decide how to use each account. If you have multiple accounts, you may be able to:

• Choose different benefit payment options for each account

• Name different beneficiaries for each account

• Retire from one account while leaving another active

You don't have to retire from every account at the same time. If you want help sorting through your options, TCDRS Member Services can walk you through them.

Benefits