Teacher Prep’s mission is to work directly with teachers to help them answer their questions about their benefits, and make decisions throughout their teaching career and after that will help them retire and stay retired. If you have any further questions, please reach out to us. We are here for you!
Frequently Asked Questions
Have Questions? Get Some Answers
What retirement plan am I in?
Teachers are enrolled in one of several VRS retirement plans (Plan 1, Plan 2, or the Hybrid Retirement Plan) depending on when they were first reported to VRS. Each plan has different benefit formulas and rules.
When can I retire with full benefits?
Eligibility depends on your VRS plan and age/service combination. For example, some plans allow unreduced retirement at normal retirement age with sufficient service, or at younger ages with more years of service.
How is my retirement benefit calculated?
Benefits are based on a formula using:
- Your age at retirement
- Total service credit
- Average final compensation (salary)
Different plans use different multipliers and periods for averaging.
What is the difference between a 457(b) and a 403(b) plan?
Both plans are designed to as supplemental retirement plans. There are key differences between the two types of plans, including withdrawal rules and how the accounts are taxed.
What happens to my life insurance when I retire?
Your life insurance after employment becomes a retiree benefit through the VRS, and is based on a formula. The life insurance benefit decreases dramatically as you go through retirement.
What happens to my health insurance when I retire?
VRS retirees with at least 15 years of service may receive a health insurance credit that helps offset retiree health insurance premiums. Premiums are much higher in retirement then while you were working.
When should I start planning for retirement?
Retirement is a constant planning process. It begins when you start teaching, and it requires maintenance throughout your career. If you have full years of service and are looking to retire in the short term, schedule a consultation with a Teacher Prep counselor.
Media Appearances
Andrew Explains Teacher Retirement Planning
Andrew Discusses Teacher’s Taxes
From Lesson Plans to Retirement Plans
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Independent, Fiduciary Advice
As an independent, fiduciary firm, we aren’t obligated to a home office or stuck with a limited list of products or solutions. We have access to a universe of financial instruments from dozens of institutions that we can utilize to help you. And besides the SEC and financial regulatory agencies, you are the only one we answer to. Teacher Prep is organized as a fee-based firm with a legal fiduciary duty to our clients which means we must do what is in your best interests at all times, even if it doesn’t benefit us at all. And that’s the way we like it. Teachers are an incredibly important part of American society, and you are our focus.
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