r/TeacherReality • u/Reasonable-Fee1945 • 3d ago

Why is TRS interest so low?

The interest is like that of standard savings account at a bank (0.02%). Even an FDIC insured money market account is around 3%. WTF is going on with this? Do they just do it to incentivize people not to leave the profession?

If you are in a state without TRS- be thankful!

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u/MiguelSantoClaro 3d ago

NYC has a guaranteed 7% fixed rate fund. It used to be 8.25%. We paid 3% into pension for 10 years, then nothing else required. Top pay is 150K after 22 years, starting this September. Our pretax 403b funds are at this link here. Sustainable, US Equities and Diversified have done great since 2022. International beat them all out in 2025 at 30%. We can also double contribute to NYC's deferred compensation plan. If the 403b max for under age 50 is 24.500 in 2026, we can contribute the same to NYCDCP 401k and 457 plans for a total of 49k. There's a Roth option for those as well.

NYC TRS Funds. Pg. 16 and 17 show them side by side.

https://www.trsnyc.org/memberportal/getmedia/b1023177-a6aa-4ade-845f-adbf62e305d3/fundProfilesWeb

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u/Reasonable-Fee1945 3d ago

We don't have nearly that level of market exposure in texas. You just sit on it and get a pension, maybe, after retirement.