ERS Retirement Group 4 members get gain-share for second year

2-minute read

Group 4 members (those who started working at a Texas state agency after Aug. 31, 2022) have received a 2.74% gain-share on the Aug. 31, 2024 balance of their Employees Retirement System of Texas (ERS) Retirement account, based on ERS’ average investment return for Fiscal Years 2020–2024.

If you are a current Group 4 member with an account balance as of Aug. 31, 2024, the 2.74% gain-share is reflected in your ERS Retirement account balance. This is in addition to the guaranteed 4% interest that Group 4 members earn over the course of the year.

If you are in Group 4 and want to see the gain-share’s impact on your account balance, log in to your ERS OnLine account. On your Member Home Page, click on Account Balance Summary (under My Retirement Information).

What is gain-sharing?

Gain-sharing is a way for ERS to share positive investment returns with Group 4 members and retirees. In a fiscal year when the average investment return for the previous five fiscal years is more than 4%, members in Group 4 get an increase in their accounts, up to an additional 3% gain-share, for a possible maximum total 7% increase. By law, gain-share is available only to participants in ERS Retirement Group 4.

If you’re a Group 4 member who contributes to the Law Enforcement and Custodial Officer Supplemental (LECOS) Retirement Fund, your LECOS account will receive the same gain-share percentage as your regular retirement account.

It's important to note:

• Because gain-share is based on the five-year average of annual investment returns, there’s no guarantee Group 4 members will get a gain-share every year.
• Group 4 members’ ERS Retirement accounts will never earn less than 4% each year, and it will never lose money.
• Gain-share is capped at 3% under current law.

Two years of gain-shares

This is the second year Group 4 members have gotten a gain-share. Last fiscal year, there was a gain-share of 1.77%, based on ERS’ average investment returns for Fiscal Years 2019–2023.

Learn more about how gain-sharing works for Group 4 members.

Note for employees of higher education institutions, the Community Supervision and Corrections Department and Windham School District: ERS does not administer your retirement plan. If you work for one of these entities, please see information on the Teacher Retirement System of Texas (TRS) and the Optional Retirement Program (ORP).