Texas Teachers are under the Texas Teachers Retirement System (TRS). This retirement plan includes positions that are covered by Social Security and positions that are not covered by Social Security. This situation provides an environment under which employees can use the "last day test" rule to avoid the GPO reduction. That is, it has enabled individuals who worked primarily in non-covered employment under TRS to switch to a position that is covered by both Social Security and TRS for their last day. A person is exempt from the GPO if, on the last day of employment, the individual works in a position that is covered by both Social Security and the pension system and that last day of earnings is considered by the pension system in determining the pension amount.

NOTE: Based on the enactment of the Social Security Protection Act of 2004 (P.L. 108-203, enacted March 2, 2004), the "last day" exemption to the GPO can apply only if:  1) the last day of covered employment is before July 1, 2004; or 2) the person applied for the Social Security spouse’s or surviving spouse’s benefit before April 1, 2004.

For more details on this change in the law, see the question on the Social Security Protection Act of 2004. This law generally replaced the "last day" exemption to the GPO with a requirement that the person work in a position covered by Social Security for the last 60 months of government employment prior to retirement.