TMRS - Membership

This summary is an informal presentation of the TMRS Act and related law, and if any specific questions of fact or law should arise, the statutes will govern.

Your Member Account

Your Member Deposits
Interest on Member Accounts
Prorated Interest
Your Annual Statement
City Matching Funds

Your Member Deposits

Each month, your city withholds a percentage of your gross monthly salary and deposits the money in a TMRS account in your name. These are your member deposits. Each TMRS city chooses the rate of member deposits, either 5%, 6%, or 7% of your gross salary.

Your member deposits to TMRS are tax-deferred, which means they are not subject to federal income tax until they are paid back to you in the form of a refund or a monthly retirement benefit. Click here for more information on taxes.

At retirement, your member deposits and the interest earned are combined with the city's matching funds and other credits granted. TMRS then calculates a monthly retirement benefit based on these amounts, the interest they will earn, an estimate of your remaining life expectancy at retirement, and other factors.

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Interest on Member Deposits

Interest on your TMRS member account is credited once each year on December 31. Interest is calculated on the balance in your account as of January 1 of that calendar year. For example, interest on your account for the year 2005 will be credited on December 31, 2005, and is calculated on your balance at the beginning of the year, January 1, 2005. The rate of interest is based on the investment income of the System and is determined annually by the Board of Trustees.

IMPORTANT:
Interest is not credited for parts of a year, except in the year a member retires or when a member dies and a refund of member deposits is paid to the beneficiary or estate.

A significant amount of your total retirement benefit comes from interest credited to your member account from TMRS investments. For most members reaching retirement, interest earnings will exceed the amount of the member's total deposits.

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Prorated Interest Only When You Retire

You receive prorated interest on your account only during the year in which you retire. For example, if you decide to retire in July 2005, your account will receive prorated interest for part of that year. For a July 2005 retirement, you would receive 7/12's of the preceding (2004) year's interest rate based on the balance in your account on January 2005. Prorated interest allows you to choose the time of the year you would like to retire without losing interest on your account.

Q: Can I borrow money from my TMRS member account?

A: No. Your member deposits and interest are unassignable. This means you cannot borrow from your account nor can you use your account as collateral for a loan.

Q: If I leave TMRS-covered employment and withdraw my money, and later become a member again, can I buy back my former service credit?

A: Yes, if your city has adopted an ordinance that allows buyback and you are an employee of the city when the ordinance is adopted.

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Your Annual Statement

Each year, TMRS mails you an Annual Statement of your account with the System. Your Annual Statement shows the funds in your Member Account and the total service credit you have with TMRS. The statement also shows your estimated retirement income.

Please remember the retirement estimates shown on the Annual Statement are simply estimates based on certain assumptions. You should contact TMRS for further information before you decide to retire.

You have up to four years to correct any errors regarding your account as shown on your Annual Statement.

It is very important that you keep TMRS informed if your address changes. A correct address is necessary for TMRS to send your Annual Statement and other important information.

You can also see your current account information using MyTMRS�.

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City Matching Funds

For every month you make a deposit to TMRS, your city agrees to match your deposits and interest at a rate chosen by the city: 1 to 1; 1-1/2 to 1; or 2 to 1. The city's match of your deposits and interest is held in the city's TMRS account until you retire, when the city match becomes part of your benefit. The only way to receive the city's matching funds is to retire from TMRS and receive a monthly payment.

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This Website is an informal presentation of the TMRS Act and related law, and if any specific questions of fact or law should arise, the statutes will govern.
TMRS and MyTMRS are registered trademarks.