Information for Retirees

Announcements for Retirees

2/2/12

TMRS Retirees: New Retirement Account Statements Mailed February 1

For the first time, TMRS is mailing all annuitants an account statement showing a snapshot of your retirement account as of January 2012. The statement shows your total gross monthly payment, COLA increase (if any), federal tax withholding, and the total net monthly payment in effect for calendar year 2012. Please note -- this statement replaces the COLA letter that was sent to some retirees in past years. If you have questions or if you do not receive your statement, contact TMRS at 800-924-8677.

1/25/12

1099-Rs Mailing Soon -- and Now Available on MyTMRS

The 1099-R forms for filing annuitants’ taxes are being mailed the week of January 23-30. For quicker access, you can now download your form 1099-R for 2011 from MyTMRS. To register for MyTMRS, click the MyTMRS button on the top right side of the TMRS webpage and follow the instructions. You will receive a verification e-mail, after which you can log in to MyTMRS using your chosen user name and password.

1/11/12

Change-in-CPI Factor for TMRS COLAs

The change in the CPI from December 2009 to December 2010 was approximately 1.5%. A retiree from a city that granted a 70% COLA on January 1, 2011 and January 1, 2012, can expect to see an annuity increase of about 1% beginning with his or her January 2012 monthly benefit payment. Retirees who are receiving a COLA will be notified of the amount in a new Retiree Account Statement to be mailed February 2, 2012.

TMRS cities choose whether or not to provide COLAs to their retirees. A city that chooses a COLA can elect to provide an increase to the retiree’s monthly benefit based on a percentage of the change in the Consumer Price Index (CPI) from the December before retirement through the December that is 13 months prior to the effective date of the COLA. Cities may choose to grant a COLA at 70%, 50%, or 30% of the change in the CPI, less all previously granted annuity increases. COLAs are granted effective January 1 of a given year.

1/31/11

Information for Retirees Receiving COLAs

It is possible that even though you may have received a COLA for 2011, your annuity might have decreased due to increased withholding. The amount of your withholding may have increased for 2011 as a result of the federal “Making Work Pay” credit expiring on December 31, 2010. For more information about this credit, see the explanation on the IRS website.

If you would like to change your current withholding election, send TMRS a new IRS W-4P Withholding Certificate for Pension or Annuity Payments(pdf). The completed form should be mailed to TMRS at PO Box 149153, Austin TX  78714-9153 or faxed to 1.512.476.5576.

1/29/11

2010 Tax Information for Retirees

1099-Rs have been mailed — The 1099-R forms that you will need for reporting your retirement income were sent on January 29. Please allow 7–10 business days for delivery. NOTE: if you have an amount listed in Box 5, that amount represents money that has already been taxed. In other words, it represents the difference between Box 1 (your gross distribution) and Box 2a (your taxable distribution). If you have questions, call TMRS at 800-924-8677.

Information about the HELPS provision — For retirees who are using the federal HELPS provision, letters were mailed January 19 with instructions for how to claim this deduction on your tax return. The annual letter will be the only information provided to help you with your tax reporting for HELPS insurance deductions. The 1099-R will not change.

2011 withholding —January annuity payments reflect the new 2011 tax withholding tables. If you would like to change your withholding election, you may submit an IRS W-4P Withholding Certificate for Pension or Annuity Payments.

1/29/10

January annuity payments reflect the new 2010 tax withholding tables. If you would like to change your withholding election, please complete the W-4P Withholding Certificate for Pension or Annuity Payments (pdf) and fax to 512-476-5576 or mail to TMRS, PO Box 149153, Austin, TX 78714-9153.

1/15/10

End-of-Year Tax Information for Retirees
1099-Rs will be mailed next week — The 1099-R form that you will need for reporting your retirement income will be sent in two batches, on January 20 and January 23. If you do not receive your 1099-R form by the end of January, contact TMRS at 800-924-8677.

Information about the HELPS provision — For retirees who are using the federal HELPS provision, letters are being mailed today with instructions for how to claim this deduction on your tax return. These instructions are also available on our website. Our new HELPS flyer is also available for download.

4/17/09

Notice to TMRS Annuitants – Changes in IRS Withholding Tables

New income tax withholding tables go into effect April 1, 2009, as a result of the American Recovery and Reinvestment Act of 2009, recently signed into law by President Obama. Under this law, TMRS is required to use new withholding tables that may result in less withholding and slightly higher net monthly annuity payments for certain retirees for the rest of 2009 and 2010. TMRS will mail a letter to each TMRS retiree affected by this change.

The new withholding tables do not affect your total tax liability for 2009 or 2010. However, they may cause you to be “under-withheld” and owe taxes, or you may receive a smaller refund when you file your 2009 tax return in 2010 or your 2010 tax return in 2011.

If you are affected by this change and wish to maintain your current withholding amount, you will need to complete a new IRS form W-4P claiming the same withholding status (i.e., single or married) and withholding allowances you previously claimed, but add an additional amount on Line 3 of the W-4P to be deducted from your annuity. If you have any questions or need further assistance, please call our office at 800.924.8677.

4/17/09

Social Security Administration Announces One-Time Economic Recovery Payments
In May 2009, Social Security will distribute a one-time payment of $250 to Social Security and Supplemental Security Income beneficiaries nationwide. The payments are provided under the American Recovery and Reinvestment Act of 2009 and will affect those TMRS retirees who receive Social Security benefits. A leaflet that discusses distribution of the one-time payment in greater detail is available from the Social Security Administration and the Internal Revenue Service has information about the one-time payment on their website.

3/19/09

Attention Retirees Who Receive Payments by Mail: TMRS has changed the process for mailing your check. You will receive your March 31 payment in an envelope that will look different from previous mailings. Delivery time should be approximately the same. We strongly encourage you to switch to direct deposit for your monthly annuity payment. Direct deposit is the safest and quickest way to get your money - just fill out the direct deposit form and send it to TMRS.

1/22/09

TMRS Retirees: 1099s mailed January 22 and 23
 
For our retirees who are using the federal HELPS provision, letters have been mailed with instructions for how to claim this deduction on your tax return. Those instructions may also be found here. See the How Do I... page for more information.

10/16/08

No Extra Payments, but your Benefits are Secure

Last year we sent letters informing you that you would not receive an extra payment for 2007. The same situation holds true for 2008 — there will be no extra payment (distributive benefit) sent. In the current low-interest environment, TMRS fund earnings continue to support the statutory interest rate of 5%, which is already included in your monthly annuity payment. In accordance with TMRS policy, because member accounts will not receive additional interest (above 5%), no extra payment will be made to retirees.

As we have mentioned in our publications and on the website, the extra payment was never a guaranteed benefit, and given the current environment, it is unlikely that any extra payments will be made in the near future. In the event our interest rates rise at some point in the future, causing this benefit to be reinstated, we will notify you by letter.

PLEASE NOTE: Your retirement benefit is safe, and your monthly benefit is not endangered by any of the current economic problems. Even if the investment markets stay down for a long time, TMRS’ investment performance will not affect your monthly benefit.

The TMRS Phone Center

Do you have a general question about your retiree account? TMRS offers "one-stop shopping." Our phone center is your best resource when you need help with your benefits. Our goal is to answer most questions in a single call.

Just dial 800.924.8677.

Frequently Asked Questions

Q: Why did extra payments stop?

A: The decision to make an extra payment was formerly made annually by the Board, based on long-term projections for the retirement fund's income and the funds needed to pay benefits for members and retirees. In the current economic enviromnent, the interest rates do not support the extra payments. Please remember that these payments were never guaranteed and were based solely on the annual income of the TMRS fund. It is unlikely that extra payments will be made in the near future, but if this benefit is reinstated, we will notify you by letter.

Q: Is my TMRS benefit safe?

A: Yes. The money for your TMRS benefit is secure, and your monthly benefit is not endangered. Even if the investment markets were to stay down for a long time, TMRS’ investment performance will not affect your monthly benefit. The money in your account is 100% secure.

Q: Is my TMRS account insured like a bank account?

A: Your TMRS account is part of a $14 billion trust fund, subject to state and federal law. TMRS accounts are backed by the cities that provide them and by the state law that governs the System. Your individual account is not “insured” by the federal government the same way your savings or checking account is, but it is protected by law from being diverted to other purposes.

Q: How did the stock market decline of 2008 affect TMRS?

A: TMRS is a long-term investor, so short-term downturns in the market will not have a large effect on the System. At the time of the downturn, TMRS had minimal exposure to stocks issued by the companies in the news.

Q: How does the HELPS provision for Retired Public Safety Officers benefit me?

A: The federal HELPS provision allows retired or permanently disabled public safety officers to elect an amount to be deducted from their TMRS benefit payment to pay for health care or long-term care insurance premiums. If you qualify, the amount you may exclude from taxable income on your tax return may not exceed $3,000 in one year.

If you wish to make this election, the amount is directly transferred by TMRS to an insurer. To qualify for this program, you have to have separated from service as a “public safety officer,” defined as:

• An individual involved in crime and juvenile delinquency control or reduction, or enforcement of the criminal laws (including juvenile delinquency), including but not limited to police, corrections, probation, parole, and judicial officers.

• Professional firefighters.

• Officially recognized or designated:

  • Public employee members of a rescue squad or ambulance crew

  • Chaplains of fire departments and police departments

If you believe this applies to you, your last employing city will need to certify your status as a public safety officer. Call TMRS if you have questions.