News Archive
8/24/09
TMRS Executive Director Resigns
Eric Henry, TMRS Executive Director and Chief Investment Officer since 2007, has resigned his position at TMRS to pursue another opportunity. At their meeting on August 21, the TMRS Board of Trustees appointed TMRS General Counsel David Gavia as Acting Executive Director and TMRS Director of Public Investments and Asset Allocation Nancy Goerdel as Acting Chief Investment Officer. The Board also named a subcommittee to begin the search for a permanent replacement for Mr. Henry.
TMRS Board Chair, Carolyn Linér, said, “The Board tremendously appreciates all Eric has done for us, and we will be seeking someone to continue the outstanding work he has begun.”
7/17/09
TMRS Annual Training Seminar will be held in Arlington on October 4-6, 2009. More information >>
5/26/09
Governor Signs TMRS Legislation
HB 360 was signed into law by Governor Rick Perry with immediate effect.
5/18/09
TMRS Legislation Passes
HB 360 "relating to the crediting and charging of investment gains and losses on the assets held in trust by the Texas Municipal Retirement System and providing a guaranteed minimum credit to employee accounts," passed the Texas House and Texas Senate unanimously. The bill now goes to the Governor for the final measure before it becomes law.
TMRS thanks everyone involved in helping move HB 360 forward. We are particularly grateful to the primary sponsor, House Chairman Edmund Kuempel, co-authors Representatives Abel Herrero and Solomon Ortiz, Jr., and Senate sponsor Senator Tommy Williams and their staffs. Thanks also to the TMRS Board of Trustees for their leadership and the TMRS Legislative Stakeholder Group (now the TMRS Advisory Committee) for their role in preparing for this session.
TMRS' Board and Staff wish Chairman Kuempel's family well and hope he has a speedy recovery.
5/8/09
TMRS has sent rate letters to all cities showing the contribution rate for your TMRS benefit program for the year beginning January 1, 2010. The rates in those letters are also contained in the 12/31/08 Actuarial Valuation. Besides the contribution rates, the rate letters contain reconciliation and accounting information. If a city needs a copy of its rate letter, call TMRS. Letters will be available online in June.
4/24/09
The TMRS Actuarial Valuation for the year ending 12/31/08, containing city contribution rates for the year beginning 1/1/10, is available here. Rate letters to individual cities will be sent in May. Please contact TMRS if you need further information.
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.
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.
3/12/09
No Change in Mortality Tables
We have been getting questions from members asking if we are changing the mortality tables used to calculate retirement annuities. TMRS has not changed these tables and has no plans to do so in the near future. If we determine at a later date that we need to make such changes, we will notify members well in advance.
2/25/09
Board Appointments Announced
Gov. Rick Perry has reappointed April Nixon of Arlington and H. Frank Simpson of Missouri City to the Board of Trustees of the Texas Municipal Retirement System for terms to expire February 1, 2015.
1/27/09
Investment Update as of December 31, 2008
Investment performance for the Texas Municipal Retirement System (TMRS) at year end was down from last year, but the fund’s position in bonds helped mitigate the return. The income rate of return for the $14.6 billion fund was 5.89%. A summary through 12/31/08 is available in the investments section of this website.
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.
12/3/08
Notice: Some TMRS members have received an e-mail from a firm suggesting that TMRS may have made a change in the provisions affecting Partial Lump Sum Distributions (PLSDs). TMRS has not made any changes to the PLSD and no future changes are planned. Complete information about the TMRS PLSD is in the TMRS Member Benefits Guide (pdf). Please remember, for an accurate estimate of your TMRS retirement benefit, you can always call TMRS or use the link on the right side of this page.
10/9/08
Important Facts About Your TMRS Retirement Benefit and Current Economic Problems
- Whether you are a retiree or an active member, the TMRS benefit you have earned is secure. The current issues on Wall Street have no direct effect on your TMRS benefit.
- Unlike a retirement savings program, such as a 457 or 401(k) plan, your TMRS account does not lose value when stock prices go down.
- TMRS is approximately 90% invested in bonds. The market value of our portfolio has gone down, but the income stream that will pay 5% interest to your account in December is secure.
- TMRS is a long-term investor, and short-term downturns in the market are anticipated in our strategy.
- Performance information for the quarter ended 9/30/08 is posted on the Investments page. We will keep the website updated if there is any significant change in circumstances.
For more information, see Investment Updates.
9/29/08
TMRS Board Sets 2008 Interest Rates
At its September 26 meeting, the TMRS Board set the interest rate for member and city accounts at 5% for 2008. Interest will be credited to members' accounts on December 31, 2008, based on each member's account balance as of January 1, 2008. In accordance with Board policy, with interest credited at 5%, there will be no Extra Payment to retirees in 2008.
9/22/08
Welcome to the New TMRS Website!
We hope you will find the new design helpful. Information is organized in the menu on the left side of the page so that the most important features for members, retirees, and cities are easily accessible. The top three buttons on the left provide pages with "How Do I" dropdown menus, which allow you to review the most common tasks and questions in a tutorial format. If you have suggestions for the new website or need assistance using it, please send an e-mail to TMRS.
7/25/08
The 2007 Comprehensive Annual Financial Report (pdf)
is now available for download.
4/18/08
Gov. Perry Appoints Gorzell and Linér to Board of Trustees
AUSTIN – Gov. Rick Perry appointed Ben Gorzell Jr. of San Antonio and Carolyn Linér of San Marcos to the Texas Municipal Retirement System Board of Trustees for terms to expire Feb. 1, 2013. The board oversees the Texas Municipal Retirement System, which is responsible for providing a secure retirement benefit plan for more than 750 cities.
Gorzell is a certified public accountant and finance director for the city of San Antonio. He is a member of the Government Finance Association and the National Association of Telecommunications Officers and Advisors. Additionally, he is treasurer of the Starbright Industrial Development Corp. and the Municipal Facilities Corp. Gorzell is also a board member of the San Antonio Housing Trust Fund, Houston Street Tax Increment Reinvestment Zone and Inner City Tax Increment Reinvestment Zone. Gorzell received a bachelor’s degree from the University of Texas at San Antonio. He replaces Rick Menchaca of Midland.
Linér is director of human resources for the city of San Marcos. She is past president of the Texas Municipal Human Resources Association, Texas Safety Association and Texas Public Labor Relations Association. She is also a member of the Texas Municipal League and the American Society for Public Administrators. Additionally, Linér is a past board member of the United Way of Hays County and the Hays/Caldwell Women’s Center. She received a bachelor’s degree from Gustavus Adolphus College and a master’s degree in public administration from Texas State University. She is being reappointed to the board.
3/18/08
The Employees Retirement System of Texas (ERS) is the Social Security Administrator for the State of Texas. ERS has a new Website with information about Social Security specifically designed for cities and other public employers in the state.
2/9/08
NEW TMRS Member Benefits Guide (pdf)
TMRS has published a revision of its Benefits Guide (pdf). New employees will receive the guide directly from TMRS, but we encourage all cities to request a supply of the new guide for all your current employees.
1/29/08
TMRS Statement on “Shortfall”
Some news articles about TMRS have made reference to a “shortfall.” TMRS believes this term is somewhat inaccurate and overly alarming with regard to the funding changes the System is implementing. All TMRS benefits are funded under sound actuarial principles and benefits that have been earned by our members and retirees are secure.
The $1.7 billion dollar figure that newspapers have cited is the estimated increase in unfunded actuarial accrued liability (UAAL) that has been projected under the new actuarial cost method and assumptions adopted by the System. A few facts should be considered regarding this unfunded liability:
A UAAL is not new to TMRS. Under the old actuarial cost method, for the year ending December 31, 2006, the System had a UAAL of approximately $2.9 billion. The $1.7 billion was an attempt by the newspaper to quantify the additional UAAL resulting from the change in actuarial cost method and assumptions.
Most public retirement systems have a UAAL, and this liability is not commonly referred to as a “shortfall” because the UAAL will be amortized over a reasonable period of time under a set funding schedule.
The term “shortfall” implies that the System does not have sufficient funds to pay the benefits it has promised when, in fact, under the current methodology all benefits, including benefits that accrue in future years, are projected to be 100% funded over a 30-year period.
We understand that the press is using the term to describe the need that many cities will face to increase their funding levels to retain their current benefit package under the new methods, but wanted to be sure that our members and retirees understand that the benefits they have already earned are funded.
12/21/2007
A form is now available to enable cities to make additional contributions to TMRS beginning January 1, 2008.
12/14/2007
At its December meeting the TMRS Board approved changes to the actuarial cost method and amortization period. In addition, they adopted the results of the actuarial experience study (including a 7% investment income assumption) and set an eight-year phase-in of contribution rates. For more details, see Breaking News for Cities.