Announcements

About TMRS ID Numbers

TMRS is now assigning ID numbers instead of using Social Security numbers for members. The ID Numbers are on Annual Statements and correspondence to members. The City Correspondent doesn't need to do anything special regarding these numbers except inform members this is a special number assigned to them for secure TMRS account identification.

TMRS Benefits and Federal Income Taxes
Information and W-2 Forms

For more information, download IRS W-2 Instructions.

All contributions made by members after December 31, 1983, to TMRS are tax-deferred under Section 414(h)(2) of the Internal Revenue Code. This means employees pay federal income tax on their gross earnings minus the amount contributed to TMRS.

Example:
Jane Brown earns $1,000 per month in a TMRS member city with a 5% employee contribution rate. Jane would pay $50 each month to TMRS; however, her income tax withholding would be calculated on a salary of $950. At the end of the calendar year, Jane's taxable earnings, as reported on the W-2 form, would be $11,400 ($950 X 12) instead of the $12,000 she actually earned.

Federal income taxes are deferred on employee contributions to TMRS until the time they are paid to the member, either in the form of a monthly retirement benefit or a refund of deposits, unless the refund is a "rollover" to another tax-exempt retirement option, such as an IRA.

Preparing W-2s:
Below are answers to a few of the most frequently asked questions. (The examples refer to boxes as numbered on the 2004 W-2).

1. What amount should be provided in Box 1 (wages, tips, other compensation), Box 3 (Social Security wages), and Box 5 (Medicare wages)?

Box 1 should be gross wages less TMRS employee contributions.

Box 3 should be gross wages, not reduced by TMRS employee contributions.

Box 5 should be the same as Box 3, gross wages, not reduced by TMRS employee contributions.

TMRS employee contributions are subject to Social Security and Medicare taxes. (Of course, employees who do not participate in Social Security or Medicare will not be subject to Social Security or Medicare taxes.)

2. What needs to be marked in Box 13 to indicate the TMRS plan?

Mark the "Retirement Plan" box to show an employee is a member in TMRS.

3. What are the IRS section numbers for the TMRS plan, and do the TMRS employee contributions go in Box 12?

TMRS is a qualified plan under Section 401(a). In addition, the employee's TMRS contributions are "picked up" in accordance with Section 414(h)(2), and are not to be reported in Box 12. You can choose to list TMRS employee contributions in Box 14 for information purposes only, but it is not required.

See page 8 (Box 12-Codes) of the IRS W-2 Instructions (for 2004).

Payroll Reporting by Secure FTP

The best way to report your monthly payroll information to TMRS is to use Secure FTP to file your monthly payroll report quickly and easily, with just a couple of clicks of your mouse. You need a computer with an Internet connection and a recent version of Netscape or Internet Explorer with Java enabled to use this fast, safe, and secure method of reporting your data. You will also need a user name and password.

Click here for more information and the forms you will need to sign up for this timesaving program, or call Chad Nichols at 800.924.8677.

TMRS Travel Team

TMRS staff travel throughout Texas to present TMRS information to employees, city staff, and city officials.

Tips for Successful TMRS Employee Presentations

The TMRS staff has prepared this handy list of suggestions, gathered from TMRS cities, for making the most out of a TMRS employee presentation. Click here to download a printable copy of the list, and if you have any ideas to add to the list, please let us know!

Did You Know?

Electronic reporting and payment of TMRS contributions can save your city time and money. If your city does not pay and report using Electronic Funds Transfer, call Rhonda Covarrubias toll-free at 800.924.8677 to get started.

Forms for City Correspondents

• Employee Contributions Report -- TMRS-2
• Summary of Monthly Payroll Report -- TMRS-3

If you need a supply of any TMRS forms, you can use this e-mail link to order them: records@TMRS.com. Please indicate your name, the number of the form, the quantity you want, and your city's name and city number.

Seminars, Conferences, and Training

TMRS will be holding a number of regional conferences as well as another Annual Training Seminar. See the TMRS Travel Team page for information on TMRS staff members who travel to inform cities and members about TMRS benefits. TMRS is also available every day from 8 a.m. to 5 p.m. to answer your questions at 800.924.8677 or by e-mail at phonecenter@TMRS.com.

The TMRS FAQ page on this Website contains many of the questions commonly asked by members.

GASB Letters

TMRS prepares pension disclosure statements for all TMRS cities to use in their annual financial reports in compliance with the Government Accounting Standards Board (GASB). We have pension disclosure letters for the following years. Choose the year you want from the list below and follow the instructions on the new page to get a pension disclosure letter for your city.

2006

2005

2004

2003

2002

2001