After a member has terminated employment with a city that participates in TMRS, he/she may choose to withdraw his/her member deposits. The refund will equal the total member deposits plus earned interest, but not the money that has been contributed by the employing city. The only way to receive the city matching funds is to retire.
The employees status as a vested (see 1) or non-vested employee determines his/her refund options and may affect the decision to request a refund. If you are not sure of the employee's vested status, contact TMRS.
Note: The employee will not receive a refund if he/she begins work with another TMRS city. The funds and service from the original city will be combined with those of the new city for the employee's total retirement benefit.
If the member is vested, member deposits may be left with TMRS until the member is eligible and chooses to retire. The member's deposits continue to earn interest, and the benefit at retirement will include the city matching funds. If the member chooses to request a refund, no city matching funds will be included.
If the member is not vested, terminates employment, and does not go to work for another TMRS city, the member may leave his/her member deposits in the System, where they will earn interest for up to 60 months. After the 60-month period, membership terminates. At any time before the end of the 60-month period, the member can apply for a refund of deposits and interest, but no city matching funds are included, and membership will terminate.
Exception: If the employee is a member of another Texas public retirement system (see 2) he/she may be eligible for retirement under the Proportionate Retirement Program. The employee may combine time in two or more systems to determine retirement eligibility.
To refund an account, fill out the Refund Application Form.
Note: If the employee has worked for more than one TMRS city, only the last employing city needs to certify the application.
Refund checks are issued weekly; however, it can take up to 6 to 8 weeks to receive a refund because TMRS must wait until we receive and post the city payroll (the final deposit) before processing the refund. Cities submit monthly payroll reports to TMRS before the 16th day of the month after the month of the employee's final retirement deduction.
Statewide Retirement SystemsTMRS