Information for Retirees

Announcements for Retirees

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 (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.