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Information for Retirees

Announcements for Retirees

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.

Remember: Always include your TMRS Member number or the last four digits of your Social Security number on all forms and correspondence mailed or faxed to TMRS. This will help us expedite any changes to your account or requests for information.

Retirement Benefit Payment Dates for Rest of 2009
Month Checks in Mail Direct Deposit
September 2009 Tuesday – 29th Wednesday - 30th
October 2009 Thursday – 29th Friday - 30th
November 2009 Friday – 27th Monday - 30th
December 2009 Wednesday – 30th Thursday - 31st
Retirement Benefit Payment Dates for 2010
Month Checks in Mail Direct Deposit
January 2010 Thursday – 28th Friday – 29th
February 2010 Thursday – 25th Friday - 26th
March 2010 Tuesday – 30th Wednesday – 31st
April 2010 Thursday – 29th Friday – 30th
May 2010 Thursday – 27th Friday – 28th
June 2010 Tuesday – 29th Wednesday – 30th
July 2010 Thursday – 29th Friday – 30th
August 2010 Monday– 30th Tuesday– 31st
September 2010 Wednesday – 29th Thursday – 30th
October 2010 Thursday – 28th Friday – 29th
November 2010 Monday – 29th Tuesday – 30th
December 2010 Thursday – 30th Friday – 31st

 

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. While many retirees have come to expect extra payments at the end of the year, please remember that these payments were never guaranteed and are based solely on the annual income of the TMRS fund.

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 stay down for a long time, TMRS’ investments 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 are the recent stock market troubles affecting TMRS?

A:
TMRS is a long-term investor, so any short-term downturns in the market will not have a large effect on the System over the long term. TMRS is conservatively invested and has minimal exposure to stocks issued by the companies in the news.

Q: How much stock in the troubled companies does TMRS own?

A:
The shares of stock from the companies that have been in the news (Lehman Brothers, Washington Mutual, and AIG) comprise only a tiny percentage of our portfolio and represent less than 1% of TMRS’ total holdings. Even if a stock loses all its value, the effect on TMRS will be minimal because the fund is so broadly invested. As of September, less than 10% of the fund is invested in two stock index funds — approximately half in U.S. companies and half in foreign companies.

Q: What about bonds? Does TMRS hold risky bonds?

A:
No. All of TMRS’ bonds are high grade. The residential mortgage-backed bonds TMRS holds are backed by Fannie Mae and Freddie Mac, and the commercial mortgage-backed bonds are well secured. Under recent federal action, Fannie Mae and Freddie Mac are fully supported by the U.S. government.

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:

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.

Texas Municipal Retirement System • Providing Retirement Security for Texas Municipal Employees
Post Office Box 149153 • Austin, Texas 78714-9153 OR 1200 North Interstate 35 • Austin, Texas 78701
(800) 924-8677 • (512) 476-7577 • Fax: (512) 476-5576 • phonecenter@tmrs.com • www.tmrs.com

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