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Overview

TMRS administers a program for more than 900 participating cities, providing retirement, disability, and survivor benefits to active and retired Members. Distinguishing features of the System are:

  • TMRS is a statewide retirement system that cities may elect to join
  • TMRS is a “hybrid” cash-balance defined benefit retirement plan rather than a traditional, formula-based defined benefit plan
  • TMRS does not receive any state funds and does not administer a health care plan
  • Benefits are based on a Member’s account balance at retirement. The retirement benefit is funded through mandatory Member contributions, city contributions, and investment income
  • For a maximum benefit TMRS plan, investment income provides as much as 80% of a 20-year Member’s benefit

Each TMRS participating city chooses from a menu of benefit options to design a retirement program that suits its needs. Certain benefits chosen can be prospectively modified by each city to control costs. Each city has its own actuarial assets, liabilities and funded ratio.

Conservative Plan Features. TMRS’ Investment Return Assumption is 6.75%. Each city’s unfunded liability is amortized over a closed period of 20 years. Each Member’s benefits are advance funded over the Member’s working career. Every city must pay its required contribution.

Funded Status. The funded status (ratio) of TMRS, as a system, was 90.5% as of 12/31/2021.

2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
87.2% 84.1% 85.8% 85.8% 86.3% 87.4% 87.1% 88.0% 89.5% 90.5%

Investments. Annual investment returns were 10.1% in 2012, 9.86% in 2013, 5.99% in 2014, 0.34% in 2015, 7.04% in 2016, 13.78% in 2017, -2.1 in 2018, 14.27% in 2019, 7.65% in 2020 and 12.86% in 2021.

Investment returns (as of 12/31/2021; Net of Fees)

1-year
average
3-year
average  
5-year
average
10-year
average
20-year
average
30-year
average
12.86% 12.08%   9.28%   7.82% 7.40% 8.00%

Benefits. TMRS retirees and beneficiaries received an average annual retirement benefit of $19,561.

TMRS paid a total of $1.6 billion in benefits in 2021, $1.5 billion in 2020, $1.4 billion in 2019, $1.3 billion in 2018, $1.3 billion in 2017, $1.2 billion in 2016, $1.1 billion in 2015, $1 billion in 2014, and $946 million in 2013.