Texas Municipal Retirement System
The Texas Municipal Retirement System administers the retirement program for the City of Hillsboro and many other cities in Texas. TMRS is a qualified retirement plan under Section 401(a) of the Internal Revenue Code.
Eligibility:
Employees who work at least 1,000 hours per year are eligible for the TMRS plan and enrollment is automatic beginning with your first payroll check. The amount you contribute to TMRS is based on your payroll earnings and withheld from each payroll check at a pre-tax rate of 5%.
Program Highlights:
"Vesting" indicates you have reached a point in your career where you have established enough service credit to meet the minimum length-of-service requirement for retirement. Once you are vested, if you leave city employment, you may leave your deposits with TMRS and retire with TMRS when you reach age 60.
Your TMRS Account:
Register your online TMRS account and you will have 24/7 access to review your account balance (the amount you contribute only), run retirement scenarios, change your home address, and see the beneficiary on record for your account.
Your Payroll Contributions:
Pre-tax contributions are withheld from each payroll check and the deposit occurs in your account on a monthly basis on or around the 15th of the following month.
Earning Service Credits:
While employed by the City, you will receive a service credit for every month in which there is a contribution. If you were employed as a full-time employee of other United States agency, government, military, or another branch of the United States, you may be able to apply for restricted prior service credit. See the Application for Restricted Prior Service Credit form for more information and a list of eligibility entity types.
Schedule a Counseling Sessions:
TMRS allows you to schedule a counseling sessions with a TMRS representative to help answer your TMRS benefits, estimate your monthly retirement benefit, or discuss your retirement options. They offer both in-person counseling at their offices or online counseling. For online counseling, you will need a mobile device or computer. A webcam or camera phone is not required, but will allow you to see the representative and any documentation they share with you. Family members and financial advisors are welcome to attend. Click TMRS • Member Counseling to schedule your Counseling session.
Eligibility for Retirement:
You must have five years of service credits AND be at least age 60+ OR have 20 years of service credit at any age.
Retirement Options:
You have several options when choosing to retire. Be sure you understand your choices and the options available to you. The TMRS representative can help you understand your options and prepare additional retirement estimates. Tip: If you have a significant amount of vacation time when you retire, you have the option of directing your final pay to one of the ICMA-RC accounts. The account must be opened before your retirement. By electing to defer all or a portion of your final check, you can reduce the tax burden on your final check.
Retirement Taxation:
If you are under age 59 ½ and do not do a rollover, you will have to pay an additional 10% tax. However, if you are under age 59 ½, there are some situations where the penalty does not apply. Some of these situation include if you are at least 55 in the year of your separation and elect to receive payments upon separation or if you separate from service as a public safety employee and you are at least 50 in the year you separate.
Retirement and Health Benefits:
You may continue your medical health benefits if you are an eligible retiree, under age 65, and have elected to receive your TMRS benefit. You will pay the full cost of the benefit should you choose to continue as a retiree on the plan. Dental and Vision can continue through retirement.
Distribution:
Non-Vested:
Employees with less than five years of service credit are considered non-vested. Non-vested members are not eligible for the City of Hillsboro matching contribution. Non-vested employees who leave the City may leave their funds with TMRS and continue to receive interest on the account, but after five years the account will stop receiving interest. You may request a distribution or transfer by completing the TMRS Refund Application form.
Vested:
Employees are vested after five years of combined service credit. When you are a vested member, your account continues to receive interest until you elect to receive your pension benefit.