Texas Municipal Retirement System

TMRS administers a program for almost 1,000 Texas cities,[1] providing retirement, disability, and survivor benefits to active and retired municipal employees of participating Texas cities. 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 employee deposits, city contributions, and investment income
• For a maximum benefit TMRS plan, investment income provides as much as 80% of a 20-year employee’s benefit

Conservative Plan Features - TMRS’ Investment Return Assumption is 6.75%.[2] Each city's unfunded liability is amortized over a closed period of no more than 30 years. Each Member's benefits are advance funded over the Member's working career. Contribution “holidays” are not allowed; every city must pay its required contribution.

Funded Status - The funded status (ratio) of TMRS, as a system, was 89.7% as of 12/31/2022. This funded ratio has trended upward over the past few years.

TMRS administered $35.5 billion in assets as of December 31, 2022. The Investments Department at TMRS follows these Total Portfolio Performance Objectives:

• Achieve a Total Rate of Return, over rolling five-year periods, consistent with the assumed long-term rate of return on TMRS assets adopted by the board (currently 6.75%)
• Exceed an appropriate benchmark reflective of asset class participation over rolling five-year periods (i.e., Policy Index)

Diversification has been, and continues to be, implemented through a deliberate multi-year process. The current asset allocation strategy is expected to meet the long-term total return objective of 6.75%, consistent with the actuarial interest rate assumption for the plan. A detailed summary of investment operations, including performance of different asset classes and diversification progress, is found in the Investment Section[3] of the Comprehensive Annual Financial Report.

The TMRS Act provides that the administration of TMRS is entrusted to a six-member Board of Trustees,[4] appointed by the Governor with the advice and consent of the Texas Senate. Board members serve on a volunteer basis and are employed by a TMRS-participating city. Per the Texas Constitution, Trustees continue to perform the duties of their office until a successor has been duly qualified. Board members serve staggered, six-year terms. The Board oversees the administration of TMRS and exercises fiduciary responsibility for investments.

TMRS is headquartered at 2717 Perseverance Drive, Suite 300, in Austin, Texas. Business hours are 8:00 a.m. to 5:00 p.m., Monday - Friday. The Member Service Center number is 800-924-8677.

• Official website