870173 TMRS CAFR new8 fix 049-081.qxd - Texas Municipal ...

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SUMMARY OF PLAN PROVISIONS CONTINUED that pay a lifetime benefit to the member and a lifetime survivor benefit equal to 50%, 75%, or 100% of the member’s benefit. As a minimum benefit, TMRS guarantees that an amount equal to at least the member’s contributions and interest will be returned, either through payment of a monthly benefit or through a lump-sum refund. Each of the three survivor lifetime retirement options includes a “pop-up” feature. The “pop-up” feature provides that if the designated beneficiary dies before the retiree, the retiree’s benefit will “popup” to a Retiree Lifetime Only amount. Retirees who marry or remarry after retirement and who meet specific conditions also have a onetime option to change from a Retiree Life Only benefit to one that provides a survivor benefit. Members who are eligible for service retirement may choose to receive a Partial Lump Sum Distribution — a portion of the member’s deposits and interest in cash at time of retirement. The Partial Lump Sum Distribution is equal to 12, 24, or 36 times the amount of the Retiree Life Only benefit, but cannot exceed 75% of the member’s deposits and interest. The remainder of the member’s deposits and the city’s funds pay a lifetime benefit under the selected retirement option. The Partial Lump Sum Distribution is paid in a lump sum with the first retirement payment. This amount may be subject to federal income tax and an additional 10% IRS tax penalty if not rolled over into an IRA or another qualified plan. ANNUITY INCREASES A member city may elect to increase the annuities of its retirees, either annually or on an annually repeating basis effective January 1 of a calendar year. For adoptions after January 1, 2000, the adjustment is either 30%, 50%, or 70% of the increase (if any) in the Consumer Price Index (CPI-U) between the December preceding the member’s retirement date and the December one year before the effective date of the increase, minus any previously granted increases. SURVIVOR BENEFITS If a member dies before vesting, the member’s designated beneficiary is eligible to receive a lumpsum refund of the member’s deposits and interest. For a vested member, a beneficiary who is the member’s spouse can select a monthly benefit payable immediately, withdraw the member’s deposits and interest in a lump sum, or leave the member’s deposits with TMRS, where they will earn interest until the date the member would have reached age 60 and then receive a lifetime benefit. Member deposits and interest may be refunded to a spouse any time after an initial choice to leave the deposits and interest in TMRS until the member would have reached age 60. A beneficiary who is not the member’s spouse can select a monthly benefit payable immediately or withdraw the member’s deposits and interest in a lump sum. DISABILITY RETIREMENT All TMRS cities have adopted an Occupational Disability Retirement benefit. If a member is judged by the TMRS Medical Board to be disabled so that the member cannot perform his or her occupation, and the disability is likely to be permanent, the member may retire with a lifetime benefit based on the total reserves as of the effective date of retirement. The Occupational Disability annuity will be reduced if the combined total of the Occupational Disability annuity and any wages earned (indexed to the Consumer Price Index (CPI-U)) exceeds the member’s average monthly compensation for the highest 12 consecutive months during the three calendar years immediately before the year of retirement. As the minimum disability benefit, the member’s deposits and interest are guaranteed to be returned, either through payment of the monthly benefit, or upon termination of the annuity through a lump-sum refund. SUPPLEMENTAL DEATH BENEFITS Member cities may elect, by ordinance, to provide Supplemental Death Benefits for active members and retirees. The death benefit for active employees provides a lump-sum payment approximately equal to the employee’s annual salary, calculated based on the employee’s actual earnings on which TMRS deposits are made, for the 12-month period preceding death. The death benefit amount for retirees is $7,500. These benefits are paid in addition to any other TMRS benefits the beneficiary might be entitled to receive. 22 T M R S COMPREHENSIVE ANNUAL FINANCIAL REPORT 2004
SUMMARY OF PLAN PROVISIONS CONTINUED BUYBACK OF SERVICE CREDIT When a member terminates employment and chooses to take a refund of the deposits and interest, the member forfeits all service credit. If the member is reemployed by a TMRS member city, and if the employing city adopts by ordinance the buyback provision, the member may repay the amount of the refund plus a 5% per year withdrawal charge, in a lump sum, to reinstate the previously forfeited credit. A member must have 24 consecutive months of service with the reemploying city, and must be an employee of the adopting city on the date the buyback ordinance is adopted, to be eligible to buy back service. MILITARY SERVICE CREDIT Members who leave service with a TMRS city, serve in the military, and then return to city employment may establish credit for the time they spend in the military, up to 60 months. Members who meet the requirements of the federal Uniformed Services Employment and Reemployment Rights Act (USER- RA) may make member contributions to TMRS as though they had been employed by the city for the period of their military service. In cities that have adopted Military Service Credit, members who are not eligible for USERRA credit, or who choose not to make contributions, may establish service credit for up to 60 months of military time. In 2004, Military Service Credit provisions were changed. In cities that have adopted Military Service Credit, after five years of TMRS service, a member may establish time-only credit for up to five years of military service at no cost. The law previously required 10 years of TMRS service and required members to pay $15 for each month of Military Service Credit they wished to establish. Members who were employed on December 31, 2003, by a city that had previously adopted Military Service Credit, may still choose to purchase their military time, which purchase amount would increase the member's account balance, or may use the new no-cost timeonly provision. T M R S COMPREHENSIVE ANNUAL FINANCIAL REPORT 2004 23
Page 1 and 2: ★ Texas Municipal Retirement Syst
Page 3 and 4: TMRS® TEXAS MUNICIPAL RETIREMENT S
Page 5 and 6: TABLE OF CONTENTS ACTUARIAL SECTION
Page 7 and 8: DENISON Population: 22,773 INTRODUC
Page 9 and 10: LETTER OF TRANSMITTAL T M R S COMPR
Page 11 and 12: LETTER OF TRANSMITTAL CONTINUED T M
Page 13 and 14: LETTER OF TRANSMITTAL CONTINUED T M
Page 15 and 16: TMRS HIGHLIGHTS 2001 2002 2003 2004
Page 17 and 18: TMRS PROFESSIONAL ADVISORS LEGAL CO
Page 19 and 20: TMRS STAFF CONTINUED MEMBER SERVICE
Page 21 and 22: TMRS ADMINISTRATIVE ORGANIZATION T
Page 23: SUMMARY OF PLAN PROVISIONS CONTINUE
Page 27 and 28: GREENVILLE FINANCIAL SECTION Popula
Page 29 and 30: INDEPENDENT AUDITORS’ REPORT CONT
Page 31 and 32: MANAGEMENT'S DISCUSSION AND ANALYSI
Page 33 and 34: STATEMENTS OF PLAN NET ASSETS FIDUC
Page 35 and 36: STATEMENTS OF NET ASSETS PROPRIETAR
Page 37 and 38: STATEMENTS OF CASH FLOWS PROPRIETAR
Page 39 and 40: NOTES TO FINANCIAL STATEMENTS CONTI
Page 47 and 48: SUPPLEMENTAL SCHEDULES SCHEDULE OF
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Additions Deductions Transfers to S
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A small city 18 miles east of Waco
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REPORT ON INVESTMENT ACTIVITY CONTI
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SUMMARY OF INVESTMENTS AS OF DECEMB
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2004 INVESTMENT RESULTS CONTINUED T
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LARGEST HOLDINGS (BY FAIR VALUE) AS
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TEXARKANA Population: 34,782 A Pine
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SUMMARY OF ACTUARIAL ASSUMPTIONS I.
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SUMMARY OF ACTUARIAL ASSUMPTIONS CO
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SUMMARY OF ACTUARIAL LIABILITIES AN
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CONTRIBUTION RATE INFORMATION CONTI
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ACTUARIAL VALUATION OF PARTICIPATIN
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WEIMAR Population: 1,981 STATISTICA
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SCHEDULE OF BENEFIT EXPENSES BY TYP
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SCHEDULE OF RETIRED MEMBERS BY TYPE
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PLAN PROVISIONS FOR PARTICIPATING M
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Vesting Requirement PLAN PROVISIONS
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870173 TMRS CAFR new8 fix 049-081.qxd - Texas Municipal ...

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