Tmrs Retirement Calculator

TMRS Retirement Benefit Estimator

Estimated Monthly Retirement Benefit:

Understanding Your TMRS Retirement Benefits

The Texas Municipal Retirement System (TMRS) is a statewide retirement system for employees of participating Texas cities. It operates as a defined benefit plan, meaning your retirement benefit is determined by a specific formula, rather than depending solely on investment performance of your contributions. This calculator helps you estimate your potential monthly retirement benefit based on key factors.

How TMRS Benefits Are Calculated

Your TMRS retirement benefit is primarily determined by three core components:

1. Years of Credited Service: This is the total number of years you have worked for a TMRS-participating city and for which you have received service credit. More years of service generally lead to a higher benefit.
2. Final Average Salary: This is an average of your highest salaries over a specific period, typically 36, 48, or 60 months, depending on the options adopted by your city. It's crucial to use your *average* high salary for this input.
3. City's Benefit Multiplier: Each TMRS-participating city chooses a benefit multiplier, which is a percentage applied to your years of service and final average salary. Common multipliers include 1.5%, 2.0%, 2.5%, or 2.75%. This multiplier significantly impacts the size of your benefit.

The basic formula for a TMRS service retirement annuity is:

Annual Benefit = Years of Credited Service × (City's Benefit Multiplier / 100) × Final Average Salary

Monthly Benefit = Annual Benefit / 12

Using the TMRS Retirement Benefit Estimator

Our calculator simplifies this process for you. Here's how to use it:

• Years of Credited Service: Enter the total number of years you expect to have worked for a TMRS city by your retirement date.
• Final Average Salary ($): Input your estimated average of your highest salaries (e.g., over 36, 48, or 60 months). If you're unsure, you can use your current annual salary as a rough estimate, but remember to adjust for future raises.
• City's Benefit Multiplier (%): Find out what multiplier your specific city has adopted. This information is usually available from your HR department or TMRS directly. Enter it as a percentage (e.g., 2.0 for 2%).

Click "Calculate Monthly Benefit" to see your estimated monthly retirement payment.

Realistic Examples

Let's look at a few scenarios to illustrate how the calculator works:

Example 1: Long-Term Employee with Standard Multiplier

• Years of Credited Service: 30 years
• Final Average Salary: $70,000
• City's Benefit Multiplier: 2.0%

Calculation:

Annual Benefit = 30 × (2.0 / 100) × $70,000 = 30 × 0.02 × $70,000 = $42,000

Monthly Benefit = $42,000 / 12 = $3,500.00

Example 2: Mid-Career Employee with Higher Multiplier

• Years of Credited Service: 20 years
• Final Average Salary: $55,000
• City's Benefit Multiplier: 2.5%

Calculation:

Annual Benefit = 20 × (2.5 / 100) × $55,000 = 20 × 0.025 × $55,000 = $27,500

Monthly Benefit = $27,500 / 12 = $2,291.67

Example 3: Employee Nearing Retirement with Maximum Multiplier

• Years of Credited Service: 35 years
• Final Average Salary: $85,000
• City's Benefit Multiplier: 2.75%

Calculation:

Annual Benefit = 35 × (2.75 / 100) × $85,000 = 35 × 0.0275 × $85,000 = $81,812.50

Monthly Benefit = $81,812.50 / 12 = $6,817.71

Important Considerations and Disclaimer

This calculator provides an estimate only for a basic service retirement annuity. Your actual TMRS benefit may vary due to several factors not included in this simple calculation, such as:

• Cost-of-Living Adjustments (COLAs): Some cities may adopt COLAs, which can increase your benefit over time.
• Payment Options: TMRS offers various payment options (e.g., single life annuity, joint and survivor annuity), which can affect the monthly amount you receive.
• Early Retirement Reductions: Retiring before meeting certain age and service requirements may result in a reduced benefit.
• Purchased Service Credit: If you have purchased additional service credit, it will impact your total years of service.
• Changes in City Adoptions: Cities can change their benefit multipliers or other plan provisions.

For a precise and personalized retirement benefit estimate, it is always best to consult directly with the Texas Municipal Retirement System or your city's HR/benefits department. This tool is intended for informational purposes and preliminary planning.