Get Application For Restricted Prior Service Credit - Texas Municipal ...

By law, you cannot borrow from your Member account; nor can you use it as collateral for a loan. In most TMRS cities, you can retire when you have at least 5 years of service credit (10 years in a few cities) and are at least age 60.

Your member deposits are held in your member account, where they earn interest each year. Your city matches your member deposits and interest at a rate chosen by the city: 1 to 1; 1.5 to 1; or 2 to 1. City matching funds are held in the city's TMRS retirement account until you retire.

Membership in TMRS The only way to end your TMRS membership is to terminate employment with all TMRS cities and withdraw (refund) your member deposits and interest. If you take a refund, you will not receive the city's matching funds.

The Partial Lump Sum Distribution is subject to income tax and possibly an additional 10% tax penalty at the time of payment (some exceptions may apply). You can roll over the partial lump sum payment into an IRA or other qualified plan to continue to defer any income tax payments.

You must complete the application and submit it to TMRS. You must redeposit the amount previously withdrawn plus a 5% per year withdrawal fee (the fee does not go toward the amount value.) Buyback must be made with a single payment and it may be purchased by a rollover from a qualified plan (see Note 2).

You are only allowed to purchase up to five years of nonqualified service credit. You must also have at least one year of TRS service credit following the out-of-state service to be eligible to purchase this service credit.

Prior service credit means such credit toward a retirement benefit as the retirement.

By law, TMRS member accounts are credited with 5% interest each year (and retiree accounts are similarly credited when the retirement annuity is calculated). The primary source for this 5% credit is investment income. City accounts receive interest based on the System's annual investment return.