Texas Municipal Retirement System (TMRS) is a statewide retirement system that provides retirement, disability, and death benefits for employees of participating Texas municipalities. TMRS was established in 1947 by Texas state law and is administered in accordance with the Texas Municipal Retirement System Act (Texas Government Code, Title 8, Subtitle G). Although established under state law, TMRS receives no state funding. TMRS is considered a hybrid "cash balance" or "savings-based" plan that includes features of both traditional defined benefit and defined contribution type plans.
TMRS covers employees and retirees of over 850 Texas cities, but does not cover city employees in Houston, Dallas, Austin, and Fort Worth, Galveston, and El Paso, which have their own retirement systems. Within a menu of options, each participating city determines and controls benefit levels for its employees. Retirement benefits for employees of participating cities are paid from the employees’ contributions, city contributions, and the System’s investment income.
TMRS is headquartered at 1200 North Interstate 35 in Austin, Texas. It is governed by a six-member, unpaid Board of Trustees that is appointed by the Governor of Texas, with the advice and consent of the Texas Senate. Board members serve staggered, six-year terms. The Board oversees the administration of TMRS and exercises fiduciary responsibility for investments.