Texas Municipal Retirement System (TMRS)
TMRS is a required retirement plan for all full-time employees. The following is a high-level overview of the plan:
- TMRS contributions are seven percent of your pay.
- The City will match your contributions two to one during retirement.
- With TMRS retirement options, you are guaranteed a retirement check for the rest of your life.
- No income taxes are withheld until you retire or terminate and request a refund.
- You are vested after five years, which means you may leave your deposits with TMRS to continue to earn interest until you are ready to retire, even if you leave the City. You are eligible to
retire if you have five years of service and are age 60 or over. However, if you have 20 years of service, you are eligible to retire at any age.
You can track your TMRS balance, view or change beneficiaries, update your address or phone number and more on the TMRS Website.
457 Deferred Compensation & Roth IRA Plans
League City offers a voluntary 457 deferred compensation plan that can provide additional savings for retirement.
With the traditional 457 option, funds are deducted pre-tax and interest accumulates tax deferred. Withdrawals are subject to income tax.
With the Roth 457 option, funds are contributed after tax and interest accumulates tax free. The advantage to the Roth option is that all withdrawals made after age 59 ½ are not subject to income tax.
With both the 457 Plan and Roth options, your contributions will be invested in the funds that you select, and the value of your account will fluctuate based on fund performance.
You may set up, stop or make changes to your contribution amount at any time throughout the year. You can make withdrawals from your account when you leave employment, as well as during employment, subject to the City’s rules and IRS rules.
The City is proud to offer both the 457 Deferred Compensation Plan and Roth IRA Plan through ICMA. You may also choose to enroll in a 457 Deferred Compensation Plan and access financial planning services through Starburst Financial.
For more information, log on to the ICMA website.
How to Enroll
To enroll in the 457 Deferred Compensation or Roth IRA Plan, click here. When you enroll, you must enter the plan number:
- 457 Deferred Compensation Plan Number: 304244
- Roth IRA Plan Number: 705882
- Get to Know Your 457 Plan (PDF)
- Match a Roth IRA with Your 457 Plan (PDF)
- Quick Enrollment Form (PDF)
- Contribution Change Form (PDF)
In addition to offering a 457 Deferred Compensation plan, Starburst Financial offers the following services:
- Comprehensive financial planning
- Retirement planning (e.g., 401(k), Roth IRA, Traditional IRA, SEP IRA and Simple IRA)
- Annuities (e.g., indexed, fixed and variable)
- Pension plan distribution (e.g, lump sum vs. lifetime single/joint annuity)
- Retirement income distribution strategies
- Supplemental medical plan selection
- Advanced estate planning
- Whole life and term life insurance
- Social Security claiming strategies
- Medicare plan selection
- Investment consulting and risk analysis
- Tax-sensitive investment strategies (e.g., municipal bonds, Roth IRAs, annuities)
- Employee benefits analysis
- College savings plans (e.g., 592 Plan, UTMA account)
- Legacy planning
- Spousal protection
- Blended family distribution strategies
- Health insurance
For more information, go to the Starburst Financial website.