Today, a participant can retire at age 65 and receive a monthly pension benefit at 1.75% of their total contributions.
A member retiring with a full pension at age 65 will get back all contributions and will receive a lifetime monthly benefit.
Joint & Survivor Benefits
If the pensioner chooses a Joint and Survivor Benefit Option at the time of retirement, their spouse can continue receiving a monthly benefit for the remainder of their life in the event the pensioner dies.
If an active member dies before receiving a pension benefit and the surviving spouse is the sole beneficiary of the death benefit, the surviving spouse may elect to receive a lifetime monthly pension in lieu of the death benefit.
Pensioner receives an actuarial reduced pension until death, thereafter, the surviving spouse receives two-thirds of the reduced pension benefit.
For example, if our pensioner was receiving $1000/month and then dies, their spouse will receive $670/month for the rest of their life.
The Pop-up Benefit
If the spouse passes away before the pensioner, the pension will be increased to the amount of benefit had no Joint Survivor Option been elected.
(The actuarial reduction is based on the age of the pensioner and the spouse at the time of retirement.)
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The death benefit is equal to the full amount of the member’s contributions less any pension benefits paid.
If the pensioner did not choose a Joint and Survivor Benefit Option, or if there is no surviving spouse, the beneficiary would receive an amount equal to the total contributions less the total pension payments received.
If an active member dies before reaching retirement, the death benefit will be equal to the full amount of their contribution.
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An active member becomes eligible for a disability benefit at any age if:
- The member becomes totally and permanently disabled
- The member has made at least $1,300 of contributions to the Plan
The member would then be eligible for a monthly disability benefit equivalent to what the normal retirement pension benefit would be, reduced by 3% for each year before 65.
For example, if the member became permanently and totally disabled at age 55, that would leave 10 years until retirement multiplied by a 3% reduction per year for a total benefit reduction of 30%.
Total participant contributions at the time of disability
Normal Retirement Pension at age 65
Disability Pension Reduction
Lifetime monthly Disability Pension
Annual Tax Benefits
Members can deduct up to $7,000 (or 25% of their income, whichever is less) in TMRP contributions on income tax returns annually — thus lowering their adjusted gross income (and, in turn, taxes payable).
When combined with their 401(k) contributions, members can deduct up to $19,500 of contributions on their income taxes — those 50 and up can deduct up to $26,000 of contributions on their income taxes.
*Annual tax return rates are subject to IRS tax law changes and adjustments