Pension Plan – Texas Municipal Retirement System (TMRS)
With the Pension Plan through TMRS, you can save money for your retirement on a tax-deferred basis. In most cases, your taxable income – and therefore, your tax rate – will be lower in retirement than during employment, so you will end up paying considerably less in taxes on your savings.
Full-time City of Baytown employees will be automatically enrolled at a 7% contribution and is required. The City matches 2-1 as of the employee hire date. You become eligible for the City match once you are vested after five years of employment. You receive City contributions along with your own upon retiring their accounts. You may retire your accounts through TMRS after 20 years of service (any age) or 5 years of service (at least age 60).
The City provides a death benefit to all full-time employees at no cost. The benefit for active employees is one times your annual salary. If you retire from the City, you will have a $7,500 death benefit.
ICMA-RC 457 Deferred Compensation Plan
The 457 plan is an optional pre-tax retirement savings plan for all full or part time employees. You can contribute up to $19,500 per year. The City does not match the ICMA funds. Some advantages of the 457 Deferred Compensation Plan are:
- You can control how your money is invested and how much to invest
- You may increase, decrease, stop or restart contributions without any fees or penalties
- When you are no longer employed with the City, you may withdraw your funds regardless of your age or separation reason
ICMA-RC ROTH IRA
The Roth IRA is an optional after-tax retirement savings plan for all full-time employees. You may contribute up to $6,000 per calendar year and funds may be withdrawn without fees or penalties for qualifying expenses including major medical and higher education expenses. The Roth IRA is distributed when you have held an account for five years and have reached the age of 59 ½.
For more information about our Retirement Plans, please contact your Human Resources representative.