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.
Plan Details
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 your 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.
The annual combined limit for the 457 Deferred Compensation and 457 Roth plans is $24,500 per year. You may choose how to split your contributions between both 457 plans — as long as your total contributions do not exceed the $24,500 annual limit. Both plans are available to full time and part time employees.
457 Deferred Compensation Plan
The 457 plan is an optional pre-tax retirement savings plan for all full or part time employees. The City does not match the MissionSquare 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.
457/Roth
The 457/Roth is an optional post-tax retirement savings plan for all full or part time employees. The City does not match the MissionSquare funds. Some advantages of the 457/Roth are:
Higher contribution limits than Roth IRAs - 457(b) plans allow for greater after-tax savings.
Eligibility at all income levels - Unlike with Roth IRAs, your ability to make Roth contributions to a 457(b) plan doesn't depend on your income.
Tax planning - Having both pretax assets and Roth assets allows you to choose the source of funds most advantageous to your situation.
MissionSquare ROTH IRA
The Roth IRA is an optional after-tax retirement savings plan for all full-time employees. You may contribute up to $7,500 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 59-1/2.
Plan
Normal Limit
Age 50 Catch-up Limit
Pre-Retirement Catch-up Limit
Age 60-63 Catch-up Limit*
457 Deferred or 457/Roth
$24,500
$8,000
$24,500
$11,250
Roth-IRA
$7,500
$1,100
N/A
N/A
* As per a change via SECURE 2.0, a higher catch-up contribution limit applies for employees aged 60, 61, 62 and 63. For 2026, this higher catch-up contribution limit is $11,250. This option was effective as of January 1, 2025 for plans that elect to adopt it. Limitations may apply as defined by the plan.
For more information about our Retirement Plans, please contact your Human Resources representative.
