TMRS education manager outlines retirement choices, survivor rules, taxes and return-to-work limits for McKinney employees

A TMRS education manager told McKinney employees during a roughly two‑hour information session that choices made at retirement — including survivor elections, guaranteed-term options and whether to take a lump-sum payment — determine who gets ongoing pension income and how much tax is withheld.

The presentation explained why retirees must designate beneficiaries, how survivor and guaranteed-term options alter monthly annuities, and the tax and penalty consequences of taking a portion of a pension as a lump-sum payment instead of annuitizing it.

The session focused first on payment options. The presenter said retirees can choose “retiree life only,” which pays the retiree for life and leaves any remaining account balance to a named beneficiary if the retiree dies shortly after retirement. Survivor options let a retired member name one survivor to continue receiving 100%, 75% or 50% of the retiree’s monthly check for the survivor’s life. The presenter noted spousal consent is required if a retiree does not name a spouse as survivor because “Texas is a community property state.”

The education manager warned that the choice is binding once the retiree receives the first monthly check: “Once you have chosen that survivor and you have received your first check, you are locked in.” She added that if a…