The City's Pension Plan
The City of Shenandoah's pension plan is provided by the Texas Municipal Retirement System (TMRS).
TMRS in an agency created by the State of Texas and is administered in accordance with the TMRS Act, Subtitle G, Title 8 of the Texas Government Code.
|Plan Provisions Summary|
|Employee Contribution Rate||7% of Pay|
|Matching Ratio (City to Employee)||2 to 1|
|Years Required for Vesting||5 Years|
|Service Retirement Eligibility (Age/Years of Service)||20 Years at any Age, 5 Years at Age of 60 and Above|
|Updated Service Credits||100% Repeating Transfers|
|Cost of Living Adjustments||70% of CPI, Repeating|
|Employee Benefit Summary|
|Inactive Employees or Beneficiaries Currently Receiving Benefits||40|
|Inactive Employees Entitled to but Not Yet Receiving Benefits||26|
|Pension Summary - FYE 2021|
|Amortization Period||23.2 Years|
|One Year Rate of Return*||7.65%|
|Three Year Rate of Return*||6.46%|
|Ten Year Rate of Return*||6.75%|
|Assumed Rate of Return||6.93%|
|Actuarially Determined Contribution (ADC) Rate - 2021||18.29%|
|Total Actual Contribution Rate - 2021||18.44%|
|Unfunded Actuarial Accrued Liability (UAAL) as a percent of covered payroll||101.3%|
*Rates of return, as reported by TMRS, are calculated using a time-weighted rate of return methodology based upon market values and are presented gross of investment management fees. More detailed information regarding investment objectives can be found at https://www.tmrs.org/investments.php
To understand the pension commitments made by the government to its employees and how successful it has been in funding those commitments to date, it is important to understand the following:
Investments - management of the assets / TMRS responsibility.
Actuarial valuations - calculation of the cost of benefits earned to date / TMRS responsibility.
Funding - the city’s commitment to make contributions to fund the benefits earned to date/city responsibility.
Information on investment strategies and results are available in the investment section of TMRS’s Comprehensive Annual Financial Report (CAFR). If TMRS does not earn its projected rate of return, assets will be less than expected and the city will have to make up the shortfall through increased contributions.
- 5 Year Actuarial Value of Assets Versus Actuarial Accrued Liability
- 5 Year Additions & Deductions & Net Position
- 2020 Statements & Changes of Fiduciary Net Position @(Model.BulletStyle == CivicPlus.Entities.Modules.Layout.Enums.BulletStyle.Decimal ? "ol" : "ul")>