Pension Information

The City's Pension Plan

The City of Andrews is a member of Texas Municipal Retirement System (TMRS) a statewide, multiple employer agent plan. In an agent plan, each participating government’s pension is centrally administered and governed by state statutes but the assets and related pension liabilities for each government are accounted for separately and any unfunded liabilities are solely the obligation of that government. Andrews has chosen from a menu of plan options as authorized by the TMRS statute. Andrews’ plan provides the following benefit level:

          Employee contribution rate: 7% of pay
  Matching ratio (city to employee):     2 to 1
  Years required for vesting: 10
  Service retirment eligibility (age/years of service):       60/10, 0/25
  Updated Service Credits: 100% repeating, transfers 
  Cost of Living Adjustments: 70% of CPI, repeating




 


Upon retirement the employee account balance including interest is combined with the employer match to price a lifetime annuity based on the employee’s age at retirement.  


Actuarial Information as of December 31, 2015

          Actuarial accrued liability (AAL)  $23,673,440
  Actuarial value of assets (AVA)        $19,554,059
  Unfunded actuarial accrued liability (UAAL)   $4,119,381
  Funded Ratio (AVA/AAL)   82.60%
  Equivalent Single Amortization Period    20.1 years
     
  Assumed rate of return 6.75%
     
  Valuation Payroll $3,974,334
  UAAL as a percent of covered payroll 96.2%


Equivalent single amortization period - The weighted average of all amortization periods used when components of the total unfunded actuarial accrued liability are separately amortized and the average is calculated in accordance with the parameters.



                                                                       Click here for downloadable data.

The following documents can be found under the Financial Reports tab at http://www.tmrs.com/publications.php
          -   Actuarial valuations for at least the past 5 years.

          -   Annual Reports for at least the past 5 years.


Portfolio Management Strategy

Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). At its meeting on July 30, 2015, the TMRS Board approved a new portfolio target allocation. The target allocation and best estimates of real rates of return for each major asset class are summarized in the following table: 

Asset Class    Target %     Long-Term Expected  
Real Rate of Return
(Arithmetic)
U.S. equities  17.5% 4.55%
International equities    17.5% 6.10%
Core fixed income  10.0% 1.00% 
Non-core fixed income     20.0% 3.65%
Real estate  10.0% 4.03% 
Real return   10.0% 5.00%
Absolute return  10.0% 4.00% 
Private equity  5.0%  8.00% 
Cash equivalents  0.0%  0.00% 

 Historical Investment Returns

  

Source: TMRS Investment Program 2014 Year-End Wrap Up


 Contributions

Actuarially Determined Contribution (ADC) rate A target or recommended contribution to a defined benefit pension plan for the reporting period, determined in conformity with Actuarial Standards of Practice based on the most recent measurement available when the contribution for the reporting period was adopted.

     Actuarilly Determined Contributions
(as a % of pay) 
      
      2016        2015         2014       2013      2012        2011    
 Employee 7.00%  7.00%  7.00%  7.00%  7.00%  7.00% 
 Employer 15.66%  16.35%  17.17%  17.70%  17.98%  22.38% 
 Total Required Contributions    22.66% 23.35%23. 24.17% 24.70% 24.98% 29.38%




Cross Reference of Andrews Specific Information found in TMRS documents 

2015 TMRS Comprehensive Annual Financial Report: Plan Provisions Chosen (page 109)

Schedule of Changes in Fiduciary Net Position (pages 6-7)

          Click here to download data specific to the City of Andrews for the past 5 years.

2015 TMRS Funding Valuation (page 117)


Important Links:

Texas Transparency Organization
Link to the Texas Comptroller’s website about transparency in government.  

Public Pension Search Tool

Public Information Request

City Council Contact Information

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