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The City of College Station participates as one of 860 plans in the multi-employer, nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). In a multiple-employer defined benefit pension plan, each municipality pension is administered and governed by state but the each municipality are responsible for their assets and liabilities. College Station’s plan provides the following benefits to its employees:


BENEFITS PROVIDED
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS. A summary of plan provisions for the city are as follows:

Employee Deposit Rate 7% of Pay
Matching Ratio 2 to 1
Vesting of Benefits 5 years
Service Retirement Eligibility 20 years at any age, 5 years at age 60 and above
Updated Service Credit 75% Repeating Transfers
Annuity Increases (to retirees) 50% of CPI Repeating

EMPLOYEES COVERED BY BENEFIT TERMS
At the Dec. 31, 2016 valuation and measurement date, the following employees were covered by the benefit terms:

Employee Deposit Rate 7% of Pay
Inactive employees or beneficiaries currently receiving benefits 416
Inactive employees entitled to but not yet receiving benefits 505
Active employees 885
Total 1,806



PENSION SUMMARY
Pension commitments made by the City of College Station to its employees and funding the commitments to date, is determined by understanding 1) investments (management of the assets/TMRS responsibility), 2) actuarial valuations (calculation of the cost of benefits earned to date/TMRS responsibility) and 3) funding (the city’s commitment to make contributions to fund the benefits earned to date/city responsibility).

If the projected rate of return is not earned, assets will be less than expected and the city will have to make up the deficit through an increased contribution rate.

Additional information on actuarial policies including valuations and experiences studies validating assumptions used can also be found at the site above. If the actuarial assumptions used are unrealistic, the actual liabilities could be higher than projected and the city would be required to make up the difference through increased contributions.

Our commitment and funded status for the pension liabilities is provided on this page and in the city’s CAFR, located here cstx.gov/cafr.

TMRS employs two separate actuarial valuations: 1) a funding valuation to calculate the city’s actuarially determined contribution and 2) the Government Accounting Standards Board (GASB 68) valuation which is used for financial reporting purposes and is reported in the city’s CAFR. The primary difference between the two valuations, is that the funding valuation uses a smoothed actuarial value of assets and the GASB 68 valuation utilizes fiduciary net position based on a market value of assets on the reporting date.

   -  Equivalent Single Amortization Period: 22 years
   -  Covered Payroll: $53,016,848

Funding Valuation
(Smoothed Value)
12/31/2016       GASB 68 Valuation
(Market Value)
12/31/2016
Total Actuarial Accrued Liability $267,674,838   Total Pension Liability $267,674,838
Actuarial Value of Assets $230,352,018   Plan Fiduciary Net Position $226,024,775
Unfunded Actuarial Accrued Liability (UAAL) $37,322,820   Net Pension Liability (NPL) $41,650,063
Funded Ratio 86.10%   Funded Ratio 84.44%
UAAL as a percentage
of covered payroll
73.80%   NPL as a percentage of covered payroll 83.32%

Pension_Actuarial_Accrued_Liability_Graph
(download Excel data)



CONTRIBUTIONS
Employees for the City of College Station were required to contribute 7% of their annual gross earnings during the fiscal years. The contribution rates for the City of College Station are 13% for 2018 and 13% for both 2017 and 2016 calendar years. 

Pension_ADC_TCR_Graph
(download Excel data)
 



INVESTMENTS
TMRS strategies and results are available in their Comprehensive Annual Financial Report (CAFR) in the investment section at tmrs.com/publications.php.

Pension_Total_Additions_Graph
Pension_Total_Deductions_Graph
Pension_Funded_Percentage_Graph
(download Excel data)
 


The graph above demonstrates the City of College Station funding percentages in excess of 80% for the last 10 years. The Funding Valuation is defined as actuarial value of assets divided by the total actuarially accrued liability. Funding Percentage could vary from year to year, due to numerous factors including investment returns, actual experience and changing assumptions.



CROSS REFERENCES
Plan Provision Chosen (pages 120 – 121)

Schedule of Changes in Fiduciary Net Position (pages 12-13)

2016 TMRS Funding Valuation (page 126)

Texas Comptroller of Public Accounts

Last updated: 6/12/2018 7:15:00 PM