Town of Addison’s Pension Plan
The Town provides pension benefits for all of its full-time employees through a hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple-employer public employee retirement system. TMRS is an agency created by the State of Texas and administered in accordance with the Texas Government Code. TMRS' defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. Each of the participating municipalities’ assets and related pension liabilities are accounted for separately, and each municipality has an annual individual actuarial valuation performed. Any unfunded liability of an individual municipality is solely the obligation of that municipality. The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes.
|Employer Actuarially Determined Contribution (ADC) Rate as a % of Pay||11.56%|
|Employee Contribution Rate as a % of Pay||7.00%|
|Total Required Contributions||18.56%|
|Equivalent Single Amortization Period||14.3 years|
|Unfunded Actuarial Accrued Liability (UAAL) as a % of Covered Payroll||31.50%|
|Actuarially Assumed Rate of Return||6.75%|
|1-Year Rate of Return||7.65%|
|3-Year Rate of Return||6.46%|
|10-Year Rate of Return||6.74%|
Please refer to pages 55-63 of the 2020 TMRS Annual Comprehensive Financial Report for information regarding investment strategies and methodology. Rates of return presented are calculated using a time-weighted rate of return methodology based upon market values, and are presented gross of investment management fees to the extent such information is available. Therefore, in some instances, a combination of gross and net returns are presented.
- Actuarial Value of Assets Versus Actuarial Accrued Liability for Previous Five Years
- Actuarially Determined Contribution to Actual Total Contribution Rate for Previous Five Years
- Additions and Deductions to Fiduciary Net Position for Previous Five Years
Additional Resources for Pension Plan Information
- Information regarding the Town's pension plan can be found in the Required Supplementary Information and Notes in our Annual Comprehensive Financial Reports.
- To view TMRS's Schedule of Changes in Fiduciary Net Position by participating entity for 2020, see pages 6-7.
- Prior year TMRS Annual Comprehensive Financial Reports.
- Current and prior year TMRS actuarial valuations.
- The Town has received five GASB 68 actuarial valuations since the implementation of GASB 68, and those are provided below.
- Additional details on state and local pension plans in Texas is available at the Public Pension Search Tool.