Public Pensions

Penison Star

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.

Pension Summary for the Fiscal Year Ended September 30, 2021
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
Funded Ratio 95.10%
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.




Additional Resources for Pension Plan Information