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    Public Pension

    Three people looking at a computer screen

     

    Tarrant County is part of the Texas County and District Retirement System (TCDRS). TCDRS has over 760 employers and over 290,000 members and retirees. While the County is part of TCDRS, the Tarrant County Commissioners Court defines the benefit plan for County employees and retirees.

     

    The basic plan options include:

    Employee Deposit Rate 7.0 percent
    Employer Matching 200 percent

     

    A county employee is eligible for retirement if any of the following criteria are met:

    Vested at Age 60 8 years of full-time service
    Rule of 75 75 points = age + years of service
    At Any Age 30 years of service

     

    Based on the most recent actuarial valuation, Tarrant County retirement plan's funded ratiois 87.7 percent. Below are the estimated investment returns as of December 31, 2017, net of all fees.

    Annualized
    Returns
    2017
    Return
    5
    Year
    10
    Year
    15
    Year
    20
    Year
    25
    Year
    30
    Year
    35
    Year
    Total Fund
    (percentage)
    14.3 8.7 5.5 7.7 7.1 7.5 8.4 9.1
    Benchmark
    (percentage)
    14.3 7.3 4.6 7.1 6.3 6.6 7.3 8.0

     

    The target rate of return is 8 percent. For 2017, the estimated return was 14.3 percent. As Chart 1 shows, the returns fluctuate, depending on the market.

     

    Chart 1: Achieving Long-term Investment Goals

    Long-term Invest Goals Chart

    TCDRS Estimates that for every dollar paid out to retirees, $0.77 comes from investment earnings.

    Investment Earnings

     

    To help mitigate risk, Tarrant County Commissioners Court works closely with TCDRS to ensure  the County's retirement plan entails a diversified portfolio. As of April 2018, the county's asset allocation included the following:

     

    Asset Allocation

    The Actuarially Determined Contribution Rate versus the Actual Total Contribution Rate for Tarrant County

    For calendar year 2018, Tarrant County Commissioners Court elected a Total Contribution Rate of 19.50 percent of payroll, which will go towards funding the County’s retirement plan. This rate is actually higher than the Determined Contribution Rate of 14.51percent for the same period.  By contributing above the required rate, the County is investing in current employees’ future benefits and paying down its unfunded liability within 20 years.

    Below Chart 2 compares the Actuarially Determined Contribution Rates versus Tarrant County's Actual Total Contribution Rates. Over the last four years, Tarrant County Commissioners court has continued to pay above the required amount to pay down unfunded liability.

     

    Chart 2

    Below, Chart 3 shows the five year history of Tarrant county's Actuarial Value of Assets versus Actuaria Accrued Liabilities. This data can be found in the Tarrant County Comprehensive Annual Financial Report. Please note 2016 is the most recent year available. Numbers are not released until December 31st of each year.

    Chart 3

     

    Please note that the Chart 3 does not include the Community Supervision and Corrections Department actuarial valuation results.

    Tarrant County Unfunded Actuarial Accrued Liability (UAAL) as percent of covered payroll is 12.3 percent.