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 830 employers and over 345,000 members and retirees. While the County is a part of TCDRS, the Tarrant County Commissioners Court defines the benefit plan for county employees and retirees.

 

Transparency Star Public Pensions

 

The basic plan options include:

Employee Deposit Rate  

 7%

Employer Matching

 200%

 

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


See the actuarial information for the County below:

Plan Assets & Liabilities (In Thousands)

Actuarial Accrued Liability (AAL)

 $2,131,806

Actuarial Value of Assets (AVA)

 $2,103,217

Unfunded Actuarial Accrued Liability (UAAL)

 $28,589

Funded Ratio (AVA/AAL)

 98.66%

Remaining Amortization Period

 5.9 years

Assumed Rate of Return

 7.5%

Valuation Payroll

 $308,678

UAAL as a Percent of Covered Payroll

 9.26%

 

Actuarial Methodology

Actuarial Cost

 Entry age

Amortization Method

 Level percentage of payroll, closed

Remaining Amortization Period

 5.9 years*

Asset Valuation Method

 5 year smoothed market

Inflation

 2.5%

Salary Increase Average**

 4.7% over career

Investment Rate of Return***

 7.5%

Average Age at Service Retirement for Recent Retirees****

 61

*Based on contribution rate calculated in Dec. 31, 2021 valuation. **Varies by age and service. Includes inflation. *** Net of investment expenses, including inflation. ****Retirement age members who are eligible for service retirement are assumed to commence receiving benefit payments based on age. 

 

 Investment Rates of Return for Previous Years

2021

 7.6%

2020

 8.1%

2019

 8.1%

2018

 8.1%

2017

 8.1%

2016

 8.1%

2015

 8.1%

2014

 7.75%

2013

 8%

 

Chart 1: Achieving Long-Term Investment Goals

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 March 2021, the County’s asset allocation included the following:

Achieving Long-Term Investment Goals 

 

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

For 2022-2023, 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 higher than the Actuarially Determined Contribution Rate (ADC) of 12.92 percent 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 the unfunded liability.

Actuarially Determined Contribution Rate vs. Actual Total Contribution Rate 

Chart 3 shows the five year history of Tarrant County's Actuarial Value of Assets versus Actuarial Accrued Liabilities. This data can be found in the Tarrant County Comprehensive Annual Financial Report. Chart 3 does not include the Community Supervision and Corrections Department actuarial valuation results.

 

Actuarial value of assets versus actuarial accrued liability in billions