| The Public Pension page contains information required by the Texas Comptroller of Public Accounts to qualify for the Comptroller's Transparency Stars program. This information will provide a broader understanding of the City's finances.
The City of Richardson's pension plan is provided by the Texas Municipal Retirement System (TMRS). This retirement program for full-time and some part-time employees is jointly funded by employees and the City. TMRS is an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act) as an agent multiple-employer retirement system for municipal employees in the State of Texas. Benefit options are adopted by the governing body of the City, within the options available in the state statutes governing TMRS.
Public Pension Summary
(TMRS Actuarial Valuation 12/31/16, City of Richardson CAFR 9/30/17)(1)
|Funded Ratio, Funding Basis(2)||88.75%|
|Funded Ratio, Market Basis (2)||87.10%|
|Amortization Period for Unfunded Portion||15.3 Years|
|One Year Rate of Return(3)||7.42%|
|Three Year Rate of Return(3)||4.54%|
|Ten Year Rate of Return(3)||6.09%|
|Assumed Rate of Return||6.75%|
|Actuarially Determined Contribution Rate, Contributions for Calendar Year 2017||14.58%|
|Actuarially Determined Contribution Rate, Contributions for Calendar Year 2018||14.80%|
|Total Contribution Rate, Contributions for Calendar Year 2017||14.58%|
|Total Contribution Rate, Contributions for Calendar Year 2018||14.80%|
|Unfunded Actuarial Accrued Liability, Funding Basis (As % of Covered Payroll)||80.46%|
|Unfunded Actuarial Accrued Liability, Market Basis (As % of Covered Payroll)
(1)Actuarial valuations are produced by TMRS on a calendar year basis and the City operates on a fiscal year ending 9/30. Valuations for a given year are used in the following year's City Comprehensive Annual Financial Report ("CAFR"). For example, the 2015 valuation was produced during the City's 2016 fiscal year and was used in preparing the City's 2016 CAFR. The 2015 valuation also set the contribution rate for use in calendar year 2017.
(2)The funded ratio for a pension is the value of pension assets divided by the value of the pension liability. TMRS reports funding data to the City on both a market basis and a funding basis. The market basis reports the fair market value of pension assets as of the reporting date (December 31 of the year of valuation for TMRS). The funding basis smooths market gains and losses for pension assets over a period not to exceed ten years. This treatment allows TMRS' actuary to set the City's contribution rates in a way that does not cause large spikes or declines in the rates year over year due to market fluctuations. The market basis is reported in the financial statements and footnotes of the City's CAFR. The funding basis is included in the statistical section of the City's CAFR.
(3)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, as reported by TMRS.
Actuarial valuations are used to determine the amount that, when combined with investment earnings, should be consistently deposited into a retirement fund to ensure sufficient funds to pay promised benefits in full and over the long term. Actuarial valuations also show the plan's funding progress.
2016 TMRS Valuation 2016 Richardson Valuation 2016 GASB Reporting Package
2015 TMRS Valuation 2015 Richardson Valuation 2015 GASB Reporting Package 2014 TMRS Valuation 2014 Richardson Valuation 2014 GASB Reporting Package**
2013 TMRS Valuation 2013 Richardson Valuation
2012 TMRS Valuation 2012 Richardson Valuation
2011 TMRS Valuation 2011 Richardson Valuation
**Due to a change in GASB reporting requirements, the 2014 package, released in 2015, was the first year this report was produced.
TMRS Comprehensive Annual Financial Reports
The CAFR is TMRS’s official annual financial statements, prepared in accordance with Generally Accepted Accounting Principles. TMRS's CAFR provides comprehensive financial information including statements of fiduciary net position and changes in fiduciary net position; City specific information can be found in the appendices.
2016 TMRS CAFR
2015 TMRS CAFR
2014 TMRS CAFR
2013 TMRS CAFR
2012 TMRS CAFR
2011 TMRS CAFR
TMRS Rate Letters
Rate letters are issued by TMRS, and provide the contribution rate for the following calendar year, a summary of the pension plan funding and position, and information on changes that affect the plan.
2017 Rate Letter for 2018
2016 Rate Letter for 2017
2015 Rate Letter for 2016
2014 Rate Letter for 2015
2013 Rate Letter for 2014
2012 Rate Letter for 2013
2011 Rate Letter for 2012
2010 Rate Letter for 2011
Pension Fund Additions by Source and Deductions by Use Downloadable Data
Provides 5 years of data detailing the additions by source, such as investment income, employer and employee contributions, and deductions by use, such as benefit payments, withdrawals, and administrative expenses.
Texas Comptroller of Public Accounts Public Pension Search Tool
Search for details on state and local pension plans in Texas.