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Pension Plan

League City’s Pension Plan

The City participates in the non-traditional, joint contributory, hybrid defined benefit agent multiple employer pension plan administered by the Texas Municipal Retirement System (TMRS).  TMRS, 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) is an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas.  TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code.  TMRS issues a publicly available comprehensive annual financial report (CAFR) that is available at www.tmrs.com.

Benefits Provided

TMRS provides retirement, disability, and death benefits.  Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS.  A summary of plan provisions for the City are as follows: 

Employee Deposit Rate                                      7% of pay

Matching Ratio (City to Employee)                   2:1

Vesting of Benefits                                              5 years

Service retirement eligibility                              20 years at any age; 5 years at the age of 60 and above

Updated Service Credit                                      100% repeating transfers

Annuity Increases (to retirees)                           70% of CPI repeating

Supplemental Death Benefits                             Yes

Death Benefits to retirees                                   Yes

Employees Covered by Benefit Terms

At the December 31, 2016 valuation and measurement date, the following employees were covered by the benefit terms:

Inactive employees or beneficiaries currently receiving benefits                      197

Inactive employees entitled to but not yet receiving benefits                            222

Active employees                                                                                               490

Total                                                                                                                    909

Pension Summary

TMRS provides each of its member cities with two slightly different actuarial valuations which are both reflected below as of December 31, 2016.  The first is a smoothed valuation used to calculate the City of League City’s actuarially determined contribution (ADC) to the plan.  The second valuation is provided for Governmental Accounting Standard Board (GASB) Pronouncement 68 financial reporting purposes and reflects the City of League City’s fiduciary net position based on the market value of its assets.

                  Equivalent Single Amortization Period                       21.3 years

                  Covered Payroll                                                          $ 29,449,809

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Downloadable Data


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Downloadable Data


Contributions

Based upon on the City’s plan provisions, employees are required to contribute 7% of annual gross earnings.  Beginning in 2009, certain eligible member cities could elect to contribute a minimum amount equal to their Actuarially Determined Contributions (ADC) less a “Phase in” of the increase due to a change in the TMRS actuarial cost method in the 2007 valuation.  

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Investments

More detailed information regarding investment objectives, policies, and performance of the TMRS pension system can be found at https://www.tmrs.com/investments.phpor in the TMRS Comprehensive Annual Financial Report (CAFR) https://www.tmrs.org/financial_reports.php.


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Reference Documents

TMRS Actuarial Valuations https://www.tmrs.org/actuarial_reports.php

League City’s TMRS annual rate letters https://www.tmrs.org/city_rate_letters.php


Texas Comptroller of Public Accounts public pension search tool  https://comptroller.texas.gov/application.php/pension/