City Pension WebsiteThe itv's Pension Plea
The City of Schertz is a member of Texas Municipal Retirement System (TMRS) a statewide,
multiple employer agent plan. In an agent plan, each participating government's pension is
centrally administered and governed by state statutes but the assets and related pension liabilities
for each government are accounted for separately and any unfunded liabilities are solely the
obligation of that government. Schertz has chosen from a menu of plan options as authorized by
the TMRS statute. Schertz plan provides the following benefit level:
Employee contribution rate:
Matching ratio (City to employee):
Years required for vesting:
Service retirement eligibility:
Updated Service Credits:
7% of pay
2 to 1
5
60/5, 0/20 (Age/ Service)
100% Repeating Transfers
Cost of Living Adjustments: 70% of CPI Repeating
Supplemental Death Benefits to Active Employees: Yes
Supplemental Death Benefits to Retirees: Yes
Upon retirement, the employee account balance including interest is combined with the
employer match to price a lifetime annuity based on the employee's age at retirement.
Actuarial Information as of December 31 2015
Actuarial accrued liability (AAL) $55,119,232
Actuarial value of assets (AVA) $39,338,018
Unfunded actuarial accrued liability (UAAL) $15,781,214
Funded Ratio (AVA / AAL) 71.4%
Equivalent Single Amortization Period 28.1 years
Assumed rate of return 6.75%
Valuation Payroll $16,309,269
UAAL as a percent of covered payroll 100.9%
Active Members: 312
Inactive Members: 138
Retirees and beneficiaries: 79
The following documents can be found under the Financial Reports tab at
http://www.tmrs.com/publications.php
- Actuarial valuations for the past 5 years.
- Annual Reports for the past 5 years.
TMRS Guidin Pri ci I s
The overall objective of TMRS' Investment program is to ensure that members, retirees, and
beneficiaries are provided the benefits they have been promised by their employers at a reasonable
and predictable cost to the employers. Assets will be invested with a total return posture, given
appropriate consideration for portfolio volatility (risk) and liquidity. Total return includes
dividends, interest, and realized and unrealized capital appreciation.
Investments are made with the degree of judgment and care, under the circumstances, that persons
of prudence, discretion, and intelligence exercise in the management of their own affairs,
considering the probable income from the securities and probable safety of their capital and in
consideration of the purposes, terms, distribution requirements, and other circumstances of the
trust. Investment and management decisions respecting individual assets will be evaluated not in
isolation but in the context of the investment portfolio as a whole and as a part of an overall
investment strategy having risk and return objectives reasonably suited to the trust.
Source: TMRS
One -year rate:
Policy Benchmarks
Asset Class
Policy
Asset Class
6.45
Goal
Index
USEquities
Russe113000
Benchmark
17.5%
Int'l. Equities
MSCI ACIYI -ex US ANTI
Benchmark
17.5%
Core Fixed Income
Barcla s UVA re ate Band Index
Benchmark
10%
Non -Core
50% Barclays US Corporate High Yield
Benchmark '
20%
Fixed
Index
Income
25010 f.R Morgan GBI Emerging
Markets Global Diversified ( )
25 °ro J.P. Morgan CEMBI Broad
Diversi ed Index
Real Estate
.NC IF -ODCE
Benchmark
10 %''
Real Return
Barclays Wl orld Government Inflation
CPI +4%
10%
Linked Bond Index
Absolute Return
HFR1 Fund of Funds: Diversified Index
Cash (3 -month
10%
Libor )+ 5%
Private Equity
Russe113000 + 3%
Benchmark
5%
Cash Equivalents
30 Da T- -Bill !
Benchmark
0%
TMRS Policy Index
100%
Source: TMRS
One -year rate:
5.99
Three -year rate:
8.57
Ten -year rate:
6.45
Assumed Rate: 6.75%
Contributions
Schertz Five Year History of Net Position
Actuarially
Determined
Actual Total
Fiscal
Contribution
Contribution
Year
Rate
Rate
2012
15.52%
15.52%
2013
15.64%
15.64%
2014
15.76%
15.76%
2015
16.39%
16.39%
2016
16.06%
16.06%
Schertz Five Year History of Net Position
I Addfiti— I D*dmtiDns I
2011 19,912,462 469,099 2,054,1215 919,774 415,306
2012 22,825,059 2,252,204. 2,129,2-,4 9159,742 551,269
2013 27,113,959 2,1551,223 2,229,5102 I,waf,31 6315,940
MiV 32,179,519 1,M8,822 22,764 2,403,979 1,077,097 943,434,
36,4121214 22,572 32,170 2,542,555 ko-5,26o 4821749
'Due to a change in accuunting prcffcen, admististralive expenses were not allocated p6of, to 2024
9,291 76,507 122,097 22.626,060
8,33E 140,125 161,767 795 27,115,958
5,335 223,245 173,303 9.435 32,01q,699
B,666 97,633 M1,754 19,219 I.SDO 35,412,8U
8,750 4051613 172,0E9 32,727 1.616 38,499,657
TMRS
201_ TNJ R S C
------- --- Fiii,,is icial FICpoft
2015 1 N4,16 Schedule of Chamizes 41 V)'duci�iry Net POSiflk)n
2015 TM16 Ani,.�,rifl Vtluflio�l J,,,q,2orI,
City of Schertz Rate Letters
2017 IZatc 1-ciller R,,,Ac I,ctter
10 6 Rme I.etter 2014 R�,ite 1,etter
Texas Comptroller of Public Accounts
Ilubfic Pciisioii Scarch Tool
20 13 Ra,e I.etter
Documents and Datasets (SCHERTZ\l 7 Public Information\Finance Information\Website\Pension
Summary)
Net
lnvestmefft
1-...
Other Net
Se-Ke
Dr.bility
Partial Lump
riduawy Net
c7edited to
mwestment
EMpIOM.
Plan vein f
Retirement
Retirement
sum
Refunds of
Administrative
Otlief
Fiduciary Net
Year
PK95,jtion Ilan 11
NwnkipaFq
income
contributions
r-onvibutions
Benefits
Beneths
Distributions
contributions
Exp.
Activity
PkositiDn(Deu:31�
2011 19,912,462 469,099 2,054,1215 919,774 415,306
2012 22,825,059 2,252,204. 2,129,2-,4 9159,742 551,269
2013 27,113,959 2,1551,223 2,229,5102 I,waf,31 6315,940
MiV 32,179,519 1,M8,822 22,764 2,403,979 1,077,097 943,434,
36,4121214 22,572 32,170 2,542,555 ko-5,26o 4821749
'Due to a change in accuunting prcffcen, admististralive expenses were not allocated p6of, to 2024
9,291 76,507 122,097 22.626,060
8,33E 140,125 161,767 795 27,115,958
5,335 223,245 173,303 9.435 32,01q,699
B,666 97,633 M1,754 19,219 I.SDO 35,412,8U
8,750 4051613 172,0E9 32,727 1.616 38,499,657
TMRS
201_ TNJ R S C
------- --- Fiii,,is icial FICpoft
2015 1 N4,16 Schedule of Chamizes 41 V)'duci�iry Net POSiflk)n
2015 TM16 Ani,.�,rifl Vtluflio�l J,,,q,2orI,
City of Schertz Rate Letters
2017 IZatc 1-ciller R,,,Ac I,ctter
10 6 Rme I.etter 2014 R�,ite 1,etter
Texas Comptroller of Public Accounts
Ilubfic Pciisioii Scarch Tool
20 13 Ra,e I.etter
Documents and Datasets (SCHERTZ\l 7 Public Information\Finance Information\Website\Pension
Summary)