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GOMMISSIONERS'GOURT AGENDA REaUEST
~ pyF~~F FURNISH ONE ORIGINAL AND FiV _OPI S OF THIS REaUEST AND DOCUMENTS
rn aF REVIEWED BY THE COURT.
BARBARA NEMEC TREASURER
MADE BY: OFFICE:
MEETING DATE:
July 26, 1994
TIME PREFERRED:
A.M.
CONSIDERATION OF ADOPTING REVISED
SUBJECT: (PLEASE BE SPECIFIC):
RETIREMENT PLAN FOR KERB COUNTY EMPLOYEES.
EXECUTIVE SESSION REQUESTED: PLEASE STATE REASON
ESTIMATED LENGTH OF PRESENTATION: 15 MIN.
IF PERSONNEL MATTER -NAME OF EMPLOYEE: BARBARA NEMEC
NAME OF PERSON ADDRESSING THE COURT:
Time for submitting this request for Court to assure that the matter is posted in
accordance with Artfcle 6252- i 7 1s as follows:
• Meetings held on Tuesday: 12:00 P. M. previous Wednesday
THIS REQUEST RECE! VED 8Y:
TH1 S RE(lUEST RECEIVED ON: ~
All Agenda Requests will be screened by the County Judge's Office to determine
adequate information has been prepared for the Court's formal consideration and action
time of Court meetings. Your cooperation w111 be appreciated and contribute to~rar
your request being addressed at the earliest opportunity. See Agenda Request Guidelines.
ENDORSEMENT A
Optional Benefit for Surviving Beneficiary of Vested Member Under Section 844.209.
(11 If a member, who has the credited service required under Section 844.209 of the
TCDRS Act, shall die before becoming eligible for deferred service retirement and
leaves surviving a person whom the member has designated as beneficiary entitled to
payment of the member's accumulated contributions in the event of the member`s
death before retirement, the designated beneficiary may by written notice filed with
the System elect to receive, in lieu of the member's accumulated deposits, an annuity
payable monthly during the lifetime of the designated beneficiary in such amount as
would have been payable to the surviving beneficiary had the member retired on the
last day of the month preceding the month in which death occurred under a joint and
survivor annuity (Option #1) payable during the lifetime of the member and continuing
thereafter during the lifetime of the surviving beneficiary.
(2) At any time before payment of the first monthly benefit of the Option #1 annuity, a
surviving beneficiary to whom this subsection applies may, upon written application
filed with the System, receive payment of the accumulated contributions standing to
the account of the member in lieu of any benefits otherwise payable under this section.
In the event such a surviving beneficiary shall die before payment of the first monthly
benefit of the Option #1 annuity allowed under this section, the accumulated
contributions credited to the account of the member shal{ be paid to the estate of such
beneficiary.
I certify that this endorsement was adopted as part of the Order on this day of
19_
Name of Subdivision
IMPORTANT NOTE:
Signature of County Judge
This endorsement should only be signed and attached to your Order if you are authorizing
Vested Survivor Death Benefits for the first time. It is not necessary to attach this
endorsement to your Order if you have previously authorized Vested Survivor Death Benefits
on earlier adoption of the Annually Determined Contribution Rate Plan.
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,,
ENDORSEMENT B
Increases In Existing Annuities Under Section 844 208.
(1) On terms and conditions set out in Section 844.208 of the TCDRS Act, the subdivision
hereby elects to allow and to provide for payment of the increases below stated in
monthly benefits payable by the System after January 1, 1995, to retired employees
and to beneficiaries of deceased retired employees of the subdivision under current
service annuities and prior service annuities arising from service by such employees to
the subdivision. An annuity increased under this subsection of this order replaces any
annuity or increased annuity previously granted to the retired employee or
beneficiary.
(2) The amount of the annuity increase under this order is computed as: (i) the sum of the
basic and supplemental annuities on the effective date of retirement of the person on
whose service the annuities are based, multiplied by °~6' of the percentage
change in the Consumer Price Index for All Urban Consumers, from December of the
year immediately preceding the effective date of the person's retirement to the
December that is 13 months before the effective date of this order; (ii) less the sum
by which the amount of this annuity has previously been increased.
(3) An increase in an annuity that was reduced because of an option selection is reducible
in the same proportion and in the same manner that the original annuity was reduced.
(4) If a computation hereunder does not result in an increase in the amount of the annuity,
the amount of the annuity will not be changed hereunder.
(5) The amount by which an increase under this subsection of this order exceeds all
previously granted increases to an annuitant is an obligation of the subdivision and of
its account in the Subdivision Accumulation Fund of the System.
I certify that this endorsement was adopted as part of the Order on this day of
19_
Name of Subdivision
Signature of County Judge
IMPORTANT NOTE:
This endorsement should only be signed and attached to your Order if you are authorizing a
Cost-of-Living increase for retired members. Please include in (2) above, the percentage
increase associated with any authorized annuity increases.
'The percentage may be 30, 40, 50, 60, 70, or 80°~.
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ENDORSEMENT C
OPTIONAL BENEFIT ELIGIBILITY PLAN TWO
$-Y AR VE TING/RETIREMENT ELIGIBILITY
t1) Any person who on or after January 1, 1995, is a TCDRS member and has attained
the age of sixty (60), and who shall have accumulated eight (8) or more years of
credited service with this subdivision and other subdivisions that have adopted the
provisions of Section 844.210 of the TCDRS Act, shall have the right to retire and
receive a service retirement annuity.
(2) Any person who on or after January 1, 1995, is a TCDRS member who shall have
accumulated eight (8) or more years of credited service with this subdivision and other
subdivisions which have adopted the provisions of Section 844.210 of the TCDRS Act,
may retire and receive a disability retirement annuity if the member is certified as
disabled in accordance with Section 844.303(b)(2) of the TCDRS Act.
(3) Any person who on or after January 1, 1995, is a TCDRS member who shall have
accumulated twenty (20) or more years of credited service with this subdivision and
other subdivisions that have adopted twenty (20) year deferred service eligibility or
who shall have accumulated eight t8) or more years of credited service with this
subdivision and other subdivisions that have adopted eight t8) year deferred service
eligibility and has attained the age of sixty t60) shall have the right of "deferred service
retirement" under the terms and conditions prescribed in Sections 844.203 and
844.210 of the TCDRS Act.
(4) Any person who on or after January 1, 1995, is a TCORS member and who shall have
accumulated at least eight (8) years of credited service with this subdivision and other
subdivisions which have adopted eight (8) year vesting, shall have the right, despite
withdrawal from service prior to attainment of age sixty t60}, to remain a member and
to retire at or after age sixty (60), conditioned that he lives to date of retirement and
that he shall not have withdrawn his accumulated deposits with the System.
I certify that this endorsement was adopted as part of the Order on this day of
19_.
Name of Subdivision
Signature of County Judge
IMPORTANT NOTE:
This endorsement should only be signed and attached to your Order if you are adopting an 8-
year length of service eligibility requirement for service retirement, disability retirement,
deferred service retirement, and vesting.
ENDORSEMENT D ~ -
OPTIONAL BENEFIT ELIGIBILITY PLAN THREE
"RULE-OF-75" RETIREMENT ELIGIBILITY
A member who shall have accumulated sufficient years of credited service with this
subdivision and other subdivisions which have adopted the provisions of Section 844.21 1 of
the TCDRS Act such that, when the years of such credited service is added to the member's
years of attained age produces a sum equal to or in excess of seventy-five (75}, shall have
the right to retire and receive a service retirement annuity.
I certify that this endorsement was adopted as part of the Order on this day of
19_
Name of Subdivision
Signature of County Judge
IMPORTANT NOTE:
This endorsement should only be signed and attached to your Order if you are adopting the
"Rule-of-75" as an early retirement requirement.
Exhibit A
~~
4
r~. ` Texns Cr~uiriV rrnrt [)i,ctrict Reti~~r~ nt ,SYstern ~
~ ~ ~y
~" ~ Kerr County ~~ ~
~ Plan Study ~
~~~ ~ Annually Determined Contribu~inder the(F zDedRRate Plan n
"~aT a Sub ' stun Currently January 1, 95
~1 ~~ Effective Date' ~ ADCR Pian d
..OO ADCR Plan 3
Present Plan ADCR Plan 1 ADCR Plan 2 7°/°
7°l0 7°10 ...........~ ...............................
Basic Retirement Plans °° Zoo°I° loon) '~ „??~..°!~.t2:25f1}
° 1 9011) ~•~~~~~
to ..... 7l ...................... 164%
1 ° 17511) 190 /°
............................:..._...................... ...I ..............................
.. ....._........._ ........................ 190°/0(1,90(1) ~ 175/0( 15p%
... ................. 10 Years
Ratio) ° 145%
' 1451° .
,.......... 10 Years....... ..........._.. .
Curpreont Sevice Credit Percentage ( .............. ~ 145°l0
3 ..... .......... 10 Years ...... .
... ...... Yes
Plan prior Servrce Credit Percentage .....,. ..... 10 Years , ,,..... _ _
_... 10 Years.......... Yes _ Yes
......... 4 ...No. 6 40%
Provisions ..................... Yes ~ - 575°l0
5 ° 5 49°/0 .._ .............
Vesting Provision • , .....
,......... - 2.75
Vested Survivor Death Benefit ___ . - 5 49%_ 510/0, .... ,,,...._ ............. 221
- .... ........................ 1.99 .... ......................
6 ................. .....
_ __ ........_.... 1.90
Normal Cost Contribution Rate .. ..................... _ 151 48°l0 7.96% 9. 5%
........................ ° ...................7.00°l0...... ..............
° 0 22 75°l0 (12°/0}
19 9 5
Unfunded Actuarial Liability Rake (UALCR) , ..7-. 7.00 /0 0.3D°/o ° 20.30% (0°/0) 21.pp /° (3 /o)
EmploYer .................................... .
Contribution Rate Employer Contribution Rate for 1995r~ 8 20.30 io 2 { ° °• " ~ • ~ ~ •2100 /0 (3 ~1 • ' ~~~
................ ....a...... 20.30°l0 (0%)
9
.......... .
0 1925 /o (-5%)
Benefit Credits Current Service through 1994 ................. -10 20,30 /° 21.OD°~ {3 /0) _- __ - --7 -
.... .... 0 20.30°/0 (0°I°) _ _ -
...................... ............. (D /o)
,. 11 .........~...... ~........
as a Current Service after 1994 .................... 20 30°l0 20 30°/° - $ 5 492 759 $ 5 813 90
........................... $ 5,364,300
percent of PaY ~ . _- . ~+~ $ 5,313,177 4,134,623
Prior Service 364,30p ........... _ ........................................._.............41134,623
(Increase) _ _ 12_ .,,...$.5~... • ~ ~ ~°' 4134,623 4,134,623 $1,679,284
Actuarial Liability .................................................13 4134,623 $1229 677 $1,358,136............................,....
,....
25.0 ears
.................... .......... .Years
Less Assets $1,229 677"' ~ $1,178,554 ...........~.. ' . ~25 0 - - .
........_. 14
~~° ~ 25 0 Years _ _
Funding ... __ ..
13°k
25 0 Years _ .11 /o ....
Position Unfunded Amount (to be amortized) ....... _• 15 39.9 Years 1401° °
........
Amorhzatron Period m years ,. _ ...........................................
_ _ .._ 11% 46%
_...
_- rs at age 60'
8-Y(~~ting &Retirement/8-Y ........................ 17 NIA
Option F
Additions" to the ...... Option D Option E
Total Rate for: Rule of 75121 Option B Option C
Option A o BO°/°
--
60°l0 70
COLA) Annuity Increases ° °
0 5010 - 0 21 °l0 26 /a .......
Ad lioc Cost•of-Living ( 3o°i° 44 ~
16 ..~ .................. 2649.....x.......$99,826...., .. ......:.................................
_ ~-~ 48°l0 111° $122,879 $153,554
increases as a Percentage of the Consumer Price Index _
.... .
_ _... ........ $B
o er Contribution Rate (UALCR)~Z'.,,.,.._....... 2~ $49,565 $66,088
Additions, EmPI.? ............._..........,..........
ctuarial cost method used for ADCR plans and includes the vested survivor deat
to the: Actuarial Liability (and Unfunded Amount)
valued with the more conservative a uarial liability of $4,632,358, an unfunded amount of $497,735 and an amea izabon
Ian has been Ian results in an act tional additions (e 9 , 8 y
"'For comparison, the present fixed rate p the additional contribution rate applicable to any of the op
benefit The less conservative method used for the present toed rate p andloreost-of-living annuity increases
period of 7.3 years, osed plans 1 through 4 must be increased by gear vesting, rule of 75,
~~, Employer contribution rate Increases) being adopted for 1995.
vesting, rule of 75, annuity er contribution rate greater than 9 30% cannot be adopted (e g ,
"' Optional benefds that produce a tutreld emiployer contribution rate exceeds 9 30%).
cannot be adopted if the total req
TTEM 2.2
Consideration of adopting revised retirement plan for Kerr
County Employees.
Barbara Nemec, County Treasurer addressed the Court wanting
the Court to consider adopting the revised retirement plan for
Kerr County Employees. The Treasurer presented Plan 1 through
Flan 4 and Options A through D tc~ the Court. The Court would
like some time to think about the options and whether or not
the money could be put. in the budget.. They are to get back
with Barbara bef~~rF~ January 1, 1995 which is our deadline to
change if it is going t.o be changed.
Item No. 2.2
Consideration of adopting revised
retirement plan for Kerr County
gnployees
July 26, 1994
Vol T, Page 501