F1L~C?F`~r r. c7~~ oF= ~az:~~Fd F~~~n~ F=7F~ T(wL~LFl F;E=l-:[F2EM~t~dT F=`~--i=11~1 On tt-~i~ tI-ie 9tF~ day of J~_~nE 1~~'?;', ~_~pon ftlotlGn ne~~cie t~Y r o In !31 1 4 ~~ 1 {] Tl r? Y" L., (? ~: ':'_ y 5 fa !. (~ Tl (j ~ ?'j L! 'J ~_. (7 ;i! ':Z .l '._ ~ 1 (~ Fl Vi'i' ~ i::~. C: ~i 4_ y y ~~ f'1 E? ~_ t~ i_~ Y .k: unanimously approved by a vote of 4-@-0, t€-~F ~idaFat ion of r~tL~C:~R ?~'l~;n cur-. -rc:i)ER ~Zetirement F'l.ttn that eve ~t3.r-~~<~[fy trav~ ~.n pl~~cc_E. COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND FIVE COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT. MADE BY: Barham -y~..,Ar- OFFICE: MEETING DATE: June 9th, 1 A97 SUBJECT: (PLEASE BE SPECIFIC) Treasurer TIME PREFERRED: A.M. CONSIDER AND DISCUSS ADOPTION OF ADCR PLAN FOR TCDER RETIREN~1'T PLAN. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: 5 min. NAME OF PERSON ADDRESSING THE COURT: Barbara Nemec Time for submitting this request for Court to assure that the matter is posted in accordance with Title 5, Chapter 551 and 552, Government Code, is as follows: Meeting scheduled for Mondays: 5:00 P.M. previous Monday. THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: All Agenda Requests will be screened by the County Judge's Office to determine if adequate information has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and cornribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. EXHIBIT A Texas County and District Retirement System Kerr County -- 232 Annually Determined Contribution Rate (ADCR) Plan Study for a Subdivision Previously Adapting the ADCR Plan Effective Dale -January 1,1998 Basic Retirement Plans Present Plan ADCR Plan 1t~t ADCR Plan 2 ADCR Plan 3 ADCR Plan 4 Employee,bePosit,Rate ........................... ,,.............~~ ................1% 7% .........~%......,,.,... ......,,,,,,.,..~~!°........,....... Current Service CreditPercenta~e(Ratio~ 190%(L9011j 190°Jo(L90I1j 200%(20011) 225%(2.25!1) 175%11511) Ptan Provisions Prier Service Credit Percents e 3 145% 145% 145% 145% 145% Vesting Provision I Rule of Provision 4 8 YrslRule of 75 8 YrslRule of 75 8 YrslRule of 75 8 Yrs!Rule of 75 8 YrslRule of 75 Vested Survivor Death Benefit 5 Yes Yes Yes Yes __Yes 1998 _ Normal Cost Contribution Rate 6 5.61 %t't 5.61 % 5.88 % 6 55 °k _ 5 21 Employer Unfunded Actuarial Liability Rate (UALCR~ 7 1:94 t'r 1.84 2.13 2.85 1.83 Contribution Rate Employer Contribution Rate for 1998t3j 8 7.55 %t'~ 7.45 % 8.01 % 9.40 °rb 1.04 Benefit Credits --- Current Service,throu~h 1997 ................... .....................,,,......... - . 9.. 20.30 % .................................. 20.30% (0%) ...................,. 21.00% (3%) ....,................ - 22,75°~0 (12°k) .,,................. -- 20,30% (0%} as a Percent of Current Service after 1997 10 20.30 % 20.30% (0%) 21.00% (3%) 2?.75°,fi 112%) 19.25% {-5%) Pay (Increase) prior Service 11 NIA NIA NIA NIA NIA Actuarial Liability 12 $ 7,268,288 $ 7,266,288 $ 7,453,771 $ 7,917,479 __ $ 7,205,087 Funding Less: Assets 13 5,997,947 5,997,941 5,991,947 5,997,947 5,997,947 Position Unfunded Amount(to.beamortized) ........................................ ..14 ... $ 1270,341 ..............~......,.................. $ 1,270,341 ...,......,............................, $ 1,455,824 ...,,,.........................,........ $ 1,919,532 .......,,.....,,..,.........,..,.,...,.. $ 1,207,140 ........................................ Amortization Period in Years 15 23.0 Years 25.0 Years 25.0 Years 25.0 Years _ Years 2.3 .0 Additionst~r to the 6; yr.Vestinq.8 Retirement/8-yrs at ale 60iat ....,... ,16 WA ....................................... ,NIA ...... ................. ,NIA ...,.,,. ................. NIA .....,,,...............,.,.,............ _ _ _ N!A ,.,...................,.......... Total Rate for: Rule of 75t3~ 17 NIA NIA WA NIA NIA Ad Hoc Cost-of-Living (CgLA) Annuity Increasestsl Option A Option B Optlan C Option D option E option F _ Increases as a Percentage of the Consumer Price Index 18 30% 40% 50% 60% 70% BO% Additionsr~i to the: Employer Contribution Rata (UALCR~ot .,,...... .... Actuarial Liabilit and Unfunded Amount ~ 9 20 :11% ......... $69,821 .14% ........................... $93,098 .18% ........................... $118,435 .23% ........................ $150,908 .30°k $189,916 __ .36%° $231,748 r'i For comparison, the total employer contribution rate for 1997 under the Present Plan is 7,79% which is the sum of the Normal Cost Contribution Rate of 5.60% and the Unfunded Actuarial Liability Contribution Rate of 2.19%. «~ ADCR Plan 1, which continues existing benefit levels, can only be adopted in conjunction with one of the options shown (e.g. 8-year vesting, rule of 75, annuity increases) tai Employer contribution rates for proposed plans 1 through 4 muss be increased by the additional contribution rate applicable to any of the optional benefits (8-year vesting, rule of 75, annuity increases) being adopted for 1998. t'~ Optional benefits that produce a total employer contribution rate greater than 9 80% cannot be adopted (e.g 8-year vesting, rule of 75, andlor cost-ot•living annuity increases cannot be adopted it the total required employer contribution rate exceeds 9.80°~). ist No previous cost-of-living annuity increases have bean adopted. Order No, 24000 Adoption of ADCR Plan for mCDER Retirement Plan June 9, 1997 Vol, V page 171