~eY No. 25401 Approval of f ~~ ~ Plan yY, effecto for 1999 June 22, 1998 Vol V Page b86 ORDER NO. 05401 RPRROVRL OF NEERINO SRME PLAN IN EFFECT FOR THE TCDRS FOR 1999 On this day the 00nd day of June, 1998 upon motion made by Commissioner Let z, seconded 6y Commissioner Baldwin, the Court unanimously approved by a vote of 4-0-0, to leave retir^ement plan for N,err County from TCDRS as it is in effect today. 1 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 NPmP(` OFFICE: MEETING DATE: June 22, 1998 SUBJECT: (PLEASE BE SPECIFIC) Treasurer TIME PREFERRED: morning Consider and discuss TCDRS plan options for 1999. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: NAME OF PERSON ADDRESSING THE COURT: 5 min. 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 contribute 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 far a Subdivision Previously Adopting the ADCR Plan Effective Date - January 1, 1999 Basic Retirement Plans Present Plan ADCR Plan 11x1 ADCR Plan 2 ADCR Plan 3 ADCR Plan 4 Employee Deposit.Rate .................................................. ...._~ _. .. . .................~°~................. .................~`~................. .................7°~f'.................. .................7.'!r'................. .................7.'!r'................. Current. Service.Credit.Percenta$e(Ratio~ .2 .190%(1;90/1) .190%(1;90/1) .200%(2.00/1) .225%(2.25/1) .175%(1.75/1) Plan Provisions poor Servce Credd Percents e 3 145% 145% 145% 145% .145% Vestin~.Provision /.Rule.of Provision 4 . . . . . . 8 Vrs/Rule of 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Yrs/Rule of 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Yrs/Rule of 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 Yrs/Rule of 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8 Yrs/Rule of 75 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Vested Survivor Death Benefit 5 Yes Yes Yes Yes Yes 1999 Calculated Normal Cost Contribution Rate 6 5.73 %~'~ 5.73 % 6.00 % 6.70 % 5.31 % Employer Unfunded ActuarialLiabili Rate .............................. .....~..... ................~:~.~......~~~..... .................~:~.~............... ..............._2:45.............. .................3:28.............. .................~:~~............... Contribution Rate Employer Contribution Rate for 1999r'~ 8 7.84 %~'~ 7.84 % 8.45 % 9.98 % 7.32 % BenefltCredits Current Servicethrou~h1998 ..................................... . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .....9..... ..............20.30..%........ ....,.20.30%.(0%....... ..,...21;00%.(3%)...... ,....22:75%(12%?..... ...,.,20.30%.(0%)....., as a Percent of Current Service after 1998 10 20.30 % 20.30% (0%) .21:00% (3%) .22.75% (12%) .19:25% (-5%) Pay (Increase) prior Service 11 N/A N/A N/A N/A N/A Actuarial Liability 12 $ 7,700,356 S 7,700,356 $ 7,897,873 $ 8,391,663 $ 7,634,266 Funding Less. Actuarial Value. of Assets 13 6,280,462 6,280,462 8,280,462 6,280,462 8,280,462 Position Unfunded Amount (to be amortized) 14 S 1,419,894 $ 1,419,894 E 1,617,411 S 2,111,201 $ 1,353,804 Amortization Period in Years 15 20 Years 20 Years 20 Years 20 Years 20 Years Additionsl~~ to the 8-Xr Vesting 8 RetiremenUB-yrs at age 60r'~ 16 WA N/A N/A ............... WA ................. ........ -... WA Total Rate for: Rule of 750 17 WA N/A N/A N/A N/A Ad Hoc Cost-of-Living (COIA) Annuity Increasest5l Option A Option B Option C Option D Option E Option F Increases as a Percentage of the Consumer Price Index 18 30% 40% 50% 60% 70% BO% Additions)q to the: Calculated Em lover Contribution Raten~ ..........._ ..................P....._.......................................................................... Actuarial Liabili and Unfunded Amount 19 ............. 20 .12% .................................. $77,863 16% .................................. 5103,814 .21% .................................. $132,490 27% .................................. $167,872 .33% ................................. $208,318 40% .................................. $251,633 ~'~ For comparison, the total employer contribution rate for 1998 under the Present Plan is 7.55% which is the sum of the Normal Cost Contribution Rate of 5.81 % and the Unfunded Actuarial Liability Contribution Rate of 1.94%. a~ 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). r'~ Employer contribution rates for proposed plans 1 through 4 must 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 1999. ~0~ Optional benefits that produce a total employer contribution rate greater than 10.30% cannot be adopted (e.g. 8-year vesting, rule of 75, and/or cost-of-living annuity increases cannot be adapted if the total required employer contribution rate exceeds 10.30%). ~5j No previous cost-of-living annuity increases have been adopted. . . Forth ADCR-38 (County) -Revised 1993 USE THIS ORDER TO AMEND A PREVIOUSLY ADOPTED ADCR PLAN. PART ONE: FORM OF ORDER TO BE ADOPTED AND INCLUDED IN MINUTES. The State of Texas County of On this the day of 19 the Commissioners Court of County, Texas (`Yhe Counry'~ was wnvened in session with the following members present: County Judge Commissioner, Precinct # 1 Commissioner, Precinct #2 Commissioner, Precinct #3 Commissioner, Precinct #4 Mr./Ms. moved that the order (which is Exhibit One of these minutes), including oll options checked and initialed in Section IV, be adopted by the County. The motion was seconded by Mr./Ms. , aad was adopted with the following members voting AYE: voting NO: and aad and the following members l PART TWO: FORM OF ORDER TO BE ADOPTED AND INCLUDED IN MINUTES. EXHIBIT ONE. AMENDMENT OF PREVIOUS ORDER ADOPTING THE ANNUALLY DETERMINED CONTRIBUTION RATE PLAN AND MAKING PLAN SELECTIONS THEREUNDER WHEREAS, THE COUNTY previously adopted the Annually Determined Contribution Rate Plan under Subchapter H, Chapter 844 of the TCDRS Act (Subtitle F, Title 8, Government Code), and made certain elections and selections authorized by said Act; and WHEREAS, THE COURT finds it to be in the public interest to amend or add to the selections previously made by the County, now, therefore it is ORDERED: 1. EMPLOYEE DEPOSIT RATE For each payroll period from and after January 1, 1999, member deposits of each eligible County employee shall be made to the System at the rate of %~ of compensation; and such deposits shall be withheld by the payroll officer and transmitted to the System for deposit to the individual employee account. II. CURRENT SERVICE CREDIT PERCENTAGE For service performed for the County on and after January 1, 1999, each member shall receive mulriple matching credit, which when added to the rate used to determine the current service credit allowable under Section 843.403 of the TCDRS Act, will total %= of the member's deposits. Current service credit for periods ending prior to January 1, 1999, shall be at the greater of the rate in effect December 31, 1998, or the rate to take effect January 1, 1999. 111. PRIOR SERVICE CREDIT PERCENTAGE Allocated (special) prior service credits granted to any member by the County and in effect December 31, 1998, shall be recomputed at %' of the maximum (special) prior service credit of each member affected. ' Four, five, sa or seven percent The percentage may be 100°h, 125°d,, 150%, 175%, 200°h, 225%, 250°~ or the percentage currently ~ effect Must be a mutliple of 5°h; may be the same as, but not less than the percentage previously adopted by the County. IV. SELECTION AND ADOPTION OF OTHER OPTIONAL CREDITS AND BENEFITS Effective January 1, 1999, in accordance with Section 844.704 of the TCDRS Act, the County adopts the following additional rights, credits and benefits (please have your County Judge check (r7 and initial each option se/eaed or the line indicating that no options are being selected jor 1999): ( ) Vested Survivor Death Benefit under Sec. 844.209 (inftial here) ( ) Increase in Existing Annufties under Sec. 844.208 at the rate of %° (initial here) ( ) Optional Benefit Eligibility Plan 2 (8-year Vesting/RetiremeM Eligibility) under Sec. 844.210 (initial here) ( ) Optional Benefit Eligibilty Plan 3 ("Rule of 75" Retirement Eligibility) under Sec. 844.211 (initial here) _ ( ) Reinstatement ("Buy-Back's of Previously Forfeited Service Credit under Sec. 843.003 (initial here) ( ) Prior Service Credft for Military Service under Sec. 843.202 (initial here) ( ) Current Service Credk for Military Service under Sec. 843.801 (initial here) ( ) Pre-Membership Credit under Sec. 843.204 (initial here) ( ) Recalculation of Benefit Credits on Full-Salary Basis under Sec. 843.702 (initial here) or ( ) We elect none of the above plan options for 1999 (inRial here) V. EMPLOYER CONTRIBUTION RATE The County hereby undertakes to make monthly normal contributions and prior service contributions to the System at the annual rates determined from year to year by the System's actuary and approved by the Board of Trustees as provided by Subchapter H of Chapter 844 of the TCDRS Act. The total of such rates (excluding those for "picked up" contributions under Section 845.403(1) of the TCDRS Act and those, if any, to the Supplemental Death Benefits 4 An explanation of aN ADCR plan option can be found on pages 4-7 of the attached irntructiorn. e The percentage may be 30, 40, 50, 60, 70 or 80. ° Employer contribution rate should equal: a) the ADCR Pion rate shown on Una 8 of Exhibit A, plus the sum of: 1) the rate for COLA arrratily increase, ff autiwrized (Urrs 19, E~dribit A); plus 2) the rate for 8-yeu vestlng and retlrsment eAgbNily at age 60, if autiwrized (LJrre 16, F~dwbit A); plus 3) the rate for "Rule of 75" early retirement eNgibiNty, if autlwrizsd, (Line 17, Extsbit A); plus 4) the rate for reirntatement ("buy-backs of previously forfeited service credit, if authorized (Line 14 of Supplemendal Exhbit A); plus 5) the rate for "pre-membership' trade, if authorized, (tine 14 of Supplemental) Exhibit A); plus 6) the rate for YuN salary" adjustment, 'rf authorized (line 14 of Supplemental Exlabit A), or b) arty whole percentage rate (e.g., 4%, 5°~, 6°h, 7°~, 8°~, 9%, 10%, 11 %) that is equal to or greater than the rate computed in accordance with the instructions set out in (a) immediately above. If you elect to contribute at an integer rate above the actrrariaNy requked rate, that rate wiN remain in effect uNess it is changed by subsequent governing board order or the required contribution exceeds the elected rate. Fund) sha11 not exceed the maximurn rate of 1 I % prescribed by Section 844.703(c) of the Act, and shall total %° for the year 1999. V1. OTHER PARTICIPATION PROVISIONS CONTINUED. Except as modified by tlris Order, the orders previously adopted by the Commissioner's Court relating to participation in the System and in effect on December 31, 1998, are continued in effect. PART THREE: CLERK'S CERTIFICATION. I. ,Clerk of County and ex-0fficio Clerk of the Commissioners Court, do hereby certify that the foregoing is a full, true and correct copy of: Amendment ojPrevious Order Adopting the Annually Determined Contribution Rate Plan and Making Plan Selections TTrereunder, and of the minutes pertaining to its adoptioq as the same appear of record in Volume ,Pages , of the official minutes of the Commissioners Court of SEAL County, Texas. Given under my hand and seal of office this day of , 1998. County Clerk and Ex-0fficio Clerk of the Commissioners Court ADCR PLAN Submit this form only if you are making no changes In your ADCR plan for 1999. H your subdivision is adopting any new option, right or beneTit, you must submit the appropriate order/resolution. Please refer to the /nstructlons for more Information, or call TCDRS. (Please refer to your 1999 Exhibit A for corroct contribution rates.) My subdivision chooses to make no plan changes for 1999. We understand that our employee and employer contribution rates for 1999 will be: Employee Contribution Rate of (from Line 1, 'Present Plan' of Exhibit A) Required Employer Contribution Rate of (from Line 8, 'Present Plan' of Exhibit A Do NOT include your Supplemental Death BenefR cost in this total.) Complete the nazi Ilne only H your subdivision's governing board has previously authorized by Order or Resolution a higher optional employer co~ibutlon rate. First- Ume authorization of a higher optional employer rate must be executed by adoptlon of a governing board Order or Resolution and the eompletlon of Form ADCR-3B. Elected Employer Contribution Rate for 1999tti, (Please see footnote below.) Only the official correspondent, County Judge or chair of the governing board may sign this form. UNAUTHORIZED SIl3NEES WILL NOT BE ACCEPTED. Subdivision Name Subdivision Number Name of Authorized Signee Title Signature Irl Employer contribution rate should equal the greater of the whole percentage rate (e.g., 4%, S%, 6%, 7%, 8%, 9%, 10%, 11%) that has been adopted previously and must be greater than the required employer contribution rate for 1999.