ORDER NO. c779E RF'PROVAL TO ADOPT ORDER RMENDING ANNURL DETERMINED CONTRIBUTION RRTE PLAN On this the 15th day of October, cOQ~^c, upon motion made 6y Commissioner- Letz, seconded by Commissioner- Baldwin, the Court unanimously approved by a vote of 3-0-0, adopting the order amending the ann~_ial determined contribution rate plan for• the term January 200a thro~.igh December E0Q~3. COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND NINE COPIES OF THIS REQUEST AND DOCUMENTS TO BE'. REVIEWED BY THE COURT. MADE BY: BARBARA NEMEC MEETING DATE: OCTOBER 15th, 2002 OFFICE: TRFnCuP~~ TIME PREFERRED: a.M. SUBJECT: (PLEASE BE SPECIFIC CONSIDER AND DISCUSS ADOPTING ANNUAL DETERMINED CONTRIBUTIO JANUARY 2003 THROUGH DECEMBER EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: ESTIMATED LENGTH OF PRESENTATION: IF PERSONNEL MATTER -NAME OF EMPLOYEE: ORDER AMENDING THE N RATE PLAN FOR 2003 BARBARA 5 MINS. 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: THIS REQUEST RECEIVED BY: THIS REQUEST RECEIVED ON: 5:00 P.M. previous Tuesday. All Agenda Requests will be screened by the County Judge's Off ce to determine if adequate in6om~ation .has been prepared for the Court's formal consideration and action at time of Court Meetings. Your cooperation will be appreciated and wntribute towards you request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. TCDRS ,.a~sm.~m-. osnc. sr.o°e°rmnr z g a U Q m °E N W ~ ~ W J ti m Q J Kerr County --- TCDRS Employer # 232 ryPe Variable Rate Variable Rate Variable Rate loyee Deposit Rate 7% 7% 7% hang Rate 190% ($1.90/$1) 200% ($2.00/$1) 175% ($1.75/$1) Service Credit 145% 145% 145% ng Provision 8 Yrs 8 Yrs 8 Yrs of Provision Rule of 75 Rule of 75 Rule of 75 ral Cost Rate 5.97% 6.26% 5.54% _ Rate 1.95% 2.35% 1.84% rial Assets rial Liabilities ng Ratio (Unfunded Amount) to Finance of 751:1 gar Retirement)~1 Only one of the two types of Optional Benefit increases may be elected in any given year. The increase will begin January 2003. Future increases must be adopted in future years. $ 10,419,991 $ 12,274,777 85% $ 1,854,786 20.0 Years $ 10,419,991 $ 12,610,225 83% $ 2,190,234 20.0 Vears $ 10,419,991 $ 12,175,460 86% $ 1,755,469 20.0 Years adopted adopted .11% .29% adopted adopted .12% 30% CPI-Based Benefit Increase rease Basis 1B Additional Rate 30°~ of CPI .14% 40% of CPI .20% 50% of CPI .26% 60% of CPI .32% 70% of CPI .39% 80°k of CPI .46% adopted adopted .11% .26% Flat-Rate Benefit Increase I'1 Increase Basis Addtional Rate 1°~ 03% 2% .O6% 3% .10% 4% 13% 5°k .16% 6% .19% Notes (1) For comparison, the calculated employer contribution rate for 2002 under the Present Plan is 7.52%. (2) Calculated employer contribution rates must be increased by the additional contribution rate applicable to any of the optional benefits (8-year vesting, rule of 75, 20-year retirement eligibility, partial lump~sum option, benefit increases for annuitants) being adopted for 2003. Benefits that produce total calculated employer contribution rate greater than 11% cannot be adopted unless the employer waives the statutory maximum rate. (3) The Flat Rate Benefit Increase may be any whole number increase, inGuding increases above the 6% shown on this Exhibit A. Contact TCDRS for additional rates. (4) The actual increase under the CPI-Based Benefit Increase may be less if previous increases have been awarded. (5) No previous COLA annuity increases have been adopted. If you would like rate information on benefit plans not shown on this statement, please contact TCDRS at 800-823-7782 and ask for Plan Administration. May 06, 2002 2:44 PM }~,`~TCDRS Worksheet for Calculating the ~~ '°~~ "M~ Total Employer Contribution Rate Rates` Exhibit A -Base Calculated Employer Contribution Rate Corresponds to Total Rate on Exhibit A .................................. 7.92 % PLUS + Optional Benefit Rates 8-year vesting and retirement age at 60 ............................................ Rule of 75 ............................................................................. Retirement at any age with 20 years of service ..................................... Partial Lump-Sum Payment at Service Retirement ............................................. _. Optional One-Time Annuity Increase: Note: Only one of the optional Increases in existing annuities may be selected Increases as a % of CPI (CPI-Based Annuity Increase) ............................. or: Increases as a °k of total annuity (Flat-Rate Annuity Increase) .................. Special Studies: Must have received an actuarial study and supplemental Exhibit A describing the employer rates of granting these options. ff you have not obtained such a study as a prerequisite to this option, please contact TCDRS before the deadline below. Premembership Credit (contact TCDRS 6y Sept. 1, 2002) ................ EQUALS Total Calculated Employer Contribution Rate The 'Waiver of Statutory Maximum Contribution Rate" must be signed on the appropdate order or resolution should the contdbution rate exceed 11 % ............. 7.95 Optional Elected Rate Please note that your subdivision can adopt an employer contribution rate that exceeds the total calculated employer contribution rate above, but that elected rate shall remain in effect for each subsequent year until rescinded by your commissioners court or governing board. However, 'rf the total required employer conldbution rate determined by the actuary exceeds the elected rate, the subdivision must pay the higher required rate for that year. The elected rate has a limit of two decimal places (for example, 9.98%) Elected Employer Contribution Rate .................................... na % ' All additional rates can be larxrd on the Exhibit A for Year 2003, except for rates assoaated with authaiang PremertY~ershlp credit TCDRS ' PO Box 2034 Austin, TX 78768' n00-823-7782 Or (512) 328-8889 • Fax (512) 328.8887 • www.lcdrs.org -~ ORDER AMENDING THE ANNUALLY TCDRS DETERMINED CONTRIBUTION RATE PLAN ~^' ~`~ (Variable-Rate County) -Revised 2002 Subdivision # zs2 PART ONE: Form of Minutes for Adoption of Order THE STATE OF TEXAS COUNTY OF xERR On this the , s,.,, day of nr.TnnFU 200 the Commissioners Court of xERR County, Texas ("the Count}~~ was convened in uFr_rn eu session with the following members present: ~&ER~zG{C_i~N~K#„ County Judge H.A. "BUSTER" BALDWIN WILLIAM H. WILLIAASS JONATHAN LETZ LARRY GRIFFIN iIANNETTE PIEPER IKL ~S Jonathan Letz Commissioner, Precinct #1 Commissioner, Precinct #2 Commissioner, Precinct #3 Commissioner, Precinct #4 County Clerk moved that the order, (Ezhibit One of these minutes), be adopted by the County. The morion was seconded by Mr./Ms. x.A. "suster" Baldwin ,and was adopted with the following members voting AYE: H.A."Buster" Baldwin William H. Williams and Jonathan Lett ~ and the following members voting NO: .and TCDRS • PO Box 2034 Austin, TX 76768.800.823-7782 or 512-328.8889 • Fu 572.328.8887 • www.tedrs.org TCDRS ORDER AMENDING THE ANNUALLY a..~. ~ DETERMINED CONTRIBUTION RATE PLAN (Variable-Rate County) -Revised 2002 PART TWO: Form of Order to be Adopted and Included in Minutes Exhibit One Commissioners Court Order Amending the Annually Determined Contribution Rate Plan and Making Plan Selections Thereunder (Subchapter H, Chapter 844) WHEREAS, the County is a participating subdivision is the Texas County and District Retirement System (hereafter "System") under Subtitle F, Title 8, Government Code (hereafter "TCDRS Act's; and WHEREAS, the County previously adopted the Annually Determined Contribution Rate Plan under Subchapter H, Chapter 844 of the TCDRS Act and made certain elections and selections authorized by said Act; and WHEREAS, the Commissioners Court finds it to be in the public interest to amend or add to the selections previously made by the County; now, therefore, be it ORDERED, That: 1. Employee Deposit Rate For each payroll period from and after January 1, 2003, member deposits of each eiigible County employee shall be made to the System at the rate of ~ %' of compensation; and such deposits shall be certified by the subdivision correspondent and transmitted to the System for deposit to the individual employee account. ll. Current Service Credit Percentage For county service performed on and after January I, 2003, each member shall receive multiple matching credit, which, when added to the rate used to determine the current service credit allowable under Section 843.403, will total 7.95 %z of the member's deposits. Current service credit for periods ending prior to January 1, 2003, shall be the greater of the rate in effect on December 31, 2002, or the rate to take effect January 1, 2003. 111. Prior Service Credit Percentage Allocated (special) prior service credits granted to any member by the County and in effect on December 31, 2002, shall be recomputed at %3 of the maximum (special} prior service credit of each member affected. t 4°,6, 5%, 6% or 7°h, unless a lower percentage is required under Section 844.703(h) of the TCDRS Ad. z The percentage maybe 100%, 125°k, 150%, 175%, 200%, 225°,6 or 250% or the percentage currentty in efted s Must be a multiple of 5%; may be the same as, but not less than the percentage previousty adopted Paga 2 of 6 ~TCDRS ORDER AMENDING THE ANNUALLY A,. ~.~ DETERMINED CONTRIBUTION RATE PLAN (Variable-Rate County) -Revised 2002 IV. Selection and Adoption of Other Optional Credits and Berfefits Effective January 1, 2003, in accordance with Section 844.704 of the TCD1tS Act, the County adopts the following additional rights, credits and benefits (see footnote `): Increase in Existing Annuities (CPI-Based Increase) under Sec, 844.208 at the rate of The percentage rate may be 30%, 40%, 50%, 60%, 70%, or 80% of the change in the Consumer Price Index (CPI). Increase in Existing Annuities (Flat-Rate Increase) under See. 844209 at the rate of The percentage rate must be an integer (e.g., 1%, 2%, 3%, etc.). NOTE: ONLY ONE OF THE ABOVE OPTIONAL INCREASES IN EXISTING ANNUITIES MAYBE SELECTED UNDER THIS ORDER Optional Benefit Eligibility Plan Two (8-year/Age 60 Retirement Efigibilityj under Sec. 844.210 8-year service eligibility requirement for vesting, service and disability retirement. Please do not initial if your county has previously authorized this option. Optional Benefit Eligibility Plan Three (Rule of 75 Retirement Eligibility) under Sec. 844.211 A member shall have the right to retire and receive a service retirement annuity when the years of such credited service added to his or her yeazs of attained age equals or exceeds seventy-five (75). Please do not initial if your county has previously authorized this option. Optional Benefit Eligibility Plan Four (20-YeaNAny Age Retiremen4 Eligibility) under Sec. 844.212 A member shall have the right to retire and receive a service retirement annuity when the yeazs of such credited service equals or exceeds twenty (20). Please do not initial if your county has previously authorized this option. ~ Reinstatement (Buyback) of Previously Forfeited Service Credit under See. 843.003 You must have received an actuarial study describing the potential employer costs for granting this credit. If you have not obtained such a study as a prerequisite to selecting this option, please contact TCDRS before October 1. Credited Service for Qualified Military Service (10-Year Requirement) under Sec, 843.601(cj Please do not initial this option if your county has previously authorized this credit. Credited Service for Qualified Military Service (8-Year Requirement) under See. 843.601(8) Please do not initial this option if your county has previously authorized this credit. Pre-Membership Service Credit under See. 843.204 You must have received an actuarial study and supplemental Exhibit A describing the additional employer rates for granting this credit. If you have not obtained such a study as a prerequisite to selecting this option, please contact TCDRS before Sept 1. Partial LumpSum Payment on Service Retirement under Sec. 844.009 At service retirement, this option allows members to receive a portion of their retirement benefit in the form of a partial lump sum distribution that cannot exceed 100% of their account balance. Please do not initial if your county has previously authorized this option. ° An explanation of all plan options can be found in fhe attached instructions or by corNacting TCDRS. In order to adopt any of the optional rights, credits and benefits described in this secf'wn, the Counri Judae must initial in the space preceding each option selected. Please refer to the Exhibit A for Year 2003 to determine the add"dional employer oontdbution rate associated with adopting a particular optional right, credit and benefit described in this section. Page 3 of 6 ~TCDRS ORDER AMENDING THE ANNUALLY ~.. ~.,~ DETERMINED CONTRIBUTION RATE PLAN (Variable-Rate County) -Revised 2002 V. Employer Contribution Rate The County hereby undertakes to make monthly normal contributions and prior service contributions to the System at an employer contribution rate that equals or exceeds the fatal calculated employer contribution rate (i.e., the calculated employer contribution rate plus the rates for any optional rights, benefits and credits elected in Section IV) determined from yeaz to year by the actuary of the System, and approved by the Board of Trustees of the System as provided by Subchapter H of Chapter 844. Such employer contribution rate, which does not include the rate for "picked-up" contributions under Section 845.403{i) and the rate, if any, for contributions to the Supplemental Death Benefits Fund under Section 845.406, shall not exceed the statutory maximum employer contribution rate prescribed by Section 844.703(c) (currently 11 percent) unless this Commissioners Court elects to waive that statutory limit. Any waiver of the statutory maximum rate made in accordance with Section 844.703(c) shall remain in effect until January 1 of the yeaz following the year in which the Commissioners Court repeals the waiver. An employer contribution rate adopted by the Commissioners Court that exceeds the total calculated employer contribution rate shall remain in effect for each subsequent yeaz until rescinded by the Commissioners Court. For the 2003 year, the County shall make subdivision contributions to the System at the total employer contribution rate of 7.95 %5, 5 The empbyer contribution rate should equal either (a) or (b): (a) the Total Rate shown on dte Exhibit A for Year 2003, plus the sum oL 1) the rate fa the costof-living annuity increase under Section 844.208 (CPI-Based Benefit Increase) or under Section 844209 (Flat-Rate Benefit Increase), rf auharized; plus 2) the rate for &year vesting and retirement eligibllily at age 60, iF authorized; plus 3) the rate for Rule of 75 carry retirement eligibility, if authorized; plus 4) the rate for 20.year retirement eligibility at any age, rf authorized; plus 5) the rate for Partial Lump-Sum Distribution option, if authorized; plus 6) the rate for Pre-Membership credit, if authorized (refer to the Supplements! Exhibit A) OR (b) any percentage rate (e.g., 4%, 4.50%, 7°h, 8%, 8.75%, 9.90°h, 10%, 11%) that is equal to W greater than the rate computed in awordance with the instructions set out in (a) immediatety above. The County may elect to contribute at a brat plculated empbyer contribution rate in excess of 11 % or at an elected rate in excess of 11 % only iF the County waives the statutory maximum empkryer contribution rate limit in accordance with section 844.703(c). The waiver of tlta statutory maximum empbyer cortfibutiort rrte remains In effect until revoked by trte Commissioners Court. If the County elects to contribute at a rate above the required rete, that elected rate will remain in effect unless changed by subsequent Commissioners Court order. However, If the total calculated empbyer contribution rate exceeds the elected rate in a subsequent year, the County must pay at the higher calculated employer contribution rele. Page 4 of 6 `TCDRS ORDER AMENDING THE ANNUALLY ro..~.~ DETERMINED CONTRIBUTION RATE PLAN (Variable-Rate County) -Revised 2002 V. Employer Contribution Rate (continued) Election to Waive the Statutory Maximum Employer Contribution Rate Limit Please note that the County Judge MUST sign the following election, but ONLY IF: 1. The Commissioners Court is adopting optional rights, credits or benefits that produce an employer contribution rate in excess of 11 %; or 2. The Commissioners Court is adopting an elected employer contribution rate in excess of 11 % (refer to footnote 5 on the previous page). Effective January 1, 2003, the Commissioners Court elects to waive the statutory maximum employer contribution rate limit as prescribed by Section 844.703(c).a tgnature, CounlyJr3ge - VI- Other Participation Provisions Continued Except as modified by this order, the orders previously adopted by the Commissiioners Court relating to participation in the System and in effect on December 31, 2002, aze continued in effect. 6 Information ragaMing the waiver of the shalutory ma»dmmum employer contribution rate ran be found in the insW ctions or ty contacting TCDRS. Page 5 of 6 ~TCDRS ORDER AMENDING THE ANNUALLY ~.•~,~ DETERMINED CONTRIBUTION RATE PLAN (Variable-Rate County) -Revised 2002 PART THREE: Clerk's Certification 1 SANNETTE PIEPER Clerk of ~~ County and ex-officio Clerk of the Commissioners Court, do hereby certify that the foregoing is a full, true and correct copy of: Commissioners Court Order Amending the Annually Determined Contribution Rate Plan arsd Making Plan Selections Thereunder, and of the official minutes pertaining to its adoption, as the same appeaz of record in the official minutes of the Commissioners Court of the County. SEAL Given under my hand and seal of office this 15th day of Ocotber 20~~ Clerk and Ex-0fGcio Clerk of t6c Paye 6 ot! 6