p8iya~ /. ~
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
OFFICE: Treasurer
MEETING DATE: August 14, 2006
TIME PREFERRED: 9:45 A.M.
SUBJECT: Consider, Discuss and take appropriate action on proposed plan provision changes for TCDRS 2007 Plan
Year.
EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON]
NAME OF PERSON ADDRESSING THE COURT: Barbara Nemec/TCDRS Representative
ESTIMATED LENGTH OF PRESENTATION: 10 mins.
IF PERSONNEL MATTER -NAME OF EMPLOYEE:
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 Tuesday.
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.
Kerr County, #232
Rate information for proposed plan provision changes
Plan year 2007
Current Plan Proposed Proposed Proposed
Plan I Plan 2 Plan 3
Plan Provisions:				
Employee deposit rate	7%	7%	7~0	7%0
Ma¢hing rate	190%0	190°%	190%	190%
Past and future deposits /furore deposits"				
Prior service credit	145%	145%	145%	145%
Vesting	8 years	8 years	8 years	8 years
Rule of	75	75	75	75
Eligible at X years and any age	3U years	2U years	20 years	30 years
COLA"'	N/A			
Credit tot military service	Yes	Yes	Yes	Yes
Pazrial lump sum	No	Yes	No	Yes
Buyback""'	N/A	No	No	No
Plan Rates:				
]. Normal cost rate	6.16 %	6.40'Yo	6.22%	6.32°/
2. UAAL raze	1.96yo	2.14%	2.U4%	2.05
3. Total required rate kr 2007*"**	8.12%	8.54%	8.26%	8.37%
4. Rate difference between proposed and current plan		0.42%	0.14%	0.25%
5. Elected rate				
Plan Assets & Liabilities:				
G. Present value of furore benefits	$ 22,543,047	$ 22,7°3.801	$ 22,522,R35	$ 22,763,567
~ Present value of future normal cost contributions	$ 4,004,064	$ 4,055,705	$ 3.899,017	$ 4,140,351
8. Actuarial vccrued liabilities (Line 6 Line 7)	$ 18,538,983	$ 18,718,096	$ 18,623.818	$ 18,623.216
9. Actuarial value ofassecs	$ 16,152,206	$ 16,152,206	$ 16,152.206	$16,152,206
10. Unfunded or (overfunded) actuarial accrued liability				
[UAAL or (OAAL)] (Line 8 -Liue 91	8 2,386,777	$ 2,565.890	$ 2.471,612	$ 2,471,O1U
] L Funded ratio (Line 9/Line 8)	87 %	86"/0	87%	87%
12. Amortization period	20.0 years	20.0 years	20.0 years	20.0 years
' The matching rate can never be lowered for empbyee deposits that have already Fern made.
"The last COLA adopted was a CPl-based 50°/n COLA effective 2005.
"' The last buyback was authorized in 2003.
"" Required rate for 2006: 7.60.
Please contact TCDRS if you have any questions or for any additional information regarding changing benefit plan options.
800-823-7782 • WWW.TCDRS.ORG lun. 22,2006
Texas County and District Retirement System
Subdivision Plan Data for Kerr County
Plan Data as of 1/1/2006
Type of Plan:	Annually Determined Contribution Rate (ADCR) Plan
Employee Deposit Rate:	7.00% of gross compensation
Employer Deposit Rate:	7.60% of gross compensation
Maximum Contribution Waiver:	Authorized by this subdivision.
Optional Group Term Life Deposit Rate:	0.27% of gross compensation
Current Matching Rate:	190% of employee deposits and interest. Matched at retirement.
Prior Service Credit Allocation Rate:	145% of accumulated prior service credit.
Employer Participation Date:	October 01, 1970
Special Purchase Eligibility:
Prememberehip Credit: Nol Authorized by this subdivision
Military Service Credit: Authorized by this subdivision. -Service Requirement: 6 years.
Special Enrollment Eligibility:
Prosecuting Attorney Participation: Not Authorized by this subdivision
District Judge Participation: Not Authorized by this subdivision
Service Retirement Eligibility:
30 years of service at any age.
Age 60 and 6 years of service.
Rule of 75
Disability Retirement Eligibility
Must be incapacitated for any gainful employment
Incapacity is likely to be permanent
If the person has less than 8 years of service, the incapacity must be the direct result of injuries sustained
during membership by exlemal and violent means as a direct and proximate result of the pertormanra of duty.
Survivor Annuity Death Benefit Eligibility:
a years of service.
Optional Group Term Life Eligibility:
Date of death must be durinc or after the month of
January. 2004. Authorized only for emolovees.
CPI-Based Benefit Increase:
Nol Authorized by this subdivision.
Flat Rate Benefit Increase:
Not Authorized by this subdivision.
Buyback:
Not Authorized for this plan year.
Partial lump Sum Distribution:
Not Authorized by this subdivision.
TCDRS EmployerNumber: 232
Report Name: SubPlanFor2000.rpt
October l$ 2005 11:13 am
RETIREMENT PLAN ASSESSMENT
FOR PLAN YEAR 2007
Kerr County - 232
Kerr County, #232
Retirement plan assessment
for plan year 2007
It's that time of year again time to look at your TCDRS retire- NEXT STEPS
ment plan and decide whether or not your benefits are adequate I. If you are not considering any plan changes ...
and affordable. This plan assessment will give you an overview of return the enrlosed autharrzation by Dec. IS, 2006.
the benefits you currently provide. It also includes estimates on how 2. If you are only adopting a COLA or elected rate .
much it will cos[ to provide these benefits in 2007. return the enclosed authorization by Der. 15. 2006.
If you ate interested in adding to or changing your plan provisions
for 2007, please contact your TCDRS Communications
representative by Oct. 02, 2006. We will send you cost and benefit
informs[ion on any changes you are considering. If you are satisfied
with your currem plan, please return the enclosed authorization by
Dec. 15, 2006.
If you have ques[ions, contact your TCDRS Communications
representative at 800-823-7782.
3. If you are considering changing or adding other plan
provisions ...
rantact TCDRS at 800-823-7782 by Oct. 02, 2006. We will
be happy to rend you the rates and authorization for the plan
rhanger you are conridering.
KEV DATES
Oct. 02, 2000
• Contact your TCDRS Communications representative by
[his date if you are considering any changes to your plan
provisions.
• Deadline to contact TCDRS in writing if you are
considering a decrease in your employee deposit rate.
• Deadline to contact TCDRS in writing if you are
considering authorizing a buyback.
Dec. 15, 2006
Send in your authorization to TCDRS confirming your 2007
plan provisions.
800-827-7182 * WWW.TCORS.ORC I Apr. 12,2008
YOUR BENEFITS
Basic Benefit Provisions:
Employee deposit rate 7%
Matching rate - 190°rfi
Prior rervice credit - 145°k
Retirement Eligibility:
Age 60 with 8yearr of service
Any age with 30 yearr of rervice
Rule of75 (age plot yeah ofservire equals 75)
Survivor Annuity Death Benefit.
Cos[-of-Living Adjustments (COLAs) for retirees:
Your last adopted COLA war a 50% CPI-based COLA in
2005.
Optional Benefit Provisions:
• Military service- If your employees have earned at least 8
years of service with TCDRS, they can be credited with
up to 60 mon[hs of military service.
• Buyback -You last passed a buyback authorization in
2003.
Beneficiary is eligible for a monthly payment when member hat
four years ofservice.
WHATYOU ARE PROVIDING
Under your plan, each employee makes deposits into his or her personal TCDRS accoun[ by paying in a percentage of each paycheck.
Employee accounts earn 7% interes[ each year, which is compounded annually based on the account balance a[ the beginning of the year.
If one of your employees chooses to receive a retiremem benefit, TCDRS adds the employee's personal accoun[ balance to matching and
other credits you provide as an employer. We then convert [ha[ sum into a monthly annuity, payable for life.
The following chart shows the estimated TCDRS benefit as a percentage of final salary prior to retirement for a new hire:
Izovs
looms
anst
G0~
40YO
20°/0
Ofi
Assumptions
Employees are new hires and will work for you tmril reriremenr.
Your current plan provisions will remain in effect through employee's reriremenr.
• Current laws governing'I'CDRS will continue as they are.
• Graded salary scales give bigger raises early in rareers, with smaller raises later in careers (see Summary Valuation Report at www.ttdrs.org).
• Based on single-life standard benefit.
b of final
n
800-823-7782 + W W W.TCDRS.ORG 2 Apr. 12, 2008
Hired at 55 Himd at 50 Hired at 45 Hired at 40 Hired at 35
Retired at GS Retired at 65 Retired at GS Retired at GS Retired at GS
YOUR COSTS
Your employer contribution rate represents the percentage of payroll your organization needs to contribute [o fund future beneFits for
your Curren[ employees, former employees and retirees.
To determine your plan cost for 2007:
Your calculated contribution rate for 2007
Plus the rate for any COLA granted +
Total Required Rate
(Add the two rates together)
Divide by 100 to convert % to number
Multiply by your 2007 estimated
compensation for enrolled employees x
Your estimated annual plan cost =
Examplc: County X bas a calculated contrrbution rate of7~. They
have elected a COLA that will add 0.25% to their tort. With
compenration for enrolled employees totaling $1,000.000, their
annual cart would be calculated ar follows:
County X'r calculated contribution rate 700 °k
Plus the rate for any COLAgranted + .25
Total required rate 725 °6
Divide by 100 to convert 4o to number .0725
COLAs must be re-authorized each year. They are not "aummatic". If
you wish to authorize a COLA for the next plan year, you can estimate
the cost based on the schedule of rates below:
30%
40%
B SOoh
c GO%
v
70~ ~ 1~
a
U c
80% 2%
90oh w 3%
100% 4%
~ ~
of payroll of payroll
Compensaton for enrolled employees x 1,000,000
County X'r ertimated annual plan tort $ 72,500
For a historical perspective, below is a record of your ra[e his[ory over the last four years.
	10%				
	8%				
^ Beginning Year Rate	6%				
^ Ending Year Rate	4%				
	2%				
	0%				
		2003-2004	2004-2005	2005-2006	2006-2007
REASONS FOR RATE CHANGE					
Beginning Rate		7.92No	7.97%	7.90^h	7.60%
Plan Changes Adopted		0.00	0.29	0.00	N/A
Investment Remrn		U.19	-020	0.00	0.00
Elected Rate/Lump Sum		U.00	0.00	0.00	0.00
Demographic/Other Changes		-0.14	-0.16	-0.12	-0.08
Assumptions/Methods		0.00	0.00	-0.18	0.60
Ending Rate		7.97%	7.90^k	7.60°.6	8.1296
A complae Summary Valuation Report for the Dec. 31, 2005 valuation is available on the Web.		
800-823-7782 + W W W.TODRS.ORG 3 Apr. 12, 2008
Kerr County, #232
Rate information for proposed plan provision changes
Plan year 2007
Current Plan Lowering Partial Both
EIIgIbllity Lump Sum
Plan Provisions:				
Employee deposit rate	7%	7°k	7%	7%
Matching race	190%	190°h	190%	190Po
Past and furore deposits /furore deposits*				
Prior service credit	145%	145Wo	145%	145%
Vesting	8 years	8 years	8 years	8 years
Rule of	75	75	75	75
Eligible at X years and any age	30 years	20 years	30 years	2U years
COLA'*	N/A			
Credit for military service	Yes	Yes	Yes	Yes
Partial lump sum	No	No	Yes	Yes
Buyback"'	N/A	No	No	No
Plan Rates:				
L Normal cost rate	6.16%	6.22^/0	6.32"h	6.40%
2. UAAL rate	1.96""/u	2.04%	2.05°Po	2.14%
3. Total required rate for 2007'"*'	8.12°k	8.26%	8.37%	8.54°k
4. Rate difference between proposed and current plan		0.14%	0.25%	0.42°k
5. Elected race				
Plan Assets & Liabilities:				
6. Present value of future benefits	$ 22,543,047	$ 22,522,835	$ 22,763,567	$ 22,773.801
7. Present value of future normal cost contributions	$ 4,004,064	$ 3,899,017	$ 4,140,351	$ 4,055,705
8. Actuarial accrued liabilities (Line 6 -Line 7)	$ 18,538,983	$ 18,623,818	$ 18,623,216	$ 18,718,096
9. Actuarial value of assets	$ 16,152,206	$ 16,152,206	$ 16,152,206	$ 16,152,206
10. Unfunded or (overfunded) actuarial accrued liability				
[UAAL or (OAAL)] (Line 8 -Line 9)	$ 2.386,777	$ 2,471,612	$ 2,471,010	$ 2,565.890
11. Funded ratio (Line 9/Line 8)	87Wo	87%	87%	86%
12. Amoaiaation period	20.0 years	20.0 years	20.0 years	Z0.0 years
'The matching rate can never be lowered for employee deposirs that have already been made.
'* The last COLA adopted was a CPl-based 50 % COLA effective 2005.
'*" The last buyback was authorized in 2003.
*'** Required ram for 2006: 7.60%.
Please wntaa'PCDRS if you have any questions or for any additional information regarding changing bene£t plan options.
800-823-7/82 • WWW.TCDRS.ORG Aug. 11, 2008
1. How your county pays for its retirement
benefits
2.The retirement benefits your commissioners
court may select or alter
n~s~a i L zone
The Commissioners Court (current and past) established a
retirement benefit plan for county employees. The
county's contributions to TCDRS become part of the
trust and are used to payout county employees' annuities.
The more benefits you promise to county employees, the
more you contribute to save for those benefits down the
road.
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2
While the county is saving for retirement benefits,
* County employees will make benefit decisions
* The economy will grow stronger and weaker
* Future courts will raise and lower retirement benefits
These decisions affect what the county will have available
to provide benefits.
Each year TCDRS compares your county's savings
(projected assets) to the benefits promised to county
employees (projected future payouts). This is why your
contribution rate either decreases or increases annually.

Comparing
ASSETS (current and projected future assets)
to LIABILITIES (current and future payouts)
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3
1. Expected employee withdrawals
2. Expected payroll growth ~ ~ ., . ,
3. Expected return on investments
Assume an 8% return, that's 7% to employees and 9% to county
4. Expected retirements
Auau411.10J9
1. Actual employee withdrawals ~ ~
2. Actual payroll growth Short-term
employee Long-term
3. Actual return on investments employee
4. Actual retirements
5. Actual benefit changes, if you made any
- Addition of benefits
- Changes to existing benefits
Au,~,~,,.z~
4
* An annual lump-sum contribution helps pay
down your UAAL (annual payment)
* Electing a higher monthly rate helps pay
down your UAAL and may insure a stable
budget amount (monthly payments)
- These allow you to pre-fund benefits
- They also act as a "cushion" against future negative
plan experience
AupuA 11, 2C~
5
m 4.00% +
r	
d
~ ~	
3.00% to 3.99%
i= ~	
~a
a ~	
2.00% to 2.99%
Q	
m
`o ~	
1.00% to 1.99%
a
a
a	

.06% to .99%
12

Basic Benefit Provisions:
* Employee deposit rate - 7%
* Matching rate -190%
Retirement Eligibility:
* Age 60 with 8 years of service
* Any age with 30 years of service (looking at
lowering to 20)
OptbrtiilBeufeiH ~~~rears of service equals 75)
* Military Service -Once an employee has earned S years of
* Pa is Lump Sum Distribution -Allows employee to withdraw part
ret~,r,,;~r TCDRS account balance as a lump sum at retirement.
* You last adopted a COLA (CPI Based) in 2005a~~~~~.~~

Age + Years of Service
= 75

7
Employer must authorize this option.
A lump sum payment in any amount up to 100% of retiree's
personal contributions and interest
NOTE: This will reduce retiree's monthly pension payment
Subject to 20% Federal W/H
possible 10% Early Withdrawal Penalty
AuAUS111~ R0."H
re

Annuity
Purchase Rate
• Life Expectancy
• Payout Option
• 7% interest
A'NUe111.2L~
8
it You choose to keep or change the rate at which
employees' savings are matched at retirement
* The matching rate you select is the percentage
applied to employee savings at the time of
retirement. You are saving in advance to provide
this match.
* You may change a matching rate up or down
between 100% and 250% in 5% intervals
* Now, matching increases may be made as
forward-only increases
mean n, zoos
1
Final
Salary
^ 150% Matching Rate
^ 175 % Matching Rate
^ 200 % Matching Ra[e
Note. This asmmes thaz your gr:plgysss~siYne ]% into their TCDRS rmrcment plan. For evarr~le. An employee that stazts az ag<45,
deposits ] % monfily, and then rtires at age 65 haz pm in 20 years of service. their salary replacement appears in tfie 20 year columns.
Therefore, the amount replaced will vary according to your matching raze.
ew..a.aaev.+a..mm..y~a.s.wa.n..e=ss~. m,.: v.. i.swx. v..e_na.a, v.u vm.. v. ~a seenr.v •auu. v.. ze_axcx
9

Cost of Living Adjustments (COLAs) are annuity
increases for retirees
There are 2 types of COLAs you may adopt annually:
* Flat-rate - a flat percentage of increase applied to
each retiree's monthly annuity (capped at 4% for
2007)
* CPI-based - a percentage from 30% - 100%
designed to help each retiree "catch up" from the
effects of inflation
Auau5111, ]0.'H
Counties can now rehire retirees without a pension
freeze
* IRS requires that the retirement be bona fide
(IRS qualification issues may arise if county
abuses this right)
* Employees you choose to hire back must have
at least one full calendar month break in service
~9u& 11, $C[8
10
~r Employees should be classified as temporary or
non-temporary for TCDRS purposes
* Definition of `temporary' is left to the good-faith
determination of each TCDRS county
-Temporary: Is the position known to have an end date?
- Non-temporary: Is the person expected to be in the
position for the foreseeable future?
Deadline is Jan.1, 2007 if you signed a waiver to delay
enrolling through 2006
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11