ORDER NO. 3 063 8 TCDRS RETIREMENT FUNDING Came to be heard this the 3rd day of December, 2007, with a motion made by Commissioner Letz, seconded by Commissioner Baldwin. The Court unanimously approved by vote of 4-0-0: Make the election with TCDRS to go with 210% matching rate, as outlined on the proposed Plan 2 on the attachment that was handed out to the Court today. 30b3~ ~,2- COMMISSIONERS' COURT AGENDA REQUEST PLEASE FURNISH ONE ORIGINAL AND TEN (10) COPIES OF THIS REQUEST AND DOCUMENTS TO BE REVIEWED BY THE COURT MADE BY: Eva Hyde OFFICE: Human Resources MEETING DATE: December 3, 2007 TIME PREFERRED: SUBJECT: Consider and discuss and take appropriate action on information and alternative elections received from TCDRS on retirement funding and take appropriate action to finalize TCDRS plan and elections for Kerr County for 2008. EXECUTIVE SESSION REQUESTED: (PLEASE STATE REASON) NAME OF PERSON ADDRESSING THE COURT: Eva Hyde ESTIMATED LENGTH OF PRESENTATION: 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: THIS REQUEST RECEIVED BY: THIS RQUEST RECEIVED ON: 5:00 PM previous Tuesday @ .M. 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 your request being addressed at the earliest opportunity. See Agenda Request Rules Adopted by Commissioners' Court. J ~€~i°r ~e~~ii~~~r. ~~32 ~~~ ~r>;~'®rrr»ca}t~~~t far ~res~~~ed ~~~1~ ~r~~~~~~1~ C~€~~c~~s ~~ ~ec~i° ~~~ Current Plan Proposed Proposed Rroposed Plan i Plan 2 Plan 3 Plan Provisions: Employee deposit race 7% 7% 7% 7% Matching rate 190% 200% 210% 220% Past and future deposits /future deposits* Future Deposits Future Deposits Future Deposits Prior service credit 145% 145% 145% 145% Vesting 8 years 8 yeazs 8 years 8 yeazs Rule of 75 75 75 75 Eligible at X yeazs and any age 30 yeazs 30 yeazs 30 yeazs 30 years COLA** N/A Credit for military service Yes Yes Yes Yes Partial lump sum Yes Yes Yes Yes Buyback*** NIA No No No Plan Rates: 1. Normal cost rate 6.32% G.G2% 6.93% 7.24% 2. UAAL. rate 1.88% 1.97% 2.07% 2.17% 3. Total required rate for 2008**** 8.20% 8.59% 9.00% 9.41% 4. Rate difference between proposed and current plan 0.39% 0.80% 1.21 5. Elected rate Plan Assets & Liabilities: 6. Present value of future benefits $ 24,565,726 $ 24,860,765 $ 25,155,806 $ 25,450,846 7. Present value of future nom~ai cost contributions $ 4,125,053 $ 4,324,714 $ 4,524,374 $ 4,724,033 8. Actuazial accrued liabilities (Line 6 -Line 7) $ 20,440,673 $ 20,536,051 $ 20,631,432 $ 20,726,813 9. Actuazial value of assets $ 18,402,681 $ 18,402,681 $ 18,402,681 $ 18,402,681 10. Unfunded or (overfunded) actuazial accrued liability [UAAL or (OAAL)] (Line 8 -Line 9) $ 2,037,992 $ 2,133,370 $ 2,228,751 $ 2,324,132 11. Funded ratio (Line 9/Line 8) 90% 90% 89% 89% 12. Amortization period 15.0 yeazs 15.0 years 15.0 yeazs 15.0 years * The matching rate can never be lowered for employee deposits that have akeady been made. ** The last COLA adopted was aCPI-based 50% COLA effective 2007. *** The last buyback was authorized in 2007. **** Required rate for 2007: 8.51%. Thesc rate calculations are subject to a final actuarial review. We will notify you by June 1, 2007 if your rates have changed. Please contact TCDRS if you have any questions or for any additional information regarding changing benefit plan options. 80Q-823-7782 * W'N(W.TCDRS.oRG Nor. 28, 2007 ~~~ yea~l" ~~~~ Current Plan Praposed Prapased Prapased Plan I Plan 2 Plan 3 Plan Previsions: Employee deposit rate 7% 7% 7% 7% Matching rate 190% 230% 240% 250% Past and future deposits /future deposits* Future Deposits Future Deposits Furure Deposits Prior service credit 145% 145% 145% 145% Vesting 8 years 8 years 8 years 8 yeazs Rule of 75 75 75 75 Eligible at X yeazs and any age 30 years 30 years 30 years 30 years COLA** N/A Credit for military service Yes Yes Yes Yes Partial lump sum Yes Yes Yes Yes Buyback*** N/A No No No Plan Rates: 1. Normal cost rate 6.32% 7.54% 7.85% 8.15% 2. UAAL rate 1.88% 2.27% 2.36% 2.46% 3. Total requited rate for 2008**** 8.20% 9.81% 10.21% 10.61% 4. Rate difference between proposed and current plan 1.61 % 2.01% 2.41% 5. Elected rate Plan Assets & Liabilities: 6. Present value of future benefits $ 24,565,726 $ 25,745,887 $ 26,040,927 $ 26,335,968 7. Present value of future normal cost contributions $ 4,125,053 $ 4,923,693 $ 5,123,353 $ 5,323,013 8. Actuarial accrued liabilities (Line 6 -Line 7) $ 20,440,673 $ 20,822,194 $ 20,917,574 $ 21,012,955 9. Actuazial value of assets $ 18,402,681 $ 18,402,681 $ 18,402,681 $ 18,402,681 10. Unfunded or (overfunded) actuazial accrued liability [UAAL or (OAAL)] (Line 8 -Line 9) $ 2,037,992 $ 2,419,513 $ 2,514,893 $ 2,610,274 11. Funded ratio (Line 9/Line 8) 90% 88% 88% 88% 12. Amortization period 15.0 yeazs 15.0 years 15.0 years 15.0 years * The matching rate can never be lowered for employee deposits that have already been made. ** The last COLA adopted was aCPI-based 50% COLA effective 2007. *** The last buyback was authorized in 2007. **** Required rate for 2007: 8.51%. These rate calculations are subject to a final actuazial review. We will notify you by June I, 2007 if your rates have changed. Please contact TCDRS if you have any questions or for any additional information regarding changing benefit plan options. eao-szs-rrsz * www.rco~>'€s.arta r~ov. za. zaaz