Back to Calendar
Agenda Item # 21.
Board of Directors Meeting
Texas County & District Retirement System (TCDRS) Plan
AGENDA ITEM DESCRIPTION:
Consider and act upon the recommendation from the Executive Director to approve a 2% Flat Rate Retiree COLA and a lump sum contribution not to exceed $120,000 for the 2018 Texas County & District Retirement System plan year. - John Clamp
TCDRS provides an annual plan assessment (attached) that reflects an overview of AACOG's retirement benefit and the cost of this benefit for the upcoming year. The 2018 assessment is based on Valuation Year 2016 which reflects a required rate of 6.06% and AACOG's elected rate is 8.0% and does not include a cost of living adjustment (COLA) for retirees.
AACOG has made lump sum contributions that total
since the plan's inception and has elected an employer rate of 8%. These lump sum contributions helped AACOG minimize the increase in the required employer contribution rate and decrease the unfunded liability.
As of December 31, 2016 AACOG's funded ratio is 98.3%. Prior year funded ratio was 96.7%.
In December 2013, the Board approved a 2% flat rate COLA for retirees for plan year 2014, with a lump sum payment of $90,000. Prior Retiree COLA increases have been as follow:
3% (2002 – 2009)
0% (2010, 2012, 2013)
The recommendation for the 2018 plan year employer and employee contribution rate is:
A. Approve a 2% Retiree COLA.
B. Approve a lump sum contribution, not to exceed $120,000.
The elected employer rate of 8% and the employee contribution rate of 6% will remain the same.
These items are included in the AACOG budget and is part of the fringe benefit rate approved for 2017.
Staff recommends approval of the 2% flat rate Retiree COLA and a lump sum contribution not to exceed $120,000. If you have any questions, please contact John Clamp at
AgendaQuick©2005 - 2018 Destiny Software Inc., All Rights Reserved