Town of Addison’s Pension Plan
The Town provides pension benefits for all of its full-time employees through a hybrid defined benefit plan in the state-wide Texas Municipal Retirement System (TMRS), an agent multiple-employer public employee retirement system. TMRS is an agency created by the State of Texas and administered in accordance with the Texas Government Code. TMRS' defined benefit pension plan is a tax-qualified plan under Section 401 (a) of the Internal Revenue Code. Each of the participating municipalities’ assets and related pension liabilities are accounted for separately, and each municipality has an annual individual actuarial valuation performed. Any unfunded liability of an individual municipality is solely the obligation of that municipality. The plan provisions are adopted by the governing body of the Town, within the options available in the state statutes governing TMRS and within the actuarial constraints also in the statutes.