Pension Information

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.

Pension Summary for the Fiscal Year Ended September 30, 2017

 
Employer Actuarially Determined Contribution (ADC) Rate as a % of Pay 10.44%
Employee Contribution Rate as a % of Pay 7.00%
Total Required Contributions 17.44%
Equivalent Single Amortization Period 14.6 years
Funded Ratio 96.00%
Unfunded Actuarial Accrued Liability (UAAL) as a % of Covered Payroll 26.80%
Actuarially Assumed Rate of Return 6.75%
1-Year Rate of Return 7.42%
3-Year Rate of Return 4.54%
10-Year Rate of Return 6.09%
 
Please refer to pages 61-74 of the 2016 TMRS CAFR Comprehensive Annual Financial Report for information regarding investment strategies and methodology.

Additional Resources for Pension Plan Information

 

Information regarding the Town's pension plan can be found in the Required Supplementary Information and Notes in our Comprehensive Annual FInancial Reports here.
 
To view TMRS's Schedule of Changes in Fiduciary Net Position by participating entity for 2016, see pages 12-13 here.
 
To view prior year TMRS CAFR's click here.
 
To view current and prior year TMRS actuarial valuations click here.
 
The Town has received three GASB 68 actuarial valuations since the implementation of GASB 68, and those are provided below.
 
 
Additional details on state and local pension plans in Texas is available at the Public Pension Search Tool.

Contact Us

Finance Department Phone Number:

972.450.7051
 

Address:

5350 Belt Line Rd.
Dallas, TX 75254