Public Pension

Three people looking at a computer screen

Tarrant County is part of the Texas County and District Retirement System (TCDRS). TCDRS has over 780 employers and over 305,000 members and retirees. While the County is a part of TCDRS, the Tarrant County Commissioners Court defines the benefit plan for county employees and retirees.

Transparency Star Public Pensions

The basic plan options include:

Employee Deposit Rate	7.0%
Employer Matching	200%

A county employee is eligible for retirement if any of the following criteria are met:

Vested at Age 60	8 years of full-time service
Rule of 75	75 points = age + years of service
At Any Age	30 years of service

See the Actuarial Information for the County below:

Plan Assets & Liabilities (In Thousands)
Actuarial accrued liability (AAL)	$1,667,799
Actuarial value of assets (AVA)	$1,394,031
Unfunded actuarial accrued liability (UAAL)	$273,768
Funded Ratio (AVA/AAL)	83.59%
Remaining amortization period	6 years
Assumed rate of return	8%
Valuation payroll	$254,133
UAAL as a percent of covered payroll	107.73%

Actuarial Methodology

Actuarial cost method - Entry age
Amortization method - Level percentage of payroll, closed
Remaining amortization period - 6.0 years (based on contribution rate calculated in 12/31/2017 valuation)
Asset valuation method 5 year smoothed market
Inflation- 2.75%
Salary increases Varies by age and service. 4.9% average over career, including inflation
Investment rate of return 8%, net of investment expenses, including inflation
Retirement age Members who are eligible for service retirement are assumed to commence receiving benefit payments based on age. The average age at service retirement for recent retirees is 61.

Chart 1: Achieving Long-term Investment Goals

To help mitigate risk, Tarrant County Commissioners Court works closely with TCDRS to ensure the County’s retirement plan entails a diversified portfolio. As of April 2019, the County’s asset allocation included the following:

Long-term Investment Goals

Actuarially Determined Contribution Rate versus the Actual Total Contribution Rate for Tarrant County

For calendar year 2020, Tarrant County Commissioners Court elected a Total Contribution Rate of 19.50% of payroll, which will go towards funding the County’s retirement plan. This rate is actually higher than the Determined Contribution Rate of 14.11% for the same period. By contributing above the required rate, the County is investing in current employees’ future benefits and paying down its unfunded liability within 20 years.

Below Chart 2 compares the Actuarially Determined Contribution Rates versus Tarrant County's Actual Total Contribution Rates. Over the last four years, Tarrant County Commissioners Court has continued to pay above the required amount to pay down the unfunded liability.

Below, Chart 3 shows the five year history of Tarrant County's Actuarial Value of Assets versus Actuarial Accrued Liabilities. This data can be found in the Tarrant County Comprehensive Annual Financial Report.