The City of Rowlett is a member of Texas Municipal Retirement System (TMRS), a statewide, multiple employer agent plan. In an agent plan, each participating government's pension is centrally administered and governed by state statutes, but the assets and related pension liabilities for each government are accounted for separately, and any unfunded liabilities are solely the obligation of that government. Benefit options are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Rowlett provides the following plan benefit level:
Employee Deposit Rate |
7% of pay |
Employer Match at Retirement |
2 to 1 |
Years Required for Vesting | 5 |
Retirement Eligibility (Age/Service) | 60/5, 0/20 |
Updated Service Credit | 100% Repeating Transfers |
Annuity Increase (to retirees) | 50% of CPI Repeating |
Death Benefits |
None provided |
Upon retirement, the employee’s account balance including interest is combined with the employer match to price a lifetime annuity based on the employee’s age at retirement.
At the December 31, 2020 valuation and measurement date, the following employees were covered by the benefit terms:
Inactive employees or beneficiaries currently receiving benefits | 265 |
Inactive employees entitled to but not yet receiving benefits | 300 |
Active employees | 411 |
Total | 976 |
At the December 31, 2020 valuation and measurement date, the pension summary is as follows:
Funded Ratio | 90.0% |
Amortization Period (years) | 20.9 |
One Year Rate of Return (1) | 7.65% |
Three Year Rate of Return (1) | 6.46% |
Ten Year Rate of Return (1) | 6.74% |
Current Assumed Rate of Return | 6.75% |
Actuarially Determined Contribution Rate, Contributions for Calendar Year 2021 | 13.03% |
Actuarially Determined Contribution Rate, Contributions for Calendar Year 2022 | 13.11% |
Total Contribution Rate, Contributions for Calendar Year 2021 | 13.03% |
Total Contribution Rate, Contributions for Calendar Year 2022 | 13.11% |
Unfunded Actuarial Accrued Liability as a % of Covered Payroll | 54.32% |
Rowlett’s Five Year History of Net Position, including Additions and Deductions by Source
Actuarial valuations are produced by TMRS on a calendar year basis and used to determine the amount that, when combined with investment ratings, should be consistently deposited into a retirement fund to ensure sufficient funds to pay promised benefits in full and over the long term. Because the City operates on a fiscal year ending 9/30, valuations for a given year are used in the following year’s City Comprehensive Annual Financial Report. For example, the 2020 valuation was produced during the City’s 2021 fiscal year and was used in preparing the City’s 2021 Annual Report. The 2020 valuation also set the contribution rate for use in calendar year 2022 and shows the plan’s funding progress.
*Due to a change in GASB reporting requirements, the 2014 GASB 68 Valuation, released in 2015, was the first year this report was produced.
2020 TMRS Comprehensive Annual Financial Report (Plan Provisions Chosen, pages 128-129)
TMRS Prior Years Comprehensive Annual Financial Reports
2020 Schedule of Changes in Fiduciary Net Position (pages 48-49)
Prior Years Schedule of Changes in Fiduciary Net Position
2020 TMRS Funding Valuation (PDF page 189)
TMRS Prior Years Funding Valuations