1. Presented By: Robert Galindo, Finance Director
Item # 12
City Council Meeting
November 13, 2017
TEXAS MUNICIPAL RETIREMENT
SYSTEM PLAN CHANGE
1
2. 2
• City of Alamo Heights is a member of the
Texas Municipal Retirement System, TMRS,
since 1951.
• City Council and staff have been researching
how to improve TMRS benefits while keeping
costs to a minimum.
• City currently pays a rate of 17.12%
• The city contribution rate will be 17.28%
beginning January 1, 2018.
BACKGROUND
3. 3
• Proposed change is to make the
retirement plan more competitive
and will assist to recruit and
retain qualified staff.
• The city rate would be reduced
from 17.28% to 17.09%.
TMRS PLAN CHANGE
4. 4
• Employee contribution rate will be
increased from 6% to 7%.
• Updated Service Credit from 100% to
75%.
• Transfer Updated Service Credit will be
removed.
• Changes will be effective January 1,
2018.
TMRS PLAN CHANGE
5. 5
TMRS PLAN CHANGE
TMRS Plan Effective 1‐1‐2018 CURRENT PLAN CHANGE 2018
Deposit Rate 6% 7%
Matching Ratio 2 to 1 2 to 1
Updated Service Credit, repeating 100% 75%
Transfer USC Yes No
20 Year/Any Age Retirement Yes Yes
Vesting 5 years 5 years
Funded Ratio 73.9% 73.0%
Total TMRS Rate 17.28% 17.09%
6. 6
Subject to approval by the TMRS Board of
Trustees, this ordinance shall be effective the
1st day of January, 2018.
Estimated savings would be approximately
$8,000 in FY 2018.
TMRS PLAN CHANGE
