Public Pensions

Texas Municipal Retirement System (TMRS)

The City of Hutto utilizes TMRS as a pension plan for its employees. TMRS is a state-run pension plan that centralizes the way municipal employee pensions are administered. TMRS pension plans are funded through both City and employee contributions. While TMRS is administered by the State of Texas, City pension liabilities and assets are kept separate, meaning unfunded liabilities are solely the responsibility of the municipality. 

Actuarial Information as of December 31, 2022

The Actuarial Accrued Liability represents the obligations of the municipality to the pension plan, whereas the Actuarial Value of Assets represents the funds set aside to meet those obligations. The difference in these values is the Unfunded Actuarial Accrued Liability, and the ratio of assets to liabilities determines the plan's Funded Ratio. 

Below is the City of Hutto's Actuarial information as of December 31, 2022:

Actuarial Accrued Liability$24,735,949
Actuarial Value of Assets$25,112,230
Unfunded Actuarial Accrued Liability($376,281)
Funded Ratio (AVA/AAL)100.02%
Equivalent Single Amortization Period as of 1/2023N/A
Assumed Rate of Return6.75%
Valuation Payroll$8,766,411
UAAL as a Percent of Covered Payroll-4.3%

Source: Texas Municipal Retirement System Actuarial Valuation Report as of December 31, 2022

Actuarial and Financial

AVA vs. AAL

The data above was taken from the annual TMRS Actuarial Valuations which can be found here. 

View the downloadable data here. 

Historical Investment Returns


ReturnAssumed Rate of Return
1-Year Return(7.35%)6.75%
3-Year Return4.10%6.75%
5-Year Return4.81%6.75%
10-Year Return5.98%6.75%

Source: Texas Municipal Retirement System Annual Comprehensive Financial Report For the Year Ending December 31st, 2022

Contributions

The Actuarially Determined Contribution Rate (ADCR) is the recommended contribution rate that an entity should consistently deposit into a pension fund to ensure sufficient funds are available to cover defined and promised benefits. Below is a comparison of the City of Hutto's ADCR and the City's Actual Contribution Rate (ACR) over the past 5 years. 

ADCR Vs. ACR

Documents

  • Previous 5 years of Actuarial Valuations (TMRS)
  • Previous 5 years of comprehensive annual financial reports (TMRS)
  • Download the City of Hutto's "Schedule of Changes in Fiduciary Net Position" for the past 5 years here

Other Links