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
Actuarial Value of Assets
Unfunded Actuarial Accrued Liability
Funded Ratio (AVA/AAL)
Equivalent Single Amortization Period as of 1/2023
Assumed Rate of Return
UAAL as a Percent of Covered Payroll
Source: Texas Municipal Retirement System Actuarial Valuation Report as of December 31, 2022
Actuarial and Financial
The data above was taken from the annual TMRS Actuarial Valuations which can be found here.
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.