Public Pensions

The City's Pension Plan

The City of Shenandoah's pension plan is provided by the Texas Municipal Retirement System (TMRS). 

TMRS in an agency created by the State of Texas and is administered in accordance with the TMRS Act, Subtitle G, Title 8 of the Texas Government Code.

Plan Provisions Summary
Employee Contribution Rate7% of Pay
Matching Ratio (City to Employee)2 to 1
Years Required for Vesting5 Years
Service Retirement Eligibility (Age/Years of Service)20 Years at any Age, 5 Years at Age of 60 and Above
Updated Service Credits100% Repeating Transfers
Cost of Living Adjustments70% of CPI, Repeating
Employee Benefit Summary
Inactive Employees or Beneficiaries Currently Receiving Benefits40
Inactive Employees Entitled to but Not Yet Receiving Benefits26
Active Employees53
Total Employees
119
Pension Summary - FYE 2021
Funded Ratio77.2%
Amortization Period23.2 Years
One Year Rate of Return*7.65%
Three Year Rate of Return*6.46%
Ten Year Rate of Return*6.75%
Assumed Rate of Return6.93%
Actuarially Determined Contribution (ADC) Rate - 202118.29%
Total Actual Contribution Rate - 202118.44%
Unfunded Actuarial Accrued Liability (UAAL) as a percent of covered payroll101.3%

*Rates of return, as reported by TMRS, are calculated using a time-weighted rate of return methodology based upon market values and are presented gross of investment management fees. More detailed information regarding investment objectives can be found at https://www.tmrs.org/investments.php

To understand the pension commitments made by the government to its employees and how successful it has been in funding those commitments to date, it is important to understand the following:

Investments - management of the assets / TMRS responsibility.

Actuarial valuations - calculation of the cost of benefits earned to date / TMRS responsibility.

Funding - the city’s commitment to make contributions to fund the benefits earned to date/city responsibility.

Information on investment strategies and results are available in the investment section of  TMRS’s Comprehensive  Annual Financial Report (CAFR). If TMRS does not earn its projected rate of return, assets will be less than expected and the city will have to make up the shortfall through increased contributions.

City of Shenandoah - Actuarial Value of Assets Vs. Actuarial Accrued Liability 2018-2022

City of Shenandoah - ADC Rate Vs. Total Contribution Rate 2018-2022

Supporting Documents

TMRS Rate Letters

GASB 68 Actuarial Valuations 

  1. Actuarial Valuations
  2. TMRS Comprehensive Annual Financial Reports
Actuarial valuations are used to determine the amount that, when combined with investment earnings, should be consistently deposited into a retirement fund to ensure sufficient funds to pay promised benefits in full and over the long term. Actuarial valuations also show the plan’s funding progress.

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