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The City of College Station participates as one of 860 plans in the multi-employer, nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). In a multiple-employer defined benefit pension plan, each municipality pension is administered and governed by state but the each municipality are responsible for their assets and liabilities. College Station’s plan provides the following benefits to its employees:

TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the city, within the options available in the state statutes governing TMRS. A summary of plan provisions for the city are as follows:

Employee Deposit Rate 7% of Pay
Matching Ratio 2 to 1
Vesting of Benefits 5 years
Service Retirement Eligibility 20 years at any age, 5 years at age 60 and above
Updated Service Credit 75% Repeating Transfers
Annuity Increases (to retirees) 50% of CPI Repeating

At the Dec. 31, 2017 valuation and measurement date, the following employees were covered by the benefit terms:

Employee Deposit Rate 7% of Pay
Inactive employees or beneficiaries currently receiving benefits 445
Inactive employees entitled to but not yet receiving benefits 520
Active employees 905
Total 1,870

Pension commitments made by the City of College Station to its employees and funding the commitments to date, is determined by understanding 1) investments (management of the assets/TMRS responsibility), 2) actuarial valuations (calculation of the cost of benefits earned to date/TMRS responsibility) and 3) funding (the city’s commitment to make contributions to fund the benefits earned to date/city responsibility).

If the projected rate of return is not earned, assets will be less than expected and the city will have to make up the deficit through an increased contribution rate.

Additional information on actuarial policies including valuations and experiences studies validating assumptions used can also be found at the site above. If the actuarial assumptions used are unrealistic, the actual liabilities could be higher than projected and the city would be required to make up the difference through increased contributions.

Our commitment and funded status for the pension liabilities is provided on this page and in the city’s CAFR, located here

TMRS employs two separate actuarial valuations: 1) a funding valuation to calculate the city’s actuarially determined contribution and 2) the Government Accounting Standards Board (GASB 68) valuation which is used for financial reporting purposes and is reported in the city’s CAFR. The primary difference between the two valuations, is that the funding valuation uses a smoothed actuarial value of assets and the GASB 68 valuation utilizes fiduciary net position based on a market value of assets on the reporting date.

   -  Equivalent Single Amortization Period: 28 years
   -  Covered Payroll: $53,860,040

Funding Valuation
(Smoothed Value)
12/31/2017       GASB 68 Valuation
(Market Value)
Total Actuarial Accrued Liability $284,444,058   Total Pension Liability
Actuarial Value of Assets $246,863,192   Plan Fiduciary Net Position $257,348,143
Unfunded Actuarial Accrued Liability (UAAL) $37,580,866   Net Pension Liability (NPL) $27,095,915
Funded Ratio 86.80%   Funded Ratio 90.47%
UAAL as a percentage
of covered payroll
69.80%   NPL as a percentage of covered payroll 50.31%

(download Excel data)

Employees for the City of College Station were required to contribute 7% of their annual gross earnings during the fiscal years. The contribution rates for the City of College Station are 13% for 2019 and 13% for both 2018 and 2017 calendar years. 

(download Excel data)

TMRS strategies and results are available in their Comprehensive Annual Financial Report (CAFR) in the investment section at

TMRS Assumed Rate of Return: 6.75%

2017 INVESTMENT RESULTS (TMRS Total Fund Return)
Rates of return presented are calculated using a time-weighted rate of return methodology based upon market values, and are presented gross of investment management fees.

1-Year Return: 14.27%
3-Year Return: 7.19%
5-Year Return: 7.46%
10-Year Return: 6.71%

Source: TMRS 2017 Comprehensive Annual Report (CAFR)


(download Excel data)

The graph above demonstrates the City of College Station funding percentages in excess of 80% for the last 10 years. The Funding Valuation is defined as actuarial value of assets divided by the total actuarially accrued liability. Funding Percentage could vary from year to year, due to numerous factors including investment returns, actual experience and changing assumptions.

Plan Provision Chosen (pages 110–111)

Schedule of Changes in Fiduciary Net Position (pages 12-13)

2017 TMRS Funding Valuation (page 126)

Texas Comptroller of Public Accounts

Last updated: 5/16/2019 12:30:52 PM