Title
Consider EAA staff recommendation to approve the 2027 plan agreement with the Texas County and District Retirement System.
Body
STAFF RECOMMENDED MOTION:
Move the Finance/Administrative Committee recommend the board adopt a resolution and order of the Edwards Aquifer Authority Board of Directors approving the plan agreement with the Texas County and District Retirement System, for the period January 1, 2027 through December 31, 2027.
SUMMARY:
The purpose of this agenda item is for the Finance/Administrative Committee to consider an EAA staff recommendation to approve the EAA’s 2027 plan agreement with the Texas County and District Retirement System (TCDRS) increasing the employer match from 180% to 200%, effective January 1, 2027.
The EAA Strategic Plan emphasizes sustainability and certainty through credibility to support multigenerational impact, long-term stability, and continuity of mission. Over its 30-year history, the EAA has progressed from a regulatory start-up issuing Initial Regular Permits (IRP) for Edwards Aquifer withdrawals to securing a U.S. Fish and Wildlife Service (USFWS) permit for the ,Habitat Conservation Plan (HCP). Its NextGeneration programs now seek the first USFWS permit renewal for the HCP and address climate impacts on the aquifer and the needs of a growing regional population and industry base. Staff expertise and dedication have supported each stage of this evolution.
The EAA adopted a TCDRS plan change in 2007 when the EAA Board adopted a 20 year at any age provision to the retirement vesting schedule, moving from the previous 30 year at any age vesting provision. The EAA Board amended the EAA’s retirement plan in 2012, in allocating eligible employer matching to the EAA’s TCDRS plan versus the prior arrangement where the 7% match was split between TCDRS and Mission Square (formerly ICMA-RC). Roughly a generation has passed since the EAA last adopted a plan amendment to its TCDRS retirement plan.
In comparing TCDRS plan provisions with other area TCDRS employers, the 200% employer matching provision is the most elected (47%, or 25 of 53 employers). Only the EAA and one other employer match contributions at 180%. Other employers (38%, or 20 of 53 employers) exceed 200% employer matching.
The EAA is a labor-intensive organization, that is the critical assets that move the agency are the EAA staff and their expertise, ingenuity, and efforts. This Human Capital is akin to the system of pumps, storage tanks, and pipelines water purveyors rely upon to move water from treatment plants to customers; or the turbines and generators electricity suppliers use to produce an electric current. In this fashion, a business reinvesting in its assets to upgrade, expand, or improve resources is the hallmark of any successful business that has adapted to changing environmental factors over a sustained period.
In people-centric organizations, such as the EAA, the ability to communicate, empathize, analyze, and resolve conflict is an everyday circumstance that EAA staff experience. Success in these settings comes from investment in developing these competencies. Since its inception, the EAA has morphed from managing positions, to nurturing talent. Talent has increased the organization’s capacity to succeed as our environment has evolved. Enhancing the TCDRS employer match, as recommended, would further strengthen the EAA’s ability to recruit, retain, and develop key talent. This investment supports the agency’s disciplined approach to building human capital, expands institutional capacity, and positions the EAA to meet the challenges of the next generation.
The EAA’s TCDRS Employer Elected Rate of 11.09% of covered payroll for 2027 is approximately $1,293,995 at the current level of employer matching (180%). Should the EAA Board adopt a 200% Employer Matching provision, the EAA’s Employer Required Rate would be 14.05% of covered payroll. A difference of 2.96%, or approximately $345,377, for an approximate total of $1,639,372 for 2027.
Attached to this item is a Plan Assessment that summarizes the EAA’s retirement plan provisions, including the proposed amendment, for the Plan Year 2027 and a draft resolution and order, both of which have been reviewed by legal counsel.
STRATEGIC PLAN REFERENCE:
This agenda item supports the general EAA mission.
FISCAL IMPACT:
If approved, funding in the amount of $1,639,372 will be included in the 2027 operating budget.