Title
Consider EAA staff recommendation to approve the 2026 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, 2026 through December 31, 2026.
SUMMARY:
The purpose of this agenda item is for the Finance/Administrative Committee to consider an EAA staff recommendation to approve the EAA’s 2026 plan agreement with the Texas County and District Retirement System (TCDRS). No benefit plan changes have been proposed for 2026. The following is a description of the plan provisions for the EAA’s TCDRS program and the 2026 employer elected contribution rate.
As a participant in the TCDRS defined benefit plan since 1978, the EAA matches employee contributions at the time of retirement at 180%. The TCDRS vesting period is eight years of service and employees qualify for normal retirement by meeting any one of the following:
· 20 years of service at any age;
· Rule of 75, that is any combination of age and years of service that equal 75;
· Or age 60 and 8 years of service.
The current (2025) contribution rate for the EAA is 11.09% of covered payroll. For 2026, TCDRS actuaries have determined the EAA required contribution rate to be 10.69% of covered payroll. This actuarially determined rate considers investment returns, demographic changes to the employee base, and other assumptions occurring during 2025. Due to current market uncertainties, EAA staff recommends making additional contributions or adopting a plan rate at least equal to the 2025 rate. Therefore, EAA staff recommends adopting a plan rate of 11.09% of covered payroll for 2026, which is the same as the adopted rate for years 2023 - 2025. Adopting this higher rate for 2026 will result in an expense of approximately...
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