Title
Consider recommendation from the Finance/Administrative Committee to approve the 2017 plan agreement with the Texas Counties and District Retirement System.
Body
RECOMMENDED MOTION:
Move the board adopt Resolution and Order No. 11-16-860 of the Edwards Aquifer Authority Board of Directors approving the plan agreement with the Texas Counties and Districts Retirement System, for the period January 1, 2017 through December 31, 2017.
SUMMARY:
The purpose of this agenda item is for the board to consider a Finance/Administrative Committee recommendation to approve the EAA’s 2017 plan agreement with the Texas Counties and Districts Retirement System (TCDRS). No plan changes have been proposed for 2017. The following is a description of the plan provisions for the EAA’s TCDRS program and the 2017 employer required contribution rate.
As a participant in the TCDRS defined benefit plan, 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 (2016) required contribution rate for the EAA is 9.70%. For 2017, TCDRS actuaries have determined the EAA contribution rate will decrease to 9.13% of covered payroll, resulting in an EAA expense of approximately $679,646, which is reflected in the 2017 Proposed Budget. The rate decrease to 9.13% of covered payroll for 2017 is primarily attributable to slightly improved TCDRS investment returns and demographic changes for the EAA’s covered group.
Attached to this item is a Plan Assessment that summarizes the EAA’s retirement plan for the Plan Year 2017. Also attached is a draft resolution and order, which has been reviewed by legal counsel.
At the October 25 meeting, the Finance/Administrative Committee voted to...
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