Title
Consider EAA staff recommendation to approve the 2020 plan agreement with the Texas Counties and District Retirement System.
Body
RECOMMENDED MOTION:
Move the board adopt a Resolution and Order 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, 2020 through December 31, 2020.
SUMMARY:
The purpose of this agenda item is for the Finance/Administrative Committee to recommend the board approve the EAA’s 2020 plan agreement with the Texas Counties and Districts Retirement System (TCDRS). No plan changes have been proposed for 2020. The following is a description of the plan provisions for the EAA’s TCDRS program and the 2020 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 (2019) required contribution rate for the EAA is 9.30%. For 2020, TCDRS actuaries have determined the EAA contribution rate will increase to __% of covered payroll, resulting in an EAA expense of approximately $_____, which will be reflected in the 2020 Proposed Budget. The rate increase to ___% of covered payroll for 2020 is primarily attributable to improved investment returns and demographic changes for the EAA’s covered group and actuarial assumptions.
Attached to this item is a Plan Assessment that summarizes the EAA’s retirement plan for the Plan Year 2020. Also attached is a draft Resolution and Order, which was reviewed by legal counsel.
STRATEGIC PLAN REFERENCE:
This agenda item supports the EAA's policy direction as set forth in the EAA 2016-20 Strategic P...
Click here for full text