Public Pension

Three people looking at a computer screen

Tarrant County is part of the Texas County and District Retirement System (TCDRS). TCDRS membership includes over 850 counties and districts with over 360,000 members and retirees. While the County is a part of TCDRS, the Tarrant County Commissioners Court defines the benefit plan for county employees and retirees.

The basic plan options include:

Employee Deposit Rate	7%
Employer Matching	200%

A county employee is eligible for retirement if any of the following criteria are met:

Vested at Age 60	8 years of full-time service
Rule of 75	75 points = age + years of service
At Any Age	30 years of service

See the actuarial information for the County below:

Plan Assets & Liabilities (In Thousands)
Actuarial Accrued Liability (AAL)	$2,246,924
Actuarial Value of Assets (AVA)	$1,970,781
Unfunded Actuarial Accrued Liability (UAAL)	$276,143
Funded Ratio (AVA/AAL)	87.71%
Remaining Amortization Period	4.8 years
Assumed Rate of Return	7.5%
Valuation Payroll	$350,138
UAAL as a Percent of Covered Payroll	78.87%

Actuarial Methodology
Actuarial Cost	Entry age
Amortization Method	Level percentage of payroll, closed
Remaining Amortization Period	4.8 years*
Asset Valuation Method	5 year smoothed fair value
Inflation	2.5%
Salary Increase Average**	4.7% over career
Investment Rate of Return***	7.5%
Average Age at Service Retirement for Recent Retirees****	61

*Based on contribution rate calculated in Dec. 31, 2022 valuation. **Varies by age and service. Includes inflation. *** Net of investment expenses, including inflation. ****Retirement age members who are eligible for service retirement are assumed to commence receiving benefit payments based on age.

Investment Rates of Return for Previous Years
2022	7.5%
2021	7.6%
2020	8.1%
2019	8.1%
2018	8.1%
2017	8.1%
2016	8.1%
2015	8.1%
2014	7.75%
2013	8%

Chart 1: Achieving Long-Term Investment Goals

To help mitigate risk, Tarrant County Commissioners Court works closely with TCDRS to ensure the County’s retirement plan entails a diversified portfolio. As of March 2023, the County’s asset allocation included the following:

Achieving Long-Term Investment Goals

Actuarially Determined Contribution Rate versus the Actual Total Contribution Rate for Tarrant County

For 2024, Tarrant County Commissioners Court elected a Total Contribution Rate of 19.50 percent of payroll, which will go towards funding the County’s retirement plan. This rate is higher than the Actuarially Determined Contribution Rate (ADC) of 12.07 percent for the same period. By contributing above the required rate, the County is investing in current employees’ future benefits and paying down its unfunded liability within 20 years.

Below Chart 2 compares the Actuarially Determined Contribution Rates versus Tarrant County's Actual Total Contribution Rates. Over the last four years, Tarrant County Commissioners Court has continued to pay above the required amount to pay down the unfunded liability.

Actuarially Determined Contribution Rate vs. Actual Total Contribution Rate

Chart 3 shows the five year history of Tarrant County's Actuarial Value of Assets versus Actuarial Accrued Liabilities. This data can be found in the Tarrant County Comprehensive Annual Financial Report. Chart 3 does not include the Community Supervision and Corrections Department actuarial valuation results.

Actuarial Value of Assets vs Actuarial Accrued Liabilities In Billions Tax Years 2019-2023