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Pension Plan

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The City of College Station participates as one of 900 plans in the multi-employer, nontraditional, joint contributory, hybrid defined benefit pension plan administered by the Texas Municipal Retirement System (TMRS). In a multiple employer defined benefit pension plan, each municipality pension is administered and governed by state, but each municipality are responsible for their assets and liabilities. College Station’s plan provides the following benefits to its employees:


TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. A summary of plan provisions for the City are as follows:

Employee Deposit Rate: 7% of Pay
Matching Ratio: 2 to 1
Vesting of Benefits: 5 years
Service Retirement Eligibility: 20 years at any age, 5 years at age 60 and above
Updated Service Credit: 75% Repeating Transfers
Annuity Increases (to retirees): 50% of CPI Repeating

Employees Covered by Benefit Terms

At the December 31, 2022, valuation and measurement date, the following employees were covered by the benefit terms:

Employees Covered by Benefit Terms
Inactive employees or beneficiaries currently receiving benefits 580
Inactive employees entitled to but not yet receiving benefits 711
Active employees 939
Total 2,230


Pension commitments made by the City of College Station to its employees and funding the commitments to date, is determined by understanding 1) investments (management of the assets/TMRS responsibility), 2) actuarial valuations (calculation of the cost of benefits earned to date/TMRS responsibility) and 3) funding (the city’s commitment to make contributions to fund the benefits earned to date/City responsibility).

If the projected rate of return is not earned, assets will be less than expected and the City will have to make up the deficit through an increased contribution rate.

Additional information on actuarial policies including valuations and experiences studies validating assumptions used can also be found at the site above. If the actuarial assumptions used are unrealistic, the actual liabilities could be higher than projected and the City would be required to make up the difference through increased contributions.

Our commitment and funded status for the pension liabilities is provided on this page and in the City's ACFR

TMRS employs two separate actuarial valuations: 1) a funding valuation to calculate the city’s actuarially determined contribution and 2) the Government Accounting Standards Board (GASB 68) valuation which is used for financial reporting purposes and is reported in the city’s ACFR. The primary difference between the two valuations, is that the funding valuation uses a smoothed actuarial value of assets and the GASB 68 valuation utilizes fiduciary net position based on a market value of assets on the reporting date.

Equivalent Single Amortization Period 25 years
Covered Payroll $61,810,436

Funding Valuation (Smoothed Value) 12/31/2021    GASB 68 Valuation (Market Value) 12/31/2021
Total Actuarial Accrued Liability $351,201,369    Total Pension Liability $351,201,369
Actuarial Value of Assets $319,140,889    Plan Fiduciary Net Position $346,343,955
Unfunded Actuarial Accrued Liability (UAAL) $32,060,480    Net Pension Liability (NPL) $4,857,414
Funded Ratio 90.9%    Funded Ratio 98.6%
UAAL as a percentage of covered payroll 51.9%    NPL as a percentage of covered payroll 7.9%

City of College Station Pension Funding Chart

Pension Actuarial Accrued Liability Data.xlsx  -  25KB


Employees for the City of College Station were required to contribute 7% of their annual gross earnings during the fiscal years. The contribution rates for the City of College Station are 13.14% and 12.75% in calendar years 2022 and 2023.

ADC vs ACR Chart

Pension ADC TCR Data.xlsx  -  18 KB


TMRS strategies and results are available in their Annual Comprehensive Financial Report (ACFR) in the investment section at TMRS • Financial Reports.

TMRS Assumed Rate of Return = 6.75%

2021 Investment Results
(TMRS Total Fund Return)
1-Year Return 3-Year Return 5-Year Return 10-Year Return
7.35% 4.10% 4.81% 5.98%
Source: TMRS 2021 Annual Comprehensive Financial Report (ACFR)
Rates of return presented are calculated using a time-weighted rate of return methodology based upon market values and are presented gross of investment management fees.

chart of assumed rate of return

additional and deductions additional and deductions
Pension Additions Deductions.xlsx  -  21 KB

funded percentage over time

Pension Funded Percentage Data.xlsx  -  19 KB

The graph above demonstrates the City of College Station funding percentages in excess of 75% and higher for the last 10 years. The Funding Valuation is defined as actuarial value of assets divided by the total actuarially accrued liability. Funding Percentage could vary from year to year, due to numerous factors including investment returns, actual experience and changing assumptions.

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