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Public Pension
Texas Municipal Retirement System (TMRS)
The City of Bellmead utilizes TMRS as a pension plan for its employees. TMRS is a state-run pension plan that centralizes the way municipal employee pensions are administered. TMRS pension plans are funded through both City and employee contributions. While TMRS is administered by the State of Texas, City pension liabilities and assets are kept separate, meaning unfunded liabilities are solely the responsibility of the municipality.
Actuarial Information
TMRS provides each of its member cities with two slightly different actuarial valuations which are both reflected below as of December 31, 2024 (TMRS’ year-end is December 31, 2024, and that is the most recent valuation date for which data is available and has been provided to the City). The first is a funding valuation which uses a smoothed actuarial value of assets to calculate the City of Bellmead's actuarially determined contribution (ADC) to the plan. The second valuation is provided for Governmental Accounting Standards Board (GASB) Pronouncement 68 financial reporting purposes and reflects the City of Bellmead’s fiduciary net position based on the market value of its assets on the reporting date. Results of the most recent valuation follows:
| Actuarial Funding Validation | 12/31/2024 |
|---|---|
| Actuarial Accrued Liability (AAL) | $20,442,404 |
| Actuarial Value of Assets (AVA) | $20,276,525 |
| Unfunded Actuarial Accrued Liability (UAAL) | $165,879 |
| Funded Ratio | 99.2% |
| UAAL as a percentage of covered payroll | 3.11% |
| GASB 68 Valuation | 12/31/2024 |
|---|---|
| Total Pension Liability | $20,442,404 |
| Plan Fiduciary Net Position | $20,839,538 |
| Net Pension Liability/(Asset) | $(397,134) |
| Funded Ratio | 101.94% |
| Assumed Rate of Return | 6.75% |
| Amortization Period | 20 Years |
| Covered Payroll | $5,325,331 |
| NPS as a Percent of Covered Payroll | (7.46%) |
Using both valuation methods, the City’s funded ratio is above 99%. It is important to note that the primary financial objective of TMRS is to achieve the long-term full funding of promised benefits and each calendar year, TMRS informs the City of what its contribution requirements are to achieve this financial objective.
Contributions
The Actuarially Determined Contribution Rate (ADCR) is the recommended contribution rate that an entity should consistently deposit into a pension fund to ensure sufficient funds are available to cover defined and promised benefits. Below is a comparison of the City of Bellmead's ADCR and the City's Actual Contribution Rate (ACR) over the past 5 years.
Benefits Provided
The City of Bellmead provides the following benefits:
| Benefit | 12/31/2024 |
|---|---|
| Employee Deposit Rate | 7% |
| City Match | 2:1 |
| Vested Requirement | 5 Years |
| Eligible for Retirement | 25 Years |
| Updated Service Credit % | 100% |
| Updated Service Credit Transfer | Yes |
| Cost of Living Adjustment % | 70% |
| Cost of Living Adjustment Type | Retroactive |
| Military Service Credit | No |
| Restricted Prior Service Credit | Yes |
| Supplemental Death Benefit Employees | Yes |
| Supplemental Death Benefit Retirees | Yes |
| Employees Covered | 12/31/2024 |
|---|---|
| Inactive employees or beneficiaries currently receiving benefits (Annuitants) | 38 |
| Inactive employees entitled to but not yet receiving benefits | 109 |
| Active employees | 80 |
| Total | 227 |