The City of Schertz is a member of Texas Municipal Retirement System (TMRS) a statewide, multiple employer agent plan. In an agent plan, each participating government’s pension is centrally administered and governed by state statutes but the assets and related pension liabilities for each government are accounted for separately and any unfunded liabilities are solely the obligation of that government. Schertz has chosen from a menu of plan options as authorized by the TMRS statute. Schertz plan provides the following benefit level:

• Employee contribution rate: 7% of pay
• Matching ratio (City to employee): 2 to 1
• Years required for vesting: 5
• Service retirement eligibility: 60/5, 0/20 (Age/ Service)
• Updated Service Credits: 100% Repeating Transfers
• Cost of Living Adjustments: 70% of CPI Repeating
• Supplemental Death Benefits to Active Employees: Yes
• Supplemental Death Benefits to Retirees: Yes

Upon retirement, the employee account balance including interest is combined with the employer match to price a lifetime annuity based on the employee’s age at retirement.

Actuarial Information as of December 31, 2019

• Actuarial accrued liability (AAL): $78,211,777
• Actuarial value of assets (AVA): $61,021,465
• Unfunded actuarial accrued liability (UAAL): $17,190,312
• Funded Ratio (AVA / AAL): 78.0%
• Equivalent Single Amortization Period: 24.0 years
• Assumed rate of return: 6.75%
• Valuation Payroll: $19,722,641
• UAAL as a percent of covered payroll: 94.9%
• Active Members: 344
• Inactive Members: 209
• Retirees and beneficiaries: 116