PENSI ON PLAN FUNDI NG POLI CY PRES EN T ED B Y: Debra W ainscott - - PowerPoint PPT Presentation

PENSI ON PLAN FUNDI NG POLI CY

PRES EN T ED B Y: Debra W ainscott

• Sr. Director, People Services

December 16, 2019 I n f o r m a t i o n a l U p d a t e

OBJECTI VE

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• REVI EW NEW STATE LAW REQUI RI NG A

W RI TTEN FUNDI NG POLI CY

• REVI EW FUNDI NG POLI CY APPROVED BY THE

EMPLOYEE BENEFI TS OVERSI GHT COMMI TTEE ( EBOC)

AGENDA

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• DI SCUSS NEW TEXAS LAW
• OUTLI NE FUNDI NG POLI CY

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• New Texas law requires public pension plans to adopt a written

funding policy that details the plan for achieving 100% funding.

• The Texas Pension Review Board (PRB) adopted Guidelines for

Developing a Funding Policy at their October 2019 meeting.

NEW POLI CY REQUI RED

TEXAS GOV’T CODE CH 8 0 2 .2 0 1 1

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• Policy Objective:

To achieve a 100-percent funded ratio in compliance with the requirements of Section 802.2011 of the Texas Government Code.

• Historically, we have followed a consistent methodology for our Pension

Plan funding

– The Plan’s actuaries (Milliman) calculate an “Actuarially Determined Contribution” (ADC) based on projected benefit payments – Our annual contribution to the Pension Trust has consistently been at least the ADC

FUNDI NG POLI CY

TEXAS GOV’T CODE CH 8 0 2 .2 0 1 1

This new policy is consistent w ith historical practice, in com pliance w ith Texas law , and conform s to the PRB’s Guidelines.

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• The Pension Plan Funding Policy was drafted and reviewed by our:

– Actuaries and investment advisors – Legal Team – Administrative Committee

FUNDI NG POLI CY

TEXAS GOV’T CODE CH 8 0 2 .2 0 1 1

Adoption of the new Pension Plan Funding Policy is required by 1 / 1 / 2 0 2 0 . The EBOC approved on 1 2 / 6 / 1 9 .

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• In accordance with new law, the policy will be:

– Submitted to PRB, and – Maintained for public review at our main office – Updates will be proposed as needed / EBOC will be asked to take action / the BOT will receive needed updates.

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