collin county retirement plan briefing n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Collin County Retirement Plan Briefing PowerPoint Presentation
Download Presentation
Collin County Retirement Plan Briefing

Loading in 2 Seconds...

play fullscreen
1 / 14

Collin County Retirement Plan Briefing - PowerPoint PPT Presentation


  • 98 Views
  • Uploaded on

Collin County Retirement Plan Briefing. September 7, 2010. How Your Plan Works. A percentage of your employee’s paycheck is deposited into his or her TCDRS account. Your employee’s savings grow at an annual, compounded rate of 7% regardless of market ups or downs.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Collin County Retirement Plan Briefing' - iola-herring


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
five simple steps
A percentage of your employee’s paycheck is deposited into his or her TCDRS account.

Your employee’s savings grow at an annual, compounded rate of 7% regardless of market ups or downs.

You are also saving for your employee’s retirement. Your employer contributions become matching dollars for employees that retire. Your rate is determined annually based on your projected assets and estimated benefits promised.

At retirement, you match the employee’s final account balance, including interest, $2.50 for every dollar saved. We calculate a monthly retirement payment based on that account balance and matching.

Your retiring employee receives a monthly benefit payment for life.

Five Simple Steps
benefits are funded primarily by investment earnings
Benefits Are Funded Primarily by Investment Earnings

76%

InvestmentEarnings

13%

EmployerDeposits

11%

EmployeeDeposits

TCDRS

Asset Growth

(1967 through 2009)

4

collin county retiree profile as of dec 31 2009
Collin County Retiree Profile as of Dec. 31, 2009

All averages reflect plan provisions in effect at the time of each retirement. The averages are based on data that is currently available.

Includes service with other TCDRS employers and proportionate service

Includes cost-of-living adjustments adopted by Collin County

Based on the average annual benefit at retirement and final salary as available

1

2

3

projection of collin county retirees 250 match continuing
Projection of Collin County Retirees250% Match Continuing

*

**

Each year’s number of retirees reflects estimated number of new retirees and deaths. It is estimated that only between 25% and 30% of all Collin County employees will eventually receive a monthly benefit in retirement.

3.5% annual inflation

projection of collin county retirees 200 match beginning in 2011
Projection of Collin County Retirees200% Match Beginning in 2011

Each year’s number of retirees reflects estimated number of new retirees and deaths. It is estimated that only between 25% and 30% of all Collin County employees will eventually receive a monthly benefit in retirement.

3.5% annual inflation

*

**

of final salary replaced by collin county retirement benefit at age 65 for a new hire
% of Final Salary Replaced by Collin County Retirement Benefit at Age 65 for a New Hire

18 Yrs of Service

Average Collin County Retiree

Final Salary

Above based on an employee deposit rate of 7% and annual salary increases using the graded valuation salary scale. 

projection of collin county required rate under current and proposed plans
Projection of Collin County Required RateUnder Current and Proposed Plans

These are projections and actual results will vary. The projections are based on the same data, methods and assumptions as those used in the December 31, 2009 actuarial valuation, including a long-term investment return assumption of 8% per year. The required rate increases for the first nine years as the investment losses from 2008 are recognized. The required rate drops after 20 years reflecting the UAAL being amortized over a closed 20-year period.

projection of collin county funded ratio under current and proposed plans
Projection of Collin County Funded RatioUnder Current and Proposed Plans

The projections are based on the same data, methods and assumptions as those used in the December 31, 2009 actuarial valuation, including a long-term investment return assumption of 8% per year. 

slide12
Projection of Current Collin County Plan Funded Ratio and Unfunded Liability Amortized Over 20-Year Closed Period

2031

Funded 99%

LIab 952

Assets 947

Unfunded 5

Funded Percentage

2023

Funded 91%

Liab 641

Asset 581

Unfunded 60

2017

Funded 83%

Liab 453

Assets 376

Unfunded 77

2009

Funded 85%

LIab 260

Assets 220

Unfunded 40

The difference between the actuarial accrued liability and the actuarial value of assets (the red area) represents the unfunded actuarial accrued liability.

The projections are based on the same data, methods and assumptions as those used in the December 31, 2009 actuarial valuation, including a long-term investment return assumption of 8% per year. This projection assumes the current plan with 250% matching.

tcdrs plan design
TCDRS Plan Design

We have a unique structure that combines the best features of defined benefit plans and defined contribution plans.

  • Defined Benefit Plans
  • Example: traditional pension plan
  • Benefit based on employee’s final salary and length of career
  • Monthly benefit lasts for lifetime
  • Employer assumes investment risk
  • TCDRS
  • An employee-savings based plan
  • Benefit is based on employee’s final account balance, plus employer matching
  • Employee must retire to earn employer matching
  • Interest rate fixed at 7%
  • Monthly benefit lasts for lifetime
  • Employer assumes investment risk
  • Defined ContributionPlans
  • Example: 401(k)
  • Benefit based on employee’s savings and employer matching, if provided
  • Benefit varies according to market performance
  • Benefit may not last a lifetime
  • Employee assumes investment risk

13

13