Pensions

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City of Pearland’s Pension Plan

The City of Pearland 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.

Benefit options are adopted by the governing body of the City, within the options available in the state statues governing TMRS. Pearland has chosen from a menu of plan options as authorized by the TMRS statute.

Investments
Detailed information regarding investment objectives, policies, and performance of the TMRS pension system can be found with TMRS
Visit the TMRS Investments page

Summary of Benefit Provisions
Employees Covered by Benefit Terms

Summary of Benefit Provisions
Employee Deposit Rate:	7%
Matching Ration (City to Employee):	2 to 1
Retirement Eligibility (Age/Service):	60/5, 0/20
Updated Service Credits	100% Repeating Transfers
Annuity Increases (to retirees)	70% of CPI Repeating
Years Required for Vesting:	5
Supplemental Death Benefits to Active Employees	Yes
Supplemental Death Benefits to Retirees	Yes

Pension Summary

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.

At the December 31, 2021 valuation and measurement date, the pension summary is as follows: Covered Payroll - $58,191,657

Net Pension Liability
Total Pension Liability	209,577,398
Plan Fiduciary Net Position	197,546,251
Net Pension Liability/(Asset)	11,731,147
Planned Fiduciary Net Position as a Percentage of Total Pension Liability	94.40%
Net Pension Liability/(Asset) as a Percentage of Covered Payroll	20.16%
Development of the Single Discount Rate
Single Discount Rate	6.75%
Long-term Expected Rate of Return	6.75%
Long-term Municipal Bond Rate*	1.84%

Contributions

Employees for the City of Pearland are required to contribute 7% of their annual gross earnings based on the City’s plan provisions. Contribution rates for the City of Pearland for fiscal years 2016 through 2023 are listed below.

Fiscal Year	Actuarially Determined Contribution Rate	Employee Contribution	Total Contribution Rate
2016	13.49%	7.00%	20.49%
2017	13.73%	7.00%	20.73%
2018	13.67%	7.00%	20.67%
2019	13.42%	7.00%	20.42%
2020	12.26%	7.00%	19.26%
2021	13.21%	7.00%	20.21%
2022	13.05%	7.00%	20.05%
2023	13.25%	7.00%	20.25%

Actuarial Valuation

Actuarial valuations are produced by TMRS on a calendar year basis and used to determine the amount that, when combined with investment ratings, should be considerably deposited into a retirement fund to ensure sufficient funds to pay promised benefits in full and over the long term.

Because the City operates on a fiscal year ending 9/30, valuations for a given year are used in the following year's Comprehensive Annual Financial Report.

For example, the 2021 valuation was used in preparing the City's 2022 Comprehensive Annual Financial Report. The 2022 contribution letters set the contribution rate for use in the fiscal year 2023.

Valuation Reports	Contribution Rate Letters
2023 GASB Valuation	2023 Municipal Contribution Rate
2022 GASB Valuation	2022 Municipal Contribution Rate
2021 GASB Valuation	2021 Municipal Contribution Rate
2020 GASB Valuation	2020 Municipal Contribution Rate
2019 GASB Valuation	2019 Municipal Contribution Rate
2018 GASB Valuation	2018 Municipal Contribution Rate
2017 GASB Valuation	2017 Municipal Contribution Rate

Employees Covered By Benefit Terms
At the December 31, 2021 valuation and measurement date, the following employees were covered by the benefit terms:
Inactive Employees or Beneficiaries currently receiving benefits	301
Inactive Employees entitled to but not yet receiving benefits	388
Active Employees	779
Total	1,468

City of Pearland, TX

Pensions

City of Pearland’s Pension Plan

Summary of Benefit Provisions

Employees Covered By Benefit Terms

Texas Transparency Organization

Public Pension Search Tool