More Georgetown Pension Info

The Texas Municipal Retirement System (TMRS) provides city specific funding and contribution information annually. Here is the pension liability for Georgetown at the end of 2015. Click on table to expand.

Observe that the pension liability for Georgetown increased $9M in one year, from 2014 to 2015. This was caused by decreasing the assumed investment rate of return, single discount rate above, and the poor actual investment rate of return for 2015, 0.34%.

These factors caused the funded ratio to decrease from 86.5% to 80.4% in one year.

The primary pension fund health indicator of funded ratio of >80% indicating a healthy fund is a myth according to the American Academy of Actuaries. They recommend that pension funds be funded at 100%.

Thus Georgetown needs to increase their annual pension contributions while the local economy is healthy, not wait until the inevitable economic downturn occurs.