City's Unfunded Pension Liability Jumps 63.5% Over Last Year

The city posted their Comprehensive Annual Financial Report for the fiscal year ended September, 30, 2016. The 212 page report can be found on the city's web-site under Financial Reports.

The pension unfunded liability increased from $14,064,692 to $23,000,871, a 63.5% increase. The payroll for covered employees was $37,121,089, a 15.2% increase over the prior year. Simple math shows that the unfunded pension liability is now 62% of the annual payroll for covered employees.

The unfunded liabilities are calculated by the Texas Municipal Retirement System (TMRS) and covers the calendar year 2015. Evidently the increase in unfunded liabilites is due to changes in actuarial assumptions and below expected investment returns.