Public Pensions

The City of Belton 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 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. Belton has chosen from a menu of plan options as authorized by the TMRS statute. Belton’s plan provides the following benefit level:

Employee Contributions:	7% of pay
Employer Match at Retirement:	2x employee account balance
Updated Service Credits:	50% Repeating with transfers
Cost of Living Adjustments:	30% of CPI Repeating (70% is maximum)
Vesting of Benefits:	5 years
Transfer Credits:	Provided
Death Benefits:	Provided

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.

Actuarial Information as of December 31, 2022

Actuarial accrued liability (AAL):	33,611,574
Actuarial value of assets (AVA):	29,449,153
Unfunded actuarial accrued liability (UAAL):	4,162,421
Funded Ratio (AVA/AAL):	87.6%
Equivalent Single Amortization Period :	19.6 years

Assumed rate of return:	6.75%

Valuation Payroll:	10,228,831
UAAL as a percent of covered payroll:	40.69%

Equivalent single amortization period - The weighted average of all amortization periods used when components of the total unfunded actuarial accrued liability are separately amortized and the average is calculated in accordance with the parameters.

Actuarial Assets vs Liabilities

Downloadable Data

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Portfolio Management Strategy

The TMRS Board of Trustees recognizes that the most important determinant of long-term return and risk is the asset allocation decision. The Board’s strategic target allocation is intended to reflect, and be consistent with, the return objective and risk tolerance expressed in the IPS. It is designed to meet or exceed the Board’s objectives at a controlled level of risk and liquidity that is acceptable to the Board. In establishing its risk tolerance, the Board considers its ability to withstand short and intermediate-term volatility in investment performance and fluctuations in the financial condition of the fund. The strategic target allocation and acceptable ranges as determined by the Board to facilitate the achievement of long-term investment objectives within acceptable risk parameters are as follows:

Asset Class	Asset Class Benchmarks	Policy Index
Global Public Equity	MSCI All Country World Investable Market Index	35%
Core Fixed Income	Bloomberg Barclays US Aggregate Bond Index	6%
Non-Core Fixed Income	Bloomberg Barclays U.S. Aggregate Bond Index + 1.50%	20%
Real Estate	NCREF - ODCE Index	12%
Other public & private markets	MSCI All Country World Investable Market Index	12%
Hedge Funds	HFRI Asset Weighted Composite Index	5%
Private Equity	MSCI All Country World Investable Market Index	10%
Cash Equivalents	30 Day T-Bill	0%

Historical Investment Returns

Assumed Rate of Return: 6.75%
Report Date: 3/31/2023
Investment returns are calculated using the previous 12 month rolling period to calculate the 1-year return, previous 3 year rolling for the 3- year return, previous 5 year rolling to calculate the 5-year return, and previous 10 year rolling to calculate the 10-year return. All estimates are taken from the March 2023 TMRS Quarterly Summary.

Contributions

Actuarially Defined Contributions (as a % of pay)
Year	2023	2022	2021	2020	2019	2018	2017
Employee	7.00%	7.00%	7.00%	6.00%	6.00%	5.00%	5.00%
Employer	10.51%	10.54%	10.38%	8.28%	8.06%	7.75%	7.71%
Actuarial Determined Contribution Rate	17.51%	17.54%	17.38%	14.28%	14.06%	12.75%	12.5%
Actual Total Contribution Rate	17.51%	17.54%	17.38%	15.80%	14.50%	12.75%	12.71%

*To date. The City plans to fund the total required contribution for the current year.

Contribution Rates

Downloadable Data

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Cross Reference of Specific Information found in TMRS documents