300 W. Davis St.
Conroe, Texas 77301
The City's Pension Plan
The City of Conroe 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. The City of Conroe has chosen from a menu of plan options as authorized by the TMRS statute. The City of Conroe’s plan provides the following benefit level:
7% of pay
Employer Match at Retirement:
2 to 1 employee account balance
Updated Service Credits:
100% (100% is maximum)
Cost of Living Adjustments:
70% of CPI (70% is maximum)
Vesting of Benefits:
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.
Behind the Pension Numbers
To understand the pension commitments made by government to its employees and how successful it has been in funding those commitments to date, it is important to understand 1) investments (management of the assets/TMRS responsibility), 2) actuarial valuations (calculation of the cost of benefits earned to date/TMRS responsibility) and 3) funding (the city’s commitment to make contributions to fund the benefits earned to date/City responsibility).
Information on investment strategies and results are available in the investment section of TMRS’s Comprehensive Annual Financial Report (CAFR) at http://www.tmrs.com/publications.php (pages 58-69). If TMRS does not earn its projected rate of return, assets will be less than expected and the City must make up the shortfall through increased contributions.
Additional information on actuarial policies including valuations and experience studies validating assumptions used can also be found at the site above. If unrealistic actuarial assumptions or methodology are used, actual liabilities could be higher than projected and the City would be required to make up the shortfall with additional contributions.
Information on the City’s commitment to fund its pension liabilities and funded status of those liabilities is provided on this page and in the City’s CAFR, located here.
Interested parties should also note that TMRS employs two separate actuarial valuations: 1) a funding valuation to calculate the City’s actuarially determined contribution and 2) the Governmental Accounting Standards Board (GASB 68) valuation which is used for financial reporting purposes and is reported in the city’s CAFR. Similar in many ways, the primary difference between the two valuations is that the funding valuation uses a smoothed actuarial value of assets and the GASB 68 valuation utilizes fiduciary net position based on a market value of assets on the reporting date.
Actuarial valuations are used to determine the amount that, when combined with investment earnings, should be consistently deposited into a retirement fund to ensure sufficient funds to pay promised benefits in full and over the long term. Actuarial valuations also show the plan's funding progress.
|2016 TMRS Valuation||2016 Conroe Valuation||2017 GASB Reporting Package|
|2015 TMRS Valuation||2015 Conroe Valuation||2016 GASB Reporting Package|
|2014 TMRS Valuation||2014 Conroe Valuation||2015 GASB Reporting Package|
|2013 TMRS Valuation||2013 Conroe Valuation|
|2012 TMRS Valuation||2012 Conroe Valuation|
|2011 TMRS Valuation|
City of Conroe Comprehensive Annual Financial Reports
The CAFR is Conroe’s official annual financial statements, prepared in accordance with Generally Accepted Accounting Principles. Conroe's CAFR provides comprehensive financial information including statements of fiduciary net position and changes in fiduciary net position.
TMRS Comprehensive Annual Financial Reports
The CAFR is TMRS’s official annual financial statements, prepared in accordance with Generally Accepted Accounting Principles. TMRS's CAFR provides comprehensive financial information including statements of fiduciary net position and changes in fiduciary net position; City specific information can be found in the appendices.
2016 TMRS CAFR
2015 TMRS CAFR
2014 TMRS CAFR
2013 TMRS CAFR
2012 TMRS CAFR
2011 TMRS CAFR
TMRS Rate Letters
Rate letters are issued by TMRS, and provide the contribution rate for the following calendar year, a summary of the pension plan funding and position, and information on changes that affect the plan.
2017 Rate Letter for 2018
2016 Rate Letter for 2017
2015 Rate Letter for 2016
2014 Rate Letter for 2015
2013 Rate Letter for 2014
Pension Fund Additions by Source and Deductions by Use Downloadable Data
Provides 5 years of data detailing the additions by source, such as investment income, employer and employee contributions, and deductions by use, such as benefit payments, withdrawals, and administrative expenses.
Texas Comptroller of Public Accounts Public Pension Search Tool
Search for details on state and local pension plans in Texas.