Public Pensions
City of Baytown’s Pension Plan
The City of Baytown participates in the nontraditional, joint contributory, hybrid defined benefit agent multiple-employer pension plan administered by the Texas Municipal Retirement System (TMRS).
TMRS, an agency created by the State of Texas and administered in accordance with the TMRS Act, Subtitle G, Title 8, Texas Government Code (the TMRS Act), is an agent multiple-employer retirement system for municipal employees in the State of Texas. The TMRS Act places the general administration and management of the System with a six-member Board of Trustees. Although the Governor, with the advice and consent of the Senate, appoints the Board, TMRS is not fiscally dependent on the State of Texas.
TMRS’s defined benefit pension plan is a tax-qualified plan under Section 401(a) of the Internal Revenue Code. TMRS issues a publicly available annual comprehensive financial report (ACFR) that can be obtained on the TMRS website.
Benefits Provided
TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS.
Pension Summary Table Fiscal Year 2024
| Decription | Value |
|---|---|
| Funded Ratio | 84.8% |
| Amortization Period | 14.8 Years |
| One Year Rate of Return* | 10.41% |
| Three Year Rate of Return* | 4.53% |
| Ten Year Rate of Return* | 6.57% |
Assumed Rate of Return | 6.75% |
| Actuarially Determined Contribution Rate | 19.48% |
| UAAL as a Percentage of Covered Payroll | 91.8% |
Plans Provision Summary
| Description | Value |
|---|---|
| Employee Deposit Rate: | 7% |
| Matching Ratio (City to Employee): | 2 to 1 |
| Vesting of Benefits: | 5 years |
| Service Retirement Eligibility: | 20 years at any age, 5 years at the age of 60 and above |
| Updated Service Credit: | 100% repeating transfers |
| Annuity Increases (to retirees): | 70% of change in CPI |
| Death Benefits: | Yes |
Employees Covered by Benefit Terms
At the December 31, 2024 valuation and measurement date, the following employees were covered by the benefit terms:
| Description | Value |
|---|---|
| Inactive employees or beneficiaries currently receiving benefits | 577 |
| Inactive employees entitled to but not yet receiving benefits | 517 |
| Active Employees | 929 |
| Total | 2,023 |
Pension Summary
To understand the pension commitments made by the government to its employees and how successful it has been in funding those commitments to date, it is important to understand the following:
- Investments - Management of the assets / TMRS responsibility.
- Actuarial valuations - Calculation of the cost of benefits earned to date / TMRS responsibility.
- 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 Annual Comprehensive Financial Reports - TMRS. If TMRS does not earn its projected rate of return, assets will be less than expected and the city will have to make up the shortfall through increased contributions.
Additional information on actuarial policies including valuations and experience studies validating assumptions used can also be found on pages 72-92 of the ACFR. 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.
- Amortization Period – 21 Years
- Covered Payroll - $83,612,887
| Funding Valuation (Smoothed Value) | Figures as of December 31, 2024 |
|---|---|
| Total Actuarial Accrued Liability | 504,461,292 |
| Actuarial Value of Assets | 427,727,454 |
| Unfunded Actuarial Accrued Liability (UAAL) | 76,733,838 |
| Funded Ratio | 84.8% |
| UAAL as a percentage of covered payroll | 91.8% |
| GASB 68 Valuation (Market Value) | Figures as of December 31, 2024 |
|---|---|
| Total Pension Liability | 504,461,292 |
| Plan Fiduciary Net Position | 438,771,480 |
| Net Pension Liability | 65,689,812 |
| Plan Fiduciary Net Position as % | 86.98% |
| NPL as a percentage of covered payroll | 78.56% |
| Year | Total Actuarial Accrued Liability | Actuarial Value of Assets (Funded) | Unfunded Actuarial Accrued Liability | Funded Ratio | Unfunded Ratio |
|---|---|---|---|---|---|
| 2021 | 366,958,305 | 304,353,997 | 62,604,308 | 82.9% | 100.1% |
| 2022 | 388,181,162 | 327,100,736 | 61,080,426 | 84.3% | 91.0% |
| 2023 | 415,815,475 | 352,657,463 | 63,158,012 | 84.8% | 89.8% |
| 2024 | 446,452,074 | 372,443,434 | 74,008,640 | 83.4% | 101.3% |
| 2025 | 474,879,961 | 398,565,763 | 76,314,198 | 83.9% | 94.0% |
Public Pensions Summary Sheet
Investments
More detailed information regarding investment objectives, policies, and performance of the TMRS pension system can be found at https://www.tmrs.com/investments or in the TMRS Annual Comprehensive Financial Report (ACFR).
TMRS Current Assumed Rate of Return = 6.75%
2024 Investment Results (TMRS Total Fund Return)
- 1 Year 10.41%
- 3 Year 4.53%
- 10 Year 6.57%
- 30 Year or Since Inception Period 7.80%
Source: TMRS 2024 Investment Returns and Assumptions Report (PRB-1000) Rates of return presented are calculated using a time-weighted rate of return methodology based upon market values, and are presented gross of investment management fees.
TRMS Documents
Actuarial Valuations – City of Baytown
GASB 68 Valuation
TMRS Rate Letters
- 2026 City Contribution Rate Letters
- 2025 City Contribution Rate Letters
- 2024 City Contribution Rate Letters
- 2023 City Contribution Rate Letters
TMRS System Documents – City of Baytown specific
- TMRS Annual Comprehensive Financial Report
- TMRS Actuarial Valuation Report (page 151)
- TMRS Schedule of Changes in Fiduciary Net Position (page 10-11)
-
Annual Comprehensive Financial Reports
Annual Comprehensive Financial Reports
Link to page
-
City of Baytown Quarterly Investment Reports
City of Baytown investment quarterly reports.
Link to page