The Commissioner's Court receives TCDRS's notice regarding the required employer contribution rate for January 1st of the next calendar year in May of each year. This rate is calculated by TCDRS actuaries and is calculated based upon the plan provisions currently elected by Williamson County. An additional rate is included for consideration of optional increases that may be awarded to current retirees in the form of a cost of living increase.
The 2010 TCDRS employer contribution rate is 11.40%. The 2011 rate is 11.59%. This approximately equates to a $140,000 increase to the General Fund retirement line item budget for FY 2011 without a CPI increase for retirees.
The mandatory employee contribution rate is 7% of gross pay. All full-time and part-time employees are required to contribute to the TCDRS system as a condition of employment. Employees are vested after 8 years of credited service. To be eligible to retire, an employee must meet one of 3 eligibility options: 1) Rule of 75 (employee age plus years of service equal 75); 2) Age 60 plus 8 years of credited service and 3) 30 years of service regardless of age.
The County must submit authorization for the 2011 employer contribution rate no later than December 15, 2010. |