|Actuarial accrued liability (AAL)|
Actuarial value of assets (AVA)
Unfunded actuarial accrued liability (UAAL)
Funded Ratio (AVA/AAL)
Equivalent Single Amortization Period
Assumed rate of return
UAAL as a percent of covered payroll
The following documents can be found under the Actuarial Reports and Financial Reports tab at the TMRS website- Actuarial valuations for at least the past 5 years.
- Annual Reports for at least the past 5 years.
Plan assets are managed on a total return basis with an emphasis on both capital appreciation as well as the production of income, in order to satisfy the short-term and long-term funding needs of TMRS. The long-term expected rate of return on pension plan investments was determined using a building-block method in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighting the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. In determining their best estimate of a recommended investment return assumption under the various alternative asset allocation portfolios, GRS focused on the area between (1) arithmetic mean (aggressive) without an adjustment for time (conservative) and (2) the geometric mean (conservative) with an adjustment for time (aggressive). The target allocation and best estimates of real rates of return for each major asset class in fiscal year 2017 are summarized in the following table:
Assumed Return 6.75%
1-Year Return 7.42%
3-Year Return 4.54%
5-Year Return 6.65%
10-Year Return 6.09%
Source: TMRS 2016 Comprehensive Annual Financial Report
Actuarially Determined Contribution (ADC) rate - A target or recommended contribution to a defined benefit pension plan for the reporting period, determined in conformity with Actuarial Standards of Practice based on the most recent measurement available when the contribution for the reporting period was adopted.
: Plan Provisions Chosen (pdf page 132 of 162)
CAFR 2014 (PDF): (pdf pages 24-25 of 54)
CAFR 2015 (PDF): (pdf pages 24-25 of 54)
: (pdf pages 24-25 of 54)
: (pdf page 142 of 178)
Actuarial Valuations 2015 (PDF): (pdf page 142 of 178)