Finance
Public Pensions
The City of Lavon 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. The Board members are appointed by the Governor, with the advice and consent of the Senate.
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.
TMRS does not receive any state funds and does not adminster a health care plan.
Summary, as of 12/31/2023
| Funded Ratio | 72.60% | |||
| Equivalent Single Amortization Period in years | 17.2 | |||
| 1-year rate of return | 11.64% | |||
| 3-year rate of return | 5.29% | |||
| 10-year rate of return | 7.79% | |||
| Assumed rate of return | 6.75% | |||
| Unfunded Actuarial Accrued Liability (UAAL) as percent of covered payroll | 48.10% | |||
| Actuarially Determined Contribution (ADC) Rate with comparison to current Total Contribution Rate | 100% | |||
Plan Provisions Summary
| Employee Deposit Rate | 7% of pay | ||
| 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 CPI retroactive repeating | ||
| Death Benefits | Yes |
Documents – housed in the TMRS website
Five most recent actuarial valuations for TMRS: TMRS Website
Five most recent audits for TMRS: TMRS Website
Downloadable Data
Actuarial value of assets vs actuarial accrued liability: PDF
Additions and Deductions: PDF
Physical Address
120 School Road
Lavon, TX 75166
Mailing Address
PO Box 340
Lavon, TX 75166
Phone: (972) 843-4220
Office Hours: 8AM – 5PM
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