TCDRS tells Wichita County commissioners plan is healthy; required rate drops to 10.55%

Erica Aguire Vasquez, a TCDRS representative, told the Wichita County Commissioners Court on June 12 that the county’s retirement plan remains in strong condition and that the system overall is well capitalized. Vasquez said TCDRS is about 91% funded systemwide and that Wichita County’s valuation shows a required employer rate of 10.55% for the coming year; the county’s elected contribution rate is 14%.

Vasquez, joined by Deputy Director Jay Dyer, explained how the plan is financed: roughly 74 cents of each benefit dollar comes from investment returns, 15 cents from the employer match and 11 cents from member contributions. She noted TCDRS does not receive general revenue from the state and emphasized that local funding decisions and the system’s smoothing reserves limit year-to-year volatility. "We do not receive any money from Texas," Vasquez said, adding that reserves and TCDRS's smoothing method are designed to soften rate swings for employers.

County-level figures in the presentation showed roughly 514 total members in the plan and about 409 benefit payees; Vasquez told the court that more than $10 million was paid last year to people with Wichita County ZIP codes, though not all those recipients retired from the county itself. She reviewed common employer options — member savings at 7% of pay, a typical 200% employer match, vesting choices, and optional features such as a partial lump-sum at retirement and employer-paid group term life insurance.

During questions, commissioners asked about the effect of changing the employer match. Vasquez said reducing an elected match is prospective only and does not strip benefits already earned: "When you lower the match ... it would only be that next year forward. All of the previous years would remain at 200." She also said a county may later make retroactive payments to restore prior benefit levels if budgets permit. Vasquez explained portability, including recognition of military service up to five years after vesting once documentation (DD214) is provided.

Vasquez showed historical plan changes for Wichita County and noted factors lowering the county’s required rate: positive investment returns, the county’s elected rate and demographic changes such as members leaving and taking refunds (which can reduce liabilities). She also cited a small actuarial adjustment tied to male life‑expectancy changes that affected cost assumptions systemwide.

Vasquez closed by reminding the court of the TCDRS calendar: valuations use a Dec. 31 data snapshot, rates are released in April, and counties have until Dec. 15 to request plan changes for the next plan year. She said TCDRS will provide Wichita County’s plan document by that deadline. "We will have a plan document to you by December 15th," she told the court.

Next step: commissioners may consider whether to leave the elected rate at 14% or to adjust plan options before the Dec. 15 deadline; Vasquez offered follow-up conversations with TCDRS actuaries for county-specific questions and recruitment/retention considerations.