transparency

Austin Employees' Retirement System

Overview

Contact Information:
6850 Austin Center Blvd.
Suite 320
Austin, TX 78731
http://www.coaers.org
Phone: (512) 458-2551
Fax: (512) 458-5650

Classification: Muni
Year Created: 1941
Fiscal Year-End Month: 12

Total Members : 18,818

  Active Members: 10,228
  Inactive Members : 0
  Total Annuitants: 7,221
  (Effective Date: 12/31/2021)

Financials

(Effective Date: 12/31/2021)

Total Net Assets: $3,565,139,844

Total Assets : $3,573,244,306
Total Liabilities : $8,104,462
Total Additions : $625,998,410
Employer Contributions:
$141,218,720
22.56%
Employee Contributions:
$66,819,864
10.67%
Other Contributions:
$0
0.00%
Investment Income:
$417,958,864
66.77%
Other Income:
$962
0.00%

Total Deductions  : $260,405,149
Benefit Payments:
Benefit Tier Details
$4,266,759
1.64%
Withdrawals:
$242,860,638
93.26%
Administrative Expenses:
$6,528,499
2.51%
Investment Expenses:
$6,749,253
2.59%
Other Expenses:
$0
0.00%
Total Contribution Rate: 19.00%
(Effective Date: 12/31/2021)
Employer: 8.00%
Employee: 27.00%

Historical Investment Returns

(Report Date: 12/31/2021)
—  Assumed Rate of Return 6.75%
  • 1-Year Return: 12.99%
  • 3-Year Return: 14.73%
  • 10-Year Return: 9.19%
  • 30-Year Return: N/A
  • Note: Rates of return are reported net of fees.
  • Investment Policy Details
  • Assumed Rate of Return : 6.75%

Actuarial

(Effective Date: 12/31/2021)
Actuarial Value of Assets : $3,565,139,844
Actuaries often select an asset valuation method that smooth the effects of short‐term volatility in the market value of assets. The actuarial value of assets is intended to give fund managers a more accurate picture of the fund’s ability to cover its liabilities.
Market Value of Assets: $3,320,288,049
Actuarial Assumption Details

Actuarial Funded Ratio : 65.98%

Market Funded Ratio: 70.85%

Amortization Period (Yrs) : 33
Unfunded Liability : $1,711,755,152
Unfunded Liability per Member: $90,964

Benefit Tier Details

Tier:
Group A
Eligible Members:
Hired before 1/1/2012
Vesting:
5 YCS
Age/YCS:
55/20 or 62 with no YCS or 23 YCS
Benefit Formula:
Years of Credited Service x 3.0% x Final Average Salary
Final Average Salary:
Highest 36 months within final 10 years
Automatic COLA:
Ad hoc when recommended and certified as financially sustainable by the actuary. Must be recommended by the City Manager, authorized by the Board, and approved by the City Council.
Benefit Tier Options:
Back DROP, 5 yr max. 90% of DROP date monthly benefit x months of Retro DROP (no interest).
Social Security:
Yes
Tier:
Group B
Eligible Members:
Hired on/after 1/1/2012
Vesting:
5 YCS
Age/YCS:
62/30 or 65/5
Benefit Formula:
Years of Credited Service x 2.5% x Final Average Salary
Final Average Salary:
Highest 36 months within final 10 years
Automatic COLA:
Ad hoc when recommended and certified as financially sustainable by the actuary. Must be recommended by the City Manager, authorized by the Board, and approved by the City Council.
Benefit Tier Options:
Back DROP, 5 yr max. 90% of DROP date monthly benefit x months of Retro DROP (no interest).
Social Security:
Yes

Investment Policy Details

Effective Date: 4/1/2021

Asset Class:
Alternative Investments
Minimum Allocation:
3%
Maximum Allocation:
15%
Target Allocation:
7%
Asset Class:
Fixed Income
Minimum Allocation:
16%
Maximum Allocation:
33%
Target Allocation:
21%
Asset Class:
Cash
Minimum Allocation:
-10%
Maximum Allocation:
10%
Target Allocation:
1%
Asset Class:
Real Estate
Minimum Allocation:
10%
Maximum Allocation:
20%
Target Allocation:
15%
Asset Class:
Equities
Minimum Allocation:
46%
Maximum Allocation:
66%
Target Allocation:
56%