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Law Enforcement & Custodial Officer Supplemental Retirement Fund

Overview

Contact Information:
PO Box 13207
Austin, TX 78711
http://www.ers.state.tx.us
Phone: (512) 867-7711
Fax: None Reported

Classification: Statewide
Year Created: 1979
Fiscal Year-End Month: 8

Total Members : 77,467

  Active Members: 32,498
  Inactive Members : 29,626
  Total Annuitants: 15,343
  (Effective Date: 8/31/2021)

Financials

(Effective Date: 8/31/2022)

Total Net Assets: $1,042,295,797

Total Assets : $1,056,680,210
Total Liabilities : $14,384,413
Total Additions : $30,162,563
Employer Contributions:
$20,904,901
69.31%
Employee Contributions:
$8,729,103
28.94%
Other Contributions:
$522,605
1.73%
Investment Income:
$0
0.00%
Other Income:
$5,954
0.02%

Total Deductions  : $100,413,877
Benefit Payments:
Benefit Tier Details
$4,362,457
4.34%
Withdrawals:
$92,839,175
92.46%
Administrative Expenses:
$1,680,319
1.67%
Investment Expenses:
$1,531,926
1.53%
Other Expenses:
$0
0.00%
Total Contribution Rate: 1.28%
(Effective Date: 8/31/2022)
Employer: 0.50%
Employee: 1.78%

Historical Investment Returns

(Report Date: 8/31/2022)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: -1.59%
  • 3-Year Return: 9.66%
  • 10-Year Return: 8.30%
  • 30-Year Return: 7.58%
  • Note: Rates of return are reported net of fees.
  • Investment Policy Details
  • Assumed Rate of Return : 7.00%

Actuarial

(Effective Date: 8/31/2022)
Actuarial Value of Assets : $1,042,295,797
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: $1,014,061,586
Actuarial Assumption Details

Actuarial Funded Ratio : 58.64%

Market Funded Ratio: 60.27%

Amortization Period (Yrs) : 0
Unfunded Liability : $715,293,382
Unfunded Liability per Member: $9,234

Benefit Tier Details

Tier:
Tier 1
Eligible Members:
Hired before 9/1/2009
Vesting:
20 YCS
Age/YCS:
20 YCS with unreduced benefits at age 50 or Rule of 80
Benefit Formula:
Years of Credited Service x 2.8% x Final Average Salary
Final Average Salary:
Highest 36 months
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Yes
Tier:
Tier 2
Eligible Members:
Hired btwn 9/1/2009 & 9/1/2013
Vesting:
20 YCS
Age/YCS:
20 YCS with unreduced benefits at age 55 or Rule of 80
Benefit Formula:
Years of Credited Service x 2.8% x Final Average Salary
Final Average Salary:
Highest 48 months
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Yes
Tier:
Tier 3
Eligible Members:
Hired on/after 9/1/2013
Vesting:
20 YCS
Age/YCS:
20 YCS with unreduced benefits at age 57 or Rule of 80
Benefit Formula:
Years of Credited Service x 2.8% x Final Average Salary
Final Average Salary:
Highest 60 months
Automatic COLA:
None
Benefit Tier Options:
None
Social Security:
Yes

Investment Policy Details

Effective Date: 5/22/2019

Asset Class:
Equities
Minimum Allocation:
27%
Maximum Allocation:
47%
Target Allocation:
37%
Asset Class:
Alternative Investments
Minimum Allocation:
8%
Maximum Allocation:
36%
Target Allocation:
21%
Asset Class:
Real Estate
Minimum Allocation:
6%
Maximum Allocation:
39%
Target Allocation:
19%
Asset Class:
Fixed Income
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
22%
Asset Class:
Cash
Minimum Allocation:
N/A
Maximum Allocation:
N/A
Target Allocation:
1%