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 : 75,438

  Active Members: 35,230
  Inactive Members : 25,511
  Total Annuitants: 14,697
  (Effective Date: 8/31/2020)


Financials

Note:
(Effective Date: 8/31/2020)

Total Net Assets: $947,324,194

Total Assets : $954,911,966
Total Liabilities : $7,587,772
Total Additions : $93,701,755
Employer Contributions:
$22,293,664
23.79%
Employee Contributions:
$8,949,911
9.55%
Other Contributions:
$0
0.00%
Investment Income:
$62,449,583
66.65%
Other Income:
$8,597
0.01%

Total Deductions  : $90,000,206
Benefit Payments:
Benefit Tier Details
$83,227,720
92.48%
Withdrawals:
$3,487,259
3.87%
Administrative Expenses:
$1,932,593
2.15%
Investment Expenses:
$1,352,634
1.50%
Other Expenses:
$0
0.00%

Total Contribution Rate: 2.05%
(Effective Date: 8/31/2020)
Employer: 1.55%
Employee: 0.50%

Historical Investment Returns

(Report Date: 8/31/2020)
—  Assumed Rate of Return 7.00%
  • 1-Year Return: 6.82%
  • 3-Year Return: 6.42%
  • 10-Year Return: 8.12%
  • 30-Year Return: 7.84%
  • Note: Rates of return are reported net of fees. 30 year Return is the gross return number as a net return was not available
  • Investment Policy Details
  • Assumed Rate of Return : 7.00%

Actuarial

Note:
(Effective Date: 8/31/2020)
Actuarial Value of Assets : 968,062,761
Market Value of Assets: 947,324,194
Actuarial Assumption Details

Actuarial Funded Ratio : 60.14%

Market Funded Ratio: 58.86%

Amortization Period (Yrs) : Infinite
Unfunded Liability : 641,524,299
Unfunded Liability per Member: $8,504

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
Note:

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
Note:

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
Note:

Investment Policy Details

Effective Date: 8/19/2020


Asset Class:
Alternative Investments
Minimum Allocation:
8%
Maximum Allocation:
36%
Target Allocation:
21%
Note:

Asset Class:
Cash
Minimum Allocation:
NA
Maximum Allocation:
NA
Target Allocation:
1%
Note:

Asset Class:
Equities
Minimum Allocation:
27%
Maximum Allocation:
47%
Target Allocation:
37%
Note:

Asset Class:
Fixed Income
Minimum Allocation:
NA
Maximum Allocation:
NA
Target Allocation:
22%
Note:

Asset Class:
Real Estate
Minimum Allocation:
6%
Maximum Allocation:
39%
Target Allocation:
19%
Note: