There are 99 actuarially funded defined benefit public pension plans registered with the PRB. The total membership of these public retirement systems is more than 2.6 million active and retired members, and the total net assets of the plans are approximately $271 billion. The 99 plans include:
These retirement plans report data to the PRB in annual financial reports, actuarial valuations and other studies, and investment and membership reports. This data center presents the reported information by plan and comparatively by plan type and asset group. The following graphs summarize some of the key indicators of financial health for Texas public pensions in the aggregate.
Since 2013, the overall unfunded accrued actuarial liability (UAAL), which is the difference between the actuarial value of assets (AVA) and accrued actuarial liability (AAL), has steadily increased. The aggregate funded ratio, in turn, has decreased over time.
A plan’s amortization period is the time it would theoretically take to fully fund any unfunded liability (UAAL) or fully recognize a surplus. The PRB Pension Funding Guidelines establish a maximum amortization period of not more than 30 years with a preferred target range of 10 to 25 years. More than half of the plans have current amortization periods within 30 years.
The investment return assumption is a key actuarial assumption which directly impacts a plan’s liability calculation and contribution requirement. A higher return assumption leads to a lower liability calculation and therefore lower contribution requirement and vice versa. In response to projected market conditions and actual plan experience, retirement systems have reduced return assumptions in recent years. The average investment return assumption for Texas systems is currently 7.37%. The national average is 7.28% (NASRA, February 2019).
In the past year, Texas plans have generated positive net returns. However, unweighted average returns have been below their assumed rates of return over the past three to ten years. Any market volatility can result in plan investment returns that are greater or less than their long-term averages.
Plans' asset allocations changed between 2007 and 2017, most notably, in the growth of alternative investments from 4% of total assets in 2007 to 32% in 2017. Alternative investments generally include hedge funds, private equity, commodities, foreign currency, venture capital, derivatives, and other instruments.
This data center contains information reported by retirement systems to the PRB in annual financial reports, actuarial valuations and other studies, and investment and membership reports. The reported information is presented by individual plan and comparatively by plan type and asset size. The information may not reflect a system’s current status, only its most recently reported information. Deadlines for reporting information vary and may be viewed here. Historical data and trends presented are not intended to predict future events or continuing trends.
The information in this data center is intended to meet the Texas Government Code Section 801.209(a) requirement to post each public retirement system’s most recent data from reports required under Chapter 802, as well as to meet the Section 2054.1265 requirement for state agencies to post high-value data sets created or maintained by the agency on a generally accessible internet website maintained by or for the agency.