A retirement system's effective amortization period is defined by the PRB as the time it would theoretically take to fully fund the system's unfunded actuarial accrued liability (UAAL), if any exists, using the system's chosen asset valuation method. Some systems provided an amortization period using both the market value of assets and the actuarial value of assets. If only one was below 30, the smaller value is reflected on this page. The effective amortization period assumes no future gains or losses and factors in both the plan's stated and historical contribution policy. The calculation is done at each actuarial valuation which is conducted every year or every two years. Plans with a funding surplus are reported with an amortization period of zero.

A retirement system's funded ratio is a one-time snapshot of the percentage of its actuarial accrued liability that is funded by its actuarial value of assets at the time of measurement.

Contributions into a retirement system are typically made by the employer and the employees and are often reported as a percentage of payroll. Texas statute requires systems to report a recommended contribution rate needed for the system to achieve and maintain an amortization period that does not exceed 30 years, shown in the chart as the actuarially determined contribution (ADC). If the plan does not report contributions on a percentage of payroll basis, no data will appear.

Pension funding requires assumptions to be made about the future, which are called actuarial assumptions. These assumptions along with current plan participant data and benefits are used to project future benefit obligations. Actuarial methods are used to calculate a system's liabilities, current and future costs, as well as amortization payments.

The market value of assets of a retirement system is generally the value at which assets owned by the system could be traded in the markets. This figure is also referred to as the fiduciary net position in accounting valuations (GASB 67).

Net pension liability (NPL) is the total pension liability (TPL) of the retirement system minus the system's fiduciary net position (FNP) or market value of assets, as reported in accounting valuations. This graph displays the effect that +/-1% changes in the discount rate would have had on the system's NPL and associated funded ratio (FNP/TPL) in each year depicted.

Non-investment cash flow is the annual contributions less benefit payments and expenses of the fund, as a percentage of ending total net assets. On its face, negative non-investment cash flow may not be an indicator of distress. For mature retirement systems, slightly negative non-investment cash flow (e.g. -1% to -3%) is the desired aim of pre-funding the system, allowing for lower contribution requirements. Significant negative noninvestment cash flow (e.g. less than -3%) over time, however, can be an indicator of distress, particularly for a plan that is not receiving its full ADC. For a retirement plan with a low funded ratio, significant negative cash flow can cause liquidity concerns and further imperil the plan by requiring too many of the assets to be held in liquid investments (which depresses investment experience) and/or by requiring imprudent liquidation of assets. Most public pension plans in Texas have a negative cash flow.

This graph displays the contributions and distributions by the retirement system over the past ten years. Contributions include those from both the employer and employees. Distributions include benefit payments, withdrawals, and refunds to current and former plan members.

The types of expenses that go into running a retirement fund include investment-related, administrative, and occasionally, other miscellaneous expenses. The graph displays the retirement system's total expenses as a percentage of assets. Due to inconsistencies in reporting of investment expenses, this data may not be an entirely accurate depiction of true investment-related expenses paid.

Investment returns make up an essential part of a retirement system's funding strategy. The graph shows the most recently reported short- and medium-term investment rates of return compared with the rate of return the plan assumes it will make on its investments. Figures obtained from the most recent investment return and assumptions reports. All figures are net of fees.

A retirement system's investments are diversified to manage risk while maximizing returns. The asset allocation is guided by its investment policy which is adjusted by the system periodically. Figures obtained from the most recent annual financial reports and may differ from allocation targets in investment policy statements. The PRB reclassifies mutual fund investments into the underlying asset classes, when the necessary information is provided.

Other includes:capital assets, receivables, securities lending collateral, liabilities and cash.

"Full retirement" is the term for the age and years of service required to retire without any reduction in a member's retirement benefits. The table details the benefit a member of the retirement system will receive at retirement if they have met the system's full retirement criteria.

As a retirement system matures, its ratio of active to retired members will naturally decrease as retired members make up a greater percentage of a system's membership. The PRB includes retirees as well as beneficiaries in the count of retired members, and all active members (both vested and non-vested) in its active member count. Vested terminated members are not included in either value. If the plan does not have either active members or annuitant members, no data will appear.

Texas retirement systems are required to have a governing body to oversee the investment and expenditure of funds and the administration of benefits. The board of trustees has the fiduciary responsibility for the system's assets and is typically comprised of representatives from stakeholder groups such as active and retired members, sponsoring entities, and citizens/taxpayers. Board composition and member selection processes vary from system to system.

Decisions relating to contribution levels and benefit provisions are governed differently across Texas' diverse public retirement systems. This table shows how, and by whom, decisions related to contributions and benefits are made and whether there is protection for these benefits in the Texas Constitution.