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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2021 <br />IV. Detailed Notes on All Activities and Funds (Continued) <br />F. Employee Retirement Systems and Plans (Continued) <br />1. Texas Municipal Retirement System (Continued) <br />Employees Covered by Benefit Terms. <br />At the December 31, 2020, valuation and measurement date, the following employees were covered by the <br />benefit terms: <br />Inactive Employees or Beneficiaries Currently Receiving Benefits 236 <br />Inactive Employees Entitled to but not yet Receiving Benefits 157 <br />Active employees 234 <br />Total 627 <br />Contributions <br />The contribution rates for employees in TMRS are either 5%, 6%, or 7% of an employee's gross earnings, and <br />the City matching percentages are either 100%, 150%, or 200%, both as adopted by the governing body of the <br />City. Under the state law governing TMRS, the contribution rate for each city is determined annually by the <br />actuary, using the Entry Age Normal (EAN) actuarial cost method. The actuarially determined rate is the <br />estimated amount necessary to finance the cost of benefits earned by employees during the year, with an <br />additional amount to finance any unfunded accrued liability. <br />Employees for the City were required to contribute 6% of their annual gross earnings during the fiscal year. <br />The contribution rates for the City were 7.18% and 6.78% in calendar years 2020 and 2021, respectively. The <br />City's contributions to TMRS for the year ended September 30, 2021, were $809,036 and were equal to the <br />required contributions. <br />Net Pension Liability <br />The City's Net Pension Liability was measured as of December 31, 2020, and the Total Pension Liability <br />(TFL) used to calculate the Net Pension Liability was determined by an actuarial valuation as of that date. <br />Actuarial Assumpfions <br />The Total Pension Liability in the December 31, 2020, actuarial valuation was determined using the <br />following actuarial assumptions: <br />Inflation 2.5% per year <br />Overall payroll growth 3.5% to 11.5%, including inflation <br />Investment Rate of Return 6.75% <br />44 <br />