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City of Paris, Texas <br />Notes to Financial Statements <br />September 30, 2011 <br />V. Other Information (Continued) <br />I. Employee Retirement Systems and Plans (Continued) <br />1. Texas Municipal Retirement System (Continued) <br />Contributions (Continued) <br />During the past three fiscal years, the City has contributed 100% of its annual pension cost as <br />follows: 2010 - $1,195,726, 2009 - $1,204,639, and 2008 - $1,278,809. At September 30, <br />2009, 2010, and 2011, the net pension obligation is zero. <br />Schedule of Funding Progress <br />Liability <br />Actuarial <br />as a <br />Valuation <br />Actuarial <br />Actuarial <br />Unfunded <br />Percentage <br />December <br />Value of <br />Accrued <br />Actuarial <br />Funded <br />Covered <br />of Covered <br />31, <br />Assets <br />Liability <br />Liability <br />Ratio <br />Payroll <br />Payroll <br />2008 <br />$ 24,480,444 <br />$ 30,338,881 <br />$ 5,858,437 <br />80.7% <br />$ 10,784,615 <br />54.3% <br />2009 <br />25,841,641 <br />31,658,754 <br />5,817,113 <br />81.6 <br />10,635,564 <br />54.7 <br />2010 <br />42,636,949 <br />43,396,366 <br />759,417 <br />98.3 <br />11,352,419 <br />6.7 <br />During the year 2011, state law changed the fund structure of TMRS and a reserve fund <br />previously not included in the calculation of the funded ratio or calculated contributions was <br />combined with other funds to form one Benefit Accumulation Fund. As allowed by the new <br />law, the Actuarial Valuation as of December 31, 2010 reflects the combination of funds and <br />any other effects of the law. <br />Restructuring TMRS accounts produces a more efficient funding structure that: <br />Reduces year-to-date volatility in city contribution rates. <br />Eliminates the leverage that existed in the former three-fund structure. <br />Reduces the downside risk of adverse investment returns on city accounts. <br />Removes the need to maintain a substantial percentage of assets as a reserve. <br />Results in lower contribution rates for most cities. <br />Improves actuarial funding rations for most cities. <br />TMRS issues a publicly available comprehensive annual financial report that includes financial <br />statements and required supplementary information (RSI) for TMRS; the report also provides <br />detailed explanations of the contributions, benefits, and actuarial methods and assumptions <br />used by the system. This report may be obtained from TMRS' website at www.TMRS.com. <br />51 <br />