Travis County Commissioners Court
November 13, 2007
Item 32
Number 32, consider and take appropriate action regarding order amending the annually determined contribution rate plan selections to increase benefits of retirees and county contributions under Texas district and county retirement system. Ms. Wilson, what have we got here?
>> during the budget process, there were a number of issues associated with the retirement systems that were raised for you. The first issue had to do with the fact that we were one of -- one of two or three counties that had a ratio for our matching that was based on the possibility that the
>> [inaudible] might cease to exist one day. There was letting you are in the last session that allowed us to change our ratio. It would have no effect on current participants but would decrease a little bit the amount of the county's contribution over time in relation to the matching. And the question was brought up did you want to change your ratio on the assumption that we were not going to be likely to ever cease to exist as a county and it was my indication you indicated you wanted to do that. During the budget process you were asked what you wanted to do in relation to current higher reese benefits and it was my understanding you indicated you wanted a 3% flat rate cola increase. That means 3% this year and not continuing for every year here after.
>> we have reviewed that issue annually, same as incumbent employees.
>> yes. And that was
>> [indiscernible]. The order also talks about what the cola percentage rate is, what the total required contribution rate is. That rate is 10.05%. And what it would have been had you not taken the first action and changed your rate was 10.71. You had some options about what you were going to do with that difference between 05 and 71, a little more than half a percent there. And it was my understanding that the court decided that rather than reduce the amount that you pay this year, you would go ahead and leave it steady this year because you could anticipate that in the future -- that would be a down and bouncy kind of thing and you just preferred to keep it even and so that you were going to have an elected rate of 10.71 and that's what's reflected in this order.
>> so for the retirees watching this, what impact, if any, will our action today have on their paycheck?
>> immediately it will have no action. It will become effective January 1, which I am not certain because I don't know what effective January 1 means, whether that means that the check they get on January 1 or the check they get on January 31 should show a 3% increase.
>> okay. But we did approve a 3% for retirees.
>> yes.
>> effective January -- that January check, whenever they get their January check from the retirement system. Move approval.
>> second.
>> discussion? All in favor? That passes by unanimous vote. Thank you.
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Last Modified:
Wednesday, November 14, 2007, 18:30 AM