City of South Padre Island, Texas

SPI's Pension Plan

Public Pensions - Transparency Star Program

The Texas Comptroller of Public Accounts (TCPA) Transparency Stars program recognizes local governments for going above and beyond in terms of City-wide transparency, and the City of South Padre Island is dedicated to increasing financial transparency.

Please click here to view the Transparency Stars Public Pensions Summary for the City of South Padre Island.

The City is a member of Texas Municipal Retirement System (TMRS) a statewide, multiple employer agent plan. In an agent plan, each participating government’s pension is centrally administered and governed by state statutes but the assets and related pension liabilities for each government are accounted for separately and any unfunded liabilities are solely the obligation of that government. South Padre Island has chosen from a menu of plan options as authorized by the TMRS statute. South Padre Island’s retirement plan benefits are summarized below.

Benefits Provided

Upon retirement the employee account balance including interest is combined with the employer match to price a lifetime annuity based on the employee’s age at retirement.

Employees Covered by Benefit Terms

At the December 31, 2018 valuation date, the following were covered members by the benefit terms:

Pension Summary

TMRS provides each of its member cities with two slightly different actuarial valuations which are both reflected below as of December 31, 2018.* The first is a fund valuation which uses a smoothed actuarial value of assets to calculate the City's actuarially determined contribution (ADC) to the plan. The second valuation is provided for Governmental Accounting Standards Board (GASB) Pronouncement 68 financial reporting purposes and reflects the City's fiduciary net position based on the market value of its assets on the reporting date. 

*Note that TMRS' year-end is December 31, 2018 and that is the most recent valuation date for which data is available and has been provided to the City.

Results of the most recent valuation:

A funded ratio of 80% and above is considered stable for a city. Using both valuation methods the City’s funded ratio is currently 88%. It is important to note that the primary financial objective of TMRS is to achieve the long-term full funding of promised benefits and each calendar year, TMRS informs the City of what its contribution requirements are to achieve this financial objective.

Downloadable Data

Contributions

Employees are required to contribute 7% of their annual gross earnings based on the City's plan provisions.