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PRB actuarial report: funded-periods improving but dozens of systems remain at risk
Summary
PRB staff reported lower average assumed returns and improving funding periods across many Texas public pension systems, but multiple plans remain below statutory thresholds that trigger Funding Soundness Restoration Plans (FSRPs); staff flagged specific systems with fund-exhaustion risk and urged timely valuations and policy changes.
The Pension Review Board heard an actuarial overview July 10 that showed average expected returns falling and funding periods shortening for many Texas public retirement systems, but staff warned that several plans remained at risk of statutory intervention.
Senior actuary David Fee told the board that recent valuation data show a decline in aggregate expected returns and steady improvement in funding periods over the last six years, while the aggregate funded ratio sits near 79% when measured by asset concentration and about 75% on an unweighted average.
Fee said some systems have taken or plan to take steps that will improve metrics — for example, Amarillo Fire removed a second tier and granted ad hoc cost-of-living adjustments, Dallas employees completed their FSRP, and Midland Fire completed its FSRP after a large one‑time city contribution. At the same time, Fee and staff flagged systems that still show long funding periods or very low funded ratios and pointed to new mortality tables released in May that will…
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