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Caldwell County reviews boost to retirement match as officials weigh budget impact
Summary
County staff and a TCDRS representative presented options to raise the employer retirement match from 175% to 225%, showing the county rate could rise from about 5.44% to roughly 7.29% (or to ~10.26% if employee deposits rise to 7%); commissioners asked for more dollar‑amount scenarios and budget impact projections ahead of a workshop.
Caldwell County Commissioners Court reviewed actuarial scenarios Aug. 13 for possibly increasing the county's Texas County and District Retirement System employer match from the current 175% to 225%. County staff said the change is already budgeted on the employer side and asked the court to consider how the move would affect the county's required contribution rate.
Tim Krause of TCDRS (introduced by staff) and a TCDRS presenter explained the plan customizer reports that, holding the employee deposit at 5%, the county's total rate would move from about 5.44% to approximately 7.29% beginning in 2025. "Any type of plan change will automatically increase your rates," the presenter said, noting the increase reflects the advance‑savings structure of TCDRS and the plan's closed amortization period of 15 years.
The presenters described alternative scenarios: adding a $200,000 one‑time prefunding contribution to reduce the unfunded liability and improve the funded ratio, or increasing the employee contribution to 7% while adopting the 225% match, which the presenter said would raise the county's rate into the neighborhood of 10.26% because employees would be saving more and the employer would have to prefund additional liability.
The presentation outlined tools available to the court, including a higher elected rate (paying more than actuarially required on an ongoing basis) or one‑time contributions, both of which affect long‑term funded ratios. The presenter emphasized that projections beyond five years are uncertain and depend on actuarial assumptions.
Commissioners asked for specific dollar amounts tied to each scenario and whether annual supplemental contributions (for example, "a couple of $100,000 a year") would materially shorten the time to reach 100% funding. The presenter agreed to run comparisons showing the effect of additional contributions on the plan rate and the funded ratio ahead of a scheduled workshop.
The court did not take final action on the plan change during the Aug. 13 session; staff noted the 225% match scenario is currently included in next year's budget and recommended additional modeling before any formal decision.
