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Van Zandt County hears options for raising employer retirement match; consultant outlines $130k–$145k estimate for a 1% payroll increase
Summary
A TCDRS account manager told Van Zandt County commissioners that raising the county's retirement match to 200% (future-only) would increase the employer required rate from about 7.34% to 8.56%, costing roughly 122 basis points — roughly $130,000–$145,000 on the county's projected $13M payroll.
Bernardo Tagon, an account manager for the county's retirement system, told the commissioners during a budget workshop that Van Zandt County's employees contribute 7% of payroll by state statute and that the county currently contributes a match that is equivalent to $1.75 for each dollar in an employee's account. He said the employer's required contribution rate for 2026 was about 7.40% and that the system projects a 7.34% required rate for 2027.
Tagon presented two illustrative changes the court could consider: increasing the county match to 200% future-only or to 225% future-only. "If it's a 200% match feature only, it would increase to 8.56% — a difference of 122 basis points," he said. He explained "future only" means the higher match would apply to deposits made beginning in the chosen effective year and would not retroactively increase what the county already matched.
Commissioners asked how those basis points translate to dollars. Tagon used the county's projected payroll (a little north of $13 million) and said the 122-basis-point increase is roughly 1% of payroll; commissioners and staff estimated that would be on the order of $130,000–$145,000 annually for Van Zandt County. He offered to run the county's payroll worksheet and a custom plan comparison to produce exact dollar figures for the commissioners' budget workshops.
Tagon emphasized that independent actuaries produce the annual required rate using the plan's demographics — hires, terminations and withdrawals — and that the system is designed to "glide" toward full funding if the required rate is paid. He also reviewed vesting and portability rules: employees vest after eight years, survivor benefits have election points after four years, and service time transfers but account balances remain with the original employer.
The presenter offered to circulate neighbor-county comparisons of match levels and funding outcomes; commissioners asked for those reports to inform whether Van Zandt should pursue a phased increase (for example, smaller annual steps) or keep its current 175% match level.
The workshop did not include any formal motion or vote on changing the match; commissioners asked staff to obtain dollar-specific worksheets and comparable-county reports before a decision.
