Printer Friendly

TEXPERS Report: Texas' State and Local Pension Funds Reach 5-Year Pinnacle of Financial Health.

HOUSTON, Sept. 30, 2015 /PRNewswire/ -- The Texas Association of Public Employee Retirement Systems issued a report today showing that 93 state and local pension funds which submit data to the Texas Pension Review Board combined in 2014-2015 to achieve the best overall improvement in financial health in five years.

The TEXPERS assessment is based on information requests it made of the PRB for standardized year-over-year comparisons of pension funds' amortization periods, as presented in PRB Actuarial Valuation Reports for the previous five years.

The most substantial improvement in the 2014-15 period occurred in eight pension systems moving out of the infinite amortization period, from 15 to 7. The increase, to 17 from 13, in the number of pension funds at less than infinite and more than 40 years amortization is a function of improvement of at least four systems out of the infinite category. Another four systems from the infinite amortization moved into lower amortization periods.

The PRB says that amortization periods are the single "most appropriate" measure of public retirement systems' health. It defines amortization period as "the length in time, in years, needed to pay for the unfunded actuarial accrued liability (UAAL) and reflects a system's ability to pay its normal cost plus UAAL."

TEXPERS executive director Max Patterson said: "This report is a stark contrast to those which focus on unfunded liabilities in order to produce alarming headlines. Pension fund experts will tell you that amortization trends matter more than accountants' moment-in-time snapshots of unfunded liabilities when assessing pension fund health.

"The trend toward lower amortization periods across all Texas pensions, in conjunction with the TEXPERS Asset Allocation report showing excellent pension fund investment performance in the 20- and 30-year periods, should provide lawmakers with the confidence to maintain the status quo," Patterson said.

TEXPERS has created seven graphics to describe the PRB data at

About TEXPERS The Texas Association of Public Employee Retirement Systems (TEXPERS) is a statewide voluntary nonprofit association to provide quality education to trustees, administrators, professional service providers and employee groups and associations engaged or interested in the management of public employee retirement systems. Today, TEXPERS' 75 member systems represent approximately 1.3 million active and retired participants and approximately $132 billion in assets. Learn more at or

To view the original version on PR Newswire, visit:

SOURCE Texas Association of Public Employee Retirement Systems

COPYRIGHT 2015 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 2015 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Geographic Code:1U7TX
Date:Sep 30, 2015
Previous Article:Preventative Healthcare Practices May Prevent Blood Clots in Patients.
Next Article:Nominations Now Open for SANS Institute's Fifth Annual Difference Makers Awards.

Terms of use | Copyright © 2017 Farlex, Inc. | Feedback | For webmasters