PLANNING FOR THE FUTURE
Funding Your TCDRS Plan
By participating in an advance-funded plan like TCDRS, you plant the seeds for your employees to have a secure retirement benefit.
CONSERVATIVE FUNDING METHODS
While assets are pooled for investment, your plan is funded only by your organization, your employees and investment earnings. TCDRS receives no state funding.
Each employer participating in TCDRS pays 100% of its required contribution rate each year. Doing this year after year means the money is there when it's time to pay the benefits.
Because benefits are funded in advance, investment earnings account for almost 80 cents of every dollar paid to retirees.
WHAT YOU PAY
Your employer contribution rate is the percentage of payroll your organization is required to contribute to fund future benefits for your current employees, former employees and retirees.
Each year, independent actuaries estimate the benefits you will pay to your employees and how much you need to invest to pay for those benefits. Your rate will change every year based on changes in your workforce and investment earnings. You'll review your benefits levels each year and can make adjustments based on your workforce needs and budget.
THINKING OF JOINING?
You’ll be in good company! Nearly 800 employers partner with TCDRS.