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CITY OF LA PORTE, TEXAS
<br />NOTES TO THE FINANCIAL STATEMENTS (continued)
<br />Note 8 - Employee Retirement System (continued)
<br />Three-year Trend Information
<br />201120102009
<br />Annual Required Contribution (ARC)3,933,822$ 3,712,311$ 3,170,387$
<br />Interest on net pension obligation (NPO)113,334 48,178 -
<br />Adjustment to ARC(93,771) (39,226) -
<br />Annual Pension Cost (APC)3,953,385 3,721,263 3,170,387
<br />Contributions(3,150,061) (2,852,535) (2,527,995)
<br />Change in NPO803,324 868,728 642,392
<br />NPO, beginning of the year1,511,120 642,392 -
<br />NPO, ending of the year
<br />$ 1,511,1202,314,444$ 642,392$
<br /> Percentage of APC contributed 79.7%76.7%79.7%
<br />Texas Statewide Emergency Services Personnel Retirement Fund
<br />Summary of Significant Accounting Policies and Plan Asset Matters
<br />The Texas Statewide Emergency Services Personnel Retirement Fund financial statements are prepared
<br />using the accrual basis of accounting. The Fund’s fiscal year is from September 1 through the following
<br />August 31. Contributions are recognized as revenues in the period in which they are due to the Fund. No
<br />contributions applicable to the H.B. 258 Texas Local Fire Fighters Retirement Act (TLFFRA) are
<br />included herein.
<br />The Texas Statewide Emergency Services Personnel Retirement Fund investments are reported at a
<br />smoothed market-related value.
<br />The Fire Fighters’ Pension Commission is the administrator of the Texas Statewide Emergency Services
<br />Personnel Retirement Fund, a cost sharing multiple employer pension system established and
<br />administered by the State of Texas to provide pension benefits for emergency services personnel who
<br />serve without monetary remuneration. The Texas Statewide Emergency Services Personnel Retirement
<br />Fund is considered a component unit of the State of Texas financial reporting entity and is included in the
<br />State’s financial reports as a pension trust fund. At August 31, 2008 there were 186 member departments
<br />participating in the pension system. The following table summarizes the pension system membership as
<br />of August 31, 2008:
<br />Retirees and beneficiaries currently receiving benefits1,939
<br />Terminated members entitled to benefits but not yet receiving those1,975
<br />Current active members (vested and non-vested)4,340
<br />th
<br />The pension system was created by Senate Bill 411, 65th Legislature, Regular Session (1977). The 79
<br />Legislature, Regular Session (2005), recodified the provisions and gave the TESRS Board of Trustees
<br />authority to establish vesting requirements, contributions levels, benefit formulas and eligibility
<br />requirements by board rule. The benefit provisions include retirement benefits as well as death and
<br />disability benefits. Member are 505 vested after the tenth year of service, with the vesting percent
<br />increasing 10% for each of the next five years of service so that a member becomes 100% vested with 15
<br />years of service.
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