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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 />201220112010
<br />Annual Required Contribution (ARC)
<br />$ 3,933,8223,624,410$ 3,712,311$
<br />Interest on net pension obligation (NPO)
<br /> 113,334173,583 48,178
<br />Adjustment to ARC
<br /> (93,771)(139,265) (39,226)
<br />Annual Pension Cost (APC)
<br /> 3,953,3853,658,728 3,721,263
<br />Contributions
<br /> (3,150,061)(3,388,213) (2,852,535)
<br />Change in NPO
<br /> 803,324270,515 868,728
<br />NPO, beginning of the year
<br /> 1,511,1202,314,444 642,392
<br />NPO, ending of the yea
<br />r
<br />$ 2,314,4442,584,959$ 1,511,120$
<br /> Percentage of APC contributed
<br />92.6%79.7%76.7%
<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, 2010 there were 186 member departments
<br />participating in the pension system. The following table summarizes the pension system membership as
<br />of August 31, 2010:
<br />Retirees and beneficiaries currently receiving benefits2,167
<br />Terminated members entitled to benefits but not yet receiving those2,106
<br />Current active members (vested and non-vested)4,371
<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 50% 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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