870173 TMRS CAFR new8 fix 049-081.qxd - Texas Municipal ...

SUMMARY OF ACTUARIAL ASSUMPTIONS
I. The actuarial assumptions were developed from an actuarial investigation of the experience of TMRS over the
five years 1998-2002. They were adopted in 2003 and first used in the December 31, 2003 actuarial valuation.
A. WITHDRAWAL RATES
1. For the first 20 years of service, the rates vary by sex, length of service (duration), and withdrawal group
assignments (one for each sex).
a) A sample of the rates follows:
MALE
FEMALE
DURATION LOW MEDIUM HIGH LOW MEDIUM HIGH
0 .230 .299 .403 .233 .308 .408
3 .101 .130 .184 .135 .166 .207
6 .064 .090 .119 .088 .104 .128
9 .039 .056 .080 .050 .058 .085
12 .025 .034 .050 .021 .038 .050
15 .018 .022 .035 .014 .023 .029
18 .016 .017 .021 .011 .013 .016
b) The withdrawal group assignments for a city (one for male and one for female) were based primarily
upon the withdrawal characteristics of the members of the city during the five years 1998-2002 compared
to the withdrawal characteristics for all members of TMRS during the same period, as well as the
member city’s characteristics in the prior experience review.
2. After 20 years of service, for municipalities with under 500 contributing members, the rates vary by sex
and attained age. For municipalities with 500 or more contributing members, the rates show no differentiation
for sex.
LESS THAN 500 MEMBERS
AGE MALE FEMALE
AGE
500 OR MORE MEMBERS
RATE
40 .009 .005
45 .009 .006
50 .008 .004
55 .007 .003
60 .005 .003
65 .010 .004
40 .018
45 .013
50 .008
55 .003
60 .008
65 .013
B. ACTIVE EMPLOYEE MORTALITY RATES C. DISABILITY RATES
AGE MALE FEMALE
20 .001187 .000320
25 .001007 .000436
30 .000504 .000506
35 .000915 .000561
40 .001218 .000779
45 .002231 .001101
50 .003179 .001533
55 .004736 .002154
60 .006426 .003506
65 .010309 .005255
AGE MALE FEMALE
30 .000108 .000054
35 .000326 .000164
40 .000897 .000449
45 .001884 .000943
50 .003331 .001666
55 .005442 .002723
T M R S COMPREHENSIVE ANNUAL FINANCIAL REPORT 2004
95