Transparency
METRO has three pension plans which consist of two defined benefit pension plans and one defined contribution pension plan. The Non-Union Pension Plan is a noncontributory, single-employer, defined-benefit plan and was closed to new participants on October 1, 2007. The Transport Workers Union Pension Plan (Union Plan) is a contributory (effective October 1, 2018), single-employer, defined-benefit pension plan and was closed to new participants on October 1, 2012. Employees in the Union Plan contribute $3 each week through payroll deductions. Employees not eligible for the defined benefit pension plans are placed into the defined contribution plan.
METRO’s monthly contributions to the defined contribution plan equals 2 percent of the employees’ annual salary with METRO matching up to an additional 4 percent of the employee’s 457(b) Deferred Compensation Plan contributions. METRO’s contributions are placed into a third-party trust account with employees’ vesting rates equally 40 percent after the second year with an additional 20 percent vesting occurring each of the next three years.
Contributions for all three plans are authorized annually by METRO’s Board of Directors during the annual budgeting process. METRO makes weekly contributions to the defined contribution plans and monthly contribution to the defined benefit plans. Funding policy for the defined benefit pension plans is to contribute each year the independently calculated, actuarially determined contribution in equal payments over a 12-month period using the following key assumptions.
- Actuarial cost method – Entry age normal
- Amortization method – Level percentage of payroll, closed
- Asset valuation method – five-year smoothed market value
- Inflation – 2.20%
- Salary increases – 3.00% compensation increase
- Actuarial assumed rate of return 6.25% is a net of an explicit assumption for expected administrative expense.
- Mortality – The mortality assumption is updated annually and is currently using the Pub-2010 General Employee / Healthy Retiree Mortality Tables for M/F projected forward (fully generational) with MP-2019 with separate tables for contingent survivors and disabled participants. This reflects the most current mortality experience published by the Society of Actuaries for public plans. This assumption includes a margin for future improvements in longevity.
Public Pension Summary
The following table shows the financial information for the public pension summary and defined benefit plans as of December 31, 2019.
Public Pension Summary / Defined Benefit Plans
| Name |
Union |
Non-Union |
| Funded ratio |
69.99% |
74.24% |
| Remaining Amortization period |
23 year |
23 year |
| Rate of return* |
|
|
| 1 Year |
17.6% |
16.7% |
| 3 Year |
8.6% |
8.3% |
| 5 Year |
5.9% |
5.5% |
| 10 Year |
7.9% |
7.8% |
| Assumed rate of return |
6.25% |
6.25% |
| Actuarially Determined Contribution (ADC) amount |
$17,805,961 |
$12,628,619 |
| Actual Employer Contribution amount |
$17,805,961 |
$12,647,252 |
| Unfunded Actuarial Accrued Liability (UAAL) |
$158,635,309 |
$118,527,718 |
| UAAL as a percent of covered payroll |
175.1% |
303.7% |
Union Plan
Actuarial Value of Assets
Versus
Actuarial Accrued Liabilities (In Millions)
| Fiscal Year |
Actuarial Value of Assets |
Actuarial Accrued Liabilities |
| 2015 |
$238.70 |
$382.20 |
| 2016 |
$252.60 |
$387.30 |
| 2017 |
$267.40 |
$403.70 |
| 2018 |
$273.20 |
$436.90 |
| 2019 |
$284.20 |
$442.80 |
* The investment returns are calculated using the geometric method and are presented net of fees.
Download Excel file >>
Actuarially Determined Contribution Amount
Versus
Actual Total Contribution Amount
Fiscal Year 2016-2020 (In Thousands)
| Fiscal Year |
Actuarially Determined Contribution Amount |
Actual Total Contribution Amount |
| 2016 |
$16,565 |
$16,565 |
| 2017 |
$15,414 |
$15,414 |
| 2018 |
$15,631 |
$15,681 |
| 2019 |
$17,806 |
$17,806 |
| 2020 |
$17,079 |
$17,079 |
Actuarially Determined Contribution Rate
Versus
Actual Total Contribution Rate
Fiscal Year 2015-2019
| Fiscal Year |
Actuarially Determined Contribution Rate |
Actual Total Contribution Rate |
| 2015 |
16.5% |
20.4% |
| 2016 |
17.9% |
17.9% |
| 2017 |
16.4% |
16.4% |
| 2018 |
16.5% |
16.6% |
| 2019 |
19.7% |
19.7% |
Transport Workers Union Pension Plan, Local 260, AFL-CIO
For Five Years Ended December 31 for the following years:
| Additions |
2019 |
2018 |
2017 |
2016 |
2015 |
| Employer contributions |
$17,805,961 |
$15,631,361 |
$15,413,823 |
$16,565,280 |
$19,062,423 |
| Pick-up contributions |
$199,644 |
$49,546 |
- |
- |
- |
| Investment income / (loss) |
|
|
|
|
|
| • Interest and dividends |
$2,175,848 |
$2,296,629 |
$1,671,687 |
$812,399 |
$1,380,500 |
| • Net appreciation / (depreciation) on investments |
$43,137,051 |
-$20,344,177 |
$39,154,613 |
$17,297,528 |
-$8,338,049 |
| Investment income / (loss) |
$45,312,899 |
-$18,047,548 |
$40,826,300 |
$18,109,927 |
-$6,957,549 |
| Less investment expenses |
$817,445 |
$469,031 |
$456,670 |
$413,535 |
$852,342 |
| Net investment income / (loss) |
$44,495,454 |
-$18,516,579 |
$40,369,630 |
$17,696,392 |
-$7,809,891 |
| Total Additions |
$62,501,059 |
-$2,835,762 |
$55,783,453 |
$34,261,672 |
$11,252,532 |
| Deductions |
2019 |
2018 |
2017 |
2016 |
2015 |
| Paid to Plan members and beneficiaries |
$21,934,190 |
$19,795,197 |
$18,799,540 |
$17,656,524 |
$16,567,409 |
| Administrative services |
$337,196 |
$326,240 |
$314,986 |
$27,7833 |
$314,046 |
| Total Deductions |
$22,271,386 |
$20,121,437 |
$19,114,526 |
$17,934,357 |
$16,881,455 |
Download Excel file >>
Non-Union Plan
Actuarial Value of Assets
Versus
Actuarial Accrued Liabilities (In Millions)
| Fiscal Year |
Actuarial Value of Assets |
Actuarial Accrued Liabilities |
| 2015 |
$152.60 |
$243.80 |
| 2016 |
$162.60 |
$254.90 |
| 2017 |
$171.60 |
$261.80 |
| 2018 |
$175.40 |
$284.10 |
| 2019 |
$181.40 |
$300 |
Download Excel file >>
Actuarially Determined Contribution Amount
Versus
Actual Total Contribution Amount
Fiscal Year 2016-2020 (In Thousands)
| Fiscal Year |
Actuarially Determined Contribution Amount |
Actual Total Contribution Amount |
| 2016 |
$11,181 |
$11,181 |
| 2017 |
$11,307 |
$11,307 |
| 2018 |
$11,061 |
$11,073 |
| 2019 |
$12,629 |
$12,647 |
| 2020 |
$14,218 |
$14,237 |
Actuarially Determined Contribution Rate
Versus
Actual Total Contribution Rate
Fiscal Year 2015-2019
| Fiscal Year |
Actuarially Determined Contribution Rate |
Actual Total Contribution Rate |
| 2015 |
18.9% |
23.9% |
| 2016 |
25.7% |
25.7% |
| 2017 |
27.1% |
27.1% |
| 2018 |
27.1% |
27.2% |
| 2019 |
32.4% |
32.4% |
Non-Union Pension Plan and Trust
For Five Years Ended December 31 for the following years:
| Additions |
2019 |
2018 |
2017 |
2016 |
2015 |
| Employer contributions |
$12,647,252 |
$11,073,255 |
$11,181,136 |
$11,181,136 |
$11,248,671 |
| Investment income |
|
|
|
|
|
| • Interest and dividends |
$857,051 |
$665,810 |
$336,686 |
$513,330 |
$800,313 |
| • Net appreciation / (depreciation) on investments |
$2,6730,303 |
-$11,885,822 |
$25,006,009 |
$9,784,962 |
-$6,025,771 |
| Investment income / (loss) |
$27,587,354 |
-$11,220,012 |
$25,342,695 |
$10,298,292 |
-$5,225,458 |
| Less investment expenses |
$538,659 |
$328,255 |
$312,845 |
$327,188 |
$665,458 |
| Net investment income / (loss) |
$2,704,8695 |
-$11,548,267 |
$25,029,850 |
$9,971104 |
-$5,890,916 |
| Total additions |
$3,969,5947 |
-$475,012 |
$36,337,125 |
$21,,152,240 |
$5,357,755 |
| Deductions |
2019 |
2018 |
2017 |
2016 |
2015 |
| Paid to Plan members and beneficiaries |
$15,335,194 |
$12,735,227 |
$13,179,671 |
$10,374,582 |
$8,777,750 |
| Administrative services |
$280,381 |
$241,979 |
$243,606 |
$226,067 |
$235,357 |
| Total Deductions |
$15,615,575 |
$12,977,206 |
$13,42,3277 |
$10,600,649 |
$9,013,107 |
Download Excel file >>
Texas Comptroller of Public Accounts public pension search tool >>
Reports
METRO issues separate comprehensive annual financial report for each defined benefit pension plan and annual financial reports for the defined contribution, deferred compensation, and savings plan.
View reports here >>
Actuarial valuation reports and GASB 67 reports are prepared annually for both defined benefit pension plans by independent actuaries based on information provided by METRO.
View reports here >>
Accessible Formats
Information found on this website can be provided in an alternative format upon request. Please contact Customer Service at 713-635-4000 to speak to a representative or email the Accessibility Coordinator at accessibility@ridemetro.org. METRO will do its best to provide the requested alternative format within a reasonable time.