Alief Independent School District
2011 2012 2013 2014 Teacher Retirement System
Contractually Required Contributions $ 4,386,043 $ 3,753,025 $ 4,323,780 $ 5,121,788
Contributions in Relation to the Contractually
Required Contributions (4,386,043) (3,753,025) (4,323,780) (5,121,788)
Contribution Deficiency (Excess) $ - $ - $ - $ -
District's Covered Payroll $ 282,533,188 $ 271,838,556 $ 274,093,839 $ 285,263,235
Contributions as a Percentage of Covered Payroll 1.55% 1.38% 1.58% 1.80%
The amounts presented for the fiscal years were determined as of the District's fiscal year end, August 31. A 1.5% contribution for employers not paying Old Age Survivor and Disability Insurance (OASDI) on certain employees went into law effective September 1, 2014.
Alief Independent School District
Schedule of District's Contributions to the Teacher Retirement System Pension Plan Last Ten Fiscal Years
Exhibit F-3 2015 2016 2017 2018 2019 2020 9,898,055 $ $ 10,838,455 $ 11,339,407 $ 11,186,005 $ 11,098,422 $ 12,718,449 (9,898,055) (10,838,455) (11,339,407) (11,186,005) (11,098,422) (12,718,449) - $ $ - $ - $ - $ - $ - 308,954,860 $ $ 326,483,230 $ 332,855,824 $ 332,946,322 $ 331,525,555 $ 354,018,430 3.20% 3.32% 3.41% 3.36% 3.35% 3.59%
Exhibit F-4
2017 2018 2019
District's Proportion of the Net OPEB Liability 0.4123626% 0.4182803% 0.4047240% District's Proportionate Share of the Net OPEB Liability $ 179,321,045 $ 208,851,168 $ 191,398,931 State's Proportionate Share of the Net OPEB Liability Associated with the District 250,843,962 273,727,920 254,326,368
Total $ 430,165,007 $ 482,579,088 $ 445,725,299
District's Covered Payroll (for Measurement Year) $ 332,855,824 $ 332,946,322 $ 331,525,555 District's Proportionate Share of the Net OPEB Liability as a
Percentage of its Covered Payroll 53.87% 62.73% 57.73%
Plan Fiduciary Net Position as a Percentage of the Total OPEB Liability (1) 0.91% 1.57% 2.66% Plan's Net OPEB Liability as a Percentage of Covered Payroll (1) 132.55% 146.64% 135.21%
(1) Per the Teacher Retirement System's Comprehensive Annual Financial Report.
The amounts presented for each Plan year which ends the preceding August 31 of the District's fiscal year. Ten years of data is not available.
Alief Independent School District
Schedule of the District's Proportionate Share of the Net OPEB Liability Teacher Retirement System of Texas (TRS)
2011 2012 2013 2014 Teacher Retirement System
Contractually Required Contributions $ 1,851,726 $ 1,771,225 $ 1,649,975 $ 1,857,975
Contributions in Relation to the Contractually
Required Contributions (1,851,726) (1,771,225) (1,649,975) (1,857,975)
Contribution Deficiency (Excess) $ - $ - $ - $ -
District's Covered Payroll $ 282,533,188 $ 271,838,556 $ 274,093,839 $ 285,263,235
Contributions as a Percentage of Covered Payroll 0.66% 0.65% 0.60% 0.65%
The amounts presented for the fiscal years were determined as of the District's fiscal year end, August 31.
Alief Independent School District
Schedule of District's OPEB Contributions to the Teacher Retirement System Last Ten Fiscal Years
Exhibit F-5 2015 2016 2017 2018 2019 2020 1,995,057 $ $ 2,104,662 $ 2,143,878 $ 2,885,681 $ 2,871,772 $ 3,029,495 (1,995,057) (2,104,662) (2,143,878) (2,885,681) (2,871,772) (3,029,495) - $ $ - $ - $ - $ - $ - 308,954,860 $ $ 326,483,230 $ 332,855,824 $ 332,946,322 $ 331,525,555 $ 354,018,430 0.65% 0.64% 0.64% 0.87% 0.87% 0.86%
Alief Independent School District
Notes to Required Supplementary Information
Budgets and Budgetary Accounting
Each school district in Texas is required by law to prepare annually a budget of anticipated revenues and expenditures for the General Fund, the Food Service Program that is included in the Special Revenue Fund, and the Debt Service Fund before the beginning of the fiscal year. For fiscal year beginning September 1st, the Texas
Education Code requires the budget to be prepared not later than August 20th and adopted by August 31st of each
year. The District’s administration determines budgetary funding priorities and the budgets are prepared in the same basis of accounting that is used for reporting in accordance with generally accepted accounting principles. Final budget allocations are determined by the Board, which subsequently establishes a local property tax rate sufficient to support the approved budget. The annual budget, which is prepared on the modified accrual basis of accounting, must be adopted by the Board at a scheduled meeting after giving ten days public notice of the meeting. The District annually adopts legally authorized appropriated budgets for the General and Debt Service Funds, and the Food Service Program included in the Special Revenue Fund.
The District’s administration performs budget reviews during the year in which budget requirements are reevaluated and revisions are recommended to the Board. The Board may approve amendments to the budget, which are required when a change is made to any one of the functional expenditure categories or revenue object accounts as defined by the Texas Education Agency for each individual fund type. Expenditures may not legally exceed budgeted appropriations, as amended, at the function level by fund. Unexpended appropriations lapse at year-end.
Management may amend the budget without seeking Board approval if appropriations are not transferred between functions. During fiscal year 2020, General Fund appropriations were increased by $9.7 million.
Pension
Changes since the Prior Actuarial Valuation
The following were changes to the actuarial assumptions or other inputs that affected measurement of the total pension liability since the prior measurement period.
• The total pension liability as of August 31, 2019 was developed using a roll-forward method from the August 31, 2018 valuation.
• The single discount rate as of August 31, 2018 was a blended rate of 6.907 percent and that has changed to the long-term rate of return of 7.25 percent as of August 31, 2019.
• With the enactment of SB 3 by the 2019 Texas Legislature, an assumption has been made about how this would impact future salaries. It is assumed that eligible active members will each receive a $2,700 increase in fiscal year 2020. This is in addition to the salary increase expected based on the actuarial assumptions.
There were no changes of benefit terms that affected measurement of the total pension liability during the measurement period.
Alief Independent School District
Notes to Required Supplementary Information
Other Post-Employment Benefit Plan Changes since the Prior Actuarial Valuation
The following were changes to the actuarial assumptions or other inputs that affected measurement of the total OPEB liability since the prior measurement period:
• The discount rate was changed from 3.69 percent as of August 31, 2018 to 2.63 percent as of August 31, 2019. This change increased the total OPEB liability (TOL).
• The participation rate for pre-65 retirees was lowered from 70 percent to 65 percent. The participation rate for post-65 retirees was lowered from 75 percent to 50 percent. 25 percent of pre-65 retirees are assumed to discontinue their coverage at age 65. There was no lapse assumption in the prior valuation. These changes decreased the TOL.
• The trend rates were reset to better reflect the plan's anticipated experience. This change increased the TOL.
• The percentage of retirees who are assumed to have two-person coverage was lowered from 20 percent to 15 percent. In addition, the participation assumption for the surviving spouses of employees that die while actively employed was lowered from 20 percent to 10 percent. These changes decreased the TOL.