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Firemen's Relief & Retirement Fund (FRRF)
The City contributes to the retirement plan for firefighters in the Denton Fire Department known as the Denton Firemen's Relief and Retirement Fund (the Fund). The Fund is a single employer, contributory, defined benefit plan. The benefit provisions of the Fund are authorized by the Texas Local Fire Fighters' Retirement Act (TLFFRA). TLFFRA provides the authority and procedure to amend benefit provisions. The plan is administered by the Board of Trustees of the Denton Firemen's Relief and Retirement Fund. The City does not have access to nor can it utilize assets within the retirement plan trust. The Fund issues a stand-alone report pursuant to GASB Statement Number 67.
These benefits fully vest after 20 years of credited service. Firefighters may retire at age 50 with 20 years of service. A partially-vested benefit is provided for firefighters who terminate employment with at least 10 but less than 20 years of service. If a terminated firefighter has a partially vested benefit, the firefighter may retire starting on the date they would have both completed 20 years of service if they had remained a Denton firefighter and attained age 50.
Effective January 1, 2011 the present plan provides a monthly normal service retirement benefit, payable in a Joint and Two-Thirds to Spouse form of annuity, equal to 2.59% of Highest 36-Month Average Salary for each year of service.
- Rate of Return
- Actuarial Accrued Liability, Actuarial Value of Assets & Funded Ratio
- Contribution Rates
Actuarial Accrued Liabilities Assets & Funded Ratio
The Actuarial Accrued Liability represents the present value of the obligation of the pension to its members whereas the Actuarial Value of Assets represents the funds in trust set aside to meet that obligation. The difference in these values represents the Unfunded Actuarial Accrued Liability and the ratio of assets to liabilities determines the plan's Funded Ratio:
- Amortization Period: 9.1 Years
- Funded Ratio: 88.8%
- Unfunded Actuarial Accrued Liability (UAAL) as percent of covered payroll: 67.5%
Please note Pension Actuary Reports are issued every two years. The information above is based on the plan actuarial valuation date of 12/31/21.
AAL Document Resources
- FRRF Actuarial Value of Assets Versus Actuarial Accrued Liability (PDF)
- FRRF Actuarial Value of Assets Versus Actuarial Accrued Liability (XLSX)
- FRRF Actuarial Studies Archive
- FRRF Changes to Fiduciary Net Position (PDF)
- FFRF Changes to Fiduciary Net Position (XLSX)
Contribution Rates
| Calendar Year | Actual Contribution Rate | FRRF Required Contribution Rate | Texas Municipal Retirement System (TMRS) Rate |
|---|---|---|---|
| 2022 | 18.50% | 18.50% | 17.47% |
| 2021 | 18.50% | 18.50% | 17.61% |
| 2020 | 18.50% | 18.50% | 17.29% |
| 2019 | 18.50% | 18.50% | 17.00% |
| 2018 | 18.50% | 18.50% | 17.13% |
Note: the city’s funding policy for the fund is a modified actuarially determined contribution rate (ADCR) policy summarized as follows:
- The funding policy is intended to fully pay off the UAAL over a closed 25-year amortization period that the actuary assumes began January 1, 2018
- The city began contributing 18.5% of compensation in late December 2017
- Each subsequent actuarial valuation for the board will include the modified ADCR for the city’s review
- If the actuarial valuation and modified ADCR are determined to be reasonable by the city, the city’s contribution rate will be adjusted to the new modified ADCR beginning on the next October 1st
- However, the contribution rate will not be lower than the initial 18.5% until the amortization period is 20 years or less
- Two minimum constraints for the modified ADCR are that it will not be less than the city’s TMRS rate or the minimum rate under TLFFRA
- Any change to the contribution level is subject to final approval by the city