Updating your browser will give you an optimal website experience. Learn more about our supported browsers.
The TCDRS office will be closed on Monday, September 2 in observance of Labor Day.
How 2021 Investment Performance Impacts Employer Rates & TCDRS Reserves
Thanks to the 2021 investment return, TCDRS and your plans are in a very strong position as we navigate the challenges and market volatility of 2022.
Investments play a huge role in funding benefits. Investment earnings fund an estimated 74 cents of every benefit dollar paid. TCDRS’ strong investment return in 2021 will impact your plan in two ways.
First, the positive returns will have a rate-reducing effect on your employer contribution rate. Other factors, such as demographic experience, also impact your rate, but we anticipate that more than 90% of our employers will receive a rate decrease in 2023.
The second impact involves our reserves. Thanks to the gains this year, the TCDRS Board of Trustees has increased our reserves fund to nearly $5 billion — more than 11% of assets.
Maintaining a healthy reserves fund is important because it gives us an effective tool to offset future adverse experience and help keep employer rates more stable.
As a percentage of assets, the reserves are at their highest point since the Great Financial Crisis. At that time, we had more than 14% of assets set aside, and we used that fund to mitigate the losses that occurred in 2008, smoothing them over time to reduce the impact on employer rates.
TCDRS and your plans are in a very strong position as we navigate the challenges and market volatility of 2022.
Related Content
Get more information on why TCDRS is a model plan when it comes to retirement.
![Graphs in newspaper with pen](/globalassets/library/images/article-graphs-and-pen-680x315.jpg)
How TCDRS Reports Performance
At TCDRS, we’re constantly monitoring our investments. All of our investment performance is reported net of all investment fees.
Read more![Boats in harbor](/globalassets/library/images/article-boats-in-harbor-680x315.jpg)
Managing Investment Risk
Risk is a factor in any investment, and we manage risk very closely. Fortunately, we have a great track record of meeting our perform...
Read more![Article_TCDRS-State-of-the-System-2024](/globalassets/library/images/article_tcdrs-state-of-the-system-2024.png)
04.02.2024
2024 TCDRS State of the System
Get an inside look at TCDRS' 2023 investment return and how it may impact your rate and annual plan decisions.
Read more