HomeMy WebLinkAboutOrd 1754 - TMRS "updated service credits"
ORDINANCE NO. 175(~
j7SY
AN ORDINAN'CE AUTHORIZIN'G AND ALLOWING, UNDER THE AC.T
GOVERNING. THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED
SERVICE CREDITS" IN SAID SYSTEM ON AN ANNUAL BASIS FOR
SERVICE PERFORMED BY QU'ALIFYING MEMBERS OF SUCH SYSTEM
WHO AT THE EFFECTIVE DATE OF THE ALLOWANCE ARE IN' THE
EMPLOYMENT OF THE CITY OF WEST UNIVERSITY PLACE; PROVIDING
FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR
RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY;
TO INCREASE THE RATE OF DEPOSITS TO THE TEXAS MUNICIPAL
RETIREMENT SYSTEM BY THE EMPLOYEES OF THE CITY;
ESTABLISHING AN EFFECTIVE DATE FOR T'RE ORDINANCE; AND
DECLARING AN EMERGENCY
NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF
THE CITY OF WEST UNIVERSITY PLACE, TEXAS:
Section 1 ~ Alltllorization of Upd.ated Service Creclits~
(a) 011 the tenns and. COl1ditions set Ollt in SectiollS 853 ~40 1 thrOllgh 853 ~404 of SU.btitle
G. of Title 8, Governmellt Code, as alnel1ded (llereillafter referred to as the "TMRS
ACTf'), each nleluber of tile Texas Mu'nicipal Retiremellt System (llereil1after
referred to as the n System") who lIas current service credit or prior service credit in
tIle System in force al1d effect 011 the 1st day' of January of the calendar year
preceding SUCll allowance, by reason of service ill tIle employtuent of tIle City, al1d 011
SlICh date 11ad at least 36 montlls of credited service wit11 the Systel11, sllaIl be and is
l1erebyallowed nUpdated Service CreditU (as tllat term is defined in Sllbsection (d) of
Section 853~402 of the TMRS Act).
(b) On tlle terlTIS and conditions set 011t in Section 853.601 of the TMRS Act, any
member of tIle Systeln WIlD is eligible for Updated Service Credits 011 tIle basis of
service with this City, WilD 11as llnforfeited credit for prior service alld/or current
service witll another participating ffitmicipality or municipalities by reason of
previOtlS service, ffild was a COl1tributil1g .lnember 011 the 1 st day of January of the
calelldar year preceding such allowallce, shall be credited with Updated Service
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Credits pui~udnt to, calculated in accordance with, "hud subject to adjustment as set
forth in said Section 853~601, botll as to the initial grant hereunder and all future
grants under tl1is ordinance~.
(c) TIle Updated Service Credit l1ereby allowed and provided for shall be 100% of the
ubase Updated Service Creditn of tIle member (calculated as provided in subsection
(c) of Section 853~402 of the TMRS Act)~
(d) Eac11 Updated Service Credit allowed llereunder sllall replace any Updated Service
Credit, prior service credit, special prior service credit, or alltecedellt service credit
previously authorized for part of the same service~
(e) In accordance with tile provisions of Sllbsectiol1 (d) of Sectiol1 853~401 Q.ftlle TM.RS
Act, tIle deposits required to be made to the System 'by elnployees of the several
participatil1g departments on account of current service shall be calculated fro.m an.d
after the effective date of this ordil1ance on tIle full amolmt of SllCll person's
compensation as an eluployee of the City.
Section 2~ Il1crease in Retirement Annuities.
(a) 011 terll1S and. conditions set Oilt in Sectiol1 854.203 of the TMRS Act, tIle City
l1ereby elects to allow and to provide for paynlellt of the increases below stated in
nlonthly benefits payable by the Systen1 to retired employees alld to belleficiaries of
deceased employees of tIle City under currellt service armllities and prior service
annuities arisil1g from service by such employees to tile City.. An mmuity increased
under this Section replaces any annuity or increased, anIl11ity previollsly grallted to the
same person.
(b) The amount of the aruluity' increase und,er tllis. Section is comptlted as tlle sum of tlle
prior service alld current service armuities on tile effective date of retiremel1t of tIle
person on wllose service tile atUluities are based, multiplied by 70% of the percentage
chal1ge in Consumer Price Index for All Urb811 Consumers, from December of the year
immediately preceding the effective date of tIle person's retirenlel1t to tIle Decelnber that
is 13 months before the effective date of this Section~
(c) An il1crease in an mllillity tllat was reduced because of an option selection is
reducible in tIle same proportion and in the smne manner that tIle original anlluity was
redllced.
(d) If a COluputation hereunder does 110t reSlllt in an increase in tIle atl10l1l1t of an aru1tlity,
the amount of the annllity' will not be Challged herellnder~
(e) TIle amount 'by which an il1crease llnder this Section exceeds all previously granted.
illcreases to an aruluitant is all obligation of tIle City alld of its aCCOllllt in tIle
municipality accunlulation fllnd of tIle System~
Sectioll 3. Dates of Allowances and. Increases. TIle initial allowance of Updated Service
Credit al1d Increase in Retirement Annuities hereunder sllall be effective 011 J anllary' 1,
2004, sllbject to approval by the Board of Trllstees of tIle System. An allowance of
Updated Service Credits and an increase in retirel11el1t aruluities sllaIl be made herellnder
on J al1uary 1 of eacl1 subsequent year llntil this ordinance ceases to be in effect lmd.er
su,bsection (e) of Section 853.404 of the TMRS Act, provided that, as to StIch subseqllel1t
year, the aetuary for the System has nlade the determillation. set forth in. subsectiol1 (d) of
Section 853..404 oft11e TMRS Act.
Sectioll 4. TIle pllblic iluportance of this meaSllre and tIle reqtlirements of tIle law create
an emergency and an lrrgent public necessity requiring tllat tllis Ordinance be passed al1d
tal<e effect as an emergency measure, atld a state of emergency is l1ereby declared, atld
tllis Ordil1ance is accordingly passed as an enlerg.ency measure and shall take effect
immediately upon adoption lli1d signatlrre.
BE IT FURTHER ORDAINED:
Increased Deposit Rate: All employees of tIle City, who are l11embers of tIle Texas
Municipal RetireUlent Systelu, shalllual(e deposits to the System at the rate of 70/0 of
t11eir individual earnings effective 1 st day of Janllary 2004~
Effective Date. Subject to approval by the Board of Trllstees of tIle Systeln, tllis
ordinallCe shall be and beconle effective on tIle 1 st day of January
PASSED AND APPROVED AND ADOPTED, this 8th day of October 2003.
Voting Ay~: ~A de 7e- ~J ~ ~t:~ ~~4 S. ~~ ~ d.b~
V oting Nay: ?t'~:..e-
Absent: C~ u'/ ;?/l.eA~..i /?.uL'J ~ ~~ L9'~~
ATTEST: (SEAL)
Signed:
K lyrul Holloway
City Secretary
Steven Segal
Mayor Pro Tern
Reconunellded:
Reviewed:
Jt4l~..
Michaellftoss
City Matlager
(SEAL)
Jim DOllgherty
City Attofl1ey