HomeMy WebLinkAboutOrdinance No. 2010-34 (Title: An ordinance changing the annuity increase from 70% to 30% of the percentage
change in CPI for qualifying members of the Texas Municipal Retirement System (TMRS)
who are eligible on the basis of service with the City of Friendswood.)
ORDINANCE NO.2010-34
AN ORDINANCE PROVIDING FOR INCREASED
PRIOR AND CURRENT SERVICE ANNUITIES
UNDER THE ACT GOVERNING THE TEXAS
MUNICIPAL RETIREMENT SYSTEM FOR
RETIREES AND BENEFICIARIES OF DECEASED
RETIREES OF THE CITY OF FRIENDSWOOD, AND
ESTABLISHING AN EFFECTIVE DATE FOR THE
ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD;
TEXAS:
Section 1. Increase in Retirement Annuities.
(a) On the terms and conditions set out in Sections 854.203 and 853.404 of Subtitle G
of Title 8, Government Code, as amended (hereinafter referred to as the "TMRS Act'), the City
hereby elects to allow and to provide for payment of the increases below stated in monthly
benefits payable by the System to retired employees and to beneficiaries of deceased employees
of the City under current service annuities and prior service annuities arising from service by
such employees to the City. An annuity increased under this section replaces any annuity or
increased annuity previously granted to the same person.
(b) The amount of the annuity increase under this section is computed as the sum if
the prior service and current service annuities on the effective date of retirement of the person of
whose service the annuities are based, multiplied by 30% of the percentage change in Consumer
Price Index for All Urban Consumers, from December of the year immediately preceding the
effective date of the person's retirement to the December that is 13 months before the effective
date of the increase under this Section.
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(c) An increase in an annuity that was reduced because of an option selection is reducible
in the same proportion and in the same manner that the original annuity was reduced.
(d) If a computation hereunder does not result in an increase in the amount of an annuity,
the amount of the annuity will not be changed hereunder.
(e) The amount by which an increase under this Section exceeds all previously granted
increases to an annuitant is an obligation of the City and of its account in the Municipality
accumulation fund of the System.
Section 2. Dates of Increases.
The initial increase in retirement annuities hereunder shall be effective on January 1,
2011, subject to approval by the Board of Trustees of the System. An increase in retirement
annuities shall be made hereunder on January 1 of each subsequent year until this ordinance
ceases to be in effect under subsection (e) of Section 853.404 of the TMRS Act,provided that, as
to such subsequent year, the actuary for the System has made the determination set forth in
subsection (d) of Section 853.404 of the TMRS Act, and provided further that, as to such)
subsequent year, the City has an ordinance in effect that provides for a simultaneous increase in�
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updated service credits as that term is used in the TMRS Act.
Section 3. Effective Date.
Subject to approval by the Board of Trustees of the System, this ordinance shall be and
become effective on the 1st day of January 2011.
Section 4. In the event any section, paragraph, subdivision, clause, phrase, provision,i
sentence, or part of this Ordinance or the application of the same to any person or circumstance
shall for any reason be adjudged invalid or held unconstitutional by a court of competent
jurisdiction,. it shall not affect, impair, or invalidate this Ordinance as a whole or any part or
provision hereof other any part or provision hereof other than the part declared to be invalid or
unconstitutional; and the City Council of the City of Friendswood, Texas, declares that it would
have passed each and every part of the same notwithstanding the omission of any and every part
Ord 2010-34 2
of the same notwithstanding the omission of any such part thus declared to be invalid or
unconstitutional, or whether there be one or more parts.
PASSED AND APPROVED on first reading this 15th day of November,2010.
PASSED, APPROVED, and ADOPTED on second and final reading this 6th day of
December,2010. i
David J.H. Smith
Mayor
ATTEST:
O0F
Melinda Welsh, TRMC
City Secretary
Ord 2010-34 3