HomeMy WebLinkAboutOrdinance No. 2011-34 (Title: An Ordinance changing the annuity increase from 30% to 50% 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.2011-34
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 of the
prior service and current service annuities on the effective date of retirement of the
person on whose service the annuities are based, multiplied by 50% 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.
(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,
\�1 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,
2012, 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
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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
_\ updated service credits as that term is used in the TMRS Act.
Section 3. The Texas Municipal Retirement System Updated Service Credit for the City
of Friendswood will remain 100% (Repeating).
Section 4. 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 2012.
Section 5. In the event any section, paragraph, subdivision, clause, phrase, provision,
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 compete)t
jurisdiction, it shall not affect, impair, or invalidate this Ordinance as a whole or any part Ir
provision hereof other any part or provision hereof other than the part declared to be invalid I r
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
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Ord 2011-34 2
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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 7th day of November,2011.
PASSED, APPROVED, AND ADOPTED on second and final reading this 5th
day of December, 2011.
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D . J.H. Smith
Mayor
ATTEST:
�O
Melinda Welsh, TRMC o
City Secretary v
srgTE OF tE�
Ord 2011-34 3