HomeMy WebLinkAboutOrdinance No. 91-26 4 / � �
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Y ORDINANCE N0. q�_�h '
TEXAS MUNICIPAL RETIREMENT SYSTEM
AN ORDINANCE AUTHORIZING AND ALLOWI1�iG,
UNDER THE ACT GOVERNING THE TEXAS 1VIUNICIPAL
RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS"
IN SAID SYSTEM ON AN ANNUAL BASIS FOR SERVICE
PERFORMED BY QUALIFYING MEMBERS OF SUCH
SYSTEM WHO AT THE EFFECTIVE DATE OF THE
ALLOWANCE ARE IN THE EMPLOYMENT OF THE CITY
OF FRIENDSWOOD; PROVIDING FOR INCREASED PRIOR
AND CURRENT SERVICE ANNUITIES FOR RETIREES
AND BENEFICIARIES OF DECEASED RETIREES OF THE
CITY; AND ES"TABLISHING AN EFFECTIVE DATE FOR
THE ORDINANCE.
BE IT ORDAINEU BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD, 'I'EXAS:
Section 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of Subtitle
G of Title 8, V.T.C.A., Government Code, as amended (hereinafter referred to as the "TMRS
f�CT"), each member of the Texas Municipal Retirement System (hereinafter referred to as
the "System") who has current service credit or prior service credit in the System in force
and effect on the lst day of January of the calendar year preceding such allowance, by reason
of service in the employment of the City of Friendswood (hereinafter called the "City"), and
on such date had at least 36 rimonths of credited service with the System, shall be and is
hereby allowed "Updated Service Credit" (as that term is defined in subsection (d) of Section
853.402 of the TMRS Act).
(b) On the terms and conditions set out in Section 853.601 of the TMRS Act, any
member of the System who is eligible for Updated Service Credits on the basis of service
with this City, who has unforfeited credit for prior service and/or current service with
another participating municipality or municipalities by reason of previous service, and was a
contributi�g member on January 1, 1991, shall be credited with Updated Service Credits
pursuant to, calculated in accordance with, and subject to adjustment as set forth in said
Section 853.601, both as to the initial grant hereunder and all future grants under this
ordinance.
(c) The Updated Service Credit hereby allowed and provided for shall be 10096 of the
"base Updated Service Credit" of the member (calculated as provided in subsection (c) of
Section 853.402 of the TMRS Act).
(d) Each Updated Service Credit allowed hereunder shall replace any Updated Service
Credit, prior service credit, special prior service credit, or antecedent service credit
previously authorized for part of the same service.
(e) In accordance with the provisions of subsection (d) of Section 853.401 of the TMRS
Act, the deposits required to be made to the System by employees of the several
participating departments on account of current service shall be calculated from and after
the effective date of this ordinance on the full amount of such person's compensation as an
employee of the City.
Section 2. Increase in Retirement Annuities.
(a) On terms and conditions set out in Section 854.203 of the TMRS Act, the City
hereby elects to allow and to provide for r�ayrnent of the increases below stated in monthly
benefits payable by the System to retired employees and to beneficiaries of deceased
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Updated Service Credit/Annuity Increase Ordinance (Repeating) . . . (continued)
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 70% 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 efiective date of 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, 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 3. Dates of Allowances and Increases. The initial allowance of Updated Service
Credit and increase in retirement annuities hereunder shall be effective on January 1, 1992,
subject to approval by the Board of Trustees of the System. An allowance of Updated Service
Credits and 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
T�RS Act.
Section 4. Effective Date. Subject to approval by the Board of Trustees of the System,
this ordinance shall be and become effective on the lst day of January 1992.
PASSED AND APPROVED c,n first reading this the 7th day �f October , 1991.
PASSED, APPROVED AND ADGPTED this the 21st day c�f Octc�ber, 1991 .
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� riay��r Pau] W. Schrader
ATTEST:
Delc�ris Archer, CMC
City Secretary