HomeMy WebLinkAboutOrdinance No. 86-22 ORDINANCE N0. 86-22
TEXAS MUNICIPAL RETIREMENT SYSTEM
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE
ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT
SYSTEM, "UPDATED SERVICE CREDITS" IN SAID SYSTEM
FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF
SUCH SYSTEM WHO PRESENTLY ARE IN THE EMPLOYMENT
OF THE CITY OF FRIEND5WOOD; PROVIDING FOR
INCREASED PRIOR AND CURRENT SERVICE ANNUITIES
FOR RETIREES AND BENEFICIARIES OF DECEASED
RETIREES OF THE CITY; AND ESTABLISHING AN
AN EFFECTIVE DATE FOR SUCH ACTIONS; AND
PROVIDING FOR INCREASED MUNICIPAL CONTRIBUTIONS
TO THE CURRENT SERVICE ANNUITY RESERVE AT
RETIREMENT OF THE EMPLOYEES OF THE CITY OF
FRIENDSWOOD, TEXAS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF FRIENDSWOOD,
TEXAS:
�ection li Authorizati�l o� U�date� Service Credits.
(a) On the terms and conditions set out in Sections 63 . 401
through 63 . 403 of Title 110B, Revised Civil Statutes of Texas,
1925, as amended, each member of the Texas Municipal Retirement
System who has current service credit or prior service credit in
said System in force and effect on the lst day of January, 1986,
by reason of service in the employment of the City of
Friendswood, and on such date has at least 36 months of credited
service with said system, shall be and is hereby allowed "Updated
Service Credit" (as that term is defined in subsection (d) of
Section 63.402 of said title) in an amount that is 1000 of the
"base Updated Service Credit" of the member (calculated as
provided in subsection (c) of Section 63 . 402 of said title) . The
Updated Service Credit hereby allowed 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.
(b) On the terms and conditions set out in Section 63 .601 of
said title, any member of the Texas Municipal Retirement System
who is eligible for Updated 5ervice Credits on the basis of
service with this City, and 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 contributing member on January l, 1986, shall be credited
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with Updated Service Credits pursuant to, calculated in
accordance with, and subject to adjustment as set forth in said
63 .601.
(c) In accordance with the provisions of subsection (d) of
Section 63 .401 of said title, the deposits required to be made to
the Texas Municipal Retirement System by employees of the several
participating departments on account of current service shall be
calculated from and after the date aforesaia on the full amount
of such person's earnings as an employee of the City.
Sectio� �,.. Increase i� Retirement Annuities.
(a) On The terms and conditions set out in Section 64.203
of Title 110B, Revised Civil Statutes of Texas, 1925, as amended,
the City of Friendswood hereby elects to allow and to provide for
payment of the increases below stated in monthly benefits payable
by the Texas Municipal Retirement System to retired employees and
to beneficiaries of deceased employees of this City under current
service annuities and prior service annuities arising from
service by such employees to the this City. An annuity increased
under this Section replaces any annuity or increased annuity
previously granted to the same person.
(b) The amount of annuity increase under this Section is
computed as the sum of the prior and current service annuities on
the effective date of retirement of the person on whose service
the annuities are based, multiplied by 700 of the percentage
chanye in Consumer Price Index for All Urban Consumers, from
December of the year immediately preceding the effective date of
the person 's retirement ot the December that is 13 months before
the effective date of this ordinance.
(c) An increase in an annuity that was reduced because of an
option selection is reducible in the sarne 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 hereby.
(e) The amount by which an increase under this Section
exceeds all previously granted increases ro an annuitant is an
obligation of this City and of its account in the municipality
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accumulation fund of the Texas Municipal Retirement System.
Section � Effective Date• Subject to approval by the Board
of Trustees of Texas Municipal Retirement System, the updated
service credits and increases in retirement annuities granted
hereby shall be and become effective on the lst day of January,
1987 .
PASSED AND APPROV ED on the first reading this 17th day
o f November � 19 8 6.
PASSED AND APPROVED on the second readinq this 1st day
o f December , 19 8 6.
PASSED, APPRCJVED, AND ADOPTED on third and final reading
t h i s 15th d ay o f December ,19 8 6.
Mayor Ra ph L. Lowe
.�
Delo is McKenzi
City Secretary
jpt/
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TEXAS MUNICIPAL RETIRII�II�T SYSTFM
Figures for Updating �loyer Contribution Rates
The followinq figures are based on October's 1986 Payroll:
$115,762.93 x 9 months (Jan. 1 thru Sep. 30, 1987) _
$1,041,866.37
No Adoption @ 3.76$ $39,174.17
Up--Date of Current
Service Credit @ 3.86$ 40,316.04
2-1 Matching @ 7.65$ 79,702.77
The difference between t11� U�-Date of C�irrent Sen�ice Credit C� 3.86� and
the figures of No Adoption @ 3.76$ is $1,141.87.
The difference bet�e�n :.tx� 2-1 Matchinq � 7.65� aild No r'�doption @ 3.76�
is $40,528.60. `
;
The difierence L�tweel: the 2-1 t�k�tching � ?.F,S° <�nd t1�� iJ�rDate of tlle �
Cl�rrent Service Crfxiit �3 3.86� is $39,486.%3.
On the 2-1 Matclling ti�c� 'r�g;loyees contributioi� �-,��t c� would ru�in �
unchanged at 5�. �
The 2-1 Matc;hing will incrc�ase the �lovees �n��i_ts by 50�. �
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