2007M39-TMRS
07-M-39
ORDINANCE NO.
AN ORDINANCE BY THE CITY COUNCIL OF THE CITY OF
SCHERTZ, TEXAS AN ORDINANCE AUTHORIZING AND
ALLOWING, UNDER THE ACT GOVERNING THE TEXAS
MUNICIPAL 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 MEMBERS OF THE CITY OF SCHERTZ;
PROVIDING FOR INCREASED PRIOR AND CURRENT
SERVICE ANNUITIES FOR THE 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; AND ESTABLISHING AN EFFECTIVE DATE
FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF SCHERTZ,
TEXAS:
SECTION 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Section 853.401 through 853.404 of
Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as
the "TMRS ACT"), 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 1st day of January of the
calendar year preceding such allowance, by reason of service in the employment
of the City, and on such date had at least 36 months 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) The Updated Service Credit hereby allowed and provided for shall be 100% of
the "base Updated Service Credit" of the member (calculated as provided in
subsection (c) of Section 853.402 of the TMRS Act).
(c) 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.
(d) In accordance with the provisions of subsection (d) of Section 853.401 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 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 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 effective 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 ofthe System.
Section 3. Dates of Allowances and Increase. The initial allowance of Update
Service Credit and Increase in Retirement Annuities hereunder shall be effective on
January 1, 2008, 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 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 ofthe TMRS Act.
Increased Deposit Rate: All employees of the City, who are members of the Texas
Municipal Retirement System, shall make deposits to the System at the rate of 7% of
their individual earnings effective October 1,2007.
Effective Date. Subject to approval by the Board of Trustees of the System, this
ordinance shall be and become effective October 1,2007.
Passed on the first reading of the 28th day of August 2007.
PASSED, APPROVED AND ADOPTED this IX'4ayof S'EPT:
,2007.
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ATTEST: