Ord. 0747-01 10-27-97ORDINANCE NO. 747-1
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
PEARLAND, TEXAS, AMENDING ORDINANCE NO. 747 REGARDING
THE TEXAS MUNICIPAL RETIREMENT SYSTEM, TO REFLECT A
NEW EFFECTIVE DATE FOR THE INITIAL ALLOWANCE OF
UPDATED SERVICE CREDIT AND INCREASE IN RETIREMENT
ANNUITIES FOR QUALIFYING MEMBERS; TO INCREASE THE
PERCENTAGE OF INDIVIDUAL EARNINGS THAT MUST BE
DEPOSITED INTO THE SYSTEM AND TO CHANGE THE EFFECTIVE
DATE OF SAID RATE; PROVIDING A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A REPEALER CLAUSE, AND AN EFFECTIVE
DATE; AND CONTAINING OTHER PROVISIONS RELATING TO THE
SUBJECT.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
That Ordinance No. 747 is hereby amended to read as follows:
"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, 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) 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
contributing member on the 1st day of January of the calendar year
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ORDINANCE NO. 747-1
preceding such allowance, 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
100% 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 persons'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.
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ORDINANCE NO. 747-1
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 effect
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 n 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 1,14 1997, 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 TMRS Act.
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ORDINANCE NO. 747-1
Section 4. That all employees of the City, who are members of the Texas
Municipal Retirement System, shall make deposits to the System at the rate of IS
€-% of their individual earnings.
Sattion 5. Savings. Ali dghts and remedies WtMONikOMOOKfientilfilkit
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Section 8. Effective Date. Subject to approval by the Board of Trustees of the
System, this rate shall biitiiifibecome effective
on the 1st day of 44
October, 1996 ."
PASSED and APPROVED ON First Reading this the
, A.D., 1997.
day of
ALI
TOM REID
MAYOR
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ORDINANCE NO. 747-1
Section 4. That 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.
Section 5. Savings. All rights and remedies which have accrued in favor of
the City under this Ordinance and amendments thereto shall be and are preserved for
the benefit of the City.
Section 6. Severability. If any section, subsection, sentence, clause, phrase
or portion of this Ordinance is for any reason held invalid, unconstitutional or
otherwise unenforceable by any court of competent jurisdiction, such portion shall be
deemed a separate, distinct, and independent provision and such holding shall not
affect the validity of the remaining portions thereof.
Section 7. Repealer. All ordinances and parts of ordinances in conflict
herewith are hereby repealed but only to the extent of such conflict.
Section 8. Effective Date. Subject to approval by the Board of Trustees of the
System, this rate shall be and become effective on the 1st day of January, 1998."
�} PASSED and APPROVED ON First Reading this the 1 %t�. day of
C)C-7/rh-� , A.D., 1997.
TOM REID
MAYOR
4
ORDINANCE NO. 747-1
ATTEST:
PASSED and APPROVED on second and final reading this /9 t day of
Wd.7lofi/ct-,. , A. D., 1997.
ATTEST:
APPRIN D AS TO FORM:
M MJTES MCCULLO-GH
CITY TORNEY
r
ff1M
Oci
TOM REID
MAYOR
5