Ord. 0747 09-23-96ORDINANCE NO. 747
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PEARLAND,
TEXAS, 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 IN THE EMPLOYMENT
OF THE CITY OF PEARLAND; PROVIDING FOR INCREASED PRIOR AND
CURRENT SERVICE ANNUITIES FOR 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; PROVIDING A SEVERABILITY CLAUSE, A
SAVINGS CLAUSE, A REPEALER CLAUSE, AN EFFECTIVE DATE AND
CONTAINING OTHER PROVISIONS RELATING TO THE SUBJECT.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND, TEXAS:
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, Govemment 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 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
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replaces any annuity or increased annuity previously granted to the same
person.
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 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, 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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BE IT FURTHER ORDAINED:
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 6% of
their individual earnings.
Section 5. Effective Date. Subject to approval by the Board of Trustees of the
System, this rate shall become effective on the 1st day of October, 1996.
PASSED and PPROVED ON First Reading this the �_ day of
A.D., 1996.
ATTEST:
nda C. Benitez
ity Secretary
TOM REID
MAYOR
P•,-SED • APPROVED on second and final reading this 0? day of
, A. D., 1996.
ATTE T:
Y.% - da C. Benitez
City Secretary
OV DASTOFO M:
y of McCullough
City A omey
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OVA
TOM REID
MAYOR