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Ord. 0530 11-24-86ORDINANCE NO. 530 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 PEARLAND; PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES'' AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; AND ESTABLISHING AN EFFECTIVE DATE FOR SUCH ACTIONS; AND AFFECTING PAR- TICIPATION OF CITY EMPLOYEES IN THE TEXAS MUNICIPAL RETIREMENT SYSTEM; GRANTING THE ADDITIONAL RIGHTS, CREDITS AND BENEFITS AUTHORIZED BY SECTIONS 62.105 AND 64.202 OF TITLE 110B, REVISED CIVIL STATUTES OF TEXAS, 1925, AS AMENDED; PROVIDING THAT SUCH RIGHTS SHALL BE SUPPLEMENTARY TO THOSE HERETOFORE ALLOWED AND THAT ARE 'IN FORCE ON THE EFFECTIVE DATE OF THIS ORDINANCE; AND PRESCRIBING THE EFFECTIVE DATE OF THIS ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PEARLAND Section 1. Authorization of Updated 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 1st day of January, 1987, by reason of service in the employment of the City of Peariand, 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 100% 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 Service 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 1 reason of previous service, and was a contributing member on January 1, 1986, shall be credited 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 cal- culated from and after the date aforesaid on the full amount of such person's earnings as an employee of the City. Section 2. Increase in Retirement Annuities. (a) On terms and conditions set out in Section 64.203 of Title 11013, Revised Civil Statutes of Texas, 1925, as amended, the City of Pearland 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 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 computated 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 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 retire- ment to 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 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 hereby. 2 (e) The amount by which an increase under this Section exceeds all previously granted increases to an annuitant is an obligation of this City and of its account in the municipality accumulation fund of the Texas Municipal Retirement System. Section 3. 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 1st day of January, 1987. BE IT FURTHER ORDAINED BY THE CITY COUNCIL OF PEARLAND., TEXAS: Section 1. Pursuant to the provisions of Sections 62.105 and 64.202 of Subtitle G of Title 110B, Revised Civil Statutes of Texas, 1925, as amended, which Subtitle shall herein be referred to as the "TMRS ACT," the City of Pearland, ,Texas, adopts the following provisions affecting participation of its employees in the Texas Muncipal Retirement System: (a) Each person who becomes an employee of any participating department of this City and who is not already a member of the Texas Municipal Retirement System shall became a member of the System as a condition of employment, provided such person is then under sixty (60) years of age; (b) Any member, after one (1) year from the effective date of his or her membership in the System, shall be eligible for service retirement if he or_she has attained the age of fifty (50) years and has completed twenty-five (25) years of creditable service with one or more municipalities that have authorized eligibility under Section 64.202 of the TMRS Act or under Section XX of former Article 6243h, Vernon's Texas Civil Statutes, or if he or she has attained the age of sixty (60) years and has completed, at least ten (10) years of creditable service with. one or more municipalities that have authorized eligibility under Section 64.202 of the TMRS Act or under Section XX of said former Article 6243h; (c) The membership of any person who has completed at least ten (10) years of creditable service with participating municipalities 3 that have authorized eligibility under Section 64.202 of the TMRS Act (or under Section XX of said former Article 6243h) shall not terminate because of absence from service; and (d) Any person who is an employee of a participating department of this municipality at the effective date of this ordinance, but who at the date of his or her employment was under sixty (60) years of age but did not become a member of Texas Municipal Retirement System because he or she was then above the maximum age then prescribed by law for initial membership in the System, shall become a member of the System at the effective date of this ordinance, unless he or she has already become a member under other provisions of the governing Act, and shall be allowed prior service credit for each month of creditable service performed for this municipality subsequent to the date such person was precluded from membership and prior to the effective date of his or her membership. Such prior service credit shall be calculated using the same percentage of base prior service credit as was most recently used in calculating prior service credits or updated service credits in said System for current member employees of this City. Section 2. The rights, credits and benefits hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this ordinance pursuant to the TMRS Act. Section 3. This ordinance shall become effective on the first day of January , 19 87 , provided that it has previously; been determined by the Actuary for the System that all obligations of the City to the municipality accumulation fund, including obligations hereby undertaken, can be funded by the City within its maximum contribution rate and within its amortization period. 4 PASSED and APPROVED ON FIRST READING this day of 7yien-dtsi.2 , A. D., 1986. Mayor ATTEST: City S cretary PASSED and APPROVED ON SECOND AND FINAL READING this day of ATTEST: 722d74e+1 , A. D., 1986. City Secretary APPROVED AS TO FORM: