ORD 1998-24 - Updated Service Credits From TMRS 10-02-1998ORDINANCE NO. 98-24
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, 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 HUNTSVILLE; PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE
ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY;
PROVIDING FOR MUNICIPAL CONTRIBUTIONS TO THE CURRENT SERVICE ANNUITY
RESERVE AT RETIREMENT OF THE EMPLOYEES OF THE CITY; AND ESTABLISHING AN
EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS, THAT:
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 1 st 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 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 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, 1999, 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.
SECTION 4: Municipal Contributions. Effective January 1, 1999, for each month of current service
thereafter rendered by each of its employees who are members of the Texas Municipal
Retirement System, the City will contribute to the current service annuity reserve of each
such member at the time of his or her retirement, as sum that is 150% of such member's
accumulated deposits for such month of employment; and said sum shall be contributed
from the City's account in the municipality accumulation fund.
SECTION 5: Effective Date. Subject to approval by the Board of Trustees of the System, this ordinance
shall be and become effective on the 1St day of January, 1999.
PASSED AND APPROVED this Alklay of Cm�" 1998.
THE CITY OF HUNTSVILLE
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JtLee.j
William B. Green, Mayor
A S:
Danna Welter, City Secretary
APPR ED:
Sc Bou ds, City Attorney