ORD 1998-25 - Terminating Employees To Transfer TMRS Funding 09-26-1998ORDINANCE NO. 98-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
ALLOWING CERTAIN EMPLOYEES OF THE CITY WHO HAVE TERMINATED PREVIOUS
MEMBERSHIPS IN TEXAS MUNICIPAL RETIREMENT SYSTEM, TO DEPOSIT THE SUMS SO
WITHDRAWN, PLUS ANNUAL WITHDRAWAL CHARGES, AND ALLOWING AND
UNDERTAKING THE COST OF ALLOWING ANY SUCH EMPLOYEE CREDIT IN SUCH
SYSTEM FOR ALL SERVICE TO WHICH SUCH EMPLOYEE HAD BEEN ENTITLED AT DATE
OF SUCH WITHDRAWAL, WITH LIKE EFFECT AS IF ALL SUCH SERVICE HAD BEEN
PERFORMED AS AN EMPLOYEE OF THIS CITY; AND ESTABLISHING AN EFFECTIVE DATE
FOR THE ORDINANCE.
WHEREAS The actuary of the Texas Municipal Retirement System has determined that all obligations
charged against the City's account in the municipality accumulation fund, including the
obligations arising as a result of this ordinance, can be funded by the City within its
maximum contribution rate and within its amortization period; and
WHEREAS The City Council has determined that adoption of this ordinance is in the best interests of
the City; and
WHEREAS The City Council of the City of Huntsville, Texas, finds that it will be in the public interest
for the City to have its employees participate in the Texas Municipal Retirement System as
hereinafter provided;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
HUNTSVILLE, TEXAS, that:
SECTION 1: Pursuant to Section 853.003 of Subtitle G of Title 8, V.T.C.A., Government Code, as
amended, the City of Huntsville hereby elects to allow any member of the Texas Municipal
Retirement System who is an employee of this City on the 261 day of September, 1998, who
has terminated a previous membership in said System by withdrawal of deposits while
absent from service, but who has at least 24 months of credited service as an employee of
this City since resuming membership to deposit with the System in a lump sum the amount
withdrawn, plus a withdrawal charge of five percent (5%) of such amount for each year
from date of such withdrawal to date of redeposit, and thereupon such member shall be
allowed credit for all service to which the member had been entitled at date of termination
of earlier membership, with like effect as if all such service had been rendered as an
employee of this City, whether so rendered or not. The City agrees to underwrite and
hereby assumes the obligations arising out of the granting of all such credits, and agrees that
all such obligation and reserves required to provide such credits shall be charged to this
City's account in the municipality accumulation fund. The five percent (5%) per annum
withdrawal charge paid by the member shall be deposited to the credit of the City's account
in said municipality accumulation fund; and the deposits of the amount previously
withdrawn by the member shall be credited to his or her individual account in the
employees' savings fund of the System.
SECTION 2: This ordinance shall be come effective the 15' day of January, 1999, which is a date on or
after the date set forth in Section 1, above.
PASSED AND APPROVED this 26`' day of September, 1998.
THE CITY OF HUNTSVILLE
William B. Green, Mayor
A EST:
Danna Welter, City Secretary
APP VED-
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Scott Bo ds, City Attorney