ORD 1995-30 - TMRS - Updates Service Credits 09-12-1995ORDINANCE NO. 95-30
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 THE 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 INCREASED 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 "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 of Huntsville (hereinafter called 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 1 st 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 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 this City and of its account in the municipality
accumulation fund of the system.
SECTION 3: Date of Allowances and Increases.
The initial allowance of Updated Service Credit and increase in retirement annuities hereunder shall
be effective January 1, 1996, 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.
BE IT FURTHER ORDAINED:
That effective January 1, 1996, 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, a sum
that isVo of such member's accumulated deposits for such month of employment; and the sum
shall be contributed from the City's account in the municipality accumulation fund.
Subject to approval by the Board of Trustees of the System, this ordinance shall be and become
�A..) effective on the 1 st day of January 1996.
PASSED AND APPROVED this the 12th day of September, 1995.
THE CITY OF HUNTSVILLE
William B. Green, Mayor
ATTEST:
a/ I ���
anna Welter, City Secretary
i
Scott Bounds, City Attorney