ORD 1997-28 - TMRS Updated Service Credits Annual 09-09-1997ORDINANCE NO. 97-28
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;
AUTHORIZING AND ALLOWING RESTRICTED PRIOR SERVICE CREDIT TO
EMPLOYEES WHO ARE MEMBERS OF THE SYSTEM FOR SERVICE PREVIOUSLY
PERFORMED FOR VARIOUS OTHER PUBLIC ENTITIES FOR WHICH THEY HAVE
NOT RECEIVED CREDITED SERVICE; AND ESTABLISHING AN EFFECTIVE DATE
FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF HUNTSVILLE, TEXAS,
THAT:
AUTHORIZATION OF UPDATED SERVICE CREDITS
SECTION 1: 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).
SECTION 2: 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 said Section 853.601, both as to the initial grant hereunder and all future
grants under this ordinance.
SECTION 3: 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).
SECTION 4: 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.
SECTION 5: 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.
INCREASE IN RETIREMENT ANNUITIES
SECTION 6: 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.
SECTION 7: 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.
SECTION 8: 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.
SECTION 9: 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.
SECTION 10: 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.
DATES OF ALLOWANCES AND INCREASES
SECTION 11: The initial allowance of Updated Service Credit and increase in retirement annuities
hereunder shall be effective on January 1, 1998, 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.
AUTHORIZATION OF RESTRICTED PRIOR SERVICE CREDIT
SECTION 12: On the terms and conditions set out in Section 853.305 of the TMRS Act, each
member of the System who is now or who hereafter becomes an employee of this
City shall received restricted prior service credit for service previously performed as
an employee of any of the entities described in Section 853.305 provided that (1) the
person does not otherwise have credited service in the System for that service, and
(2) the service meets the requirements of Section 853.305.
SECTION 13: The service credit hereby granted may be used only to satisfy length -of- service
requirements for retirement eligibility, has no monetary value in computing the
annuity payments allowable to the member, and may not be used in other
computations, including computation of Updated Service Credits.
SECTION 14: A member seeking to establish restricted prior service credit under this ordinance
must take the action required under Section 853.305 while still an employee of this
City.
EFFECTIVE DATE
SECTION 15: Subject to approval by the Board of Trustees of the System, this ordinance shall be
and become effective on the 1 st day of January, 1998.
PASSED AND APPROVED this 9th day of September, 1997.
THE CITY OF HUNTSVILLE
��' L-191 4
William B. Green, Mayor
ATE :
Danna Welter, City Secretary
APPR ED:
Scott Bo Ads, City Attorney