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HomeMy WebLinkAboutORD 2001-11 - TMRS Deposit Rate*RDINANCE NO. AN ORDINANCE OF THE CITY OF GEORGETOWN, TEXAS ("CITY") AMENDING CHAPTER 3.04 OF THE CODE OF ORDINANCES TO AUTHORIZE AND ALLOW, 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 EMPLOYED BY THE CITY; PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; TO INCREASE THE RATE OF DEPOSITS BY CITY EMPLOYEES TO THE TEXAS MUNICIPAL RETIREMENT SYSTEM; PROVIDING A REPEALING CLAUSE AND SEVERABILITY CLAUSE; AND SETTING AN EFFECTIVE. WHEREAS, as part of the Fiscal Year 2000/2001 Annual Operating Plan of the City of Georgetown, the City Council allocated additional funds to be used for employee benefits; and WHEREAS, the City Council hereby finds it to be in the public's best interest to increase the rate of deposit to the Texas Municipal Retirement System by the employees of the City from five percent (5%) to six percent (6%) for purposes of promoting employee retention and morale; and WHEREAS, it is necessary to readopt service credit provisions set out in Chapter 3.04 of the Code of Ordinances any time a change is made in the rate of deposit to the Texas Municipal Retirement System by employees of the City in order to establish a new effective date; and WHEREAS, the City Council hereby adopts the model ordinance of the Texas Municipal Retirement System attached hereto as Exhibit A; and WHEREAS, the caption of this ordinance was printed in the Williamson County Sun on January 17, 2001, in compliance with the City Charter of the City of Georgetown. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF GEORGETOWN, TEXAS, THAT: SECTION 1. The facts and recitations contained in the preamble of this ordinance ar by reference hereby found and declared to be true and correct, and are incorporated herein and expressly made a part hereof, as if copied verbatim. The City Ordinance No. 00/ " f/ Amendment to Code of Ordinances Chapter 3.04 TMRS contributions by City Employees Page 1 of 2 Council hereby finds that this ordinance implements the following element(s) of the Century Plan Policy Plan and that the enactment of this ordinance is not inconsistent or in conflict with any other Century Plan Policies, as required by Section 2.03 of the Administrative Chapter the Policy Plan: ® Facilities and Services Focus End 13.02 — The City has a high level of employee satisfaction and retention. SECTION 2. The City Council of the City of Georgetown hereby amends Chapter 3.04 of the Code of Ordinances to incorporate the provisions set out in the TMRS model ordinance attached hereto as Exhibit "A" and incorporated herein by reference. SECTION 3. All ordinances and resolutions, or parts of ordinances and resolutions, in conflict with this Ordinance are hereby repealed and are no longer of any force and effect. SECTION 4. If any provision of this ordinance or application thereof to any person or circumstance, shall be held invalid, such invalidity shall not affect the other provisions, or application thereof, of this ordinance which can be given effect without the invalid provision or application, and to this end the provisions of this ordinance are hereby declared to be severable. SECTION 5, The Mayor is hereby authorized to sign this ordinance and the City Secretary to attest. This Ordinance shall become effective and be in full force and effect as provided for in the TMRS model ordinance attached hereto as Exhibit "A" and incorporated herein by reference. PASSED AND APPROVED on First Reading on the dday of January, 2001. PASSED AND APPROVED on Second Reading on the day of February, 2001, ATTEST: Sandra D. Lee, City S APPROVED AS TO FORM: Marianne Landers Banks, City Attorney Ordinance No. Amendment to Code of Ordinances Chapter 3.04 TMRS contributions by City Employees Page 2 of 2 THE CITY OF GEORGETOWN By: en Kersch, Mayor f: a. t. IrtriToW) t M. : o: F (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 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. (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. (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. �x /11'60 f- 4, p1 (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, 2002, 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. 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 2002. Increased Deposit Rate% All employees of the City, who are members of the Texas Municipal Retirement System, shall make deposits to the System at the rate of 6% of their individual earnings effective March 1, 2001.