11-13 - Paris Firefighters Relief & Retirement Fund - Pension Bond - Freeze Fire Pension - Transfer Employees to TMRS

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RESOLUTION NO. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS APPROVING AN AGREEMENT REGARDING FREEZE OF FIRE PENSION FUND AND AUTHORIZING THE MAYOR TO EXECUTE SAME ON BEHALF OF THE CITY; MAKING OTHER FINDINGS AND PROVISIONS RELATED TO THE SUBJECT; AND PROVIDING AN EFFECTIVE DATE. WHEREAS, City records indicate that the Paris Firefighters' Relief and Retirement Fund, a public retirement system and a municipal retirement plan (the "Fund" or the "Plan") was created in 1941 and the Fund continues to operate pursuant to the authority of Vernon's Ann.Texas Civ.St. Art. 6243e, as amended, also known as the Texas Local Fire Fighters Retirement Act; and WHEREAS, the Fund was amended and restated as of January 1, 2019 (the "2019 Plan); and WHEREAS, the City Council has authorized the City to issue its City of Paris, Texas, General Obligation Pension Bonds, Taxable Series 2022 (the "Bonds") pursuant to Chapter 107 of the Texas Local Government Code ("Chapter 107") for the purpose of funding all or any part of the unfunded, accrued liability of the City to the Fund, as determined by actuarial analysis (the "Unfunded Liability"); and WHEREAS, at present, the beneficiaries of the Fund are the City's Firefighters, their Spouses (as such terms are defined in the Plan) and such other persons who are entitled to benefits by the terms of the Plan as of the Effective Date (collectively the "2022 Fund Beneficiaries"); and WHEREAS, upon the issuance of the Bonds, both the City and the Board of Trustees (the "Board") of the fund desire to preserve the vested rights solely of and for the 2022 Fund Beneficiaries in the Fund, but to simultaneously transition all current and future Firefighters into the Texas Municipal Retirement System ("TMRS") for participation thereafter in TMRS on the same basis as all other City employees who participate in TMRS; and WHEREAS, to effectuate the immediately preceding recital, the Board has revised the Plan to implement said objective, and the amended and restated Plan (the "2022 Plan") has been approved by a vote of the City Firefighters as required by Section 7 of Vernon's Ann.Texas Civ.St. 6243e, as amended, the Texas Local Fire Fighters Retirement Act (the "Act") and all prerequisites of the Act for the Board to amend the Plan to change the benefits or eligibility requirements for benefits payable from the Plan have been met, including the approval of the 2022 Plan by Definiti LLC, which is eligible actuary pursuant to the Act selected by the Board; and