2022-059 - Approving and Agreement Regarding Freeze of Fire Pension Fund & Authorizing the Mayor to Execute Same

Home Browse Search

WHEREAS, in furtherance of the issuance of the Bonds, the parties have entered into an Agreement Regarding City Pension Obligation Bonds concurrently herewith, a copy of which is attached hereto as Exhibit A. NOW THEREFORE, the Council and the Board enter into this Agreement pursuant to Section 107.003, as follows: 1. The recitals and terms of the Agreement Regarding City Pension Obligation Funds attached hereto as Exhibit A, are incorporated into this Agreement as if set forth in full herein. 2. The City acknowledges and agrees that: (a) upon the issuance of the Bonds and the funding of the 2022 UAAL, the City will move all current Firefighters into the TMRS retirement program while preserving the vested rights in the Fund of the 2022 Fund Beneficiaries: (b) following the events described in Section 2(a) above, the City will (i) continue to honor its funding obligations pursuant to the requirements of the Fund to the 2022 Fund Beneficiaries and (ii) make provision for all current and future Firefighters to participate in TMRS on the same basis as other City employees who participate in TMRS; and (c) the City will issue the Bonds and provide for the payment of the debt service on the Bonds. 3. The Board acknowledges and agrees that: (a) following the events described in Section 2(a) above, the Plan effective as of October l, 2022 provides only the 2022 Fund Beneficiaries shall be entitled to any portion of the benefits of the Fund, in effect"freezing"the Fund for the 2022 Fund Beneficiaries and foreclosing the Fund to any new participants not already provided for under the Fund; and (b) no further increases or substantive changes may be made to the Fund because the Texas Local Fire Fighters Retirement Act,Article 6243e of Vernon's Civil Statutes requires any change in benefit be approved by a majority of participating members of the Fund and after the effective date of 2022 Plan there will be no participating members; and (c) upon final payout to the last person qualifying as a 2022 Fund Beneficiary, any remaining amounts in the Fund shall be allocated in accordance with applicable State law. 4. This Agreement may be amended only by a written instrument executed by the parties hereto. This Agreement may be executed in one or more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same agreement.