25 - Trasfer Fire Employees to TMRS

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No. 25 TO: Mayor, Mayor Pro Tern & City Council FROM: Grayson Path, City Manager Gene Anderson, Finance Director Thomas McMonigle, Fire Chief SUBJECT: TRANSFER FIRE EMPLOYEES TO TMRS DATE: August 22, 2022 BACKGROUND: On June 13, 2022, the City Council heard a presentation on freezing the Paris Firefighter Relief and Retirement Fund ("pension") while simultaneously issuing a pension bond and transferring the Fire Department Employees to the Texas Municipal Retirement System (T RS). On August 8, 2022, the City Council approved a Resolution for a Bond Agreement, a Resolution approving an agreement with the Board of Trustees, and an Ordinance issuing a Pension Bond in order to initiate this change. That has served as a first of two steps for council action. STATUS OF ISSUE: To complete our second step, tonight the City Council has an Ordinance approving TMRS participation for all Fire Department members. This is a requirement of the State of Texas Statute for choosing to join TMRS, 'I'MRS participation occurs the first day of the second month TMRS receives notice of an election to participate. This will allow the employees to join on October 1, 2022 which corresponds to their amendments made to freeze the plan. Given the City has previously excluded the Fire Department from TMRS, an ordinance will authorize the removal of this exclusion and therefore their entry in to TMRS. Adjustments have already been made to the Proposed FY22/23 Budget to account for a switch from the existing Fire Pension to the new TMRS accounts for each employee. This has resulted