13 - Updated Service Credits and a COLA for Retirees

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Item No. 13 Memorandum TO: Mayor, Mayor Pro -Tem & City Council Robert Vine, Interim City Manager FROM: Gene Anderson, Finance Director SUBJECT: ORDINANCE ADOPTING UPDATED SERVICE CREDITS (USC) AND A RETIREE COLA IN THE TEXAS MUNICIPAL RETIREMENT SYSTEM (TMRS) DATE: September 9, 2024 BACKGROUND: In 2004 the City Council adopted Ordinance 2004-051 which repealed the automatic granting of retiree COLAs and employee Updated Service Credits (USC). Starting with 2005, annual approval was required for retiree COLAs and USC to be granted. COLAs and employee USC were granted on an ad hoc basis in 2005, 2006, 2007, and 2008. No retiree COLA or employee USC has been granted since 2008. STATUS OF ISSUE: Changes to the City's retirement plan through TMRS can only occur on January 1St of each year. To effect a change in the retirement plan, the City Council would need to adopt an ordinance specifying the desired change and forward that ordinance to TMRS in advance of the coming new year. At the direction of City Council, the staff has prepared an ordinance that grants USC and a Retiree COLA. BUDGET: Funding for these plan changes with TMRS is included in the proposed budget. RECOMMENDATION: Motion to approve an ordinance that reinstates USC and Retiree COLA for City of Paris employees and City of Paris retirees.