2024-030 - Authorizing (1) Non-Retroactive Repeating COLAs for Retirees and their Beneficiaries under TMRS Act Section 853.404(f) and (f-1) and (2) Annual Accruing Updated Service Credits

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ORIDINANCE NO. 2024-030 AN ORDINANCE REGARDING THE CITY OF PARIS, TEXAS MUNICIPAL RETIREMENT SYSTEM BENEFITS AND AUTHORIZING: (1) NON -RETROACTIVE REPEATING COLAS FOR RETIREES AND THEIR BENEFICIARIES UNDER TMRS ACT §853.404(f) and (f-1); AND (2) ANNUALLY ACCRUING UPDATED SERVICE CREDITS. WHEREAS, the City of Paris, Texas (the "City"), elected to participate in the Texas Municipal Retirement System (the "System" or "TMRS") pursuant to Subtitle G of Title 8, Texas Government Code, as amended (which subtitle is referred to as the "TMRS Act"); and WHEREAS, each person who is or becomes an employee of the City on or after the effective date of the City's participation in the System in a position that normally requires services of 1,000 hours or more per year ("Employee") shall be a member of the System ("Member") as a condition of their employment; and WHEREAS, House Bill 2464, 88th Texas Legislature, R.S., 2023 ("HB 2464"), added Subsections 853.404(o and (f-1) to the TMRS Act and authorized cities participating in the System to provide certain retirees and their beneficiaries with an annually accruing ("repeating") annuity increase (also known as a cost of living adjustment, or "COLA") based on the change in the Consumer Price Index for All Urban Consumers for the one-year period that ends 12 months before the January 1 effective date of the applicable COLA (a "non -retroactive repeating COLA"); and WHEREAS, new TMRS Act §853.404(f) and (f-1) allow participating cities to elect to provide non -retroactive repeating COLAs under certain circumstances, as further described by this Ordinance, by adopting an ordinance to be effective January 1 of 2024, 2025 or 2026, in accordance with TMRS Act §854.203 and §853.404; and WHEREAS, TMRS Act §853.404(f-1) provides the non -retroactive repeating COLA option applies only to a participating city that, as of January 1, 2023, either (1) has not passed an annually repeating COLA ordinance under TMRS Act §853.404(c) or had previously passed a repeating COLA ordinance and then, before January 1, 2023, passed an ordinance rescinding such repeating COLA, or (2) does provide an annually repeating COLA under §853.404(c) and elects to provide a non - retroactive repeating COLA under §853.404(f) for purposes of maintaining or increasing the percentage amount of the COLA; and WHEREAS, the City Council acknowledges that the City meets the above-described criteria under §853.404(f-1) and is eligible to elect a non -retroactive repeating COLA under §853.404(f) and that such election must occur before January 1, 2026, and that after that date future benefit changes approved by the City may require reversion to a retroactive repeating COLA; and WHEREAS, the City Council finds that it is in the public interest to: (1) adopt annually accruing non -retroactive COLAs for retirees and their beneficiaries under TMRS Act §853.404(o and (f-1); and (2) in accordance with TMRS Act §853.404 and §854.203(h), authorize annually accruing Updated Service Credits, now: