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CITY OF PARIS, TEXAS Notes to Financial Statements (Continued) September 30, 2023 IV. Detailed Notes on All Activities and Funds (Continued). F. Employee Retirement Systems and Plans (Continued) 1. Texas Municipal Retirement System (Continued) Benefits Provided TMRS provides retirement, disability, and death benefits. Benefit provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. At retirement, the member's benefits are calculated based on the sum of the member's contributions with interest, and the City -financed monetary credits with interest, their age at retirement and other actuarial factors. When a member applies for retirement, they have three options to determine how their lifetime monthly benefit will be paid. After a member selects one of the three benefit payment options, they can choose to receive a partial lump -sum distribution to 12, 24, or 36 times the Retiree Life Only monthly benefit, however this partial lump -sum cannot exceed 75% of the total member contributions and interest. Prior service credit is a monetary credit that a city may grant to eligible employees when the City joins TMRS. The credit is used in calculating the employee's retirement benefit and is based on compensation they earned while working for the City before the City joined TMRS. Current service credit is a monetary credit for service performed by a member after a city joins TMRS and is based on a city's matching ratio (100%, 150%, or 200%) of the member's total contributions and interest. A change in a city's matching ratio is applied prospectively. Update service credit (USC) is a monetary credit a city may grant to active members. The USC calculation is performed annually on a member's account and may grant supplemental financial credits. The USC calculation considers a member's salary history and the City's plan changes and may increase the value of a member's benefit at retirement. The plan provisions are adopted by the governing body of the City, within the options available in the state statutes governing TMRS. Plan provisions for the City were as follows: Plan Year 2022 Employee Deposit Rate 7% Matching Ratio (City to Employee) 2 to 1 Years required for vesting 5 Years Retirement Eligibility (Age/Service) 60/5,0/20 Updated Service Credit 0% Annuity Increase (to retirees) 0% of CPI EmI o eesmCovr_ed b =�Benefit Terms. At the December 31, 2022, valuation and measurement date, the following employees were covered by the benefit terms: Inactive Employees or Beneficiaries Currently Receiving Benefits 248 Inactive Employees Entitled to but not yet Receiving Benefits 178 Active employees 290 Total 71......... 6 50