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<br />SPECIAL MEETING OF THE CITY COUNCIL OF THE CITY OF PARIS <br />August 23, 2004 <br />The City Council of the City of Paris met in special session Monday, August <br />23, 2004 in the North Hall of the Love Civic Center, 2025 S. Collegiate Drive, <br />Paris, Texas. Mayor Curtis Fendley called the meeting to order with the <br />following Council members present: Jim Bell, Jay Guest, Mary Ann Fisher, <br />Don Wilson, Karen Wilkerson and Rick Poston. Also present were Interim City <br />Manager Terry Townsend, City Attorney Larry W. Schenk and Assistant City <br />Clerk Sherian Dixon. <br />Mayor Fendley opened a question and answer session with Eric Davis, a <br />representative from the Texas Municipal Retirement System. Mayor Fendley <br />asked why, if the employee puts 6% in retirement, wasn’t the City’s matching <br />contribution also 6%. Mr. Davis explained that because the plan is a qualified <br />tax-deferred plan, as well as cash balance type plan, the rate is an actuarially <br />determined number. <br />He explained the rate did three things. First, he said it pays in that month to <br />month match as it accrues; then, the prior service portion is funding the <br />unfunded actuarial liability. He went on to mention that the third item was the <br />supplemental death benefit, which is the TMRS version of life insurance. He <br />said the total rate was made up of these three things. He then explained if the <br />matching ratio is changed, that cost automatically changes also, but the prior <br />service portion may or may not change according to what has been designated, <br />and the supplemental death benefit remains the same. <br />Councilman Bell said he would like a calculation on what the proposed changes <br />would do to the rate percentage. Mr. Davis said for the current 6%, 2 to 1 plan, <br />the 2005 rate would be 12.78%. He said that breaks out into 8.52% for the <br />match, 3.97 % for prior service and .29% for Supplemental Death. He went on <br />to explain that a 6% 1½ to 1 match would be 10.65%, a 6% 1 to 1 match would <br />be 8.52% and a 5% 2 to 1 match would be 11.36%. <br />On a question from Councilman Wilson as to why we were behind, Mr. Davis <br /> <br />