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SEP.~8.~Ia~Z ~59PM TMRS ~0.~85 Page 2. Section 2. Increase In Retirement Annuities. (a) On terms and conditions set out in Section 854.203 of the TMRS Act, the City hereby elects to allow and to provide for payment of the increases below stated in monthly benefits payable by the System to retired employees and to beneficiaries of deceased employees of the City under current service annuities and prior sauce annuities arising from service by such employees to the City. An annuity increased under this Section replaces any annuity or increased annuity previously granted to the same person. (b) The amount of t~e annuity increase under this Section is computed as the sum of the prior service and current service annuities on the effective date of retirement of the person on whose service the annuities are baaed, multiplied by 70% of the percentage change in Consumer Price Index for All Urban Consumers, from December of the year immediately preceding the effective date of the person's retirement to the December that is 13 months before the effective date of this Section. (c) An increase in an annuity that was reduced because of an option selection is reducible in the same proportion and in the same manner that the odginal annuity was reduced. (d) If a computation hereunder does not result in an increase in the amount of an annuity, the amount of the annuity will not be changed hereunder. (e) The amount by which an increase under thls Section exceeds all previously granted increases to an annuitant is an ol01igation of the City and of its account in the municipality accumulation fund of the System. Section 3. Dates of Allowances and Increases, The initial allowance of Updated Service Credit and Increase in Retirement Annuities hereunder shall be effective on January 1, 2003, subject to approval by the Board of Trustees of the System. An allowance of Updated Service Credits and an increase in retirement annuities shall be made hereunder on January 1 of each subsequent year until this ordinance ceases to be in effect under subsection (e) of SeCtion 853.404 of the TMRS Act, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in subsection (d} of Section 853.404 of the TMRS Act. BE IT FURTHER ORDAINED: In=leased Deposit Rate: All employees of the City, who are members of the Texas Municipal Retirement System, shall make deposits to the System at the rate of 6% of their individual earnings effective 1't day of ,200 Effective Date. Subject to approval by the Board of Trustees of the System, this ordinance shall be and become effective on the 1" day of 200__.. Passed and approved this the day of __, An'EST: APPROVED: City Secretary or Clerk Mayor