10-C TMRS Updated Service Credits
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CITY OF PARIS, TEXAS
CITY COUNCIL AGENDA REQUEST
MEETING DATE: 112~10-2007
D Discussion Dlnformation DRefer to:
SUBMITTED BY:
I Gene Anderson, Finance Director
DESCRIPTION:
This ordinance provides for updated service credits for current employees who
have at least three years of service under TMRS.
BACKGROUND INFORMATION:
This ordinance would, in the calculation of a retirement benefit, cause the most
recent three year salary history to be used as one of the factors in the calculation
of that benefit amount. This is in effect an inflation adjustment for active
employees. The cost of this benefit would be .04% or $5,041.
FISCAL AUTHORITY:
BUDGETED: Yes
Account #: 0103 in various departments
LEGAL REVIEW:
I
MANAGER'S RECOMMENDATION:
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DRAFT
f:attorney\reswork\current\TMRS Updated Service Credits 2007
November 30, 2007
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, AUTHORIZING AND ALLOWING, UNDER THE ACT
GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM,
"UPDATED SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE
PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM WHO
PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF PARIS,
TEXAS; AND ESTABLISHING AN EFFECTIVE DATE FOR SUCH
ACTIONS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS:
Section 1. Authorization of Updated Service Credits.
(a) That on the terms and conditions set out in Sections 853.401 through 853.403 of Subtitle G
of Title 8, Government Code, as amended (hereinafter referred to as the "TMRS ACT"), each
member ofthe Texas Municipal Retirement System (hereinafter referred to as the "System") who has
current service credit or prior service credit in the System in force and effect on the 1 st day of
January of the calendar year preceding such allowance, by reason of service in the employment of
the City, and on such date has at least 36 months of credited service with the System, shall be and
is hereby allowed "Updated Service Credit" (as that term is defined in subsection (d) of Section
853.402 of said title) in an amount that is 100% of the "base Updated Service Credit" ofthe member
(calculated as provided in subsection (c) of Section 853.402 of said title). The Updated Service
Credit hereby allowed shall replace any Updated Service Credit, prior service credit, special prior
service credit, or antecedent service credit previously authorized for part of the same service.
(b) That on the terms and conditions set out in Section 853.601 of said title, any member of the
System who is eligible for Updated Service Credits on the basis of service with this City, and who
has unforfeited credit for prior service and/or current service with another participating municipality
or municipalities by reason of previous service, and was a contributing member on the 1 st day of
January of the calendar year preceding such allowance, shall be credited with Updated Service
Credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in said
Section 853.601.
(c) That in accordance with the provisions of subsection (d) of Section 853.401 of said title, the
deposits required to be made to the System by employees of the several participating departments
on account of current service shall be calculated from and after the date aforesaid on the full amount
of such person's earnings as an employee ofthe City.
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Section 2. Effective Date:
That subject to approval by the Board of Trustees of the Texas Municipal Retirement System, the
updated service credits shall be and become effective on the 1st day of January, 2007.
PASSED, APPROVED, AND ADOPTED this 10th day of December, 2006.
Jesse James Freelen, Mayor
ATTEST:
Janice Ellis, City Clerk
APPROVED AS TO FORM:
W. Kent McIlyar, City Attorney
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