10-D TMRS Prior & Current Service Annuities for Retirees
[8JAction
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 an annuity increase for retired employees or the
beneficiaries of deceased retirees.
BACKGROUND INFORMATION:
The effect of this ordinance is to adjust retirement checks so that they will be equal
to their original amount plus an amount that is equal to 70% of the CPI since the
retirement date. The cost of this benefit would be .13% (.0013) of payroll or
approximately $16,385.
FISCAL AUTHORITY:
BUDGETED: Yes
Account #: 0103 in various departments
LEGAL REVIEW:
I
MANAGER'S RECOMMENDA liON:
.- T T"'T --,
DRAFT
f:attorney\reswork\current\TMRS Service Annuities for Retirees Ord 2007
November 30, 2007
ORDINANCE NO.
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF PARIS,
TEXAS, PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE
ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED
RETIREES OF THE CITY; AND ESTABLISHING AN EFFECTIVE DATE
FOR SUCH ACTIONS.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS, TEXAS:
Section 1. Increase in Retirement Annuities.
(a) That on terms and conditions set out in Section 854.203 of Subtitle G of Title 8, Government
Code, as amended, the City hereby elects to allow and to provide for payment ofthe increases below
stated in monthly benefits payable by the System to retired employees and to beneficiaries of
deceased employees of this City under current service annuities and prior service annuities arising
from service by such employees to this City. An annuity increased under this Section replaces any
annuity or increased annuity previously granted to the same person.
(b) That the amount of annuity increase under this Section is computed as the sum of the prior
and current service annuities on the effective date of retirement of the person on whose service the
annuities are based, 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 ofthis ordinance.
(c) That 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 original annuity was reduced.
(d) That 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 hereby.
(e) That the amount by which an increase under this Section exceeds all previously granted
increases to an annuitant is an obligation of this City and of its account in the municipality
accumulation fund of the System.
Section 2. Effective Date:
That subject to approval by the Board of Trustees of the Texas Municipal Retirement System, this
ordinance shall be and become effective on the 1st day of January, 2007.
T T--or __h
io
Plan Improvement Study
RS
Plan Provisions
Deposit Rate
Matching Ratio
Updated Service Credit
Transfer USC
Annuity Increase
Buyback Provision
20 and Out Retirement
Vesting
Contribution Rates
Normal Cost Rate
Initial Prior Service Rate
Transfer USC Rate * *
Current Yr. Annuity Increase
Total Prior Service Rate
Retirement Rate
Supplemental Death Rate
Total Rate
Unfunded Actuarial Uability
Amortization Period
Funded Ratio
Base Plan
6.00%
2 to 1
0% (2007)
No
0%
No
Yes
5 years
2008
8.550/0
4.97%
0.00%
0.00%
4.970/0
13.520/0
0.32% (A & R)
13.840/0
$8,420,458
25 years
72.5%
00976 Paris
Effective Date - January I, 2008
Report Date - November 5, 2007
Proposed Plans
Present Plan
6.00%
2 to 1
0% (2007)
Yes
0%
No
Yes
5 years
2008
8.55%
4.97%
0.00%
0.00%
4.97%
13.52%
0.32% (A & R)
13.84%
$8,420,458
25 years
72.5%
.1
6.00%
2 to 1
100% l-/'
Yes v/
0%
No
Yes
5 years
2008
8.55%
5.01%
0.00%
0.00%
5.01%
13.56%
0.32% (A & R)
13.88% ./
$8,491,242
25 years
72.3%
2
6.00%
2 to 1
100% '-
Yes ./'
70% <./'
No
Yes
5 years
2008
8.55%
5.01%
0.00%
0.13%
5.14%
13.690/0
0.32% (A & R)
14.01 % ..---
$8,715,441
25 years
71.8%
:;: * This is the addition to the Initial Prior Service Rate for USC for transfers. There were 3 eligible transfer employees on the valuation date.
y
"SEGAL