95-042 ORD AUTHORIZING/ALLOWING UNDER ACT GOVERNING TEXAS MUNICIPAL RETIREMENT SYSTEM "UPDATED SERVICE CREDITS"
ORDINANCE NO. 95-042
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING
THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS"
IN SAID SYSTEM ON AN ANNUAL BASIS FOR SERVICE PERFORMED BY
QUALIFYING MEMBERS OF SUCH SYSTEM WHO, AT THE EFFECTIVE DATE OF
THE ALLOWANCE, ARE IN THE EMPLOYMENT OF THE CITY OF PARIS;
PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR
RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; AND
ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF PARIS:
Section 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of Subtitle
G of Title 8, V.T.C.A., Government Code, as amended (hereinafter referred to as the "TMRS
Act„), each member of the 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, had 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 the TMRS Act).
(b) On the terms and conditions set out in Section 853.601 of the TMRS Act, any
member of the System who is eligible for Updated Service Credits on the basis of service with
this City 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, both as to the initial grant hereunder and all
future grants under this ordinance.
(c) The Updated Service Credit hereby allowed and provided for shall be 100 % of the
"base Updated Service Credit" of the member (calculated as provided in subsection (c) of
Section 853.402 of the TMRS Act).
(d) Each Updated Service Credit allowed hereunder 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.
(e) In accordance with the provisions of subsection (d) of Section 853.401 of the TMRS
Act, 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 effective date
of this ordinance on the full amount of such person's compensation as an employee of the City.
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 service 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 the annuity increase under this Section is computed as the sum of the
prior service and cunent 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 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 original 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 this Section exceeds all previously granted
increases to an annuitant is an obligation 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, 1996, 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 yeax 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.
Section 4. Effective Date.
Subject to approval by the Board of Trustees of the System, this ordinance shall be and
become effective on the 1 st day of January, 1996.
Section 5. The City Clerk is hereby authorized and directed to immediately deliver,
upon passage, a certified copy of this Ordinance to the Texas Municipal Retirement System.
PASSED AND ADOPTED this 9th day of October, 1995.
Eric S. Clifford, Mayor
ATTEST:
Mattie Cunningham, City Clerk
APPROVED S TO FORM:
T. K. Haynes, City Attorney