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HomeMy WebLinkAbout024395 ORD - 03/20/2001AN ORDTNANCE 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 QUALI'FYI'NG MEMBERS OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE OF THE ALLOWANCE ARE IN THE EMPLOYMENT OF THE CITY OF CORPUS CHRISTI; PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE; AND PROVIDING FOR SEVERANCE. BE I'T ORDAI'NED BY THE CI'TY COUNCIL OF THE CTTY OF CORPUS CHRTSTt', TEXAS: SECTION 1. Authorization of Updated Service Credits. (a) The terms and conditions set out in Sections 853.401 through 853.404 of Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as the "T[VlRS Act'S, 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~ day of ~lanuary 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) 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). [f the City has previously adopted, or if it hereafter adopts an ordinance authorizing Updated Service Credit for unforfeited credit for prior service or current service with any other participating municipality, the calculations and adjustments set forth in Section 853.601 of the TMRS Act shall apply to any such transferred service. (c) 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. Page 2 of 3 (d) 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 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 current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by 50% 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 Zncreases. The initial allowance of Updated Service Credit and increase in retirement annuities hereunder shall be effective on January 1, 2002, 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 ]anuary i 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. Page 3 of 3 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~ day of ,lanuary 2002. SECTION 5. If, for any reason, any section, paragraph, subdivision, clause, phrase, word or provision of this Ordinance shall be held invalid or unconstitutional by final judgement of a court of competent jurisdiction, it shall not affect any other section, paragraph, subdivision, clause, phrase, word or provision of this Ordinance, for it is the definite intent of this City Council that every section, paragraph, subdivision, clause, phrase, word or provision hereof be given full force and effect for its purpose. All'EST: Armando THE crrY OF CORPUS CHRISTI amue . Nea, Jr., Mayor LEGAL FORM APPROVED /)')~ J Alex Lopez ~ Assistant City Attorney ,2001, James R. Bray, Jr., City Attorney Prepared by the Human Resources Department March 2001 c:\rqy Documents\Agenda Items\TMRS Repeating Ordinance 3 01.doc That th~,,foregoing, ordinance ?as read for the first time and passed to its second reading on this the ..~5_'[Jay of '~I4¢JF'C~, 2001, by the following vote: Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Arnold Gonzales ~/~,L~ . Rex A. Kinnison ~. Betty Jean Longoria . ~,~ John Longoria 0 ([~[ C/~ Mark Scott __~ That the foregoing ordinance was read for the second time and passed finally on this the~,~r.]~[j~ Day of ~ 2001, by the following vote: Samuel L. Neal, Jr. Javier D. Colmenero Melody Cooper Henry Garrett Dr. Amold Gonzales PASSED AND APPROVED this the y  Rex A. Kinnison ~ ~ 0~L.~ Betty Jean Longoria ~(~,],~ (~ John Longoria ~A~A'~ ~ Mark Scott ~{~; 2001. ATTEST: LEGAL FORM APPROVED ~Mayo~ City of Corpus Christi , 2001; JAMES R. BRAY, JR., CITY ATTORNEY By: Alex Lopez, Assistant City Attorney 02-I395