HomeMy WebLinkAbout025865 ORD - 07/27/2004AN ORDINANCE
ADOPTING AN ORDINANCE 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 CORPUS CHRISTI; PROVIDING
FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR
RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE
CITY; TO INCREASE THE RATE OF DEPOSITS TO THE TEXAS
MUNICIPAL RETIREMENT SYSTEM BY THE EMPLOYEES OF THE
CITY; ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE;
AND PROVIDING FOR SEVERANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS
CHRISTI, TEXAS:
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, 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~t 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)
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).
(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.
(d)
h~ 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 aimuity 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 atmuities 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 d ate o f t he person's retirement t o t he December t hat i s 1 3
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, 2005, 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) o fSection 853 404 o fthe 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. Increased Deposit Rate:
All employees of the City of Corpus Christi, who are members of the
Texas Municipal Retirement System, shall make deposits to the
System at the rate of 6% of their tndividual earnings effective 1st day
of January 2005.
SECTION 5. Effective Date:
Subject to approval by the Board of Trustees of the System, this
Ordinance shall be and become effective on the 1st day of January
2005.
SECTION 6. Severance:
If for any reason any section, paragraph, subdivision, clause, phrase,
word or provision of this ordinance shall be held invalid or
unconstitutional by final judgment 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 ~ntent of this City Council that every section, paragraph,
subdivision, clause, phrase, word or provision of this ordinance be
given full force and effect for its purpose.
By: Sus~
Assistant City Attorney
, 2004, Mary Kay Fischer, City
Prepared by the Human Resources Department
June 7, 2004
C':~Sharon's Lk~urr~nts/TMRS AGENDA PKG 2004 2005 CONTRA I'E AU IO ('PI UP~TMRS ORDINANCE [NC CONT RATE
RETIREE ANNUITIES AUTO PS(' doc
That the foregoing ordinance was read for the first time and passed to its second
,2004, by the following vote:
reading on this the L~ Day of
Samuel L. Neal, Jr.
Brent Chesney
Bill Kelly
Rex A. Kinnison
Javier D. Colmenero
Melody Cooper
Henry Garrett
Jesse Noyola ~
Mark Scott O_~
That the foregoing ordinance was read for the second time and passed finally on this
the ~ Day of ~.~ ,2004, by the following vote:
Samuel L. Neal, Jr.
Brent Chesney
Javier D. Colmenero
Melody Cooper
Henry Garrett
Bill Kelly
Rex A. Kinnison
Jesse Noyola
Mark Scott
PASSED AND APPROVED this the'~'~--~l~-Day of
A'I-FEST:
Arm~etary
LEGAL FORM APPROVED
2004.
City of Corpus Chdsti
,2004
By:
Assistant City Attorney
For City Attorney