HomeMy WebLinkAbout027152 RES- 02/13/2007Resolution
Increasing Contributions to Corpus Christi Fire Fighters' Retirement System
(CCFFRS) by Corpus Christi Fire Fighters and the City of Corpus Christi
WHEREAS. the City Council's policy direction for the FY2006-07 budget in
Resolution 1)26605 included a priority for tunding public safety services; and
WHEREAS, the 2005 TriData report identified differences in retirement benefits and
differences in Cite contributions between the current fire fighter pension system,
known as the Corpus Christi Fire righters Retirement System or "CCFFRS", and the
current pension system for =ether Civ employees: and
WHEREAS, the TriData report suggests that changes to the CCFFRS could improve the fire
department by pro\ iding higher retirement benefits as incentives for fire fighters who
adh ince in rank within the department and higher retirement benefits so fire fighters can
afford to retire at somewhat earlier ages comparable to retirees in other fire departments; and
WHEREAS, an increase in City contributions to the CCFFRS coupled with an increase in
the tire fighters' contributions to the Ct_'FFRS and revisions of the benefit structure could
enable the CCFFRS to increase retirement benefits for current Corpus Christi retired fire
Lighters and their beneficiaries. many of whom have not received an increase in their
retirement benefit since their retirement. and also enable the CCFFRS to increase retirement
benefits tor fire fighters who retire in the future: and
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WHEREAS, increases in c mtrihuton rates by the City and the fire fighters must be phased
cr several vcars: and
WHEREAS, an increase in the (.'it' contrihutions to the CCFFRS will be contingent upon
t .t_l.eenient b' the i_ orpu4 Christi'ne °i_ihters_ in accord with Texas law, to increase fire
Lir L,,niribution; and rev Ise'he benefit structure of the CCFFRS_ and
WHEREAS, when Intl,: phased in. r_ht increased level of City contributions to the CCFFRS
_tntf the Warrent lev el of C t v contributions to Social Security Medicare for firefighters will
e tiomp,arJhle tee the ct:rrcnt lev el f t_;tv contrihutions to the Texas Municipal Retirement
tem 1'\1RS) and to Social Set urit', behalf of all employees of the City except fire
olters 't )ther C its Imp )yetis ' :.:rntl
WHERi AS, i"\ belie fi' increases for retired fire lighters and future benefit
nt rcase, for fire !i,21 -iters. as requ red Texas law. the actuary retained by the Board of
gees
he (t 1 1 RS must live °easonahle assurance that the City will actually
implement the proleed fl=tt re Inc eases in the C it 's contrihutions and that the fire fighters
:tette 11A implement the proiecied ttaure increases in their contributions as contemplated
this Resolution
VbHER>E<I;AS, in order totoprove heneft increasts for retired tire fighters and future benefit
ni.acascs +:ar tire fiLiiiiters. as required I Texas Taw. the Board of Trustees of the CCFFRS
mi.tst havc reasonahic assurance that the (itv vy 11 actually implement the projected future
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prtriected future increase)- in their ;;orirrihutions as contemplated by this Resolution;
NOW BE IT THEREFORE RESOLVED BY THE CITY COUNCIL OF THE CITY
OF CORPUS CHRISTI, TEXAS:
SECTION 1. Beginning in 2007 and thereafter, it is the intent of the City of Corpus Christi
to contribute to the Corpus Christ) Fire Fighters Retirement System ("CCFFRS") the
percentage of each tire fighter's compensation shown in the following schedule, contingent
upon fire fighter approval as set forth herein below, and subject to annual appropriation of
funds lav ordinance.
City's
Calendar Contribution
Year Year Rate to CCFFRS
1 2007 14.58%
2 2008 15.39
3 2009 16.58
4 2010 17.68
5 2011 18.78
6 2012 20.13
7 2013 20.78
and later .nd later
The increase in the City's contribution rate from the current 12.50% to 14.58% is to be
effective on the first da> of the first payroll period beginning on or after the date the
members of the CCFFRS elect tc increase their contribution rate from the current rate of
1('}.00% of Departmental Nverage Salary to 11.10°%o of each fire fighter's compensation in
2007 and to 12.20% in 2008 and subsequent years. Each increase in the fire fighters'
contribution rate in 2008. and each increase in the City's contribution rate in 2008 and
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subsequent years, :ti to he effectsve on the first day of the payroll period which includes
January 1 of' such ttalendar year tit 2013 and in each year thereafter, the City's contribution
rate is to be 20.7R(1:
SECTION 2. The increases in the City's contribution rates described in Section 1 will not
be effectuated until the ( CFFRS actuary and the fire fighter members have approved, and
the Board of Trustees of the CCFFRS has adopted. a retirement plan which provides for: (a)
retirement, disability and survivor benefits for fire fighters that are both pay and service
related in order to recognize differences in rank; and (b) an increase in benefits for retired
fire fighters and their beneficiaries in 2007 and, subject to favorable experience of the
CCFFRS, additional future increases in benefits for active and retired fire fighters and (c)
a� increase in fire tighter contribution rate from the current rate of 10.00% of departmental
average salary to 11 10% of each fire fighter's compensation in 2007 and to 12.20% in 2008
and subsequent years as described in Section 1
SECTION 3. Upon Board of Tnrstee adoption of. and CCFFRS actuary and the fire
fighters members approval of, the retirement plan described in Section 2, the City Manager
is directed to prepare necessary ordinance for City Council approval to change the FY2006-
;Y" budget and to prepare the FY2n07-0 8 budget and the budgets for all subsequent fiscal
years to include the City's contribution rates to the CCFFRS as described in Section 1 of
this Resolution.
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ATTEST
Armando Chapa
Ca\ Secretary
APPROVED: February 4, 2007
_
Lisa Aguilar
A ss]stant City Attorne‘
For Cit Attorne),,
THE CITY OF CORPUS CHRISTI
Henry Garret
Mayor
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Corpus Christi, Texas
-31i1 of LJ2LuC(i (1)
2007
The above resolution was passed by the following vote:
Henry Garrett
Brent Chesney
Melody Cooper
Jerry Garcia
Bill Kelly
Rex A. Kinnison
John E Marez
Jesse Noyola
Mark Scott
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