HomeMy WebLinkAbout033146 ORD - 09/05/2023Ordinance authorizing updates to the City of Corpus Christi's Texas
Municipal Retirement System benefits (1) adopting non -retroactive
repeating COLAs for retirees and their beneficiaries under Texas
Municipal Retirement System Act and (2) authorizing annually
accruing updated service credits; decreasing the TMRS contribution
rate from 16.57% to 16.29% for calendar year 2024.
Whereas, the City of Corpus Christi, Texas (the "City"), elected to participate in the
Texas Municipal Retirement System (the "System" or "TMRS") pursuant to Subtitle G of Title 8,
Texas Government Code, as amended (which subtitle is referred to as the "TMRS Act"); and
Whereas, House Bill 2464, 88th Texas Legislature, R.S., 2023 ("HB 2464"), added
Subsections 853.404(f) and (f-1) to the TMRS Act and authorized cities participating in the
System to provide certain retirees and their beneficiaries with an annually accruing ("repeating")
annuity increase (also known as a cost of living adjustment, or "COLA") based on the change in
the Consumer Price Index for All Urban Consumers for the one-year period that ends 12 months
before the January 1 effective date of the applicable COLA (a "non -retroactive repeating
COLA"); and
Whereas, new TMRS Act §853.404(f) and (f-1) allow participating cities to elect to
provide non -retroactive repeating COLAs under certain circumstances, as further described by
this Ordinance, by adopting an ordinance to be effective January 1 of 2024, 2025 or 2026, in
accordance with TMRS Act §854.203 and §853.404; and
Whereas, TMRS Act §853.404(f-1) provides the non -retroactive repeating COLA option
applies only to a participating city that, as of January 1, 2023, either (1) has not passed an
annually repeating COLA ordinance under TMRS Act §853.404(c) or had previously passed a
repeating COLA ordinance and then, before January 1, 2023, passed an ordinance rescinding
such repeating COLA, or (2) does provide an annually repeating COLA under §853.404(c) and
elects to provide a non -retroactive repeating COLA under §853.404(f) for purposes of
maintaining or increasing the percentage amount of the COLA; and
Whereas, the City Council acknowledges that the City meets the above-described
criteria under §853.404(f-1) and is eligible to elect a non -retroactive repeating COLA under
§853.404(f) and that such election must occur before January 1, 2026, and after that date future
benefit changes approved by the City may require reversion to a retroactive repeating COLA;
and
Whereas, the City Council finds that it is in the public interest to: (1) adopt annually
accruing non -retroactive COLAs for retirees and their beneficiaries under TMRS Act §853.404(f)
and (f-1); and (2) in accordance with TMRS Act §853.404 and §854.203(h), reauthorize annually
accruing Updated Service Credits, now:
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF CORPUS CHRISTI, TEXAS:
Section 1. Adoption of Non -Retroactive Repeating COLAs.
(a) On the terms and conditions set out in TMRS Act §854.203 and §853.404, the City
authorizes and provides for payment of the increases described by this Section to the annuities
TMRS-USC-R COLA -R HB2464 Revised 7/2023
033146
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SCANNED
paid to retired City employees and beneficiaries of deceased City retirees (such increases also
called COLAs). 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 in accordance with
TMRS Act §853.404(f) as the sum of the prior service and current service annuities, as
increased in subsequent years under TMRS Act §854.203 or TMRS Act §853.404(c), of the
person on whose service the annuities are based on the effective date of the annuity increase,
multiplied by 30% of the percentage change in the Consumer Price Index for All Urban
Consumers during the 12 -month period ending in December of the year that is 13 months
before the effective date of the increase under 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 under this Section does not result in an increase in the amount of an
annuity, the amount of the annuity will not be changed under this Section.
(e) In accordance with TMRS Act §853.404(f-1)(2), an increase under this Section only
applies with respect to an annuity payable to a TMRS member, or their beneficiary(ies), which
annuity is based on the service of a TMRS member who retired, or who is deemed to have
retired under TMRS Act §854.003, not later than the last day of December of the year that is 13
months before the effective date of the increase under this Section.
(f) The amount of an increase under this Section is an obligation of this City and of its
account in the benefit accumulation fund of the System.
(g) The initial increase in annuities authorized by this Section shall be effective on January 1
immediately following the year in which this Ordinance is approved, subject to receipt by the
System prior to such January 1 and approval by the Board of Trustees of the System ("Board").
Pursuant to TMRS Act §853.404, an increase in retirement annuities shall be made on January
1 of each subsequent year, provided that, as to such subsequent year, the actuary for the
Syrytein has made the determination set forth in TMRS Act §853.404(d), until this Ordinance
ceases to be in effect as provided in TMRS Act §853.404(e).
Section 2. Authorization of Annually Accruing Updated Service Credits.
(a) As authorized by TMRS Act §854.203(h) and §853.404, and on the terms and
conditions set out in TMRS Act §§853.401 through 853.404, the City authorizes each member
of the System who on the first day of January of the calendar year immediately preceding the
January 1 on which the Updated Service Credits will take effect (i) has current service credit or
prior service credit in the System by reason of service to the City, (ii) has at least 36 months of
credited service with the System, and (iii) is a TMRS-contributing employee of the City, to
receive "Updated Service Credit," as that term is defined and calculated in accordance with
TMRS Act §853.402.
(b) The Updated Service Credit authorized and provided under this Ordinance shall be
100% of the "base Updated Service Credit" of the TMRS member calculated as provided in
TMRS Act §853.402.
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TMRS-USC-R COLA -R HB2464 Revised 7/2023
(c) If the City previously adopted an ordinance authorizing Updated Service Credit for
unforfeited prior service credit and/or current service credit with another System participating
municipality (also known as "Transfer USC"), the calculations and adjustments set forth in
TMRS Act §853.601 apply to any such prior Transfer USC.
(d) Each Updated Service Credit authorized and provided by this Ordinance 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) The initial Updated Service Credit authorized by this Section shall be effective on
January 1 immediately following the year in which this Ordinance is approved, subject to receipt
by the System prior to such January 1 and approval by the System's Board. Pursuant to TMRS
Act §853.404, the authorization and grant of Updated Service Credits in this Section shall be
effective on January 1 of each subsequent year, using the same percentage of the "base
Updated Service Credit" stated in Subsection (b) in computing Updated Service Credits for each
future year, provided that, as to such subsequent year, the actuary for the System has made the
determination set forth in TMRS Act §853.404(d), until this Ordinance ceases to be in effect as
provided in TMRS Act §853.404(e).
Introduced and voted on the 2-( day of ,x.",,51' , 2023.
PASSED and APPROVED on the day of
Paulette Guajardo, Mayo
)k NW , 2023.
AT EST:
Re
ecca Huerta, City Secretary
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