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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br /> <br />Department: <br /> <br /> <br />Agenda Date Requested: <br /> <br />Appropriation <br /> <br />Requested By: <br /> <br />Source of Funds: <br /> <br />Various <br /> <br />Account N urn ber: <br /> <br />Report: <br /> <br />Resolution: <br /> <br />Ordinance: <br /> <br />x <br /> <br />Amount Budgeted: <br /> <br />Exhibits: <br /> <br />Amount Requested: <br /> <br />Exhibits: <br /> <br />Budgeted Item: YES <br /> <br />NO <br /> <br />Exhibits: <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The Texas Municipal Retirement System Act allows member cities to adopt Updated Service Credits and annuity <br />increases, providing cities the opportunity to upgrade retirement benefits for both active employees and retirees who <br />are currently receiving a monthly annuity from the system. <br /> <br />By adopting the 100% Updated Service Credit effective January 1,2001, the members' retirement benefit will be <br />recalculated based on the members' average monthly salary for the previous three years. The members' retirement <br />benefit is "updated" based on the higher wages earned in recent years. <br /> <br />Adoption of the ordinance also increases the monthly annuities being paid to City of La Porte retirees. The increase <br />than can be granted is calculated based on a maximum of 70% of the change in the Consumer Price Index, less any <br />previously granted increases. <br /> <br />This ordinance is non-repeating and will be effective January 1, 2001. Any future updates will require adoption of a <br />new ordinance. Adopting this ordinance will increase the City's contributions by approximately $27,000 in 2001. <br />This ordinance will affect all current employees, approximately 365, and 44 retirees. <br /> <br />Action ReQuired by Council: <br /> <br />Adopt Ordinance 2000-1875-H authorizing Updated Service Credits and increased annuities for 2001. <br /> <br />Approved for City Council A2:enda <br /> <br />~~ 'f. \~~ <br /> <br />Robert T. Herrera, City Manager <br /> <br />Date <br />