O-2023-3962 - Laserfiche WebLink

Browse Search

ORDINANCE 2023- 3962 AN ORDINANCE REVISING THE CITY OF LA PORTE, TEXAS' TEXAS MUNICIPAL RETIREMENT SYSTEM BENEFITS PLAN BY: (1) PROVIDING EMPLOYEES WITH FIVE-YEAR VESTING, (2) ADOPTING NON -RETROACTIVE REPEATING COLAS, FOR RETIREES AND THEIR BENEFICIARIES UNDER TMRS ACT §853.404(f) and (f- 11), AND (3) AUTHORIZING ANNUALLY ACCRUING UPDATED SERVICE CREDITS AND TRANSFER UPDATED SERVICE CREDITS; CONTAINING A REPEALING CLAUSE; CONTAINING A SEVERABILITY CLAUSE; FINDING COMPLIANCE WITH THE OPEN MEETINGS ACT; PROVIDING AN EFFECTIVE DATE Whereas, the City of La Porte, 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, by Ordinance approved prior to December 31, 2001, and filed with TMRS, the City elected to not provide five-year vesting under the TMRS Act; and Whereas, TMRS Act §854.205 allows the City to revoke its prior election to not provide five-year vesting; and Whereas, House Bill 24647 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 of the City of La Porte acknowledges that the City meets the above - described criteria under §853.404(f-1) and is eligible to elect anon -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 of the City of La Porte finds that it is in the public interest to: (1) provide five- year vesting for the City's employees who are members of thE: system; (2) adopt annually accruing non -retroactive COLAs for retirees and their beneficiaries under TMRS Act §853.404(f) and (f-1); and TMRS-5-YEAR VEST USC-R&T COLA-R HB2464