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(3) in accordance with TMRS Act §853.404 and §854.203(h), reauthorize annually accruing Updated Service Credits and transfer Updated Service Credits: NOW THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LA PORTE, TEXAS: Section 1. Five -Year Vesting. (a) The City Council elects to revoke the prior election to not provide five-year vesting under TMRS Act §854.205 for its employees who are members of the System. After the effective date of this Section, a City employee who is a member of the System may terminate employment with the City and remain eligible to retire and receive a service retirement annuity from the System at any time after the employee attains an applicable age under the TMRS Act if the employee has at least five years of credited service with one or more cities that provide five-year vesting under TMRS Act §854.205. (b) This Section shall become effective on the first day of January 2024. Section 2. Adoption of Non -Retroactive Repeating COLAs. (a) On the terms and conditions set out in TMRS Act §854.203 and §853.404, the :ity authorizes and provides for payment of the increases described by this Section to the annuities 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 70% 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. M 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. TMRS-5-YEAR VEST USC-R&T COLA-R HB2464