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<br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Requested: o e 6 <br />Requested By: i Rib Department: Human Resources <br />Report <br />Resolution XXX Ordinance <br />Exhibits: Ordinance <br />SUMMARY & RECOMMEIVDATIO]~ <br />The Texas Municipal Retirement System (TMRS) Act allows member cities to adopt Updated <br />Service Credits and Annuity Increases, providing cities the opportunity to upgrade retirement <br />benefits for both active employees and retirees who are currently receiving a monthly annuity <br />from the System. <br />By adopting the 100% Updated Service Credit effective January 1, 1993, a member's retirement <br />benefits will be recalculated based on the member's average monthly salary for the three year <br />period of 1989, 1990, and 1991. The member's retirement benefits are "updated" based on the <br />higher wages earned in recent years. <br />Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The <br />increase that can be granted to retirees is calculated based on a maximum of 70% of the change <br />in the Consumer Price Index, less any previously granted increases. <br />This ordinance is non-repeating and will be effective January 1, 1993. Any future updates will <br />require adoption of a new ordinance. The City's contribution rate will be decreased to 8.77% <br />of gross salaries (9.38% in 1992) due to an increase in the amortization period. <br />Action Required by Council: <br />Adoption of an ordinance authorizing Updated Service Credits and increased annuities. <br />Availability of Funds: <br />General Fund Water/Wastewater <br />Capital Improvement General Revenue Sharing <br />Other <br />Account Number: Various Funds Available: ~_ Yes No <br />ed for..City Council Aeend <br /> <br />Rq~rt~I': Herrera <br />ty Manager <br />Date <br />