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REQ~T FOR CITY COUNCIL AGEND~M <br />Agenda Date Requested: December 11. 1995 <br />1 <br />Requested By: ui Rib Department: Human Resources <br />Report Resolution ~:XX Ordinance <br />Exhibits: Ordinance <br />Updated Service Credit and Annuity Increase Study <br />5[.TNIlViARY & RECOMMENDATION <br />The Texas Municipal Retirement System (TMRS) Act allows member cities to adopt Updated Service Credits and <br />Annuity Increases, providing cities the opportunity to upgrade retirement benefits for both active employees and <br />retirees who are currently receiving a monthly annuity from the System. In November of 1992, Council adopted <br />an ordinance which accomplished this upgrade and asked that they be able to review these upgrades on an annual <br />basis. <br />By adopting the 100 % Updated Service Credit effective January 1, 1996, a member's retirement benefits will be <br />recalculated based on the member's average monthly salary for the three year period of 1992, 1993, and 1994. The <br />member's retirement benefits are "updated" based on the higher wages earned in recent years. <br />Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The increase that can be <br />granted to retirees is calculated based on a maximum of 7096 of the change in the Consumer Price Index, less any <br />previously granted increases. <br />This ordinance is non-repeating and will be effective January 1, 1996. Any future updates will require adoption <br />of a new ordinance. With the adoption of this ordinance, the City's contribution rate will increase from 10.46 <br />to 10.4996 of gross salaries. Approval would increase the City's contribution by approximately 52,160 for 1996. <br />Adopting this ordinance would allow the City to have 2S years in which to amortize the additional cost. <br />Action Required by Council: <br />Adoption of an ordinance authorizing Updated Service Credits and increased annuities for 1996. <br />Availability of Funds: <br />General Fund <br />Capital Improvement <br />Other <br />Water/Wastewater <br />General Revenue Sharing <br />Account Number: Various Funds Available: X Yes No <br />A~aroved for City Council Agenda <br />QiC~~~ 1 ~ ~~~ 12- ~ - ~i5 <br />Robert T. Herrera Date <br />City Manager <br />