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<br />"UiST FOR CITY COUNCD.. AGAA ITEM <br /> <br />Agenda Date Requested: <br /> <br /> <br />Administrative Services <br /> <br />Requested By: <br /> <br />Report <br /> <br />Ordinance <br /> <br />Exhibits: <br /> <br />Ordinance <br /> <br />SUMMARY & RECOMMENDATION <br /> <br />The Texas Municipal Retirement System Act allow member cities to adopt Updated Service Credits <br />and annuity increases, providing cities the opportunity to upgrade retirement benefits for both active <br />employees and retirees who are currently receiving a monthly annuity from the System. <br /> <br />By adopting the 100% Updated Service Credit effective January 1, 1999, a member's retirement <br />benefit will be recalculated based on the member's average monthly salary for the previous three <br />years. The member's retirement benefit is "updated" based on the higher wages earned in recent <br />years. <br /> <br />Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The <br />increase that can be granted is calculated based on a maximum of 70% of the change in the <br />Consumer Price Index, less any previously granted increases. <br /> <br />This ordinance is non-repeating and will be effective January 1, 1999. Any future updates will <br />require adoption of a new ordinance. With the adoption of this ordinance, the City's contribution <br />rate will increase by $7,763 per year, which will be amortized over 25 years. <br /> <br />Action Required by Counell: Adopt Ordinance 98-1875-F, authorizing Updated Service Credits <br />and increased annuities for 1999. <br /> <br />Availability of FUnds: <br />General Fund <br />_ Capital Improvement <br />Other <br /> <br />WaterlWastewater <br />_ General Revenue Sharing <br /> <br />Account Number: <br /> <br />Funds Available: _ Yes _ No <br /> <br />Approved for City Councll Aeenda <br /> <br />~~ r: ~ <br /> <br />Robert T. Herrera <br />City Manager <br /> <br />_fl- L(- 1'CO <br />Date <br />