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0 • <br />REQUEST FOR CITY COUNCIL AGENDA ITEM <br />Agenda Date Re ted: 11-11-2002 <br />Requested By: r 1 ButtlerlLorie Dough4 <br />Department: Adm. Services/Human Resources <br />Report: Resolution: Ordinance: X <br />Exhibits: Ordinance <br />Exhibits: TMRS Supporting Documentation <br />Exhibits: <br />Appropriation <br />Source of Funds: Various <br />Account Number: Various <br />Amount Budgeted: <br />Amount Requested: <br />Budgeted Item: 6D NO <br />SUMMARY & RECOMMENDATION <br />The Texas Municipal Retirement System Act (TMRS) enables member cities to adopt Updated Service <br />Credits and Increased Annuities, providing cities the opportunity to upgrade retirement benefits for active <br />employees and for retirees who currently receive a monthly annuity from TMRS. <br />By adopting Updated Service Credits at 100% for the year 2003, Council allows a member's retirement <br />benefit to be recalculated based on the member's average monthly salary for the three (3) year period <br />ending December 31, 2001. The member's retirement benefit is "updated" to reflect higher wages that <br />were earned for those three (3) years. <br />By including Increased Annuities, Council allows an increase for monthly annuities paid to City of <br />La Porte retirees. The increased calculation is based on a maximum of 70% of the change in the <br />Consumer Price Index, less any previously granted increases. <br />This ordinance becomes effective January 1, 2003, and is non -repeating (in effect only for the year 2003). <br />Any future updates require adoption of a new ordinance prior to December 31" of each year. Adopting <br />this ordinance will increase the City's overall contributions from 11.41 % to 11.59% of estimated total <br />payroll ($20,000,00) for 2003, affecting current employees and retirees, (approximately 420). <br />For budgeting purposes, the City estimated the TMRS contribution rate for 2003, at the rate of 11.51 % of <br />estimated total payroll. If approved the additional cost to the estimated budget would be only .08% <br />($12,000.00). <br />Staff Recommendation <br />Approve an ordinance authorizing Updated Service Credits and Increased Annuities for 2003. <br />Action Required by Council: <br />Adopt an ordinance authorizing Updated Service Credits and Increased Annuities for 2003. <br />Approved for City Council Agenda <br />JoWrn ting City Manager <br />11 ZZ x <br />.7 <br />Date <br />