1982-12-15 Regular Meeting - Laserfiche WebLink

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..- -'~F-"--" -- ---"~"')t"'-VF~'-:----' ~,,-l-:.-, rRE~ e e ' o*~~ ., . Ijt~';~ . \~ ~~i1 ~;;:e~ ~ MUNICIPAL Ri:tIREMENf SYSTEM 1200 NORTH INT:RSTATE 35, AC 51'1/il76-75n , , POST OFFICE BOX 2225 AUSTI N. TEXAS 78768 July 23, 1982 Mrs. Mary Davis Director of Personnel City of La Porte P.O. Box 111.5 La Porte, Texas 77.571 Dea.r Mrs. Davis: The Updated Service Credit and Annuity Increases study for the City of La Porte has been completed. Enclosed you will find the specifications used in computing the retirement and annuity increase estimates and in calculating the City's contribution rate under the proposed plans of Updated Service Credit and Annuity Increases. Also, we have enclosed benefit estima,tes for both active employees and retirees under the various proposed plans. In looking at the various proposed plans, you will note that under Plan 1, the City can adopt 100% Updated Service Credit. Also, the City could adopt Plan A under Annuity Increases, ( . which would grant each retiree an increase equal to 70% of the change in the Consumer Price , Index, less previously granted increases. If the benefits of Plan I (Updated Service Credit) and Plan A (Annuity Increases) are adopted, the City's 1983 contribution rate will be 4.96%. In looking at the City's rate to adopt these increases, you will note that the 1983 rate is less than the 1982 rate the City is currently paying. The primary reason for this decrease is due to the fact that the City will have a new 2.5 year amortization period in which to fund the increased benefits. For an individual contemplating retirement in 1982, the deferment of retirement until 1983 should be considered, since in most cases the adoption of Updated Service Credit will significantly improve retirement benefits. In any case, employees should compare retirement benefits under the City's present plan with the estimated benefits shown on the attached listing before finalizing their retirement decision. R~cent amendments to the TMRS Act allow member cities of TMRS to adopt Updated Service Credit and Annuity Increases on an annual basis and we have had a great deal of interest from member cities in these benefits. Should you have any questions concerning the study or the retirement estimates, please feel free to call us for an explanation. We look forward to working with you in providing increased retirement benefits for your employees and retirees. Sincerely, . Gary W. Anderson, Administrative Assistant GW A/pjh Enclosures