1985-10-14 Regular Meeting - Laserfiche WebLink

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• • r ~-'~ ', d, PE rpFti 2 ~2 ~ ~ f y J~ y 0 3f +uar~M ~ TEXAS MIiNICIPAL RETIREMENT SYSTEM 1200 NORTH INTERSTATE 35, AC 5I2i476-7577 POST OFFICE BOX 2225 AUSTIN. TEXAS 78768 June 27, 1985 Mr. Doug Morena Director of Personnel City of La Porte P. O. Box 1115 La Porte, Texas 77571 Dear Mr. Morena: 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 estimates 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 ado t 10096 Updated Service Credit, including the Updated Service Credit for 9 transfer member(s) with unforfeited credit in other TMRS member cities. In addition, 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 1 (Updated Service Credit) and Plan A (Annuity Increases) are adopted, the City's 1986 contribution rate will be 6.86%. In looking at the City's rate to adopt these increases, you will note that the 1986 rate is only slightly more than the 1985 rate the City is currently paying. The primary reason for this slight increase is due to the fact that the City will have a new 25 year amortization period in which to amortize the additional cost. For an individual contemplating retirement in 1985, the deferment of retirement until 1986 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. The TMRS Act allows 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, i~ ~~ ~~~ Gary W. Anderson, Administrative Assistant GWA/pjh Enclosures F ~-