1987-11-23 Regular Meeting - Laserfiche WebLink

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e e REOUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: 11/23/87 Requested By: B. Herrera Department: Administration Report Resolution xx Ordinance Ex h i bit s : TMRS Rate Analysis Memorandum TMRS Rate Schedule for 1988 TMRS Explanation of Plans Updated Service Credit and Increase in Retirement Annuities Ordinance Adopting S.B.505 Provisions SUMMARY & RECOMMENDATION The TMRS City Contribution rate in 1987 has been 7.05% of gross salaries. This rate has included the Basic Plan Offering, the Updated Service Credit provision and the annual retiree annuity increase. In order to provide these same plan options in addition to several benefit changes brought about by S.B.505, the City's 1988 contribution rate would become 7.78% of gross salaries. Approval of these TMRS options would reemphasize the City's commitment to an above average retirement benefit program for its employees. A combination of the City's budgeting schedule, the TMRS rate reporting schedule and changes in the TMRS Act (as a result of S.B.505) resulted in the City budgeting TMRS at a rate of 7.25% for 1988. In actuality, the 1988 contribution rate should be approximately 7.78%. The dollar differences in rates may be offset through the normal cause of attrition throughout the year when vacant positions' salaries are not expended but instead are credited against any TMRS funding shortages. This recommendation to adopt the updated service credit, retiree annuity increases and the provision of S.B.505 does not include the renewal of a 1984 ordinance which allows for buyback of forfeited TMRS service under another City. Staff does not feel comfortable recommending a higher TMRS contribution rate for 1988. This benefit should, however, be readdressed next budgetary session. Action Required by Council: Approval of Updated Service Credit Ordinance Approval of S.B.505 Provisions to the TMRS Act Availability of Funds: xx General Fund Capital Improvement Other Water/Wastewater General Revenue Sharing Account Number: nivi!';ionRl RlldgPT!,; Funds Available: XX YES NO ApDroved for City Council Agenda Q0-kd:. T th,\AQ./,+-, Robert T. Herrera City Manager \1 h'ot't'"l , DATE