1987-11-23 Regular Meeting - Laserfiche WebLink

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e e TEXAS MUNICIPAL RETIREMENT SYSTEM 1200 NORTH INTERSTATE 35. POST OFFICE BOX 2225 AUSTIN, TEXAS 787b8 AC 512/.o!7b.7577 August 14, 1987 Mr. Doug De La Morena Director of Personnel City of La Porte P. O. Box 1115 La Porte, Texas 77571 Dear Doug: The Updated Service Credit and Annuity Increases study for the City of La Porte has been completed. Enclosed is an Explanation of Plans, along with benefit estimates for both active employees and retirees under the various proposed plans. Under Plan 2, the City can adopt 100% Updated Service Credit, including the Updated Service Credit for 11 transfer member(s) with unforfeited credit in other TMRS member cities. This plan also includes the adoption of the following provisions of Senate Bill 505: 1) 2) 3) 4) Retirement at any age with 25 years of creditable service, Survivor benefits for the spouse of deceased employees who are vested at the time of death, Occupational disability retirement plan allowing certain benefits for employees who become disabled to perform their particular job or occupation, Prior service credit for those employees previously ineligible for TMRS membership due to age at the time of employment, who will become members of TM RS effective September 1, 1987. Our records indicate you have no over-age employee(s). 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 previously granted increases exceed the percentage of the change in the CPI since retirement, the retiree will not receive an increase and will retain their present benefit. If the benefits of Plan 2 (Updated Service Credit) and Plan A (Annuity Increases) are adopted, the City's 1988 contribution rate will be 7.78%. The City will have twenty-five years in which to amortize the additional cost of these benefits. Because of the retirement plan improvements that your employees and the City will realize at a small additional cost, we highly recommend that the City adopt the S.B. 505 provisions described in the second paragraph. We have had a great deal of interest from our member cities in these provisions. Should you have any questions regarding the study, please feel free to contact our office. G WAlle Enclosures Sincerely, u.~1f (l~ ary * Anderson Assistant Director