1993-11-08 Regular Meeting - Laserfiche WebLink

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e e REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date Requested: Human Resources Requested By: Report xxx Ordinance Exhibits: Ordinance SUMMARY & RECOMMENDATION The Texas Municipal Retirement System (TMRS) Act allows member cities to adopt Updated Service Credits and Annuity Increases, providing cities the opportunity to upgrade retirement benefits for both active employees and retirees who are currently receiving a monthly annuity from the System. In November of 1992, Council adopted an ordinance which accomplished this upgrade and asked that they be able to review these upgrades on an annual basis. By adopting the 100% Updated Service Credit effective January 1, 1994, a member's retirement benefits will be recalculated based on the member's average monthly salary for the three year period of 1990, 1991, and 1992. The member's retirement benefits are .updated. based on the higher wages earned in recent years. Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The increase that can be granted to retirees is calculated based on a maximum of 70% of the change in the Consumer Price Index, less any previously granted increases. This ordinance is non-repeating and will be effective January 1, 1994. Any future updates will require adoption of a new ordinance. With the adoption of this ordinance, the City's contribution rate will be 9.03% of gross salaries. Without adoption, the rate would be 9.04%. Adopting this ordinance would allow the City to have 25 years in which to amortize the additional cost. Action Required by Council: Adoption of an ordinance authorizing Updated Service Credits and increased annuities for 1994. A vailabllity of Funds: General Fund _ Capital Improvement Other _ WaterlWastewater _ General Revenue Sharing Account Number: Various Funds Available: X Yes _ No /;f~ Date