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<br /> e . <br /> REOUEST FOR CITY COUNCIL AGENDA ITl!..lv1 <br /> Agenda Date Requested: December 12. 1994 <br /> Requested By: Louis Ri!!bv Department: Human Resources <br /> Report Resolution XXX Ordinance <br /> Exhibits: Ordinance <br /> SUMMMlY & RECOMMENDATION <br /> The Texas Municipal Retirement System (TMRS) Act allows member cities to adopt Updated Service Credits and <br /> Annuity Increases, providing cities the opportunity to upgrade retirement benefits for both active employees and <br /> retirees who are currently receiving a monthly annuity from the System. In November of 1992, Council adopted <br /> an ordinance which accomplished this upgrade and asked that they be able to review these upgrades on an annual <br /> basis. <br /> By adopting the 100% Updated Service Credit effective January I, 1995, a member's retirement benefits will be <br /> recalculated based on the member's average monthly salary for the three year period of 1991, 1992, and 1993. The <br /> member's retirement benefits are "updated" based on the higher wages earned in recent years. <br /> Adoption of the ordinance also increases the monthly annuities being paid to its retirees. The increase that can be <br /> granted to retirees is calculated based on a maximum of 70 % of the change in the Consumer Price Index, less any <br /> previously granted increases. <br /> This ordinance is non-repeating and will be effective January 1, 1995. Any future updates will require adoption <br /> of a new ordinance. With the adoption of this ordinance, the City's contribution rate will be 9.62 % of gross <br /> salaries. Approval would increase the City's contribution by approximately $4,600 for 1995. Adopting this <br /> ordinance would allow the City to have 25 years in which to amortize the additional cost. <br /> Action Required by Council: <br /> Adoption of an ordinance authorizing Updated Service Credits and increased annuities for 1995. <br /> A vailability of Funds: <br /> General Fund Water/Wastewater <br /> Capital Improvement General Revenue Sharing <br /> Other <br /> Account Number: Various Funds Available: X Yes No <br /> Aooroved for Citv Council Aeenda <br /> Q~ T. ~n l1..-i.-QL.\. <br /> Robert T. Herrera Date <br /> City Manager <br />