1996-12-16 Regular Meeting - Laserfiche WebLink

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REQU FOR CITY COUNCIL AGEND~TEM Agenda Date Requested: Decem 1996 Requested By: Louis Riebv '~ Department: Administration Report Resolution Ordinance Exhibits: SUMMARY AND RECOMMENDATION The Texas Municipal Retirement System allows a current employee to buy back forfeited TMRS service if the City adopts such an ordinance and the . employee has been employed by the City for at least two years. The last time this ordinance was adopted was in February, 1984. Anyone hired after that date would not be eligible unless a new ordinance is passed. There are approximately 25 employees who have eligible forfeited service. The cost to a particular employee would be a lump sum equal to the amount withdrawn from the system, plus a withdrawal charge computed at an annual rate of five (5) percent. Prior to the adoption of this provision, TMRS would be required to complete a buy back study to determine the cost to the City. The last such study was done in 1995 but would have to be updated. At that time, TMRS determined that the cost to the City would be an additional $18,800 per year. This cost would be paid by City regardless of the number of employees who actually bought back time, This item is place before you for discussion only. If Council so directs, TMRS will be instructed to perform the buy back study and staff will return at a later date for your formal consideration. Action Required by Council: Provide direction to staff on whether or not to continue the process for consideration of this option. Availability of Funds: _General Fund _WaterlWastewater _Capital Improvement _General Revenue Sharing _Other Account Number: Funds Available: Yes No Approved for City Council Agenda ~~Tl ~ 1'2..- \'L-qb Robert T. Herrera, Date City Manager