2001-12-10 Regular Meeting, Public Hearing, and Workshop Meeting

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e . REQUEST FOR CITY COUNCIL AGENDA ITEM Agenda Date IIoqn_: D"'"1~OOI Requested By: Carol Buttle~ Department: Administrative Services AIJPropriation Source of Funds: Various Account Number: Report: Resolution: Ordinance: X Amount Budgeted: Exhibits: Ordinance Amount Requested: Exhibits: TMRS SUPIJortine: Documentation Budgeted Item: YES NO Exhibits: SUMMARY & RECOMMENDATION The Texas Municipal Retirement System Act (TMRS) enables member cities to adopt Updated Service Credits and Increased Annuities, providing cities the opportunity to upgrade retirement benefits for active employees and for retirees who currently receive a monthly annuity from TMRS. By adopting Updated Service Credits at 100% for the year 2002, Council allows a member's retirement benefit to be recalculated based on the member's average monthly salary for the three (3) year period ending December 31, 2000. The member's retirement benefit is "updated" to reflect higher wages that were earned for those three (3) years. By including Increased Annuities, Council allows an increase for monthly annuities paid to City of La Porte retirees. The increased calculation is based on a maximum of 70% of the change in the Consumer Price Index, less any previously granted increases. This ordinance becomes effective January I, 2002, and is non-repeating (in effect only for the year 2002). Any future updates require adoption of a new ordinance prior to December 31 st of each year. Adopting this ordinance will increase the City's contributions by approximately $32,000 for 2002, affecting current employees and retirees, (approximately 414). StafTRecommendation Approve an ordinance authorizing Updated Service Credits and Increased Annuities for 2002. Action Reauired bv Council: Adopt an ordinance authorizing Updated Service Credits and Increased Annuities for 2002. Approved for Citv Council Aeenda D~~;;