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HomeMy WebLinkAboutO-1980-1237 e . e e . . ORDINANCE NO. 1237 AN ORDINANCE DETERMINING TO GRANT, PROVIDING FOR AND ALLOWING, UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM: "UPDATED SERVICE CREDIT" IN SAID SYSTEM FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF SUCH SYSTEM IN THE EMPLOYMENT OF THE CITY OF LA PORTE, ELECTING AND PRESCRIBING THE EFFECTIVE DATE OF SUCH UPDATED SERVICE CREDITS, AUTHORIZING AND PROVIDING FOR ALLOWANCE OF INCREASES IN MONTHLY BENEFITS PAYABLE BY TEXAS MUNICIPAL RETIREMENT SYSTEM TO RETIRED EMPLOYEES AND TO BENEFICIARIES OF DECEASED EMPLOYEES, UNDER CURRENT SERVICE ANNUITIES ARISING FROM SERVICE OF SUCH EMPLOYEES TO THIS CITY; THE ADOPTION OF THE PLAN PROVISIONS OF SECTION XX OF ARTICLE 6243h, VERNON'S TEXAS CIVIL STATUTES, AND GRANTING THE ADDI- TIONAL RIGHTS, CREDITS, AND BENEFITS THEREIN AUTHORIZED; THE PARTICIPATION OF THE CITY IN THE SUPPLEMENTAL DEATH BENEFITS FUND OF THE TEXAS MUNICIPAL RETIREMENT SYSTEM, TO PROVIDE CER- TAIN IN-SERVICE DEATH BENEFITS FOR EMPLOYEES, AND DEATH BENE- FITS FOR ANNUITANTS WHOSE LAST EMPLOYMENT BEFORE RETIREMENT WAS WITH THE CITY OF LA PORTE, TEXAS; ALLOWING CERTAIN EMPLOYEES OF THE CITY WHO HAVE TERMINATED PREVIOUS MEMBERSHIPS IN THE TEXAS MUNICIPAL RETIREMENT SYSTEM, TO DEPOSIT THE SUMS SO WITH- DRAWN, PLUS ANNUAL WITHDRAWAL CHARGES, AND ALLOWING AND UNDER- TAKING THE COST OF ALLOWING ANY SUCH EMPLOYEE CREDIT IN SUCH SYSTEM FOR ALL SERVICES TO WHICH SUCH EMPLOYEE HAD BEEN ENTITLED AT DATE OF SUCH WITHDRAWAL, WITH THE EFFECT AS IF ALL SUCH SER- VICE HAD BEEN PERFORMED AS AN EMPLOYEE OF THIS CITY. BE IT ORDAINED BY THE CITY COUNCIL OF LA PORTE, TEXAS: Section 1. Initial Allowance of Updated Service Credits. (a) On the terms and conditions set out in Section XVII of Article 6243h, Vernon's Texas Civil Statutes, as amended 1975, each member of Texas Municipal Retirement System who has current service credit or prior service credit in said System in force and effect on the 1st day of January, 1981, by reason of service in the employment of the City of La Porte, shall be and is hereby allowed "updated service credit" (as that term is defined in said act) in an amount that is 100% of the "Base Updated Service Credit" of the member, calculated as provided in said act. The updated service credit hereby allowed shall be in lieu of and in substitu- tion for all Prior Service Credits, Special Prior Service Credits, and Antecedent Service Credits, if any, heretofore, allowed such member by reason of service with the City of La Porte. (b) In accordance with the provisions of said act, the de- posits required to be made to the Texas Municipal Retirement System by employees of the several participating departments on account of current service shall be calculated from and after the date afore- said on the full amount of such person's earnings as an employee of the City. . . Ordinance No. 12~7, Page 2 (c) Subject to approval of the Board of Trustees of Texas ~ Municipal Retirement System, the updated service credits hereby granted shall be and become effective the 1st day of January, 1981. Section 2. Initial Increases in Annuities in Effect. (a) Pursuant to Section XVIII of Article 6243h, Vernon's Texas Civil Statutes as amended and subject to approval by the Board of Trustees of Texas Municipal Retirement System as provided in said act, the City of La Porte hereby elects to allow and to provide for payment of the increases below specified in all monthly benefits payable by Texas Municipal Retirement System after the 1st day of January, 1981 to retired employees and to beneficiaries e of deceased employees of this City under current service annuities and prior service annuities arising from service of such employee to this City, and in effect prior to the date last above mentioned. (b) Each such monthly benefit for the month of January, 1981, and each month thereafter shall be increased by 50% above the amount of the regular benefit (as distinguished from any supplemental or distributive benefit) in effect for the month of December, 1980. Section 3. Adoption of Plan Provisions of Section XX, V.T.C.S. Article 6243h. Pursuant to Section XX of Article 6243h, Vernon's Texas Civil Statutes, as amended, the City of La Porte, adopts the following e plan provisions affecting participation of its employees in the Texas Municipal Retirement System: (a) Each person who becomes an employee of any participating department of this City and who is not already a member of the Texas Municipal Retirement System shall become a member of the System as a condition of employment, provided such person is then under sixty (60) years of age; (b) Any member, after one (1) year from the effective date of membership, shall be eligible for service retirement.who has attained the age of fifty (50) years and has completed twenty-five (25) years of creditable service with this City or who has attained ~ the age of sixty (60) years and has completed at least ten (10) years of creditable service with participating municipalities which have adopted the plan provisions of this section, or who has become eligible for service retirement under any other applicable pro- vision of Article 6243h, Vernon's Texas Civil Statutes; (c) The membership of any member who has completed at least ten (10) years of creditable service with this City and other par- ticipating municipalities which have adopted the plan provisions of Section XX of Article 6243h, Vernon's Texas Civil Statutes shall not terminate because of absence from service; and (d) Any person who is an employee of a participating depart- ment of this municipality at the effective date of this ordinance, but who at the date of his employment was under sixty (60) years of age but did not become a member of Texas Municipal Retirement System because he was then above the maximum age then prescribed by law for initial membership in the System, shall become a member of the System at the effective date of this ordinance, unless he has already become a member under other provisions of the governing act, and shall be allowed prior service credit for each month of creditable service performed for this municipality subsequent to the date such person was precluded from membership and prior to the effective date of his membership. Such prior service credit shall be calculated using the same percentage of the base prior service credit as was most recently used in calculating Prior Service Credits or Updated Service Credits in said System for cur- rent member employees of this City. (e) The rights, credits and benefits hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this ordinance pursuant to the Act governing said System. (f) These provisions shall become effective on January 1, 1981, provided it has previously been determined by the Actuary for the System that the additional obligations herewith undertaken can be funded within the period prescribed by the Act above cited, and will not result in probable depletion of this City's account 4It in the Prior Service Accumulation Fund of the System. e e - . . Ordinance No. 1237 , Page 3 - -- e e . . Ordinance No. 1237 , Page 5 shall be charged to this City's account in the Municipality Prior Service Accumulation Fund. The five percent (5%) per annum with- drawal charge paid by the member shall be deposited to the credit of the City's account in said Municipality Prior Service Accumula- tion Fund; and the deposits of the amount previously withdrawn by the member shall be credited to his individual account in the Employees Savings Fund of the System. (b) This provision shall become effective on the 5th day of November, 1980, which is a date on or after the date set forth in Section 5, above. PASSED AND APPROVED this the 5th day of November, 1980. CITY OF ....- ATTEST: ~cJ2 i)~) 'Ci Y Se retary ~:~~ City Attorney