1999-292O IN CE NO qq-dq
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT GOVERNING
THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS" IN
SAID SYSTEM ON AN ANNUAL BASIS FOR SERVICE PERFORMED BY QUALIFYING
MEMBERS OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE OF THE ALLOWANCE
ARE IN THE EMPLOYMENT OF THE CITY OF DENTON, PROVIDING FOR INCREASED
PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES OF
DECEASED RETIREES OF THE CITY, TO INCREASE THE RATE OF DEPOSITS TO THE
TEXAS MUNICIPAL RETIREMENT SYSTEM BY THE EMPLOYEES OF THE CITY, AND
ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS
SECTION 1 Authorization of Updated Service Credits
A
On the terms and con&Uons set out in Sections 853 401 through 853 404 of
Subtitle G of Title 8, Government Code, as amended (hereinafter referred to as
the "TMRS ACT"), each member of the Texas Municipal Retirement System
(hereinafter referred to as the "System") who has current service credit or prior
service credit in the System in force and effect on the 1st day of January of the
calendar year preceding such allowance, by reason of service in the employment
of the City, and on such date had at least 36 months of credited service with the
System, shall be and is hereby allowed "Updated Service Credit" (as that term is
defined m subsection (d) of Section 853 402 of the TMRS Act)
B
On the terms and conditions set out in Section 853 601 of the TMRS Act, any
member of the System who is eligible for Updated Service Credits on the basis of
service voth this City, who has unforfelted credit for prior service and/or current
service with another partlmpatlng mumclpallty or municipalities by reason of
previous service, and was a contributing member on the 1st day of January of the
calendar year preceding such allowance, shall be credited with Updated Service
Credits pursuant to, calculated in accordance with, and subject to adjustment as
set forth m smd Section 853 601, both as to the lmtlal grant hereunder and all
future grants under tins ordinance
C
The Updated Service Credit hereby allowed and provided for shall be 100% of the
"Base Updated Serrate Credit" of the member (calculated as provided in
subsection (c) of Section 853 402 of the TMRS Act)
D
Each Updated Serrate Credit allowed hereunder shall replace any Updated
Service Credit, prior service credit, special prior service credit, or antecedent
service credit previously authorized for part of the same service
E
In accordance wxth the prowslons of subsectxon (d) of Section 853 401 of the
TMRS Act, the deposits required to be made to the System by employees of the
several partlclpatxng departments on account of current service shall be calculated
from and after the effectxve date of tfus ordtnance on the full amount of such
person's compensation as an employee of the Cxty
SECTION2 Increase m Ret~rament Annmtles
A
On terms and conditions set out an Section 854 203 of the TMRS Act, the C~ty
hereby elects to allow and to provide for payment of the increases below stated
monthly benefits payable by the System to retired employees and to beneficiaries
of deceased employees of the City under current servme annmtms and prior
service annmtms arising fi'om service by such employees of the City An annuity
increased under this Section replaces any annmty or increased annmty previously
granted to the same person
B
The amount of the annuity increase under this Section as computed as the sum of
the prior servme and current service annumes on the effective date of retirement
of the person on whose service the annmtms are based, multaphed by 70% of the
percentage change in Consumer Price Index for All Urban Consumers, from
December of the year immediately preceding the effective date of the person's
retirement of the December that as 13 months before the effective date of this
Section
C
An increase in an annuity that was reduced because of an option selection is
reducible in the same proportion and in the same manner that the original annuity
was reduced
D
If an computation hereunder does not result in an ~ncrease an the amount of an
annmty, the amount of the annuity will not be changed hereunder
E
The amount by which an increase under this Section exceeds all prewously
granted increases to an annmtant as an obhgataon of the City and of its account in
the mumcipahty accumulation fund of the System
SECTION 3 Dates of Allowances and Increases The lmtlal allowance of Updated
Servme Credit and Increase an Retaremant Annumes hereunder shall be effective on January 1,
2000, subject to approval by the Board of Trustees of the System An allowance of Updated
Service Credits and an increase m retirement annumes shall be made hereunder on January 1 of
each subsequent year until this or~hnance ceases to be an effect under subsection (e) of Section
853 404 of the TMRS Act, prowded that, as to such subsequent year, the actuary for the System
has made the determination set forth in subsection (d) of Section 853 404 of the TMRS Act
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~ Increased Deposit Rate All employees of the C~ty who are members of the
Texas Mtm~c~pal Retirement System, shall make deposits to the System at the rate of 7% of their
individual earnings
~ Effective Date Subject to approval by the Board of Trustees of the
System, tlus orchnance shall be and become effective on the 1st day of January, 2000
P^SSED ~,~ ApPROVED t~s the dayof ~~C/, ~999
JACK ~t~E ,
ATTEST
JENNIFER WALTERS, CITY SECRETARY
APPROVED AS TO LEGAL FORM
HERBERT L PROUTY, CITY ATTORNEY
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