1993-228L:\WPDOCS\ORD\UPDATED.SVC
ORDINANCE NO. 96 _ 2 28
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 IN-
CREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES AND
BENEFICIARIES OF DECEASED RETIREES OF THE CITY; AND ESTABLISHING AN
EFFECTIVE DATE FOR THE ORDINANCE.
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the City council authorizes updated service
credits pursuant to the following terms:
(a) On the terms and conditions set out in Sections 853.401
through 853.404 of Subtitle G of Title 8, V.T.C.A., Government
Code, as amended (hereinafter referred to as the 1TMRS ACT"), each
member of the Texas Municipal Retirement System (hereinafter refer-
red 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
in 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 with this City, who has
unforfeited credit for prior service and/or current service with
another participating municipality 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 in said
Section 853.601, both as to the initial grant hereunder and all
future grants under this ordinance.
(c) The Updated Service Credit hereby allowed and provided for
shall be 1009. of the "base Updated Service Credit" of the member
(calculated as provided in subsection (c) of Section 853.402 of the
TMRS Act).
(d) Each Updated Service 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 with the provisions of subsection (d) of
Section 853.401 of the TMRS Act, the deposits required to be made
to the System by employees of the several participating departments
on account of current service shall be calculated from and after
the effective date of this ordinance on the full amount of such
person's compensation as an employee of the City.
SECTION II. That the City Council authorizes the increase in
retirement annuities pursuant to the following terms:
(a) On terms and conditions set out in Section 854.203 of the
TMRS Act, the City hereby elects to allow and to provide for pay-
ment of the increases below stated in monthly benefits payable by
the System to retired employees and to beneficiaries of deceased
employees of the City under current service annuities and prior
service annuities arising from service by such employees to the
City. An annuity increased under this Section replaces any annuity
or increased annuity previously granted to the same person.
(b) The amount of the annuity increase under this Section is
computed as the sum of the prior service and current service
annuities on the effective date of retirement of the person on
whose service the annuities are based, multiplied 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 to the December that is 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 a computation hereunder does not result in an increase
in the amount of an annuity, the amount of the annuity will not be
changed hereunder.
(e) The amount by which an increase under this Section exceeds
all previously granted increases to an annuitant is an obligation
of the City and of its account in the municipality accumulation
fund of the System.
SECTION III. That the City Council sets the effective date
for the initial allowance of updated service credit and the
increase in retirement annuities pursuant to the following terms:
That the initial allowance of Updated Service Credit and
increase in retirement annuities hereunder shall be effective on
January 1, 1994, subject to approval by the Board of Trustees of
the System. An allowance of Updated Service Credits and an
increase in retirement annuities shall be made hereunder on January
1 of each subsequent year until this ordinance ceases to be in
effect under subsection (e) of Section 853.404 of the TMRS Act,
provided that, as to such subsequent year, the actuary for the
System has made the determination set forth in subsection (d) of
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Section 853.404 of the TMRS Act.
SECTION IV. That subject to approval by the Board of Trustees
of the System, this ordinance shall be and become effective on the
1st day of January, 1994.
PASSED AND APPROVED this the 7~-A day of -4L,2a~' 1993.
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BOB CASTLEBERRY,
~ / ,ate
BY: QOJ
APPROVED AS TO LEGAL FORM:
DEBRA A. DRAYOVITCH, CITY ATTORNEY
Gr-
BY: '3'-41
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