OR 91-534 Texas Municipal Retirement System to Update Service Credits AN ORDINANCE OF THE CITY OF COPPELL, TEXAS
ORDINANCE NO. 91534
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 COPPELL~ PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE
ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY~
AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COPPELL, TEXAS:
Section 1. Authorization of Updated Service Credits.
(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 "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 of Coppell
(hereinafter called 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
Updated Service Credit Ordinance (continued) Page 2
municipality or municipalities by reason of previous service, and was a
contributing member on January 1, 1991, 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 100% 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.
(ei 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 2. Increase in Retirement Annuities.
(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 payment 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
Updated Service Credit Ordinance (continued/ Page 3
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 3. Dates of Allowances and Increases.
The initial allowance of Updated Service Credit and increase in retirement
annuities hereunder shall be effective on January 1, 1992, 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 i of each subsequent year until this ordinance ceases
Updated Service Credit Ordinance (continued/ Page 4
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 Section
853.404 of the TMRS Act.
Section 4. Effective Date. Subject to approval by the Board of
Trustees of the System, this ordinance shall be and become effective on
the 1st day of January 1992.
APPROVED
Mark Wolfe
MAYOR
ATTEST:
Dorothy Timmons
CITY SECRETARY
APPROVED AS TO FORM:
Lawrence W. Jackson
CITY ATTORNEY
TMRSORDI.