Ord 57-2019 TMRS Plan Changes 11/5/2019
Ordinance No. 57-2019
Ordinance authorizing Updated Service Credits; authorizing an
increase in Retirement Annuities; providing for the dates of such
allowances and increases; providing for an increased member deposit
rate into the Texas Municipal Retirement System by City of Wichita
Falls employees from 5% to 7%; providing an effective date.
WHEREAS, the maximum annual earning upon which a City Employee is required
to contribute to the Texas Municipal Retirement System (TMRS) is will increase from 5%
to 7% for all non-civil service employees and,
WHEREAS, by statute, when a city changes its employee deposit rate and the city
offers Updated Service Credits/Annuity increases on an annually repeating basis, the city
must re-adopt these annual repeating provisions.
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY
OF WICHITA FALLS, TEXAS, THAT:
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, Government Code, as amended
ctthe
Texas Municipal Retirement System hereinafter referred to as the
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System in force and effect on the 1 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
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
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service, and was a contributing member on the 1 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
(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
compensation as an employee of the City.
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 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
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 benefit accumulation fund of the
System.
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, 2020, 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 Section 853.404
of the TMRS Act.
BE IT FURTHER ORDAINED:
Increased Deposit Rate. All employees of the City, who are members of the
Texas Municipal Retirement System, shall make deposits to the System at the rate of 7%
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of their individual earnings effective the 1 day of January, 2020.
Effective Date. Subject to approval by the Board of Trustees of the System, this
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ordinance shall be and become effective on the 1 day of January, 2020.
PASSED AND APPROVED this the 5th day of November, 2019.
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M A Y O R
ATTEST:
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City Clerk