§ 2-84. Updated service credits.

(1)

Authorization of updated service credits.

(a)

On the terms and conditions set out in V.T.C.A., Government Code §§ 853.401 through 853.403, 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 first 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 thirty-six (36) months of credited service with the system, shall be and is hereby allowed "updated service credit" (as that term is defined in V.T.C.A, Government Code § 853.402(d)) in an amount that is one hundred (100) percent of the "base updated service credit" of the member (calculated as provided in V.T.C.A, Government Code 853.402(c)). The updated service credit hereby allowed 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.

(b)

In accordance with the provisions of V.T.C.A., § 853.401(d), the deposits required to be made in the system by employees of the several participating departments on account of current service shall be calculated from and after the date aforesaid on the full amount of such person's earnings as an employee of the city.

(2)

Increase in retirement annuities.

(a)

On terms and conditions set out in V.T.C.A., Government Code § 854.203, as amended, 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 this 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 seventy (70) percent 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 thirteen (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 hereby.

(e)

The amount by which an increase under this section exceeds all previously granted increases to an annuitant is an obligation of this city and of its account in the municipality accumulation fund of the system.

(3)

Effective dates of allowances and increases. The initial allowance of updated service credit and increase in retirement annuities hereunder shall be effective on January 1, 2007, 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 section ceases to be in effect under subsection 853.404(e) of the TMRS Act, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in subsection 853.404(d) of the TMRS Act.

(Ord. No. 86-224, §§ 1—3, 12-15-86; Ord. No. 91-268, §§ 1—3, 12-2-91; Ord. No. 91-282, §§ 1—3, 12-24-91; Ord. No. 95-293, § 1, 12-28-95; Ord. No. 97-299, §§ 1—3, 12-15-97; Ord. No. 2003-O-93, §§ 1—3, 4-21-03; Ord. No. 2006-O-330, §§ 1—3, 12-18-06)

Editor's note

Ord. No. 86-224, adopted Dec. 15, 1986, did not specifically amend this Code; hence, inclusion of §§ 1—3, § 2-84 was at the discretion of the editor.