(A) Authorization of Updated Service Credits.
(1) On the terms and conditions set out in Tex. Gov't Code, §§ 853.401 through 853.404 of Subtitle G of Title 8 as amended (hereinafter referred to as the “TMRS Act”), each member of the Texas Municipal Retirement System (hereinafter referred to as “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 36 months of credited service with the System, shall be and is hereby allowed “Updated Service Credit” (as that term is defined in Tex. Gov't Code, § 843.402(d) of the TMRS Act).
(2) On the terms and conditions set out in Tex. Gov't Code,§ 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 first 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 set forth in said Tex. Gov't Code, § 853.601, both as to the initial grant hereunder and all future grants under this section.
(3) 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 Tex. Gov't Code, § 863.402(c) of the TMRS Act).
(4) Each Updated Service Credit allowed hereunder shall replace any Updated Service Credit, prior service credit, or antecedent service credit previously authorized for part of the same service.
(5) In accordance with the provisions of Tex. Gov't Code, § 863.501(d) 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 section on the full amount of such person's compensation as an employee of the city.
(B) Increase in retirement annuities.
(1) On terms and conditions set out in Tex. Gov't Code, § 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.
(2) The amount of the annuity increase under Tex. Gov't Code, § 854.203 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 Tex. Gov't Code, § 854.203.
(3) 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.
(4) 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.
(5) The amount by which an increase under Tex. Gov't Code, § 854.203 exceeds all previously granted increases to an annuitant is an obligation of the city and its account in the municipality accumulation fund of the System.
(C) Dates of allowances and increases. The initial allowance of Updated Service Credit and Increase in Retirement Annuities hereunder shall be effective in January 1, 2001, 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 Tex. Gov't Code, § 853.404(e) of the TMRS Act, provided that as to such subsequent year, the actuary for the TMRS system has made the determination set forth in Tex. Gov't Code, § 853.404(d) of the TMRS Act.
(Ord. 2001-14, passed 9-4-01)