G-09-12-17-7A1 - 12/17/2009ORDINANCE NO. GT- O" 11.--(1--1-k1
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AN ORDINANCE ELECTING FOR THE CITY TO MAKE CURRENT
SERVICE AND PRIOR SERVICE CONTRIBUTIONS TO THE CITY'S
ACCOUNT IN THE MUNICIPAL ACCUMULATION FUND OF THE
TEXAS MUNICIPAL RETIREMENT SYSTEM AT THE
ACTUARIALLY DETERMINED RATE OF TOTAL EMPLOYEE
COMPENSATION.
WHEREAS, the City of Round Rock (the "City") , is a
participating municipality in the Texas Municipal Retirement
System (the "System"), and has undertaken to provide certain
retirement, death and disability benefits to its employees
pursuant to Subtitle G, Title 8, Government Code, (hereinafter,
the "TMRS Act"); and
WHEREAS, the City Council desires to authorize funding of
such benefits as herein provided; Now Therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ROUND
ROCK, TEXAS:
I.
Section 1. Pursuant to Section 855.407(g) of the TMRS
Act, the City hereby elects to make future normal and prior
service contributions to its account in the municipal
accumulation fund of the System at such combined rate of the
total compensation paid by the City to employees who are members
of the System, as the System's actuary shall annually determine
as the rate necessary to fund, within the amortization period
determined as applicable to the City under the TMRS Act, the
costs of all benefits which are or may become chargeable to or
are to be paid out of the City's account in said accumulation
C:\wdox\SCC1nts\0112\0905\MUNICIPAL\091217A1.DOC/rmc
fund, regardless of other provisions of the TMRS Act limiting
the combined rate of City contributions.
Section 2. The provisions of the ordinance shall become
effective on the first day of January, 2010.
II.
A. All ordinances, parts of ordinances, or resolutions in
conflict herewith are expressly repealed.
B. The invalidity of any section or provision of this
ordinance shall not invalidate other sections or provisions
thereof.
C. The City Council hereby finds and declares that
written notice of the date, hour, place and subject of the
meeting at which this Ordinance was adopted was posted and that
such meeting was open to the public as required by law at all
times during which this Ordinance and the subject matter hereof
were discussed, considered and formally acted upon, all as
required by the Open Meetings Act, Chapter 551, Texas Government
Code, as amended.
Alternative 1.
By motion duly made, seconded and passed with an
affirmative vote of all the Council members present, the
requirement for reading this ordinance on two separate days was
dispensed with.
READ, PASSED, and ADOPTED on first reading this (q41 day
of , 2009.
2
Alternative 2.
READ and APPROVED on first reading this the
, 2009.
day of
READ, APPROVED and ADOPTED on second reading this the
day of , 2009.
ATTEST:
SARA L. WHITE, City Secretary
Gee )(IA(A—
ALAN MCGRAW, Mayor
City of Round Rock, Texas
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DATE: December 8, 2009
SUBJECT: City Council Meeting — December 17, 2009
ITEM: 7A1. Consider an ordinance electing to make current service and prior service
contributions to the City's account in the municipal accumulation fund of the
Texas Municipal Retirement System at the actuarially determined rate of total
employee compensation. (First Reading)
Department:
Staff Person:
Justification:
Human Resources
Teresa S. Bledsoe, Human Resources Director
By adopting this ordinance, the city is agreeing to fully fund the costs of the pension benefits included in
the City's plan.
The Maximum Contribution Rate Limit commonly referred to as the Statutory Maximum, or "Stat Max"
is set by the TMR Act. The Act sets a limit as to the maximum amount the System can require a City to
contribute in a given year, based on the level of benefits the city has chosen to provide. The Stat Max
does not limit the cost of a plan; it merely limits how much a city can be charged for a certain benefit
level, which may not be sufficient to fund to cost in a given year. The TMRS Act also allows any city to
enact an ordinance that removes the Stat Max. Cities that joined TMRS after 1996 are not subject to the
Stat Max law, and many TMRS cities have enacted ordinances to remove the maximum limit. Failure to
take action will result in the suspension of cost of living adjustments and updated service credit for
current City retirees.
Strategic Plan Relevance:
Funding:
Cost:
There is no cost associated with this ordinance. TMRS has already been included in the approved
2009/2010 budget.
Source of funds: TMRS employer's contributions are paid from both general and utility funds.
Outside Resources: N/A
Public Comment: N/A