G-06-06-08-9A1 - 6/8/2006ORDINANCE NO. - DLO- 0ID"Q g- 4 R
AN ORDINANCE ALLOWING CERTAIN EMPLOYEES OF THE CITY,
WHO HAVE TERMINATED PREVIOUS MEMBERSHIPS IN THE TEXAS
MUNICIPAL RETIREMENT SYSTEM, TO DEPOSIT THE SUMS SO
WITHDRAWN, PLUS ANNUAL WITHDRAWAL CHARGES, AND
ALLOWING AND UNDERTAKING THE COST OF ALLOWING ANY SUCH
EMPLOYEE CREDIT IN SUCH SYSTEM FOR ALL SERVICE TO WHICH
SUCH EMPLOYEE HAD BEEN ENTITLED AT DATE OF SUCH
WITHDRAWAL, WITH LIKE EFFECT AS IF ALL SUCH SERVICE HAD
BEEN PERFORMED AS AN EMPLOYEE OF THE CITY OF ROUND ROCK,
TEXAS.
WHEREAS, the actuary of the Texas Municipal Retirement System
has determined that all obligations charged against the City's account
in the municipality accumulation fund, including the obligations
arising as a result of this ordinance, can be funded by the City within
its maximum contribution rate and within its amortization period, and
WHEREAS, the City Council has determined that adoption of this
ordinance is in the best interests of the City, Now Therefore
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK, TEXAS:
I.
Pursuant to Section 853.003 of Subtitle G of Title 8, V.T.C.A.,
Government Code, as amended, the City of Round Rock hereby elects to
allow any member of the Texas Municipal Retirement System who is an
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employee of this City on the 0 — day of the month of June, 2006, who
has terminated a previous membership in said System by withdrawal of
deposits while absent from service, but who has at least twenty-four
(24) months of credited service as an employee of this City since
resuming membership, to deposit with the System in a lump sum the
amount withdrawn, plus a withdrawal charge of five percent (5%) of such
060608a1.wpd/jkg
1.
amount for each year from date of such withdrawal to date of redeposit,
and thereupon such member shall be allowed credit for all service to
which the member had been entitled at date of termination of earlier
membership, with like effect as if all such service had been rendered
as an employee of this City, whether so rendered or not. The City
agrees to underwrite and hereby assumes the obligations arising out of
the granting of all such credits, and agrees that all such obligations
and reserves required to provide such credits shall be charged to this
City's account in the municipality accumulation fund. The five percent
(5%) per annum withdrawal charge paid by the member shall be deposited
to the credit of the City's account in said municipality accumulation
fund; and the deposits of the amount previously withdrawn by the member
shall be credited to his or her individual account in the employees'
savings fund of the System.
II.
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This ordinance shall become effective on the O day of the
month of June, 2006, which is a date on or after the date set forth in
Section I. above.
III.
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 hereof.
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
2.
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.
th)
READ, PASSED, and ADOPTED on first reading this S - day of _
, 2006.
Alternative 2.
READ and APPROVED on first reading this the day of
, 2006.
READ, APPROVED and ADOPTED on second reading this the
day of , 2006.
ATTEST:
CHRISTINE R. MARTINEZ, City Sec
NYL V ELL, - or
City . Round Rock, Texas
etary
3.
DATE: June 1, 2006
SUBJECT: City Council Meeting - June 8, 2006
ITEM: 9.A.1. Consider an ordinance providing for Texas Municipal Retirement
System (TMRS) buy-back provision. (First Reading)
Department: Human Resources
Staff Person: Teresa Bledsoe, Director
Justification:
This ordinance allows certain employees of the City who have terminated previous
memberships in the TMRS, to deposit the sums withdrawn, plus annual withdrawal charges,
and allowing and undertaking the cost of allowing any such employee credit in the system for
all service to which an employee had been entitled to at date of withdrawal.
There were 25 employees eligible to buy- back service as of 1/20/06.
The City's contribution rate will not be changed immediately upon adoption. It is only
impacted as an eligible employee buys -back his or her previously forfeited credit. Each year,
after adoption of the Buy -Back provision, the City's contribution rate will reflect all actual buy-
backs through the current valuation date. This is an excellent retention tool.
Funding:
Cost: The eventual effect on the city's contribution rate could be an increase of .07%. The
city's contribution rate will not be affected immediately.
Source of funds: General Fund, Water/Waster Utility Fund
Outside Resources: N/A
Background Information:
The last TMRS buy-back Ordinance was approved on April 11th, 2002.
Public Comment: N/A