G-02-04-11-15C1 - 4/11/2002ORDINANCE NO. 4- o -o-//-//
AN ORDINANCE ALLOWING CERTAIN EMPLOYEES OF THE CITY WHO
HAVE TERMINATED PREVIOUS MEMBERSHIPS IN 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RETIREMENT SYSTEM, TO DEPOSIT THE SUMS SO WITHDRAWN, PLUS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 THIS CITY, AND REPEALING ALL CONFLICTING
ORDINANCES OR RESOLUTIONS AND PROVIDING FOR AN EFFECTIVE
DATE.
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 CITY 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 Texas Municipal Retirement System who is an
employee of this City on the 12th day of April, 2002, who has
terminated a previous membership in said System by withdrawal of
::ODMA\WORLDOX\O \WDOX\ORDINANC\020411C1.WPD/cr
deposits while absent from service, but who has at least 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to deposit with the System in a lump sum the amount withdrawn, plus a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 per cent (5%) of such 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 the 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 of Round Rock 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 per cent
(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
saving fund of the System.
II.
This ordinance shall become effective on the 12th day of April,
2002, which is a date on or after the date set forth in Section I. above.
2
ER.
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 Resolution was adopted was posted and that such meeting was open
to the public as required by law at all times during which this
Resolution 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 //-- day of
, 2002.
Alternative 2.
READ and APPROVED on first reading this the day of
, 2002.
3
READ, APPROVED and ADOPTED on second reading this the
day of , 2002.
1
RO ' ' A. STLUKA, JR. J/Mayor
City of Round Rock, Texas
ATTEST:
CHRISTINE R. MARTINEZ, City Secre
4
TEXAS MUNICIPAL RETIREMENT SYSTEM
c roviding rciirement security for 9.xas municipal employees.
P. 0. Box 149153 • Ausnn, TExAs 78714-9153 • 1200 NORTH INTERSTATE 35 • www.tmrs.com
ADMINISTunas: (512) 476-7577 Oit Tot.t,-FnEE (877) 634-8595 • FAx: (512) 476-2903
MEmeXR Strwrus: TOLL-FatE (800) 924-8677 • FAX: (512) 476-5576
February 26, 2002
VIA FAX: 218.5493
AND U.S. MAIL
Ms. Linda Gunther
Personnel Manager
City of Round Rock
221 East Main
Round Rock, Texas 78664
Re: Buy Back Study
Dear Linda:
We have completed the "Buy -Back" study for your City and it has been calculated that the potential
impact upon the City's contribution rate of the adoption of the Buy -Back provision could be 0.46%.
The City's contribution rate will not be changed immediately upon adoption of this provision. The
contribution rate will only change after an eligible employee buys -back his or her previously forfeited
credit. Any repurchase of previously forfeited credit will be included in the following year's actuarial
valuation. 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.
I feel certain that the City will want to adopt this provision; therefore I am enclosing the necessary
model ordinance. Please note, the dates in Sections 1 and 2 of the adopting ordinance must indicate
the actual date on which the ordinance is finally adopted. When the ordinance has been finally
passed and approved, we will appreciate receiving a copy for our records.
Once the executed ordinance is received, we will prepare and transmit to the City Buy -Back
Applications for all City employees who have forfeited service. Once we receive the applications and
the amount of deposits previously withdrawn, plus the withdrawal charge, each individual will be
credited with the additional months of creditable service shown on his or her application. Each
employee is encouraged to buy this service back as soon as possible in order to eliminate any further
withdrawal charge.
If you should need additional information, please feel free to contact us.
Sincerely,
Dinah Harris
Administrative Assistant
Enclosures
FEB -26-2002 11:22 512 476 2903 97% P.01
DATE: April 3, 2002
SUBJECT: City Council Meeting — April 11, 2002
ITEM: 15.C.1. Consider an ordinance providing for Texas Municipal Retirement
System buy-back provisions for City employees (First Reading)
Resource: Teresa Bledsoe, Human Resources Director
History: 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 50 employees eligible to buy- back service as of 1/1/02
The City's contribution rate will not be changed immediately upon adoption. It is
only impacted as eligible employees buy-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. The last TMRS buy-back Ordinance was approved on January 9, 1990.
Funding: The cost will be included in future contribution rates for the City. There is not an
up front cost associated with this ordinance.
Cost: N/A
Source of funds: N/A
Impact: N/A
Benefit: Excellent retention tool
Sponsor: N/A
EXECUTED
DOCUMENT
FOLLOWS
1
TEXAS MUNICIPAL RETIREMENT SYSTEM
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 THIS CITY.
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,
TMRS-H
WHEREAS, the City Council of the City of Round Rock, Texas, finds that it will be in the public interest for the City
to have its employees participate in the Texas Municipal Retirement System as hereinafter provided; now, therefore,
BE IT ORDAINED BY THE CITY COUNCIL OF ROUND ROCK, TEXAS:
Section 1: 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 t allow any member of the Texas Municipal Retirement System who is an employee of this
City on the 1 1 day of pinQ1L.,, , a00z *, who has terminated a previous membership in said System by
withdrawal of deposits while absent from service, but who has at least 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 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.
'>rJ'1
Section 2: This ordinance shall be become effective on the t t day of
date on or after the date set forth in Section 1, above.
ith
Passed and approved this the 11— day of
ATTEST:
City Secretary erClerk
•
'at))nC.
APPROVED:
, zo 2+*, which is a
*THIS DATE MUST BE THE ACTUAL DATE OF THE ORDINANCE'S FINAL ADOPTION.
Effective Date - January 1, 2002
Round Rock
Proposed Plans
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461-17-7419
E J Wilson
461-67-0127
0
F3
461-69-4254
B A Davis
C M Brooks
B O. Flowers
D C Thompson
463-06-7270
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464-11-5016
G Z Barron
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G A Cantu
O Magallan
A Villarreal,
466-56-4813
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467-13-1284
D Kay Braun
T Joe Martinez
527-11-9847
K Lyn Miller
J Robert Nicho:
566-15-8997
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J J Olague
J Tinsley Carm:
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Total No. of Members