O-86-2264 - 12/23/1986ORDINANCE NO. 2264
AN ORDINANCE AUTHORIZING AND ALLDNlNG, UNDER THE ACT GOVERNING
THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED SERVICE CREDITS"
IN SAID SYSTEM FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF
SUCH SYSTEM WHO PRESENTLY ARE IN THE EMPLOYMENT OF THE CITY OF
ROUND ROCK; AND ESTABLISHING AN EFFECTIVE DATE FOR SUCH ACTIONS.
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF ROUND ROCK,
TEXAS:
Section 1. Authorization of Updated Service
(a) On the terms and conditions set out in Sections 63.401
through 63,403 of Title 11OB, Revised Civil Statutes of Texas,
1925, as amended, each member of the Texas Municipal Retirement
System who has current service credit or prior service credit in
said System in force and effect on the first day of January,
1987, by reason of service in the employment of the City of
Round Rock, and on such date has at least 36 months of credited
service with said system, shall be and is hereby allowed
"Updated Service Credit" (as that term is defined in subsection
(d) of Section 63.402 of said title) in an amount that is 100%
of the "base Updated Service Credit" of the member (calculated
as provided in subsection (c) of Section 63.402 of said title).
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) On the terms and conditions set out in Section 63.601
of said title, any member of the Texas Municipal Retirement
System who is eligible for Updated Service Credits on the basis
of service with this City, and 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 January 1, 1986, shall be
credited with Updated Service Credits pursuant to, calculated in
accordance with, and subject to adjustment as set forth in said
63.601.
(c) In accordance with the provisions of subsection (d) of
Section 63,401 of said title, the deposits required to be made
to the Texas Municipal Retirement 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.
Section 2. Effective Date.
Subject to approval by the Board of Trustees of the Texas
Municipal Retirement System, the updated service credits granted
hereby shall be and become effective on the 1st day of January,
1987.
READ and APPROVED on first reading this the :;u�/
7�_/P day
4
READ, APPROVED and ADOPTED on second reading this the 2,1'2�
day of
ATTEST:
inne Land, City Secretary
198 do
2/fri
MIKE ROBINSON, Mayor
DATE:
SUBJECT:
ITEM:
December 19, 1986
Council Agenda, December 23, 1986
3D - Consider a presentation concerning the update of Texas
Municipal Retirement System service credits.
This benefit was adopted by the City of Round Rock, on a 100% basis, effective
January 1, 1985. The City is eligible to adopt this benefit the first of each
year. With the 100% Updated Service Credit effective January 1, 1985, each employee's
retirement credit has been recalculated based on their average salary for the
years 1981, 1982, and 1983, assuming the employee had earned that average salary
since their date of employment, and had made monthly deposits to TMRS matched
by the City, on the basis of the three year average salary. The adoption of
100% Updated Service Credit can substantially improve retirement benefits, especially
for those employees with a number of years of service who are relatively close
to retirement eligibility.
TEXAS MUNICIPAL RETIREMENT SYSTEM 1200 NORTH INTERSTATE 35,
POST OFFICE BOX 2225
AUSTIN, TEXAS 78768
September 15, 1986
Mr. Sam Huey
Asst. City Manager
City of Round Rock
214 East Main
Round Rock, Texas 78664-5297
Dear Mr. Huey:
AC 512/476-7577
Earlier this year we completed an Updated Service Credit/Annuity Increase study for your
City. In addition, we provided a retirement estimate listing of your employees under various
plans of Updated Service Credit, and if applicable, information regarding increases in
annuities available to the City's retirees.
We have model ordinances available for the City's use in adopting Updated Service Credit and
Annuity Increases, and if the City is interested in adopting these benefits, we will be happy to
provide you with the necessary ordinances. In order for these benefits to become effective
January 1, 1987, the City's ordinance must be adopted and received in our office before the
end of the year. It is most helpful if we can be notified of your adoption of these benefits as
early as possible, in that we have numerous changes to make in various membership records.
Also, we will need to notify your retirees of any changes in their retirement benefits.
In accordance with the provisions of the TMRS Act, member cities of TMRS may adopt these
benefits on an annual basis. We would especially encourage those cities who have not
previously adopted these benefits, or who originally adopted these benefits several years ago,
to take advantage of this opportunity to upgrade TMRS benefits for both active employees
and retirees. You might be interested to know that 469 cities have adopted these benefits,
representing more than 93% of the member cities of the System.
The staff of the Texas Municipal Retirement System would like very much to have the
opportunity to work with you in upgrading your retirement program. If we may be of
assistance to you in this regard, please feel free to contact our office.
GWA/lc
Sincerely,
ative Assistant