ORD 2000-26TOWN OF TROPHY CLUB, TEXAS
ORDINANCE NO. 2000-26
AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT
GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM,
"UPDATED SERVICE CREDITS" IN SUCH SYSTEM ON AN ANNUAL
BASIS FOR SERVICE PERFORMED BY QUALIFYING MEMBERS OF
THE SYSTEM WHO, AT THE EFFECTIVE DATE OF THE ALLOWANCE,
ARE IN THE EMPLOYMENT OF THE TOWN OF TROPHY CLUB;
PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE
ANNUITIES FOR RETIREES AND BENEFICIARIES OF DECEASED
RETIREES OF THE TOWN; ESTABLISHING DATES OF ALLOWANCES
AND INCREASES; PROVIDING FOR INCREASED MUNICIPAL
CONTRIBUTIONS TO THE CURRENT SERVICE ANNUITY RESERVE AT
RETIREMENT; AND INCREASING THE RATE OF DEPOSITS TO THE
TEXAS MUNICIPAL RETIREMENT SYSTEM BY THE EMPLOYEES OF
THE TOWN OF TROPHY CLUB; PROVIDING FOR SEVERABILITY;
PROVIDING FOR ENGROSSMENT AND ENROLLMENT; AND
PROVIDING AN EFFECTIVE DATE.
WHEREAS, under various provisions of the Texas Government Code, the Trophy Club
Town Council is authorized to adopt an ordinance that authorizes updated service credits in the
Texas Municipal Retirement System (the "System") on an ani -mal basis for service performed by
qualifying members of the System who, at the effective date of the allowance, are in the employment
of the Town of Trophy Club; that provides for increased prior and current service annuities for
retirees and beneficiaries of deceased retirees of the Town; that establishes dates of allowances and
increases, that provides for increased municipal contributions to the current service annuity reserve at
retirement; and that increases the rate of deposits to the System by the employees of the Town of
Trophy Club; and
WHEREAS, the Town Council hereby finds that the adoption of such provisions relative to
the System should be approved as expressly set forth below.
NOW, THEREFORE, BE IT ORDAINED BY THE TOWN COUNCIL OF THE
TOWN OF TROPHY CLUB, TEXAS:
SECTION I.
AUTHORIZATION OF UPDATED SERVICE CREDITS
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of Subtitle
G of Title 8 Government Code, as amended (hereinafter referred to as the "TMRS ACT"), each
member of the Texas Municipal Retirement System (the "System") who has current service credit or
prior service credit in the System in force and effect on the I" day of January of the calendar year
preceding such allowance, by reason of service in the employment of the Town, 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 subsection (d) of Section 853.402 of the TMRS Act).
(b) On the terns and conditions set out in Section 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
Q.CI OWNSECTENDING ORDINANCESIRETIREMENT SYSTEM,DOC
Town, 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
1s1 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 as set forth in
Section 853.501, both as to the initial grant hereunder and all future grants under this Ordinance.
(c) 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 subsection (c) of Section
853.402 of the TMRS Act).
(d) Each Updated Service Credit allowed hereunder shall replace any Updated Service
Credit, prior service credit, special service credit, or antecedent service credit previously authorized
for part of the same service.
(e) In accordance with the provisions of subsection (d) of Section 853.101 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
Ordinance on the frill amount of such person's compensation as an employee of the Town.
SECTION H.
INCREASE IN RETIREMENT ANNUITIES
(a) On terms and conditions set out in Section 854.203 of the TMRS Act, the Town
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 Town
under current service annuities and prior service annuities arising from service by such employees to
the Town. An annuity increased under this Section replaces any annuity or increased annuity
previously granted to the same person.
(b) The amount of the annuity increase under this Section is computed as the sum of the
prior service and current service amniities 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 irnmediately preceding the effective date of the
person's retirement to the December that is thirteen (13) months before the effective date of this
Section.
(c) An increase in an atuluity that was reduced because of an option selection is reducible
in the same proportion and in the same maturer that the original annuity was reduced.
(d) 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.
(e) The amount by which an increase u ider this Section exceeds all previously granted
increases to an annuitant is an obligation of the Town and of its account in the municipality
accumulation fund of the System.
QATOWNSECTENDING ORDINANCCSaETIREMENT SYSTGM.DOC
SECTION III.
DATES OF ALLOWANCES AND INCREASES
The initial allowance of Updated Service Credit and increase in retirement annuities
hereunder shall be effective on 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 Ordinance ceases to be in effect,
under subsection (e) of Section 853.404 of the TMRS Act, provided that, as to such subsequent year,
the actuary for the System has made the determination set forth in subsection (d) of Section 853.404
of the TMRS Act.
SECTION IV.
INCREASED MUNICIPAL CONTRIBUTIONS
That effective January 1, 2001, for each month of current service thereafter rendered by each
of its employees who are members of the Texas Municipal Retirement System, the TOWN will
contribute to the current service arinuity reserve of each such member at the time of his or her
retirement, a sum that is 200% of such member's accumulated deposits for such month of
employment; and said stun shall be contributed from the Town's account in the municipality
accumulation fund.
SECTION V.
INCREASED EMPLOYEE DEPOSIT RATE
That all employees of the Town, who are members of the Texas Municipal Retirement
System, shall make deposits to the System at the rate of 7% of their individual earnings.
SECTION VI.
SEVERABILITY
The sections, paragraphs, sentences, phrases, clauses and words of this Ordinance are
severable, and if any section.. paragraph, sentence, phrase, clause or word in this Ordinance or
application thereof to any person or circumstance is held invalid or uuiconstitutional by a Court of
competent jurisdiction, such holding shall not affect the validity of the remaining portions of this
Ordinance, and the Town Council hereby declares that it would have passed such remaining portions
of this Ordinance despite such invalidity, which remaining portions shall remain in full force and
effect.
SECTION VII.
ENGROSSMENT AND ENROLLMENT
The Town Secretary of the Town of Trophy Club is hereby directed to engross and enroll this
Ordinance by copying the caption, penalty, and effective date clause in the minutes of the Town
Council of the Town of Trophy Club and by filing this Ordinance in the ordinance records of the
Town.
QATOW N'SECTENDING DRDINANCLSIRETIREMENT SYSTEM.DQC
SECTION VIII.
EFFECTIVE DATE
Subject to approval by the Board of Trustees of the System, this Ordinance shall be and
become effective on the 1" day of January 2001, and it is so ordained.
PASSED AND APPROVED by the Town Council of the Town of Trophy Club, Texas, this
the 5th day of December, 2000.
Marshall hrigelbeek, Mayor
Town of Trophy Club, Texas
ATTEST:
Diane Cockrell, T6m Secretary
Town of Trophy Club, Texas
APPROVED AS TO FORM:
Patricia A. Adams, Town Attorney
Town of Trophy Club, Texas
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TEXAS MUNICIPAL RETIREMENT SYSTEM
December 11, 2000
Mr. Jim Buxton
Director of f=inance
Town of Trophy Club
100 Municipal Drive
Trophy Club, Texas 76262
Dear Jim:
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P. 4. Box 149153 • AUSTIN, TEXAS 78714-9153 • 1200 NORTH INTUSTArE 35 • www.tmrs.org
ADMINI5TRATIGN: (512) 476-7577 OR TOLL -Fuc (877) 634-8595 • FAX: (512) 476-2903
MEMBER SERvTm. TOLL-FREE (800) 924-8677 • FAX: (512) 476-5576
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We are pleased to acknowledge receipt of the City's Ordinance adopting:
900% Updated Service Credit, including Transfers
70% of CPI Increase to Annuitants
2 to 9 City Matching Ratio
7% Employee Deposit Rate
By adopting this ordinance, the City will not have to adopt an ordinance each year to re-
authorize calculations of these benefits, and the Updated Service Credit/Annuity Increase will
remain in effect for future years until such time as it is discontinued by an ordinance adopted by
the City Council.
This ordinance will become effective January 1, 2001, and the City's 2001 contribution rate will
be 10.21 %. Please make note of this rate for your records.
We appreciate the City's continued interest in the Retirement System and hope you will always
feel free to contact us when we can be of service to you.
Sincerely,
Eric W. Davis
Deputy Executive Director
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