§ 9. TEXAS MUNICIPAL RETIREMENT SYSTEM
A.
PARTICIPATION
(1)
The city council of the City of Santa Fe, Texas, on behalf of said city, hereby exercises its option and elects to have the city and all of the employees of all departments now existing and those hereafter created participate in the Texas Municipal Retirement System as provided in the TMRS Act.
B.
ELIGIBILITY
Each person who becomes an employee of a participating city on or after the effective date of participation of such city whose position shall require more than 1,000 hours per year shall become a member of the Texas Municipal Retirement System as a condition of their employment.
(Ordinance No. 13-96 of August 22, 1996)
C.
RATE OF DEPOSITS
(1)
In accordance with the provisions of the TMRS Act, the deposits to be made to the Texas Municipal Retirement System on account of current service of the employees of the several participating departments are hereby fixed at the rate of seven percent (7%) of the full earnings of each employee of said departments.
(Ordinance No. 13-96 of August 22, 1996; Ordinance No. 30-98 of October 22, 1998; Ordinance No. 28-2000 of November 9, 2000)
(2)
For each month of current service rendered to this city by each of its employees who are members of the Texas Municipal Retirement System, the city will contribute to the current service annuity reserve of each such member at the time of his or her retirement, a sum that is 100% (100, 150, or 200) of such member's accumulated deposits for such month of employment; and said sum shall be contributed from the city's account in the municipality accumulation fund.
D.
PRIOR SERVICE CREDIT
Each employee who qualifies for such credit shall be allowed "prior service credit" (as defined in Section 853.101 of the TMRS Act) at the rate of one hundred percent (100%) of the "base credit" of such member, calculated in the manner prescribed in Section 853.105 of said Act.
(Ordinance No. 13-96 of August 22, 1996)
E.
AUTHORIZATION OF RESTRICTED PRIOR SERVICE CREDIT
(1)
On the terms and conditions set out in Sections 853.305 of Subtitle G of Title 8, Texas Government Code, as amended (hereinafter referred to as the "TMRS Act"), each member of the Texas Municipal Retirement System (hereinafter referred to as the "System") who is now or who hereafter becomes an employee of this city shall receive restricted prior service credit for service previously performed as an employee of any of the entities described in said Section 853.305 provided that:
(A)
The person does not otherwise have credited service in the System for that service; and
(B)
The service meets the requirements of said Section 853.305.
(2)
The service credit hereby granted may be used only to satisfy length-of-service requirements for retirement eligibility, has no monetary value in computing the annuity payments allowable to the member, and may not be used in other computations, including computation of Updated Service Credits.
(3)
A member seeking to establish restricted prior service credit under this article must take the action required under said Section 853.305 while still an employee of this City.
(Ordinance No. 01-97 of January 9, 1997)
F.
REPORTING BY CITY
The City Secretary is hereby directed to remit to the Board of Trustees of the Texas Municipal Retirement System, at its office in Austin, Texas, the City contributions to the System and the amounts which shall be deducted from the compensation or payroll of employees, all as required by said Board under the provisions of the TMRS Act, and the said official is hereby authorized and directed to ascertain and certify officially on behalf of this City the prior service rendered to the said municipality by each of the employees of the participating departments, and the average prior service compensation received by each of the employees of the participating departments and make and execute all prior service certifications and all other reports and certifications which may be required of the City under the provisions of the TMRS Act, or in compliance with the rules and regulations of the Board of Trustees of the Texas Municipal Retirement System.
(Ordinance No. 13-96 of August 22, 1996)
G.
ADDITIONAL RIGHTS GRANTED
Pursuant to the provisions of Section 854.202(g) of Subtitle G of Title 8, Texas Government Code, as amended, which Subtitle shall herein be referred to as the 11TMRS Act," the City of Santa Fe, Texas, adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System (herein referred to as the "System"):
(1)
Any employee of the City who is a member of the System is eligible to retire and receive a service retirement annuity if the member has at least twenty (20) years of credited service in the System performed for one or more municipalities that have adopted a like provision under Section 854.202(g) of the TMRS Act.
(2)
Prior to adopting this ordinance, the governing body of the City has: (1) prepared an actuarial analysis of member retirement annuities at twenty (20) years of service; and (2) held a public hearing pursuant to the notice provisions of the Texas Open Meetings Act, Chapter 551, Texas Government Code.
(3)
The rights hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this ordinance pursuant to the TMRS Act.
(4)
The City Council of the City of Santa Fe, Texas, elects not to provide five-year vesting under Section 854.205 of the TMRS Act, and the City is hereby authorized and directed to file notice of this election with the Board of Trustees of the System before December 31, 2001.
(Ordinance No. 32-98 of November 12, 1998; Ordinance No. 30-2001 of December 27, 2001)
H.
AUTHORIZATION OF UPDATED SERVICE CREDITS—2005
(1)
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 (hereinafter referred to as the "System") who has current service credit or prior service credit in the System in force and effect on the first day of January of the calendar year preceding such allowance, by reason of service in the employment of the City, and on such date had at least thirty-six (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).
(2)
On the terms 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 City, 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 first 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 said Section 853.601, both as to the initial grant hereunder and all future grants under this Section.
(3)
The Updated Service Credit hereby allowed and provided for shall be one hundred percent (100%) of the "base Updated Service Credit" of the member (calculated as provided in subsection (c) of Section 853.402 of the TMRS Act).
(4)
Each Updated Service Credit allowed hereunder 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.
(5)
In accordance with the provisions of subsection (d) of Section 853.401 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 the ordinance from which this Section is derived on the full amount of such person's compensation as an employee of the City.
(Ordinance No. 28-2000 of November 9, 2000; Ordinance No. 25-2004 of December 9, 2004, Sec. 1)
I.
INCREASE IN RETIREMENT ANNUITIES—2005
(1)
On terms and conditions set out in Section 854.203 of the TMRS Act, the City 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 City under current service annuities and prior service annuities arising from service by such employees to the City. An annuity increased under this Section replaces any annuity or increased annuity previously granted to the same person.
(2)
The amount of the annuity increase under this Section is computed as the sum of the prior service and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by seventy percent (70%) of the percentage change in Consumer Price Index for All Urban Consumers, from December of the year immediately preceding the effective date of the person's retirement to the December that is thirteen (13) months before the effective date of this Section.
(3)
An increase in an annuity that was reduced because of an option selection is reducible in the same proportion and in the same manner that the original annuity was reduced.
(4)
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.
(5)
The amount by which an increase under this Section exceeds all previously granted increases to an annuitant is an obligation of the City and of its account in the municipality accumulation fund of the System.
(Ordinance No. 28-2000 of November 9, 2000; Ordinance No. 25-2004 of December 9, 2004, Sec. 2)
J.
DATES OF ALLOWANCES AND INCREASES—2005
The initial allowance of Updated Service Credit and increase in retirement annuities hereunder shall be effective on January 1, 2005, 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 Subsections H. through K. cease 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.
(Ordinance No. 30-98 of October 22, 1999; Ordinance No. 28-2000 of November 9, 2000; Ordinance No. 25-2004 of December 9, 2004, Sec. 3)
K.
INCREASED MUNICIPAL CONTRIBUTIONS—2005
(1)
Effective January 1, 2005, for each month of current service thereafter rendered by each of its employees who are members of the Texas Municipal Retirement System, the City will contribute to the current service annuity reserve of each such member at the time of his or her retirement, a sum that is one hundred fifty percent (150%) of such member's accumulated deposits for such month of employment; and said sum shall be contributed from the City's account in the municipality accumulation fund.
(2)
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 fund, regardless of other provisions of the TMRS Act limiting the combined rate of City contributions.
(Ordinance No. 25-2004 of December 9, 2004, Sec. 4, 5)