ARTICLE 9.02 TEXAS MUNICIPAL RETIREMENT SYSTEM

The city, by its city council, hereby elects to have the employees of all participating departments of the city (as provided in section 9.02.001) participate in and be covered by the supplemental benefits fund of the Texas Municipal Retirement System, as provided by Vernon’s Ann. Civ. St. title 110B, sections 62.003, 64.401–64.404, 65.313, and 65.408, and all the benefits and obligations of participation in such fund are hereby accepted by the city as to such employees.

§ 9.02.008 Supplemental death benefits fund.

Each person who becomes an employee of any participating department on or after the effective date of participation of such department in the fund shall as a condition of his employment be covered by the supplemental benefits fund of such system. The city may in the future refuse to add new departments or new employees to the fund, but shall never discontinue as to any members who are covered by the fund.

(d)

The city secretary is hereby directed to remit monthly to the board of trustees of the Texas Municipal Retirement System at its office in Austin, Texas, as the city’s contributions to the supplemental benefits fund of the Texas Municipal Retirement System, such percentage of earnings of the employees mentioned in this section as may be fixed by the board of trustees of the Texas Municipal Retirement System, provided that the rate of contribution to the fund shall not exceed one-half of one percent of the earnings of the employees of the city who are covered under such fund. The city secretary shall make for the city such reports as the board of trustees of the Texas Municipal Retirement System may prescribe.

(e)

Participation of the employees mentioned in this section in the supplemental benefits fund shall be effective January 1, 1976.

(1987 Code, sec. 2-107)

The city hereby elects to participate in the supplemental death benefits fund of the Texas Municipal Retirement System for the purpose of providing in-service death benefits for each of the city’s employees who are members of the system, and for the purpose of providing post-retirement death benefits for annuitants whose last covered employment was as an employee of the city, in the amounts and on the terms provided for in Vernon’s Ann. Civ. St. title 110B, sections 62.004, 64.601–64.605, 65.314, 65.409 and 65.502, as amended.

The city is hereby authorized and directed to notify the director of the system of adoption of this section, and of the participation of the city in the fund.

§ 9.02.009 Authorization of updated service credits and increase in retirement annuities effective January 1, 1994.

Participation of the employees mentioned in this section and annuitants in the supplemental death benefits fund shall be effective on the first day of January, 1985.

(1987 Code, sec. 2-108)

Authorization of updated service credits.

On the terms and conditions set out in sections 853.401 through 853.403 of subtitle G of title 8, V.T.C.A., 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 1st day of January of the calendar year preceding such allowance, by reason of service in the employment of the city, and on such date has 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 said title) in an amount that is one hundred (100) percent of the base updated service credit of the member (calculated as provided in subsection (c) of section 853.402 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.

On the terms and conditions set out in section 853.601 of said title, any member of the 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 1st 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.

In accordance with the provisions of subsection (d) of section 853.401 of said title, 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 date aforesaid on the full amount of such person’s earnings as an employee of the city.

Increase in retirement annuities.

On the terms and conditions set out in section 854.203 of subtitle G of title 8, V.T.C.A., Government Code, as amended, 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 this city under current service annuities and prior service annuities arising from service by such employees to this city. An annuity increased under this section replaces any annuity or increased annuity previously granted to the same person.

The amount of annuity increase under this subsection is computed as the sum of the prior and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by forty (40) percent 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.

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.

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 hereby.

The amount by which an increase under this subsection 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.

§ 9.02.010 Additional rights, credits and benefits.

Effective date.

Subject to approval by the board of trustees of Texas Municipal Retirement System, the updated service credits and increases in retirement annuities granted hereby shall be and become effective on the 1st day of January, 1994.

(1987 Code, secs. 2-109, 2-110)

An employee of the city who is a member of the system may terminate employment and remain eligible to retire and receive a service retirement annuity at any time after that member attains an applicable age and service requirement, if that member has at least ten (10) years of credited service performed for one or more municipalities that have authorized eligibility under section 64.202(c) of the TMRS Act or are subject to section 64.102(e) of the act.

An employee of the city who is a member of the system may retire and receive a service retirement annuity if that member is at least sixty (60) years old and has at least ten (10) years of creditable service performed for one or more municipalities that either have authorized eligibility under this section or are subject to section 64.102(e) of the act.

Any employee of this 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-five (25) years of credited service in that system performed for one or more municipalities that have participation dates after September 1, 1987, or have adopted a like provision under section 64.202(f) of the TMRS Act.

(d)

If a “vested member,” as that term is defined in section 64.204(b) of the TMRS Act, shall die before becoming eligible for service retirement and leaves surviving a lawful spouse whom the member has designated as beneficiary entitled to payment of the member’s accumulated contributions in event of the member’s death before retirement, the surviving spouse may by written notice filed with the system elect to leave the accumulated deposits on deposit with the system subject to the terms and conditions of said section 64.204(b). If the accumulated deposits have not been withdrawn before such time as the member, if living, would have become entitled to service retirement, the surviving spouse may elect to receive, in lieu of the accumulated deposits, an annuity payable monthly thereafter during the lifetime of the surviving spouse in such amount as would have been payable had the member lived and retired at that date under a joint and survivor annuity (option 1) payable during the lifetime of the member and continuing thereafter during the lifetime of the surviving spouse.

(e)

At any time before payment of the first monthly benefit of an annuity, a surviving spouse to whom subsection (d) applies may, upon written application filed with the system, receive payment of the accumulated contributions standing to the account of the member in lieu of any benefits otherwise payable under this section. In the event such a surviving spouse shall die before payment of the first monthly benefit of an annuity allowed under this section, the accumulated contributions credited to the account of the member shall be paid to the estate of such spouse.

(f)

Any employee of this city who is a member of the system and who performed service for this city prior to September 1, 1987, for which service that employee did not receive credit with the system because the employee was not at that time a member of the system due to his or her age at the date of his or her employment, is hereby granted service credit with the system for all of such service (performed after the date of his or her latest employment by the city) that is prior to September 1, 1987, for which the employee has not previously received credit with the system, pursuant to section 62.105 of the act.

(g)

The rights, credits and benefits hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this section pursuant to the TMRS Act.

(h)

Any employee of this city who is a member of the system is eligible to retire and receive a standard occupational disability annuity under section 64.408 of the TMRS Act or an optional occupational disability retirement annuity under section 64.410 of the TMRS Act, upon making application therefor upon such form and in such manner as may be prescribed by the board of trustees of the system, provided that the system’s medical board has certified to said board of trustees: (1) that the member is physically or mentally disabled for further performance of the duties of the member’s employment; (2) that the disability is likely to be permanent; and (3) that the member should be retired. Any annuity granted under this subsection shall be subject to the provisions of section 64.409 of the TMRS Act.

(i)

The provisions relating to the occupational disability program as set forth in subsection (h) above are in lieu of the disability program heretofore provided for under sections 64.301 to 65.308 of the TMRS Act.

(j)

This section shall become effective on the first day of January, 1988, provided that it has previously been determined by the actuary for the system that all obligations of the city to the municipality accumulation fund, including obligations hereby undertaken, can be funded by the city within its maximum contribution rate and within its amortization period.

(k)

Any employee of this city who is a member of the Texas Municipal Retirement System and who performed service as a probationary employee for this city prior to September 1, 1989, for which the employee did not receive credited service in the system because the person, as a probationary employee was not enrolled as a member of the system during the period of probationary employment, is hereby allowed to obtain prior service credit for the period of such probationary service (not in excess of six (6) months), pursuant to the provisions of section 63.303 of subtitle G, title 110B, Revised Civil Statutes, as enacted by House Bill 1885, Acts of the Regular Session of the 71st Legislature.

To obtain prior service credit allowable under subsection (k) of this section, any employee entitled thereto shall file a detailed written statement of the service claimed with the city secretary within one (1) year from the effective date of this subsection.

§ 9.02.011 Credit for members of armed forces.

As soon as practicable after the employee has filed a claim the prior service credit under section 63.303, subtitle G of the Government Code, the city personnel officer shall, if said officer determines that such service was performed as claimed, verify the prior service allowable (not exceeding six (6) months) and the average monthly compensation paid the member during the period of probationary employment, and shall certify to the board of trustees of the system the creditable prior service approved, and the average monthly compensation paid to the person by the city during the period of probationary employment.

(1987 Code, sec. 2-111)

Pursuant to section 63.502, subchapter F of chapter 63, title 110B, Revised Civil Statutes of Texas, as amended, the city hereby elects to allow eligible members in its employment to establish credit in the Texas Municipal Retirement System for active military service performed as a member of the armed forces or armed forces reserves of the United States or an auxiliary of the armed forces or armed forces reserves. “Eligible members” as used herein shall be those employees meeting the criteria set forth in sections 63.502(b) and 63.503 of said subchapter F, and the amount and use of creditable military service shall be as further set forth in section 63.505.

In order to establish credit for military service hereunder, a member must deposit with the system (in that member’s individual account in the employees saving fund), an amount equal to the number of months for which credit is sought, multiplied by fifteen dollars ($15.00). The city agrees that its account in the municipality accumulation fund is to be charged at the time of the member’s retirement with an amount equal to the accumulated amount paid by the member for military service credit, multiplied by the city’s current service matching ratio in effect at the date the member applies for such military service credit.

§ 9.02.012 Current service and prior service contributions.

This section shall become effective on the 1st day of October, 1989.

(1987 Code, sec. 2-112)

Pursuant to section 855.407(f) of the TMRS Act, the city hereby elects to make normal and prior service contributions to its account in the municipality accumulation fund of the system at such combined maximum rate, not exceeding twelve and nine one-hundredths (12.09) percent 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 a period of twenty-five (25) years from the latest actuarial valuation date, the costs of all benefits heretofore undertaken to be provided by the city and which are chargeable to or are to be paid out of the city’s account in said accumulation fund.

(1987 Code, sec. 2-113)

§ 9.02.013 Authorization of updated service credits and increase in retirement annuities effective January 1, 2005.

Authorization of updated service credits.

On the terms and conditions set out in sections 853.401 through 853.403 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 1st day of January of the calendar year preceding such allowance, by reason of service in the employment of the city, and on such date has 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 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 853.402 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.

Increase in retirement annuities.

On the terms and conditions set out in section 854.203 of subtitle G of title 8, Government Code, as amended, 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 this city under current service annuities and prior service annuities arising from service by such employees to this city. An annuity increased under this subsection replaces any annuity or increased annuity previously granted to the same person.

The amount of annuity increase under this subsection is computed as the sum of the prior and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by 30% 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 13 months before the effective date of this section.

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.

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 hereby.

The amount by which an increase under this subsection exceeds all previously granted increases to an annuitant is an obligation of this city and of its account in the municipality accumulation fund of the system.

§ 9.02.014 Authorization of updated service credits and increase in retirement annuities effective January 1, 2006.

Effective date.

Subject to approval by the board of trustees of the Texas Municipal Retirement System, the updated service credits and increases in retirement annuities granted hereby shall be and become effective on the 1st day of January, 2005.

(Ordinance 04-10, secs. 1, 2, adopted 11/22/04)

Authorization of updated service credits.

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 1st day of January of the calendar year preceding such allowance, by reason of service in the employment of the city, and on such date has 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).

On the terms and conditions set out in section 853.601 of said title, 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 1st 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.

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).

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.

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 this section on the full amount of such person’s compensation as an employee of the city.

Increase in retirement annuities.

On the 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 this city under current service annuities and prior service annuities arising from service by such employees to this city. An annuity increased under this subsection replaces any annuity or increased annuity previously granted to the same person.

The amount of annuity increase under this subsection is computed as the sum of the prior and current service annuities on the effective date of retirement of the person on whose service the annuities are based, multiplied by 50% 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 13 months before the effective date of this section.

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.

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 hereby.

§ 9.02.015 Additional rights effective January 1, 2006.

Dates of allowances and increases.

The initial allowance of updated service credit and increase in retirement annuities hereunder shall be effective on January 1, 2006, 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 section 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.

(d)

Effective date.

Subject to approval by the board of trustees of the system, this section shall be and become effective on the 1st day of January 2006.

(Ordinance 05-16 adopted 11/28/05)

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 “TMRS ACT,” the city adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System (herein referred to as the “system”).

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 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.

Prior to adopting this section, the governing body of the city has:

(A)

Prepared an actuarial analysis of member retirement annuities at 20 years of service; and

(B)

Held a public hearing pursuant to the notice provisions of the Texas Open Meetings Act, chapter 551, Texas Government Code.

The rights hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this section pursuant to the TMRS Act.

§ 9.02.016 Increased prior and current service annuities effective January 1, 2014.

This section shall become effective on the first day of January 2006.

(Ordinance 05-17 adopted 11/28/05)

Increase in retirement annuities.

On the terms and conditions set out in sections 854.203 and 853.404 of subtitle G of title 8, Government Code, as amended (hereinafter referred to as 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.

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 50% 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 13 months before the effective date of the increase under this section.

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.

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.

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 benefit accumulation fund of the system.

Dates of increases.

The initial increase in retirement annuities hereunder shall be effective on January 1, 2014, subject to approval by the board of trustees of the system. An increase in retirement annuities shall be made hereunder on January 1st of each subsequent year until this section 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, and provided further that, as to such subsequent year, the city has an ordinance in effect that provides for a simultaneous increase in updated service credits as that term is used in the TMRS Act.

§ 9.02.017 Authorization of restricted prior service credit.

Effective date.

Subject to approval by the board of trustees of the system, this section shall be and become effective on the 1st day of January 2014.

(Ordinance 13-08 adopted 11/25/13)

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:

The person does not otherwise have credited service in the system for that service; and

The service meets the requirements of said section 853.305.

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.