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TEXAS MUNICIPAL RETIREMENT SYSTEM
AN ORDINANCE AUTHORIZING AND ALLOWIN UNDER THE ACT GOVERNING THE
TEXAS MUNICIPAL RETIREMENT SYSTEM "UPDATED SERVICE CREDITS' IN SAID
SYSTEM ON AN ANNUAL BASIS FOR SERVICE PERFORMED BY QUALIFYING MEMBERS
OF SUCH SYSTEM WHO AT THE EFFECTIVE DATE of THE ALLOWANCE ARE IN THE
EMPLOYMENT of THE CITY of KENNEDALE; PROVIDING FOR INCREASED PRIOR AND
CURRENT SERVICE ANNUITIES FOR RETIREES AND BENEFICIARIES of DECEASED
RETIREES of THE CITY; PROVIDING FOR INCREASED MUNICIPAL CONTRIBUTIONS To
THE CURRENT SERVICE ANNUITY RESERVE AT RETIREMENT of THE EMPLOYEES of
THE CITY; AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL of THE CITY of I ENNEDALE, TEXAS:
Section 1. Authorization of Updated service Credits.
(a) on the terms and conditions set out in Sections 853.401 through 853.404 of Subtitle C of Title 8,
Government Code, as amended (hereinafter referred to as the 7MRS 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 I st 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 36 months of
credited service with the System, shall he 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 terms and c set out in Section 853.601 of the TMRS Act, a member of the Sys
who is eligible for Updated Service Credits on the basis of serv 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 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. 01, both as to the initial grant hereunder and all future
grants under this ordinance.
(c) The Updated S ervice Credit hereby allowed and provided for shall he 1 00% of the "base Updated
Service Credit" of the member (calculated as provided in subsection (c) of Section 853.402 of the T RS Act).
(d) 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.
(e) In accordance with the provisions of subsection (d) of Section 85 .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 he calculated from and after the effective date of this ordinance on the full amount of such
person's compensation as an employee of the City.
Page 2.
Section 2. Increase in Retirement Annuities.
(a) on terms and conditions set out in section 854.203 of the Tills 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.
(b) 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 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 13 months before the effective date of this Section.
(c) An increase in an annuity that was reduced because of an option selection is reducible in the sane
proportion and in the same manner 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 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,
Section 3. Dates of Allowances and Increases. The initial allowance of Updated Service Credit and
increase in retirement annuities hereunder shall be effective on January 1, 2000, 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 I of each subsequent year until this ordinance ceases to be in
effect under subsection (e) of Section 853.404 of the TM FMS 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 T R
Act.
BE IT FURTHER ORDAINED:
Increased Municipal contributions: That effective January 1, 2000, 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 200% of such member's accumulated deposits for such month of employment; and
said surer shall be contributed from the City's account in the ,municipality accumulation fund.
Subject to approval by the Board of Trustees of the System, this ordinance shall be and become effective on
the 1st day of January 2000.
yi Passea d roved this the day of
S y
C Secretary of clerk
December
A PPROVED:
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May