§ 2-148. Updated service credits.

(a)

Authorization.

(1)

On the terms and conditions set out in V.T.C.A., Government Code §§ 853.401—853.404 of subtitle G of title 8, as amended (hereinafter referred to as the "TMRS Act"), each member of the state 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 January 1 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 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 of the January 1 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 such 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 100 percent of the "based 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 this section on the full amount of such person's compensation as employee of the city.

(b)

Increase in retirement annuities.

(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 subsection replaces any annuity or increased annuity previously granted to the same person.

(2)

The amount of the annuity increase under this subsection 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 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 13 months before the effective date of the ordinance from which this subsection is derived.

(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 be changed hereunder.

(5)

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.

(6)

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.

(c)

Date of allowances and increases. The initial allowance of updated service credit and increase in retirement annuities hereunder shall be effective on January 1, 1995, 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)

Increase in municipal contributions. That effective January 1, 1995, for each month of current service thereafter rendered by each of its employees who are members of the state municipal retirement system, the city will contribute to the current service annuity reserve of each such member at the time of his retirement, a sum that is 200 percent of such member's accumulated deposits for such month of employment; and such sum shall be contributed from the city's account in the municipality accumulation fund.

(e)

Effective date. Subject to approval by the board of trustees of the system, this section shall be and become effective on January 1, 1995.

(Code 1978, § 2-143; Code 1993, § 2-137; Ord. No. 89-11, §§ 1—3, 8-21-1989; Ord. No. 90-06, §§ 1—3, 11-19-1990; Ord. No. 91-10, §§ 1—4, 10-21-1991; Ord. No. 93-03, §§ 1—4, 5-3-1993; Ord. No. 94-16, §§ 1—3, 10-3-1994; Ord. No. 2010-19, § 1, 9-7-2010)