HomeMy Public PortalAboutOrdinance No. 604-89 11-13-1989 ORDINANCE NO. 604
• AN ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT
GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, "UPDATED
SERVICE CREDITS" IN SAID SYSTEM FOR SERVICE PERFORMED BY
QUALIFYING MEMBERS OF SUCH SYSTEM WHO PRESENTLY ARE IN THE
EMPLOYMENT OF THE CITY OF RICHLAND HILLS; PROVIDING FOR
INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR RETIREES
AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY; AND
ESTABLISHING AN EFFECTIVE DATE FOR SUCH ACTIONS; AND
AFFECTING PARTICIPATION OF CITY EMPLOYEES IN THE TEXAS
MUNICIPAL RETIREMENT SYSTEM; GRANTING THE ADDITIONAL RIGHTS,
CREDITS AND BENEFITS AUTHORIZED BY SECTIONS 64.202(f),
64.204, 64.405, 64.406 AND 64.po610 OF TITLE ilOB, REVISED
CIVIL STATUTES OF TEXAS, 1925, AS AMENDED BY THE 70TH
LEGISLATURE; PROVIDING A SAVINGS CLAUSE; PROVIDING A
SEVERABILITY CLAUSE; AND AN EFFECTIVE DATE OF THIS
ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF RICHLAND
HILLS, TEXAS, THAT:
I.
Authorization of Updated Service Credits.
• (a) On the terms and conditions set out in Sections 63.401
through 63.403 of Title 110B, Revised Civil Statutes of Texas, 1925,
as amended, each member of the Texas Municipal Retirement System who
has current service credit or prior service credit in said System in
force and effect on the 1st day of January, 1989, by reason of service
in the employment of the City of Richland Hills, and on such date has
at least 36 months of credited service with said system, shall be and
is hereby allowed "Updated Service Credit" (as that term is defined in
sub section (d) of Section 63.402 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 63.402 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.
(b) On the terms and conditions set out in Section 63.601 of
said Title, any member of the Texas Municipal Retirement 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 January
1, 1989, shall be credited with Updated Service Credits pursuant to,
calculated in accordance with, and subject to adjustment as set forth
in said 63.601.
•
(c) In accordance with the provisions of subsection (d) of
• Section 63.401 of said title, the deposits required to be made to the
Texas Municipal Retirement 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.
II.
Increase in Retirement Annuities.
(a) On terms and conditions set out in Section 64.203 of Title
110B, Revised Civil Statutes of Texas, 1925, as amended, the City of
Richland Hills hereby elects to allow and to provide for payment of
the increases below stated in monthly benefits payable by the Texas
Municipal Retirement 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.
(b) The amount of annuity increase under this Section 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 700 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 ordinance.
(c) 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.
(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 hereby.
(e) The amount by which an increase under this Section 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 Texas Municipal Retirement System.
III.
Effective Date of This Action
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, 1990.
IV.
• Adoption of 70th Legislature TMRS Amendments
Pursuant to the provisions of Sections 64.202(f), 64.204, 64.405,
64.406, and 64.410 of Subtitle G of Title 110B, Revised Civil Statutes
of Texas, 1925, as amended by the 70th Legislature of the State of
Texas, Regular Session, which Subtitle shall herein be referred to as
the "TMRS Act," the City of Richland Hills, Texas, adopts the
following provisions affecting participation of its employees in the
Texas Municipal Retirement System (which retirement system shall
herein be referred to as the "System"):
(a) 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 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.
(b) 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.
(c) At any time before payment of the first monthly benefit of
an annuity, a surviving spouse to whom subsection (b) 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.
(d) 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 ordinance pursuant to the TMRS
Act.
•
(e) 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.
(f) The provisions relating to the occupational disability
program as set forth in section (e) above are in lieu of the
disability program heretofore provided for under Sections 64.301 to
64.308 of the TMRS Act.
V.
Savings Clause
That the remainder of the Ordinances governing the Texas Municipal
Retirement System of the City of Richland Hills, Texas, as amended
shall remain in full force and effect, save and except as amended by
• this ordinance.
VI.
Severability Clause
That it is hereby declared to be the intention of the City Council
that the sections, paragraphs, sentences, clauses and phrases of this
ordinance are severable, and if any phrase, clause, sentence,
paragraph or section of this ordinance shall be declared invalid or
unconstitutional by the valid judgement or decree of any court of
competent jurisdiction, such invalidity or unconstitutionality shall
not affect any of the remaining phrases, clauses, sentences,
paragraphs or sections of this ordinance, since the same would have
been enacted by the City Council without the incorporation in this
ordinance of any such invalid or unconstitutional phrase, clause,
sentence, paragraph or section.
VII.
Effective Date of This Ordinance
This ordinance shall be in full force and effect from and after
its passage and publication as provided by the Richland Hills City
Charter and laws of the State of Texas, 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.
AND IT IS SO ORDAINED BY THE CITY COUNCIL OF THE CITY OF RICHLAND
HILLS, TEXAS, ON THE MOTION OF LOGAN SECONDED BY
WRIGHT ADOPTED BY THE CITY COUNCIL, MEETING IN REGULAR
SESSION THIS 13th DAY OF NOVEMBER , BY A VOTE OF 5
AYES, 0 NAYS AND 0 ABSTENTIONS.I~
APPROVED:
'
W. H. VINCENT, JR., MAYOR
ATTEST:
Pauline Kempe, Cit Secretary
APPROVED AS TO FORM:
L~
Paul Wieneskie, City Attorney
•