04-091 - O TOWN OF PROSPER ORDINANCE NO. 04-91
AN ORDINANCE AUTHORIZING AND ALLOWING, 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 TOWN OF PROSPER;
PROVIDING FOR INCREASED PRIOR AND CURRENT SERVICE ANNUITIES FOR
RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE TOWN;
PROVIDING FOR INCREASED MUNICIPAL CONTRIBUTIONS TO THE CURRENT
SERVICE ANNUITY RESERVE AT RETIREMENT; AND ESTABLISHING AN
EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS:
Section 1. Authorization of Updated Service Credits.
(a) On the terms and conditions set out in Sections 853.401 through 853.404 of SubtitleG 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 Town, 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).
(b) 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). If the Town has previously adopted, or if it hereafter adopts an ordinance authorizing Updated
Service Credit for unforfeited credit for prior service or current service with any other participating
municipality, the calculations and adjustments set forth in Section 853.601 of the TMRS Act shall apply
to any such transferred service.
(c) 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.
(d) 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 ordinance on the
full amount of such person's compensation as an employee of the Town.
Section 2. Increase in Retirement Annuities.
(a) On terms and conditions set out in Section 854.203 of the TMRS Act, the Town 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 Town under current
service annuities and prior service annuities arising from service by such employees to the Town. An
annuity increased under this Section replaces any annuity or increased annuity previously granted to the
same person.
Page 2.
(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
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 hereunder.
(e) The amount by which an increase under this Section exceeds all previously granted increases to
an annuitant is an obligation of the Town 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, 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 this ordinance
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 theTMRS Act.
BE IT FURTHER ORDAINED:
That 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 Town 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 sum shall be
contributed from the Town's account in the municipality accumulation fund.
Effective Date. Subject to approval by the Board of Trustees of the System, this ordinance shall be and
become effective on the 1st day of January, 2005.
DULY PASSED AND APPROVED BY THE TOWN COUNCIL OF THE TOWN OF PROSPER, TEXAS
on this the14'r' day of September, 2004,
CFRLES NISW)GER, Mayor
ATT STED:
SHANAE JEN GS, To ecretary