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HomeMy WebLinkAboutOrdinance - 10186-1999 - Texas Municipal Retirement Systtem For Retirees And Beneficiaries Of Deceased - 08/12/1999First Reading Aug. 12, 1999 Item No. 76 ORDINANCE NO. Second Reading Aug. 26, 1999 Item No. 19 10186 ----- AN ORDINANCE PROVIDING FOR INCREASE PRIOR AND CURRENT SERVICE ANNUITIES UNDER THE ACT GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM FOR RETIREES AND BENEFICIARIES OF DECEASED RETIREES OF THE CITY OF LUBBOCK, AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF LUBBOCK: SECTION 1. INCREASE IN RETIREMENT ANNUITIES. (a) 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 ofthe 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 senrice annuities arising from services by such employees to the City. An atmuity increased under this section replaces any annuity or increased annuity previously granted to the same person. (b) The amow1t of the atmuity 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 senrice the mmuities are based, multiplied by 50% ofthe 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 ofthe increase under 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 heretmder 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 2. DATES OF INCREASES. The initial increase in retirement rumuities hereunder shall be effective on January 1, 2000, subject to approval by the Board of Trustees of the System. 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 (3) of Section determinations set forth in subsection (d) of Section 853.404 ofthe 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. SECTION 3. 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 2000. SECTION 4. THAT should any section, paragraph. sentence. phrase. clause or word of this Ordinance be declared unconstitutional or invalid for any reason. the remainder of this Ordinance shall be affected thereby. AND IT IS SO ORDERED. Passed by the City Council on first reading this 12th day of Passed by the City Council on second read· ATTEST: APPROVED AS TO CONTENT: M!bJ;w~ Managing Director Human Resources Ap : ~ / ~' . nns/ -~ Assistant C1ty Attorney ALS:cp ccdocs(l MRS ord July 27, 1999 August. , 1999.