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HomeMy WebLinkAboutOrdinance - 10087-1998 - Governing Texas Municipal Retirement System For Retirees - 08/13/1998I First Reading Item No. 51 I' August 13. 1998 Second Reading Item No. 29 August 277 1998 ORDINANCE NO. 10087 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 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 services 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 swn 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 40% 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 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 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 2. DATES OF INCREASES. The initial increase in retirement annuities hereunder shall be effective on January 1, 1999, 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 (e) of Section determination set forth in subsection (d) of Section 853.404 of the 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. II SECTION 3. EFFECTIVE DATE. Subject to approval by the Board of Trustees of the System, this ordinance shall I be and become effective on the 1st day of January 1999. 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 not be affected thereby. AND IT IS SO ORDERED. Passed by the City Council on first reading this 13th day of August '1998. Passed by the City Council on second reading this 27th day of August , 1998. APPROVED AS TO CONTENT: M~;,bector Human Resources APPROVED AS TO FORM: ey Al-S ~k!TMRS QRD oJoc