Loading...
HomeMy WebLinkAbout2024-4524 - Ordinance - 06/27/2024ORDINANCE NO. 2024-4524 AN ORDINANCE REGARDING AND AMENDING THE CITY OF COLLEGE STATION'S TEXAS MUNICIPAL RETIREMENT SYSTEM BENEFITS BY: (1) ADOPTING NON -RETROACTIVE REPEATING COLAS, FOR RETIREES AND THEIR BENEFICIARIES UNDER TMRS ACT §853.404(F) AND (F-1), AND (2) AUTHORIZING ANNUALLY ACCRUING UPDATED SERVICE CREDITS AND TRANSFER UPDATED SERVICE CREDITS; AND PROVIDING A SEVERABILITY CLAUSE; DECLARING A PENALTY; AND PROVIDING AN EFFECTIVE DATE BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF COLLEGE STATION, TEXAS: PART 1: That the City of College Station's Texas Municipal Retirement System Benefits be amended as set out in Exhibit "A" attached hereto and made a part of this Ordinance for all purposes. PART 2: If any provision of this Ordinance or its application to any person or circumstances is held invalid or unconstitutional, the invalidity or unconstitutionality does not affect other provisions or application of this Ordinance or the Code of Ordinances of the City of College Station, Texas, that can be given effect without the invalid or unconstitutional provision or application, and to this end the provisions of this Ordinance are severable. PART 3: That any person, corporation, organization, government, governmental subdivision or agency, business trust, estate, trust, partnership, association and any other legal entity violating any of the provisions of this Ordinance shall be deemed guilty of a misdemeanor, and upon conviction thereof shall be punishable by a fine of not less than twenty five dollars ($25.00) and not more than five hundred dollars ($500.00) or more than two thousand dollars ($2,000) for a violation of fire safety, zoning, or public health and sanitation ordinances, other than the dumping of refuse. Each day such violation shall continue or be permitted to continue, shall be deemed a separate offense. PART 4: This Ordinance is a penal ordinance and becomes effective ten (10) days after its date of passage by the City Council, as provided by City of College Station Charter Section 35. ORDINANCE NO. 2024-45 24 TMRS-USC-RT COLA-R HB2464 Page 2 of 5 PASSED, ADOPTED and APPROVED this 27th day of June, 2024. ATTEST: cDfmd-k APPROVED: City Secretary Myor APPROVED: City Attorney ORDINANCE NO. 2024-4524 Page 3 of 5 TMRS-USC-RT COLA-R HB2464 EXHIBIT A That the City of College Station's Texas Municipal Retirement System Benefits are hereby amended to included and are to read as follows: WHEREAS, the City of College Station, Texas (the "City"), elected to participate in the Texas Municipal Retirement System (the "System" or "TMRS") pursuant to Subtitle G of Title 8, Texas Government Code, as amended (which subtitle is referred to as the "TMRS Act"); and WHEREAS, House Bill 2464, 88th Texas Legislature, R.S., 2023 ("HB 2464"), added Subsections 853.404(f) and (f-1) to the TMRS Act and authorized cities participating in the System to provide certain retirees and their beneficiaries with an annually accruing ("repeating") annuity increase (also known as a cost of living adjustment, or "COLA") based on the change in the Consumer Price Index for All Urban Consumers for the one-year period that ends 12 months before the January 1st effective date of the applicable COLA (a "non -retroactive repeating COLA"); and WHEREAS, new TMRS Act §§853.404(f) and (f-1) allow participating cities to elect to provide non -retroactive repeating COLAs under certain circumstances, as further described by this Ordinance, by adopting an ordinance to be effective January 1st of 2024, 2025 or 2026, in accordance with TMRS Act §854.203 and §853.404; and WHEREAS, TMRS Act §853.404(f-1) provides the non -retroactive repeating COLA option applies only to a participating city that, as of January 1, 2023, either (1) has not passed an annually repeating COLA ordinance under TMRS Act §853.404(c) or had previously passed a repeating COLA ordinance and then, before January 1, 2023, passed an ordinance rescinding such repeating COLA, or (2) does provide an annually repeating COLA under §853.404(c) and elects to provide a non -retroactive repeating COLA under §853.404(f) for purposes of maintaining or increasing the percentage amount of the COLA; and WHEREAS, the College Station City Council acknowledges that the City of College Station City meets the above -described criteria under §853.404(f-1) and is eligible to elect a non -retroactive repeating COLA under §853.404(f) and that such election must occur before January 1, 2026, and after that date future benefit changes approved by the City may require reversion to a retroactive repeating COLA; and WHEREAS, the College Station City Council finds that it is in the public interest to: (1) adopt annually accruing non -retroactive COLAs for retirees and their beneficiaries under TMRS Act §853.404(f) and (f-1); and (2) in accordance with TMRS Act §853.404 and §854.203(h), reauthorize annually accruing Updated Service Credits and transfer Updated Service Credits. ORDINANCE NO. 2024-4524 Page 4 of 5 TMRS-USC-RT COLA-R HB2464 SECTION 1. ADOPTION OF NON -RETROACTIVE REPEATING COLAS. (a) On the terms and conditions set out in TMRS Act §854.203 and §853.404, the City of College Station authorizes and provides for payment of the increases described by this Section to the annuities paid to retired City of College Station employees and beneficiaries of deceased City of College Station retirees (such increases also called COLAs). 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 in accordance with TMRS Act §853.404(f) as the sum of the prior service and current service annuities, as increased in subsequent years under TMRS Act §854.203 or TMRS Act §853.404(c), of the person on whose service the annuities are based on the effective date of the annuity increase, multiplied by 70% of the percentage change in the Consumer Price Index for All Urban Consumers during the 12-month period ending in December of the year 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 under this Section does not result in an increase in the amount of an annuity, the amount of the annuity will not be changed under this Section. (e) In accordance with TMRS Act §853.404(f-1)(2), an increase under this Section only applies with respect to an annuity payable to a TMRS member, or their beneficiary(ies), which annuity is based on the service of a TMRS member who retired, or who is deemed to have retired under TMRS Act §854.003, not later than the last day of December of the year that is 13 months before the effective date of the increase under this Section. (f) The amount of an increase under this Section is an obligation of the City of College Station and of its account in the benefit accumulation fund of the System. (g) The initial increase in annuities authorized by this Section shall be effective on January Pt immediately following the year in which this Ordinance is approved, subject to receipt by the System before such January Pt and approval by the Board of Trustees of the System ("Board"). Pursuant to TMRS Act §853.404, an increase in retirement annuities shall be made on January Pt of each subsequent year, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in TMRS Act §853.404(d), until this Ordinance ceases to be in effect as provided in TMRS Act §853.404(e). ORDINANCE NO. 2024-4524 Page 5 of 5 TMRS-USC-RT COLA-R HB2464 SECTION 2. AUTHORIZATION OF ANNUALLY ACCRUING UPDATED SERVICE CREDITS AND TRANSFER UPDATED SERVICE CREDITS. (a) As authorized by TMRS Act §854.203(h) and §853.404, and on the terms and conditions set out in TMRS Act §§853.401 through 853.404, the City of College Station authorizes each member of the System who on the first day of January of the calendar year immediately preceding the January 1st on which the Updated Service Credits will take effect (i) has current service credit or prior service credit in the System by reason of service to the City, (ii) has at least 36 months of credited service with the System, and (iii) is a TMRS-contributing employee of the City, to receive "Updated Service Credit," as that term is defined and calculated in accordance with TMRS Act §853.402. (b) The City of College Station authorizes and provides that each employee of the City who (i) is eligible for Updated Service Credits under Subsection (a) above, and (ii) who has unforfeited prior service credit and/or current service credit with another System - participating municipality or municipalities by reason of previous employment, shall be credited with Updated Service Credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in TMRS Act §853.601 (also known as "Transfer USC"), both as to the initial grant and all future grants under this Ordinance. (c) The Updated Service Credit authorized and provided under this Ordinance shall be 75% of the "base Updated Service Credit" of the TMRS member calculated as provided in TMRS Act §853.402. (d) Each Updated Service Credit authorized and provided by this Ordinance 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. (e) The initial Updated Service Credit authorized by this Section shall be effective on January Pt immediately following the year in which this Ordinance is approved, subject to receipt by the System before such January 1st and approval by the System's Board. Pursuant to TMRS Act §853.404, the authorization and grant of Updated Service Credits in this Section shall be effective on January 1st of each subsequent year, using the same percentage of the "base Updated Service Credit" stated in Subsection (c) in computing Updated Service Credits for each future year, provided that, as to such subsequent year, the actuary for the System has made the determination set forth in TMRS Act §853.404(d), until this Ordinance ceases to be in effect as provided in TMRS Act §853.404(e).