HomeMy WebLinkAboutOrd 809-2019 Authorizing and Allowing TMRS Restricted Prior Service CreditORDINANCE NO. -Aotq
ORDINANCE AUTHORIZING AND ALLOWING, UNDER THE ACT
GOVERNING THE TEXAS MUNICIPAL RETIREMENT SYSTEM, RESTRICTED
PRIOR SERVICE CREDIT TO EMPLOYEES WHO ARE MEMBERS OF THE
SYSTEM FOR SERVICE PREVIOUSLY PERFORMED FOR VARIOUS OTHER
PUBLIC ENTITIES FOR WHICH THEY HAVE NOT RECEIVED CREDITED
SERVICE; AND ESTABLISHING AN EFFECTIVE DATE FOR THE ORDINANCE.
BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF ANNA, TEXAS:
Section 1. Authorization of Restricted Prior Service Credit.
(a) On the terms and conditions set out in Sections 853.305 of Subtitle G of Title 8,
Texas 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 is now or who hereafter becomes an employee of this City shall receive restricted prior
service credit for service previously performed as an employee of any of the entities described
in said Section 853.305 provided that (1) the person does not otherwise have credited service in
the System for that service, and (2) the service meets the requirements of said Section
853.305.
(b) The service credit hereby granted may be used only to satisfy length -of -service
requirements for retirement eligibility, has no monetary value in computing the annuity
payments allowable to the member, and may not be used in other computations, including
computation of Updated Service Credits.
(c) A member seeking to establish restricted prior service credit under this ordinance
must take the action required under said Section 853.305 while still an employee of this City.
Section 2. This ordinance shall become effective immediately upon passage.
Passed and approved this the day of L 0—to k, 12019.
ATTEST:
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Carrie L. Smith, City Secretary - N'
Pike, Mayor
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TEXAS MUNICIPAL RETIREMENT SYSTEM
July 25, 2018
Via E -Mail
Ms. Stephanie Beiteischies
HR Manager
City of Anna
PO Box 776
Anna, TX 75409
Dear Stephanie:
We are pleased to enclose a model ordinance for your city to adopt:
Restricted Prior Service Credit
This option allows a member city to grant restricted prior service credit to employees for service
performed for:
• A public authority or agency created by the United States.
• Any state or territory of the United States.
• Any political subdivision of any state of the United States.
• Any public agency or authority created by a state or territory of the United States.
• Previously forfeited service with one of the five statewide retirement systems in Texas
(Texas Municipal Retirement System, Texas County and District Retirement System,
Teacher Retirement System of Texas, Employees Retirement System of Texas, and
Judicial Retirement System of Texas).
• Any institution of higher education at which the person was commissioned as a campus
security personnel employee.
This credit is used to satisfy length of service requirements for "vesting" and service retirement
eligibility; it has no monetary value.
The city's contribution rate will not be immediately affected by the adoption of this provision. Because
Restricted Prior Service Credit allows employees time credit for vesting and retirement eligibility
requirements, it can have an impact on the city's contribution rate in future years as employees apply
for the credits; however, any such rate increase is generally expected to be very slight in any given
year, depending upon the amount of service credit added.
We would appreciate receiving a copy of the enclosed ordinance as soon as possible after its adoption.
If you have any questions or concerns, please do not hesitate to contact me at 1-800-924-8677.
erely,
Eric W. Davis
Deputy Executive Director
TMRS 512.476.7577
P.O. Box 149153 TOLL-FREE 800.924.8677
AUsTiN, TExAs 78714-9153 www.TMRS.com FAX 512.476.5576