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HomeMy WebLinkAbout2403 09-24-2024ORDINANCE NO. 2403 AN ORDINANCE REGARDING THE CITY OF EULESS' TEXAS MUNICIPAL RETIREMENT SYSTEM BENEFITS ALLOWING CERTAIN CITY EMPLOYEES WHO HAVE CANCELLED PREVIOUS MEMBERSHIPS AND SERVICE CREDIT IN THE SYSTEM TO BUYBACK SUCH PREVIOUSLY CANCELLED SERVICE CREDIT. WHEREAS, the City of Euless, 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, each person who is or becomes an employee of the City on or after the effective date of the City's participation in the System in a position that normally requires services of 1,000 hours or more per year ("Employee") shall be a member of the System ("Member") as a condition of their employment; and WHEREAS, the actuary of the System has determined that all obligations charged against the City's account in the benefit accumulation fund of the System (the "City's BAF"), including the obligations arising from this Ordinance, can be funded by the City within its statutory maximum contribution rate, if applicable, and within its amortization period; and WHEREAS, the City Council has determined that adoption of this Ordinance is in the public interest of the City. NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF EULESS, TEXAS, THAT: SECTION 1. As authorized by TMRS Act §853.003, the City authorizes any Member of the System who is an Employee on the day that this Ordinance is passed and approved, and who has previously withdrawn their employee contributions from and canceled credited service in the System, to reestablish such canceled credited service if they are eligible to do so. To be eligible, the Member must have at least 24 consecutive month; oT credited service as an Employee with the City since resuming membership in the System. To reestablish the canceled service credit, the Member must deposit with the System in a lump sum the amount withdrawn from the System, plus a withdrawal charge computed at an annual rate of five percent (5%) from the date of such withdrawal to the date of redeposit (which deposit is referred to as the "Buyback"). Upon payment of such Buyback, such Member shall be allowed credit for all service to which the Member had been entitled at the date of cancellation of the previous membership as if all such service had been rendered as an Employee of the City. SECTION 2. The City acknowledges and agrees that, under the terms of the TMRS Act, upon the System's receipt of the Buyback, the amount of the withdrawal charge will be credited to the City's BAF and the amount previously withdrawn by the Member will be credited to the Member's individual account in the System's benefit accumulation fund. SECTION 3. The City agrees to underwrite and assume the obligations arising out of the granting of all service credit resulting from any such Buyback and that all such obligations and reserves required to provide such service credit shall be charged to the City's BAF. SECTION 4. EFFECTIVE DATE. This ordinance shall be in full force and effect from and after its passage, as provided by the Euless City Charter and the laws of the State of Texas. PRESENTED AND PASSED ON FIRST AND FINAL READING at a regular meeting of the Euless City Council on September 24, 2024, by a vote of 6 ayes, 0 nays, and 0 abstentions. APPROVED: ATTEST: t S�,tte( TRMC, CMC, City Secretary Chief Governance Officer Wayne Olson, City Attorney Ordinance No. 2403, Page 2 of 2 September 30, 2024 Chris Barker Deputy City Manager City of Euless 201 N. Ector Dr. Euless, TX 76039-3595 Dear Mr. Barker, We are pleased to acknowledge receipt of your city's ordinance adopting: TMRS Buyback Effective September 24, 2024 Please note, the city’s contribution rate will only change after an eligible employee buys back his or her previously forfeited credit. The credit is treated as if it were all performed for the City of Euless and is matched by the city at the current matching ratio. The city's matching is funded through the increase in the contribution rate that will occur in the actuarial valuation following when an employee buys back the forfeited credit (if bought back today, the city's contribution rate would be increased to account for the buy back). Any effect the Buyback may have on future Updated Service Credits will be funded as any updated service credit is through the Prior Service portion of the city's contribution rate. Buyback applications for all city employees who have forfeited service will be prepared and mailed to each employee. Employees are eligible to buy back their forfeited service credit when they have accumulated 24 consecutive months of service in your city. Eligible employees may submit their Buy-Back application and the necessary funds directly to TMRS. Upon receipt of the completed application and applicable funds, the employee’s account will be credited with the previously withdrawn service and deposits. Employees who already have a minimum of 24 consecutive months of service in your city are immediately eligible to purchase their forfeited service credit and are encouraged to do so at the earliest possible date, in order to minimize additional accrual of the 5% withdrawal charge. Employees who do not currently have 24 consecutive months of service in your city will become eligible to buy back their forfeited service credit when they do have 24 consecutive months of credit. Our Education Team is available to meet with your employees to explain this change to the city's TMRS plan. If you would like to set up a meeting for your employees, please email education@tmrs.com. If you have any questions, please contact me at 512-225-3742. Sincerely, Colin Davidson Director of City and Member Services