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52

ARTICLE II. - RETIREMENT

Part of the Code of Ordinances of Burnet, TX.

Local law · 1,620 sections

The text

DIVISION 1. - GENERALLY#

Secs. 82-26—82-35. - Reserved.#

DIVISION 2. - SOCIAL SECURITY#

Sec. 82-36. - Council to act on behalf of city.#

The council acting for and on behalf of the city shall enter into all necessary agreements with the Employees Retirement System of Texas for the purpose of carrying out the provisions of the federal old-age and survivors insurance program.

(Code 1979, ch. 7, § 8(A))

State Law reference— "Retirement system" defined, V.T.C.A., Government Code § 606.001(4); agreements with political subdivisions, V.T.C.A., Government Code § 606.022.

Sec. 82-37. - Mayor appointed agent.#

The mayor is hereby appointed as agent of the council and of the city to execute all necessary agreements and instruments for and in behalf of the council and city.

(Code 1979, ch. 7, § 8(B))

Sec. 82-38. - City secretary to make collections and payments.#

The city secretary is hereby directed to be the person responsible for making assessments, collections, payments, and reports as required by the Employees Retirement System of Texas.

(Code 1979, ch. 7, § 8)

Sec. 82-39. - Sufficient sum of money to be allocated.#

A sufficient sum of money shall be allocated and set aside from available funds for the purpose of carrying out the provisions of the acts mentioned in this division. Such money so allocated and set aside shall be known as the city social security fund, which fund shall be set aside and maintained in the regular city depository.

(Code 1979, ch. 7, § 8(D))

Secs. 82-40—82-50. - Reserved.#

DIVISION 3. - TEXAS MUNICIPAL RETIREMENT SYSTEM#

Sec. 82-51. - Definitions.#

The following words, terms and phrases, when used in this division, shall have the meanings ascribed to them in this section, except where the context clearly indicates a different meaning:

System means the Texas Municipal Retirement System.

TMRS Act means V.T.C.A., Government Code ch. 851 et seq.

(Ord. No. 87-11, § 1, 5-26-87; Ord. No. 87-27, § 1, 11-24-87)

Cross reference— Definitions generally, § 1-2.

Sec. 82-52. - City to participate; exception.#

The council hereby exercises its option and elects to have the city and all of the employees of all departments now existing or hereafter established, excepting the fire department, participate in the Texas Municipal Retirement System, as provided in V.T.C.A., Government Code ch. 851 et seq., as amended from time to time, and all of the benefits and obligations of such system are hereby accepted as to such employees.

(Code 1979, ch. 7, § 9(A))

Editor's note— The original provision for participation in the Texas Municipal Retirement System was adopted by the city in September 1949.

Sec. 82-52.1. - City elects not to provide five-year vesting.#

The city council elects not to provide five-year vesting under Section 854.205 of the TMRS Act, and the city is hereby authorized and directed to file notice of this election with the board of trustees of the system before Dec. 31, 2001.

(Ord. No. 2001-23, § 1, 11-13-01)

Editor's note— Ord. No. 2001-23, § 1, adopted Nov. 13, 2001 did not specify manner of codification, hence; inclusion of this provision as § 82-52.1 was at the discretion of the editor.

Sec. 82-53. - Membership a condition of employment.#

Each person who becomes an employee of any participating department on or after the effective date of participation of such department shall become a member of the Texas Municipal Retirement System as a condition of his employment. The city may in the future refuse to add new departments or new employees to such system, but shall never discontinue as to any participants.

(Code 1979, ch. 7, § 9(C))

Sec. 82-54. - City to participate; exception.#

The council hereby exercises its option and elects to have the city and all of the employees of all departments now existing or hereafter established, excepting the fire department and the reserve police force, participate in the Texas Municipal Retirement System, as provided in V.T.C.A., Government Code ch. 851 et seq., as amended from time to time, and all of the benefits and obligations of such system are hereby accepted as to such employees.

(Ord. No. 2003-05, §§ 2, 4, 4-8-03)

Editor's note— Ord. No. 2003-05, §§ 2, 4, adopted Apr. 8, 2003, amended § 82-54 in its entirety to read as herein set out. Former § 82-54, pertained to deposit rate, and derived from Code 1979, ch. 7, § 9(D).

State Law reference— Member contributions, V.T.C.A., Government Code § 855.401.

Sec. 82-55. - City secretary to remit city's contributions.#

The city secretary is hereby directed to remit to the board of trustees of the Texas Municipal Retirement System, at its office in Austin, Texas, the city's contributions to the system and the amounts which shall be deducted from the compensation or payroll of employees, all as required by the board under the provisions of V.T.C.A., Government Code ch. 851 et seq., as amended, from time to time, and the city secretary is hereby authorized and directed to ascertain and certify officially on behalf of the city, the prior service rendered to the municipality by each of the employees of the participating departments, and the average prior service compensation received by each, and to make and execute all prior service certifications and all other reports and certifications which may be required of the city under the provisions of V.T.C.A., Government Code ch. 851 et seq., as amended from time to time, or in compliance with the rules and regulations of the board of trustees of the Texas Municipal Retirement System.

(Code 1979, ch. 7, § 9(E))

Sec. 82-56. - Increased city contributions.#

Effective January 1, 1972, for each month of current service thereafter rendered by each of its employees who are members of the Texas Municipal Retirement System, the city will contribute to the current service annuity reserve of each such member at the time of his retirement, a sum that is 200 percent of such member's accumulated deposits for such month of employment. Such sum shall be contributed from the city's account in the municipality current service accumulation fund.

(Code 1979, ch. 7, § 9(H))

State Law reference— Management of assets, V.T.C.A., Government Code § 855.301 et seq.

Sec. 82-57. - Supplemental benefits fund.#

(a)

The city, by its council, hereby elects to have the employees of all participating departments of the city participate in and be covered by the supplemental benefits fund of the Texas Municipal Retirement System, as provided by V.T.C.A., Government Code ch. 851 et seq., as amended from time to time, and all the benefits and obligations of participation in such fund are hereby accepted by the city as to such employees.

(b)

Each person who becomes an employee of any participating department on or after the effective date of participation of such department in the fund shall, as a condition of his employment, be covered into the supplemental benefits fund of the system. The city may in the future refuse to add new departments or new employees to the fund, but shall never discontinue as to any members who are covered into the fund.

(c)

The city secretary is hereby directed to remit monthly to the board of trustees of the Texas Municipal Retirement System at its office in Austin, Texas, as the city's contributions to the supplemental benefits fund of the Texas Municipal Retirement System, such percentage of earnings of the above-mentioned employees of the city as may be fixed by the board of trustees of the Texas Municipal Retirement System, provided that the rate of contribution to the fund shall not exceed one-half of one percent of the earnings of the employees of the city who are covered under the fund. Such official shall make for the city such reports as the board of trustees of the Texas Municipal Retirement System may prescribe.

(d)

Participation of the above-mentioned employees in the supplemental benefits fund shall be effective January 1, 1960, or on such later date in the year as the board of trustees of the Texas Municipal Retirement System shall declare such fund to be operative.

(Code 1979, ch. 7, § 9(I)(1), (3)—(5))

Sec. 82-58. - Adoption of provisions affecting city employees—Enumeration.#

Pursuant to the provisions of V.T.C.A., Government Code §§ 852.105 and 854.202, as amended from time to time, the city adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System: (1)

Each person who becomes an employee of any participating department of this city and who is not already a member of the Texas Municipal Retirement System shall become a member of the system as a condition of employment, provided such person is then under 60 years of age.

(2)

Any member, after one year from the effective date of his membership in the system, shall be eligible for service retirement if he has attained the age of 50 years and has completed 25 years of creditable service with one or more municipalities that have authorized eligibility under V.T.C.A., Government Code § 854.202, as amended from time to time, or under section XX of former Vernon's Ann. Civ. St. art. 6243h, or if he has attained the age of 60 years and has completed at least ten years of creditable service with one or more municipalities that have authorized eligibility under V.T.C.A., Government Code § 854.202, as amended from time to time, or under section XX of former Vernon's Ann. Civ. St. art. 6243h.

(3)

The membership of any person who has completed at least ten years of creditable service with participating municipalities that have authorized eligibility under V.T.C.A., Government Code § 854.202, as amended from time to time, or under section XX of former Vernon's Ann. Civ. St. art. 6243h, shall not terminate because of absence from service.

(4)

Any person who is an employee of a participating department of this municipality at the effective date of Ordinance No. 87-11, but who at the date of his employment was under 60 years of age, but did not become a member of Texas Municipal Retirement System because he was then above the maximum age then prescribed by law for initial membership in the system, shall become a member of the system at the effective date of such ordinance, unless he or she has already become a member under other provisions of the TMRS Act, and shall be allowed prior service credit for each month of creditable service performed for this municipality subsequent to the date such person was precluded from membership and prior to the effective date of his membership. Such prior service credit shall be calculated using the same percentage of base prior service credit as was most recently used in calculating prior service credits or updated service credits in the system for current member employees of this city.

(Code 1979, ch. 7, § 9(G); Ord. No. 87-11, § 1, 5-26-87)

Sec. 82-59. - Same—Rights, credits and benefits from section 82-58 in addition to adopted plan provisions.#

The rights, credits and benefits authorized in section 82-58 shall be in addition to the plan provisions heretofore adopted and in force at the effective date of Ordinance No. 87-11 pursuant to the TMRS Act.

(Ord. No. 87-11, § 2, 5-26-87)

Sec. 82-60. - Same—Additional provisions.#

Pursuant to the provisions of V.T.C.A., Government Code §§ 854.202(f),[(g)], 854.204, 854.405, 854.406 and 854.410, as amended from time to time, the city adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System: (1)

Any employee of this city who is a member of the system is eligible to retire and receive a service retirement annuity, if the member has at least 25 years of credited service in that system performed for one or more municipalities that have participation dates after September 1, 1987, or have adopted a like provision under V.T.C.A., Government Code § 854.202(f), as amended from time to time.

(1.1)

Any employee of the city who is a member of the system is eligible to retire and receive a service retirement annuity if the member has at least 20 years of credited service in the system performed for one or more municipalities that have adopted a like provision under section 854-202(g) of the TMRS Act.

(2)

If a member described in V.T.C.A., Government Code § 854.204(b), as amended from time to time, shall die before becoming eligible for service retirement and leaves surviving a lawful spouse whom the member has designated as beneficiary entitled to payment of the member's accumulated contributions in the event of the member's death before retirement, the surviving spouse may by written notice filed with the system elect to leave the accumulated deposits on deposit with the system, subject to the terms and conditions of V.T.C.A., Government Code § 854.204, as amended from time to time. If the accumulated deposits have not been withdrawn before such time as the member, if living, would have become entitled to service retirement, the surviving spouse may elect to receive, in lieu of the accumulated deposits, an annuity payable monthly thereafter during the lifetime of the surviving spouse in such amount as would have been payable to the surviving spouse had the member lived and retired at that date under an optional annuity described by V.T.C.A., Government Code § 854.104(c)(1), as amended from time to time.

(3)

At any time before payment of the first monthly benefit of an annuity, a surviving spouse to whom subsection (2) of this section applies may, upon written application filed with the system, receive payment of the accumulated contributions standing to the account of the member in lieu of any benefits otherwise payable under this section. If such a surviving spouse shall die before payment of the first monthly benefit of an annuity allowed under this section, the accumulated contributions credited to the account of the member shall be paid to the estate of such spouse.

(4)

The rights, credits and benefits authorized in this section shall be in addition to the plan provisions heretofore adopted and in force at the effective date of Ordinance No. 87-27, pursuant to the TMRS Act.

(5)

Any employee of this city who is a member of the system is eligible to retire and receive a standard occupational disability retirement annuity under V.T.C.A., Government Code § 854.408, as amended from time to time, or an optional occupational disability retirement annuity under V.T.C.A., Government Code § 854.410, as amended from time to time, upon making application therefor upon such form and in such manner as may be prescribed by the board of trustees of the system, provided that the system's medical board has certified to the board of trustees that:

a.

The member is physically or mentally disabled for further performance of the duties of the member's employment;

b.

The disability is likely to be permanent; and

c.

The member should be retired.

Any annuity granted under this subsection shall be subject to the provisions of V.T.C.A., Government Code § 854.409, as amended from time to time.

(6)

The provisions relating to the occupational disability program, as set forth in subsection (5) of this section are in lieu of the disability program provided for under V.T.C.A., Government Code §§ 854.301—854.308, as amended from time to time.

(Ord. No. 87-27, § 1, 11-24-87; Ord. No. 2001-4, § 1(a), 4-26-01)

Editor's note— Ord. No. 2001-4, § 1(a), adopted Apr. 26, 2001, pertained to additional rights granted under § 854-202(g) of subtitle G of title 8 of the TMRS Act. Such provisions did not specify manner of codification, but inclusion under § 82-60(1.1) was at the discretion of the editor.

Sec. 82-61. - Establishing credit for military service.#

(a)

Pursuant to V.T.C.A., Government Code § 853.502, as amended from time to time, the city hereby elects to allow eligible members in its employment to establish credit in the Texas Municipal Retirement System for active military service performed as a member of the armed forces or armed forces reserves of the United States or an auxiliary of the armed forces or armed forces reserves. "Eligible members," as such term is used in this section, shall be those employees meeting the criteria set forth in V.T.C.A., Government Code §§ 853.502(b) and 853.503, as amended from time to time, and the amount and use of creditable military service shall be as further set forth in V.T.C.A., Government Code § 853.505, as amended from time to time.

(b)

In order to establish credit for military service under this section, a member must deposit with the Texas Municipal Retirement System (in that member's individual account in the employees saving fund), an amount equal to the number of months for which credit is sought, multiplied by $15.00. The city agrees that its account in the municipality accumulation fund is to be charged at the time of the member's retirement with an amount equal to the accumulated amount paid by the member for military service credit, multiplied by the city's current service matching ratio in effect at the date the member applies for such military service credit.

(Ord. No. 90-8A, §§ 1, 2, 5-22-90)

Sec. 82-62. - Authorization of updated service credits.#

(a)

On the terms and conditions set out in sections 853.401 through 853.404 of Subtitle G of Title 8, 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 has current service credit or prior service credit in the system in force and effect on the first day of January of the calendar year preceding such allowance, by reason of service in the employment of the city, and on such date had at least 36 months of credited service with the system, shall be and is hereby allowed "updated service credit" (as that term is defined in subsection (d) of Section 853.402 of the TMRS Act).

(b)

On the terms and conditions set out in section 853.601 of the TMRS Act, any member of the system who is eligible for updated service credits on the basis of service with this City, who has unforfeited credit for prior service and/or current service with another participating municipality or municipalities by reason of previous service, and was a contributing member on the first day of January of the calendar year preceding such allowance, shall be credited with updated service credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in said section 853.601, both as to the initial grant hereunder and all future grants under this ordinance.

(c)

The updated service credit hereby allowed and provided for shall be 100 percent of the "base updated service credit" of the member (calculated as provided in subsection (c) of section 853.402 of the TMRS Act).

(d)

Each updated service credit allowed hereunder 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)

In accordance with the provisions of subsection (d) of section 853.401. of the TMRS Act, the deposits required to be made to the system by employees of the several participating departments on account of current service shall be calculated from and after the effective date of this ordinance on the full amount of such person's compensation as an employee of the city.

(Ord. No. 91-7, § 1, 8-27-91; Ord. No. 95-28, 12-19-95; Ord. No. 96-11, § 1, 11-26-96)

Sec. 82-63. - Increase in retirement annuities.#

(a)

On terms and conditions set out in section 854.203 of 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 service 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 sum 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 70 percent 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 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.

(Ord. No. 91-7, § 2, 8-27-91; Ord. No. 95-28, 12-19-95; Ord. No. 96-11, § 2, 11-26-96)

Sec. 82-64. - Dates of allowances and increases.#

The initial allowance of updated service credit and increase in retirement annuities under this division shall be effective on January 1, 1997, subject to approval by the board of trustees of the system. An allowance of updated service credits and an increase in retirement annuities shall be made under this division on January 1 of each subsequent year until sections 82-62—82-64 cease to be in effect under V.T.C.A., Government Code § 853.404(e) of the TMRS Act, provided that as to such subsequent year, the actuary for the system has made the determination set forth in V.T.C.A., Government Code § 853.404(d) of the TMRS Act.

(Ord. No. 91-7, § 3, 8-27-91; Ord. No. 95-28, 12-19-95; Ord. No. 96-11, § 3, 11-26-96)

Sec. 82-65. - 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 section must take the action required under said Section 853.305 while still an employee of this city.

(Ord. No. 2000-06, § 1, 4-13-00)