Agenda

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Item # 12.

Council Meeting

Meeting Date:	09/13/2022
Department:	City Manager
Milestones:	Promote and protect the Addison Way

AGENDA CAPTION:

Present, Discuss, and Consider Action on an Ordinance Providing for Increased Prior and Current Service Annuities Under the Act Governing the Texas Municipal Retirement System for Retirees and Beneficiaries of Deceased Retirees of the Town of Addison and Establishing an Effective Date.

BACKGROUND:

During the August 3, 2022 Special Council Meeting and the August 23, 2022 Council Meeting, a representative from the Texas Municipal Retirement System (TMRS) and Town Staff presented information relative to the Texas Municipal Retirement System's Cost of Living Adjustment (COLA) which included various COLA options for Council consideration.

Based on Council direction, Staff is brining forward two Ordinances (as separate agenda items this evening) to implement a 30% annually repeating COLA through TMRS. The first, proposed in an earlier agenda item this evening, removes the statutory maximum contribution rate limit. The first proposed Ordinance is a prerequisite to the second proposed Ordnance (this agenda item). This agenda item proposes the Ordinance providing for the 30% annually repeating COLA Adjustment to current and future retirees and beneficiaries of deceased retirees of the Town of Addison through TMRS.

The Town will not have to adopt an Ordinance each year to re-authorize calculation of these benefits; and the cost-of-living adjustments will remain in effect for future years until such time as it is discontinued by an Ordinance adopted by the City Council. After adoption, this benefit will go into effect January 1, 2023, and is included in the Fiscal Year 2023 Budget.

RECOMMENDATION:

Administration recommends approval.

Attachments
Ordinance Approving Increased Service Annuities