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 bringing forward two Ordinances (as separate agenda items this evening) to implement a 30% annually repeating COLA through TMRS. 

The adoption of a 30% annually repeating COLA for current and future retirees and beneficiaries of deceased retirees of the Town of Addison through the Texas Municipal Retirement System (TMRS) will cause Addison to exceed its statutory maximum contribution rate limit to TMRS. Therefore, Council must first adopt an Ordinance removing this limit. The Ordinance proposed in this agenda item would remove the statutory maximum contribution rate limit and allow Council to adopt the 30% annually repeating benefit by a separate Ordinance in the next agenda item. 

Addison’s full contribution rate for 2023 will be 16.39%. Based on Council’s direction, this rate is included in the Fiscal Year 2023 Budget and once the 30% annually repeating COLA is adopted, it will go into effect January 1, 2023.