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Ordinance 1989-06 ~-~ ~J!. .t>-\~ElllV . ,:;9*'...... ~,{ ~..~~;l "+" iI ORDINANCE NO.8" :.,,~ TEXAS MUNICIPAL RETIREMENT SYSTEM TMRS-J AN ORDINANCE ALLOWING CERTAIN EMPLOYEES OF THE CITY, WHO PERFORMED OR HEREAFTER PERFORM ACTlVE SERVICE IN THE ARMED FORCES (OR THEIR RESERVES OR AUXILIARIES) OF THE UNITED STATES UNDER HONORABLE CONDITIONS DURING PERIODS OF CONFLICT WITH FOREIGN FORCES, TO APPLY AND MAKE DEPOSITS FOR, AND TO RECEIVE SPECIAL CREDIT WITH THE TEXAS MUNICIPAL RETIREMENT SYSTEM FOR LIMITED PORTIONS OF SUCH MILITARY SERVICE, AND PROVIDING FOR PAYMENT BY THE CITY OF ADDITIONAL DEPOSITS TO THE SYSTEM ON ACCOUNT OF SUCH SERVICE CREDIT. BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF WYLIE, TEXAS: Section 1. Pursuant to Subchapter F of Chapter 63, Title 110B, Revised Civil Statues of Texas, as amended, the City of Wylie 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, during a period in which the United States is or was involved in a state of conflict with foreign forces. Eligible members as used herein shall be those employees meeting the criteria set forth in subsection (b) of Section 63.501 of said Subchapter F, and the amount and use of creditable military service shall be as further set forth in that Subchapter. Section 2. In order to establish credit for military service hereunder, a member must deposit with the Texas Municipal Retirement System (in that member's individual account in the Employees Saving Fund), before the first anniversary of the effective date of this ordinance or before the first anniversary of the date the member becomes eligible to establish the credit (whichever is later) an amount equal to the number of months for which credit is sought, multiplied by $15.00, and the City must contribute an amount equal to the amount required of the member, multiplied by the City's current service matching percentage in effect on the date the member applies for credit hereunder. The City of Wylie agrees to pay into its account in the Municipality Accumulation Fund all sums which become due hereunder as a result of the granting of such credit. ..2- /. Section 3. This ordinance shall become effective on the 1st day 01 -fdd'.4I-(/;/7 ' 19 8"f. Passed and approved this thed!!fidaY oIIOn4(H1ft ,19fZ, ~"'\"\\O\\I\IIF'! 1"":1/1/ tlllll. A TTEST: ~~~.~. lVJ"/~~l'PROVED:. ~/'/ .~, ':'\ '.......----"'~ /'~. .:~t(' >' ;/,r ~/..~~ "'~;;;: ~~JJ:;T~: c~---, ec ry or Clerk .... ..:i:~.,1 Mayor .. (, ." ~~'~ \\\\\\~ '" ''':>'','1;,1.;;,,<- ,,"._._,"._,.<,_~.~.._,.__.__..~"____,.,~.._..~,__~__.~,u_.....~.._,.~____.___~_.~.-.,_ (TMRS-34/a) MILITARY SERVICE CREDIT The 1981 amendments to the TMRS Act allowing member cities to adopt the Military Service Credit provision, stipulate the following condition~ that must be met before a member may purchase Military Service Credit: 1) The employing city must have adopted the Military Service Credit provision by ordinance. 2) The member must have at least ten years of creditable TMRS service and have been employed by a participating city or cities for ten or more years. 3) The military service being purchased must have been performed as active duty in the Armed Forces of the United States (or its auxiliaries) or in the Armed Forces Reserve of the United States (or its auxiliaries) during a period of organized conflict or crisis. Military service performed between April 6, 1917 and November 11, 1919, or between October 16, 1940 and October 31, 1974 shall be recognized as military service performed during period of organized conflict or crisis under this provision. 4) The employee's release from active duty must have been made upon terms other than dishonorable. An employee who is, or will be eligible to receive any retirement payor pension from the United States based upon twenty (20) or more years of active duty or equivalent, will not be eligible for Military Service Credit. Likewise, any employee who has been granted military service credit by any other public retirement system or program under the laws of the State of Texas, shall not be eligible for Military Service Credit in TMRS. 5) A member must apply for Military Service Credit and make the required deposits to the System within one year after the effective date of adoption of the ordinance allowing such credit, or within one year after the date of the person making such application first becomes eligible for such credit, whichever date is later. A member with qualified military service who cannot purchase Military Service Credit within one year of the city's adoption (because they do not yet have 10 years of creditable TMRS service), would have to purchase their Military Service Credit within one year of the time they complete 10 years of creditable service, or lose their eligibility to do so. 6) A member who meets all of the qualifications for Military Service Credit, receives such credit by making application to the System on form TMRS-34, Application for Military Service Credit. This form is signed by the member and certified by the city official designated by ordinance to certify official TMRS forms. The city official also certifies that they have reviewed the member's original military documents (DD214 or other official documents) that verify the member's active military service and discharge from the military under conditions other than dishonorable. A photocopy of the member's military service record and discharge status, certified by the city official, must be submitted with the Application for Military Service Credit. -', --.. ._~_."._-~--"_.~-----""".,.~_.".",, .__.~~-..._..........._~-_...."....,."-,.._.-..-._..,.~.....--.."~--",,,,"- MIUT ARY SERVICE CREDIT (Continued). 7) Along with the Application for Military Service Credit, the member must submit a deposit equal to $15.00 for each month of military service being purchased. The city must also submit a deposit, depending on the city's matching ratio in effect at that time, equal to 000%, 150%, or 200%) of the deposit made by the member. A qualified member may purchase any amount of Military Service Credit they are entitled to receive, up to a maximum of 5 years (60 months). If a member elects to purchase less than the full amount of Military Service Credit they are entitled to, they may not purchase any additional Military Service Credit at a future date. 8) The number of months of Military Service Credit purchased by a member is used to satisfy the vesting and/or retirement eligibility provisions of the TMRS Act. However, Military Service Credit is not included in the calculation of Updated Service Credit. For cities adopting this provision, it is especially important that all employees be notified of the requirement that they must apply for and purchase Military Service Credit within one year of the city's adoption of the provision, or within one year from the time the employee first becomes eligible to purchase Military Service Credit, whichever date is later. If an employee does not purchase their Military Service Credit within the prescribed time limits, they lose their eligibility to do so. Likewise, if a member leaves the employment of a city adopting the Military Service Credit provision, prior to the time they become eligible to purchase said credit, they lose their eligibility to do so. Assuming a member purchases a maximum of 5 years of Military Service Credit, the following information shows the member and city cost, as well as estimated additional monthly benefits. City Matching Ratio 1:1 1 . 5: 1 2:1 Required Contributions Employee City $900 900 $ 900 1,350 $ 900 1,800 Monthly Benefits* Additional Monthly Benefit Number of years from date credit is purchased to date of retirement: o 5 years 10 years 15 years 20 years $ 14 20 30 44 65 $ 17 26 38 55 81 $ 21 31 45 66 97 *Approximate Standard Benefit at age 65 assuming 8% per year future interest. Any of the above information can be adjusted to a lesser number of months of credit by dividing by 60 and multiplying by the desired number of months.