Ordinance 2023-57 ORDINANCE NO. 2023-57
AN ORDINANCE REGARDING THE CITY OF WYLIE'S TEXAS MUNICIPAL
RETIREMENT SYSTEM BENEFITS: (1) ADOPTING NON-RETROACTIVE
REPEATING COLAS, FOR RETIREES AND THEIR BENEFICIARIES UNDER
TMRS ACT §853.404(f) and (f-1), AND (2) AUTHORIZING ANNUALLY
ACCRUING UPDATED SERVICE CREDITS AND TRANSFER UPDATED
SERVICE CREDITS.
WHEREAS, the City of Wylie, 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,House Bill 2464,88th Texas Legislature,R.S.,2023("HB 2464"),added Subsections
853.404(f) and (f-1) to the TMRS Act and authorized cities participating in the System to provide certain
retirees and their beneficiaries with an annually accruing ("repeating") annuity increase (also known as a
cost of living adjustment, or "COLA") based on the change in the Consumer Price Index for All Urban
Consumers for the one-year period that ends 12 months before the January 1 effective date of the applicable
COLA(a"non-retroactive repeating COLA"); and
WHEREAS, new TMRS Act §853.404(f) and (f-1) allow participating cities to elect to provide
non-retroactive repeating COLAs under certain circumstances, as further described by this Ordinance, by
adopting an ordinance to be effective January 1 of 2024, 2025 or 2026, in accordance with TMRS Act
§854.203 and §853.404; and
WHEREAS, TMRS Act §853.404(f-1) provides the non-retroactive repeating COLA option
applies only to a participating city that,as of January 1,2023,either(1)has not passed an annually repeating
COLA ordinance under TMRS Act§853.404(c)or had previously passed a repeating COLA ordinance and
then,before January 1,2023,passed an ordinance rescinding such repeating COLA, or(2)does provide an
annually repeating COLA under§853.404(c)and elects to provide a non-retroactive repeating COLA under
§853.404(f) for purposes of maintaining or increasing the percentage amount of the COLA; and
WHEREAS,the City Council acknowledges that the City meets the above-described criteria under
§853.404(f-1) and is eligible to elect a non-retroactive repeating COLA under §853.404(f) and that such
election must occur before January 1, 2026, and after that date future benefit changes approved by the City
may require reversion to a retroactive repeating COLA; and
WHEREAS, the City Council finds that it is in the public interest to: (1) adopt annually accruing
non-retroactive COLAs for retirees and their beneficiaries under TMRS Act §853.404(o and(f-1); and(2)
in accordance with TMRS Act §853.404 and §854.203(h), reauthorize annually accruing Updated Service
Credits and transfer Updated Service Credits, now:
NOW, THEREFORE, BE IT ORDAINED BY THE CITY COUNCIL OF THE CITY OF
WYLIE,TEXAS:
SECTION 1. Adoption of Non-Retroactive Repeating COLAs.
(a) On the terms and conditions set out in TMRS Act §854.203 and §853.404,the City authorizes
and provides for payment of the increases described by this Section to the annuities paid to
retired City employees and beneficiaries of deceased City retirees (such increases also called
Ordinance No.2023-57 TMRS Non-Retroactive Repeating COLAs&Annual Accruing Updated Service Credits Page 1 of 3
COLAs). 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 in accordance with TMRS
Act §853.404(o as the sum of the prior service and current service annuities, as increased in
subsequent years under TMRS Act §854.203 or TMRS Act §853.404(c), of the person on
whose service the annuities are based on the effective date of the annuity increase, multiplied
by 70%of the percentage change in the Consumer Price Index for All Urban Consumers during
the 12-month period ending in December of the year that is 13 months before the effective date
of the increase under 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 under this Section does not result in an increase in the amount of an annuity,
the amount of the annuity will not be changed under this Section.
(e) In accordance with TMRS Act §853.404(f-1)(2), an increase under this Section only applies
with respect to an annuity payable to a TMRS member,or their beneficiary(ies),which annuity
is based on the service of a TMRS member who retired,or who is deemed to have retired under
TMRS Act §854.003, not later than the last day of December of the year that is 13 months
before the effective date of the increase under this Section.
(f) The amount of an increase under this Section is an obligation of this City and of its account in
the benefit accumulation fund of the System.
(g) The initial increase in annuities authorized by this Section shall be effective on January I
immediately following the year in which this Ordinance is approved, subject to receipt by the
System prior to such January I and approval by the Board of Trustees of the System("Board").
Pursuant to TMRS Act§853.404,an increase in retirement annuities shall be made on January
I of each subsequent year,provided that,as to such subsequent year,the actuary for the System
has made the determination set forth in TMRS Act §853.404(d),until this Ordinance ceases to
be in effect as provided in TMRS Act§853.404(e).
SECTION 2. Authorization of Annually Accruing Updated Service Credits and Transfer
Updated Service Credits.
(a) As authorized by TMRS Act §854.203(h) and §853.404, and on the terms and conditions set
out in TMRS Act§§853.401 through 853.404,the City authorizes each member of the System
who on the first day of January of the calendar year immediately preceding the January I on
which the Updated Service Credits will take effect(i)has current service credit or prior service
credit in the System by reason of service to the City, (ii) has at least 36 months of credited
service with the System, and (ill) is a TMRS-contributing employee of the City, to receive
"Updated Service Credit,"as that term is defined and calculated in accordance with TMRS Act
§853.402.
(b) The City authorizes and provides that each employee of the City who(i)is eligible for Updated
Service Credits under Subsection (a) above, and (ii) who has unforfeited prior service credit
and/or current service credit with another System-participating municipality or municipalities
by reason of previous employment,shall be credited with Updated Service Credits pursuant to,
calculated in accordance with, and subject to adjustment as set forth in TMRS Act §853.601
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(also known as "Transfer USC"), both as to the initial grant and all future grants under this
Ordinance.
(c) The Updated Service Credit authorized and provided under this Ordinance shall be 100% of
the "base Updated Service Credit" of the TMRS member calculated as provided in TMRS Act
§853.402.
(d) Each Updated Service Credit authorized and provided by this Ordinance 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) The initial Updated Service Credit authorized by this Section shall be effective on January 1
immediately following the year in which this Ordinance is approved, subject to receipt by the
System prior to such January 1 and approval by the System's Board. Pursuant to TMRS Act
§853.404, the authorization and grant of Updated Service Credits in this Section shall be
effective on January 1 of each subsequent year,using the same percentage of the"base Updated
Service Credit" stated in Subsection(c) in computing Updated Service Credits for each future
year, provided that, as to such subsequent year, the actuary for the System has made the
determination set forth in TMRS Act §853.404(d), until this Ordinance ceases to be in effect
as provided in TMRS Act §853.404(e).
DULY PASSED AND APPROVED BY THE CITY COUNCIL OF THE CITY OF WYLIE,
TEXAS on this 12th day of December, 2023.
Matthew Porter,Mayor
ATTESTED TO AND
CORRECTLY RECORDED BY ju_��
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Stephanie Storm, City Secretary
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