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08-34-07-Ordinance-Texas Municipal Retirement System Buyback-08/20/2007ORDINANCE 08-34-07 TMRS-Buyback TEXAS MUNICIPAL RETIREMENT SYSTEM AN ORDINANCE ALLOWING CERTAIN EMPLOYEES OF THE CITY WHO HAVE TERMINATED PREVIOUS MEMBERSHIPS IN THE TEXAS MUNICIPAL RETIREMENT SYSTEM, TO DEPOSIT THE SUMS SO WITHDRAWN, PLUS ANNUAL WITHDRAWAL CHARGES, AND ALLOWING AND UNDERTAKING THE COST OF ALLOWING ANY SUCH EMPLOYEE CREDIT IN SUCH SYSTEM FOR ALL SERVICE TO WHICH SUCH EMPLOYEE HAD BEEN ENTITLED AT DATE OF SUCH WITHDRAWAL, WITH LIKE EFFECT AS IF ALL SUCH SERVICE HAD BEEN PERFORMED AS AN EMPLOYEE OF THIS CITY. WHEREAS, the actuary of the Texas Municipal Retirement System has determined that all obligations charged against the City's account in the municipality accumulation fund, including the obligations arising as a result of this ordinance, can be funded by the City within its maximum contribution rate and within its amortization period; and WHEREAS, the City Council has determined that adoption of this ordinance is in the best interests of the City, now therefore, WHEREAS, the City Council of the City of Sanger, Texas, finds that it will be in the public interest for the City to have its employees participate in the Texas Municipal Retirement System as hereinafter provided; now, therefore, BE IT ORDAINED BY THE CITY COUNCIL OF SANGER, TEXAS: Section 1: Pursuant to Section 853.003 of Subtitle G of Title 8, V.T.C.A., Government Code, as amended, the City of Sanger hereby elects to allow any member of the Texas Municipal Retirement System who is an employee of this City on the day of '' , ) 7 *, who has terminated a previous membership in said System by withdrawal of deposits while absenH rom service, but who has at least 24 months of credited service as an employee of this City since resuming membership to deposit with the System in a lump sum the amount withdrawn, plus a withdrawal charge of five percent (5%) of such amount for each year from date of such withdrawal to date of redeposit, and thereupon such member shall be allowed credit for all service to which the member had been entitled at date of termination of earlier membership, with like effect as if all such service had been rendered as an employee of this City, whether so rendered or not. The City agrees to underwrite and hereby assumes the obligations arising out of the granting of all such credits, and agrees that all such obligations and reserves required to provide such credits shall be charged to this City's account in the municipality accumulation fund. The five percent (5%) per annum withdrawal charge paid by the member shall be deposited to the credit of the City's account in said municipality accumulation fund; and the deposits of the amount previously withdrawn by the member shall be credited to his or her individual account in the employees' savings fund of the System. Section 2: This ordinance shall be become effective on the A0 date on or after the date set forth in Section 1, above. Passed and approved this the day of ATTEST: City Secretary okClerk day of -s (; r *, which is a Em- *THIS DATE MUST BE THE ACTUAL DATE OF fktoROWANCE'S FINAL ADOPTION. Mayor TEXAS MUNICIPAL RETIREMENT SYSTEM August 2, 2007 Ms. Rosalie Chavez City Secretary City of Sanger P.O. Box 1729 Sanger, Texas 76266-0017 Dear Rosalie: We are pleased to enclose a model ordinance for your city to adopt: Buyback This provision allows city employees the opportunity to purchase previously forfeited service with TMRS. If you adopt the Buyback provision, the eventual effect on your city's contribution rate could be an increase of 0.86%. However, your city's contribution rate will not be affected immediately. The contribution rate will only change after an eligible employee buys -back his or her previously forfeited service. Any repurchase of previously forfeited service will be included in the following year's actuarial valuation. Each year, after adoption of the Buyback provision, your city's contribution rate will reflect all actual Buybacks through the current valuation date. We have enclosed an ordinance for your consideration and a listing of Buyback eligible employees. Please note, the dates in Sections 1 and 2 of the ordinance must indicate the actual date on which the ordinance is finally adopted. We would appreciate receiving a copy of the approved ordinance within 30 days of its adoption. Once the completed ordinance has been received, we will prepare and transmit Buyback Applications for all employees who have forfeited service. Upon receipt of the individual applications and all payments, each member's account will be updated to reflect the Buyback purchase. Each employee is encouraged to buy this service back as soon as possible in order to eliminate any further charges. If you should need additional information or assistance, please feel free to contact me at 1-800-924-8677. Sincerely, C, ,fir @}�� { oG d�'`'�, ( Jam✓... Eric W. Davis Deputy Executive Director Enclosures TMRS 512.476.7577 P.O. Box 149153 TOLL -FREE 800.924.8677 AUSTIN, TEXAS 78714-9153 www.TMRS.com FAx 512.476.5576