§ 18-50. Authorization of updated service credits; optional benefits package; effective date.

(a)

Authorization of updated service credits.

(1)

On the terms and conditions set out in V.T.C.A., Government Code §§ 853.401—853.404, as amended (hereinafter referred to as the "TMRS Act"), each member of the Texas Municipal Retirement System (hereinafter referred to as the "system") who has current service credit or prior service credit in the system in force and effect on the first day of January of the calendar year preceding such allowance, by reason of service in the employment of the city, and on such date had at least 36 months of credited service with the system, shall be and is hereby allowed "updated service credit" (as that term is defined in subsection (d) of Section 853.402 of the TMRS Act).

(2)

On the terms and conditions set out in V.T.C.A., Government Code § 853.601, any member of the system who is eligible for updated service credits on the basis of service with this city, who has unforfeited credit for prior service and/or current service with another participating municipality or municipalities by reason of previous service and was a contributing member on the first day of January of the calendar year preceding such allowance, shall be credited with updated service credits pursuant to, calculated in accordance with, and subject to adjustment as set forth in said Section 853.601, both as to the initial grant hereunder and all future grants under this subsection.

(3)

The updated service credit hereby allowed and provided for shall be 100 percent of the "base updated service credit" of the member (calculated as provided in V.T.C.A., Government Code § 853.402(c)).

(4)

Each updated service credit allowed hereunder 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.

(5)

In accordance with the provisions of V.T.C.A., Government Code § 853.401(d), the deposits required to be made to the system by employees of the several participating departments on account of current service shall be calculated from and after the effective date of this subsection on the full amount of such person's compensation as an employee of the city.

(b)

Optional benefits package (ten-year vesting). Pursuant to the provision of V.T.C.A., Government Code § 851.001 et seq., as amended, which Subtitle shall herein be referred to as the "TMRS Act," the city adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System:

(1)

Each person who becomes an employee of any participating department of this city and who is not already a member of the Texas Municipal Retirement System shall become a member of the system as a condition of employment, provided such person is then under 60 years of age;

(2)

Pursuant to the provisions of V.T.C.A., Government Code § 854.202(g), as amended, which Subtitle shall herein be referred to as the "TMRS Act," the City of Grapevine, Texas, adopts the following provisions affecting participation of its employees in the Texas Municipal Retirement System (herein referred to as the "system"):

Prior to adopting this subsection, the governing body of the city has: (1) prepared an actuarial analysis of member retirement annuities at 20 years of service; and (2) held a public hearing pursuant to the notice of provisions of the open meetings requirement, V.T.C.A., Government Code § 551.002.

a.

Any employee of the city who is a member of the system is eligible to retire and receive a service retirement annuity, if the member has at least 20 years of credited service in the system performed for one or more municipalities that have adopted a like provision under V.T.C.A., Government Code § 854.202(g).

b.

If a member to whom V.T.C.A., Government Code § 854.204(b) of the TMRS Act is applicable, shall die before becoming eligible for service retirement and leaves surviving a lawful spouse whom the member has designated as beneficiary entitled to payment of the member's accumulated contributions in the event of the member's death before retirement, the surviving spouse may by written notice filed with the system elect to leave the accumulated deposits on deposit with the system subject to the terms and conditions of V.T.C.A., Government Code § 854.204(b). If the accumulated deposits have not been withdrawn before such time as the member, if living, would have become entitled to service retirement, the surviving spouse may elect to receive, in lieu of the accumulated deposits, an annuity payable monthly thereafter during the lifetime of the surviving spouse in such amount as would have been payable had the member lived and retired at that date under a joint and survivor annuity (Option 1) payable during the lifetime of the member and continuing thereafter during the lifetime of the surviving spouse.

c.

At any time before payment of the first monthly benefit of an annuity, a surviving spouse to whom subsection (b) applies may, upon written application filed with the system, receive payment of the accumulated contributions standing to the account of the member in lieu of any benefits otherwise payable under this section. In the event such a surviving spouse shall die before payment of the first monthly benefit of an annuity allowed under this section, the accumulated contributions credited to the account of the member shall be paid to the estate of such spouse.

d.

The rights, credits and benefits hereinabove authorized shall be in addition to the plan provisions heretofore adopted and in force at the effective date of this subsection pursuant to the TMRS Act.

e.

Any employee of this city who is a member of the system is eligible to retire and receive a "standard occupational disability annuity" under V.T.C.A., Government Code § 854.408 or an "optional occupational disability retirement annuity" under V.T.C.A., Government Code § 854.410 upon making application therefor upon such form and in such manner as may be prescribed by the board of trustees of the system, provided that the system's medical board has certified to said board of trustees: (1) that the member is physically or mentally disabled for further performance of the duties of the member's employment; (2) that the disability is likely to be permanent; and (3) that the member should be retired. Any annuity granted under this subsection shall be subject to the provisions of V.T.C.A., Government Code § 854.409.

f.

The provisions relating to the occupational disability program as set forth in section (e) above are in lieu of the disability program heretofore provided for under V.T.C.A., Government Code §§ 854.301—854.308.

(3)

The membership of any person who has completed at least ten years of creditable service with participating municipalities that have authorized eligibility under V.T.C.A., Government Code § 851.001 et seq., shall not terminate because of absence from service; and

(4)

Any person who is an employee of a participating department of this municipality at the effective date of this section, but who at the date of his or her employment was under 60 years of age but did not become a member of Texas Municipal Retirement System because he or she was then above the maximum age then prescribed by law for initial membership in the system, shall become a member of the system at the effective date of this section, unless he or she has already become a member under other provisions of the governing act, and shall be allowed prior service credit for each month of creditable service performed for this municipality subsequent to the date such person was precluded from membership and prior to the effective date of his or her membership. Such prior service credit shall be calculated using the same percentage of base prior service credit as was most recently used in calculating prior service credits or updated service credits in said system for current member employees of this city.

(c)

Dates of allowance and increases.

(1)

The initial allowance of updated service credit and increase in retirement annuities hereunder shall be effective on January 1, 1998, subject to approval by the board of trustees of the system. An allowance of updated service credits and an increase in retirement annuities shall be made hereunder on January 1 of each subsequent year until this subsection ceases to be in effect under V.T.C.A., Government Code § 853.404(e), provided that, as to such subsequent year, the actuary for the system has made the determination set forth in V.T.C.A., Government Code § 853.404(d).

(Ord. No. 75-52, § 1, 12-16-75; Ord. No. 80-37, §§ 1, 3, 7-15-80; Ord. No. 81-76, §§ 1, 2, 12-1-81; Ord. No. 82-41, §§ 1, 2, 7-20-82; Ord. No. 84-52, §§ 1, 2, 7-3-84; Ord. No. 85-61, §§ 1, 2, 10-1-85; Ord. No. 86-63, §§ 1, 2, 4, 10-7-86; Ord. No. 88-66, § 1, 9-20-88; Ord. No. 91-64, §§ 1—3, 9-3-91; Ord. No. 93-62, §§ 2, 4, 12-21-93; Ord. No. 97-104, §§ 2—5, 9-16-97)