From
Lisa Norris, Human Resources Director
Title
Ordinance allowing the implementation of the Texas Municipal Retirement System (TMRS) "Buyback Provision" effective December 13, 2016 for employees qualifying in accordance with TMRS records and provisions
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The TMRS Buy-Back provision allows a current City employee the opportunity to “buy-back” previously forfeited/withdrawn TMRS money, plus a penalty, and place that amount back in their retirement fund. To be eligible for buy-back, the City must adopt an ordinance providing for such benefit. Eligible participants must be active employees with us at the time the ordinance is adopted, and remain eligible until no longer with the city. TMRS will notify eligible participants of eligibility and their costs. Employees hired after the ordinance is passed are not eligible for buyback. Buy-back is optional for eligible employees - they determine if, and when, they want to buyback. Once the decision is made, interested employees pay the full amount withdrawn, plus a 5% penalty for each year the amount remained withdrawn. This amount must be paid in full, but may be done at any time in the future while still employed with the City.
The last time the City adopted the Buy-back was in 1989. At that time there were 66 eligible, and 45 percent (30 people) took advantage of that buyback option since that time, with 4 remaining eligible today that are still employed with us. Under this new buyback, we currently have 71 employees eligible. 23 of those have only Grand Prairie forfeited time, 2 have both Grand Prairie and other city time forfeited, with the remaining employees having only forfeited time from cities other than Grand Prairie. The number of eligible employees may vary at the actual time the ordinance is passed dependent upon hires and separations. Currently, the buy-back cost, including penalties for employees ranges...
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