From
Cathy DiMaggio
Title
Public hearing and ordinance adopting the 20-Year Any Age Service retirement eligibility provision of the Texas Municipal Retirement System effective January 1, 2019
Presenter
Lisa Norris, Human Resources Director
Recommended Action
Approve
Analysis
The City of Grand Prairie currently has adopted a 25 Year TMRS retirement option. This means in order to retire from the City of Grand Prairie, current employees must have 25 years of eligible TMRS service or be age 60 with 5 years of eligible TMRS service.
Grand Prairie is an outlier compared to our 11 survey cities. Ten of the eleven comparably sized cities have the 20-year TMRS retirement option. This puts Grand Prairie at a competitive disadvantage when recruiting for staff, including police and fire personnel.
When recruiting we have faced the situation of some candidates not willing to transition to a higher retirement requirement of 25 years. The 20-year TMRS retirement option will allow current and future employees the option to retire if they have 20 years of eligible TMRS service or are age 60 with 5 years of eligible TMRS.
The effective date of the TMRS change will be January 1, 2019.
Financial Consideration
The City’s TMRS Rate will increase from 16.09% to 17.05%.
The cost impact of adopting the 20 year TMRS retirement option for Fiscal Year 2019 (9 month funding) is $688,912. The Fiscal year 2020 (3 month funding) is $229,637. The total estimated cost for 12 month funding is $918,549.
The long-term cost will be mitigated in the future when tenured, higher paid employees retire and are replaced with newer lower paid employees.
Body
AN ORDINANCE OF THE CITY OF GRAND PRAIRIE, TEXAS, AFFECTING PARTICIPATION OF CITY EMPLOYEES IN THE TEXAS MUNICIPAL RETIREMENT SYSTEM GRANTING THE ADDITIONAL RIGHTS AUTHORIZED BY SECTION 854.202(g) OF TITLE 8, TEXAS GOVERNMENT CODE, AS AMENDED, (20-YEAR RETIREMENT OPTION) AND PRESCRIBING THE EFFECTIVE DATE FOR THE ORDINANCE
BE ...
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