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Borger council introduces ordinance to raise TMRS employee contribution to 8% on first reading
Summary
Council approved introduction on first reading of an ordinance to increase the Texas Municipal Retirement System employee contribution rate to 8%, reauthorize updated service credits and preserve retiree cost-of-living provisions.
The City of Borger City Council introduced on first reading an ordinance to increase the employee contribution rate to the Texas Municipal Retirement System (TMRS) from 7% to 8% and to reauthorize related TMRS features. The motion to introduce the ordinance passed on a first-reading vote; final adoption will require subsequent readings as required by city ordinance.
Mister Spradlin, staff member, told the council the Texas Legislature amended the enabling law to allow an 8% employee contribution and that city employees preferred the retirement increase over a larger immediate salary increase. “The feedback was generally that they would prefer the increase in their retirement benefits versus the increase in their salary,” Spradlin said. The city will apply a 1% cost-of-living adjustment to offset the higher employee payroll withholding so employees’ take-home pay is not materially reduced when the 8% contribution begins.
Spradlin said the city’s TMRS plan is well-funded, noting an estimated funded ratio in the mid-80s; he said the change would reduce the funding ratio from roughly 86% to about 81%, and the city expects to rebuild the funding ratio over time.
Action taken: the council voted to introduce the ordinance O-013-25 on first reading and authorized staff to proceed with required notifications and documentation. Final adoption was not taken at this meeting.
