Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Pensions Benefits topic
No spam. Unsubscribe anytime.
Council approves 50% non‑retroactive COLA for TMRS plan; 20‑year vesting change to be considered separately
Summary
Bee Cave adopted Ordinance No. 581 to add a 50% non‑retroactive cost‑of‑living adjustment for Texas Municipal Retirement System beneficiaries and reauthorized certain service‑credit provisions; council members requested a separate ordinance to reduce vesting from 25 to 20 years.
The Bee Cave City Council on Sept. 9 approved Ordinance No. 581 to revise aspects of the city's Texas Municipal Retirement System (TMRS) benefits package.
Staff member Oakley presented the ordinance, saying it would implement a 50%, non‑retroactive cost‑of‑living adjustment (COLA) calculated as 50% of the Consumer Price Index for All Urban Consumers over the prior 12 months. "This ordinance brings back a 50%, non retroactive, cost of living adjustment," Oakley said during the presentation. The ordinance also removes a maximum late contribution rate and reauthorizes two existing benefits: annually accruing updated service credits and transfer‑updated service credits.
Council discussed but did not adopt changes to the city's vesting schedule; several council members expressed interest in reducing the current 25‑year vesting period to 20 years to improve competitiveness, and asked staff to return with a separate ordinance on that change. The COLA change in Ordinance 581 is time‑sensitive, staff said, because the city must adopt the non‑retroactive COLA in this calendar year to take advantage of the TMRS enrollment window.
Council voted unanimously to adopt Ordinance No. 581.
