Navasota council adopts TMRS changes to shorten retirement eligibility, raise employee contribution

The Navasota City Council on Monday approved an ordinance amending the city’s participation in the Texas Municipal Retirement System (TMRS), moving to 20‑year retirement eligibility for full‑time employees and raising the employee contribution rate from 5% to 6%, effective Jan. 1 if adopted as presented.

City staff told council the change was included in the current budget and would be communicated to TMRS for implementation. The staff presentation said the increase to 6% was chosen as a manageable step this year and that the city’s calculated contribution for the current year would be 11.92%. "The employee gives 5% currently, they will go to 6%... it's really a pretty small change," staff said during the hearing, calculating the effect on take‑home pay as modest because the contribution is pretax.

During the public hearing Deborah Richardson asked whether the city’s contribution also was increasing and referenced the 11.92% figure. Staff confirmed that 11.92% is the city’s calculated share for this change and explained how TMRS administers the benefit and how actuaries set the rate annually.

Council discussed options and noted some other cities had higher employee contribution rates; staff said the municipality previously was at the low end of available options and may consider further increases in future budget years to remain competitive in recruiting and retention.

The council moved and approved the ordinance following the public hearing. The ordinance was presented as part of the council’s budget discussions earlier in the year; no roll‑call vote tally was read into the record with individual names, but the mayor called for ayes and the motion carried.

What’s next: Staff will finalize paperwork with TMRS for an effective date of Jan. 1 and will adjust payroll and communications to affected employees.