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Caddo Mills council approves change in TMRS retiree benefit calculation
Summary
The Caddo Mills City Council unanimously approved an ordinance to calculate TMRS retiree benefits using the last three years of a retiree's salary, a change city staff said will alter monthly benefit amounts for some retirees; the council agreed to monitor the policy going forward.
The Caddo Mills City Council unanimously approved an ordinance on Dec. 17, 2024, to change how retiree benefits are calculated under the Texas Municipal Retirement System (TMRS). City Manager Matt McMahan told the council the proposal would “take the last three years of the retirees salary and come up with their monthly benefit.”
Council members discussed whether the policy should be revisited periodically. Mayor Pro Tem John Verity asked if the change could be reviewed on a five- or ten-year cycle; Mayor Chris Davies said the council should be looking at the policy over time and that this ordinance is a first step in correcting the calculation. Mayor Pro Tem Verity moved to approve the ordinance, Council Member Justin Poppelreiter seconded, and the motion passed unanimously.
The ordinance authorizes the city to annually accrue updated service credits and transfer updated service credits, and to annually accrue annuity increases (cost-of-living adjustments) for retirees and their beneficiaries, according to the explanation given by city staff. The council did not record a separate vote tally by individual names in the minutes; the motion was recorded as unanimous. The council adjourned at 5:36 p.m.
