Title
Consideration of and action on an amendment to the contract between the City of Deer Park and the Texas Emergency Services Retirement System (TESRS) authorizing a “13th Check” for fiscal year 2024-2025.
Body
Summary:
The City of Deer Park participates in the Texas Emergency Services Retirement System for volunteer firefighters and volunteer paramedics (first responders). The retirement system is a defined benefit system in which the pension benefit is calculated based on a monthly contribution that is made by the City of Deer Park during the volunteers’ active years of service.
TESR’s defined benefit system does not have any form of cost-of-living adjustment/allowance or other increase for volunteers after retirement. The existing contract does allow for the issuance of a “13th Check” to retirees of the Deer Park Volunteer Fire Department. The “13th Check” is the mechanism to give the retirees an increase in the form of (1) extra payment per year.
If approved, this would be the sixth year that a “13th Check” was issued to volunteers that have served our community.
This is one-time payment for FY2024-2025 and subsequent years will require City Council’s approval to amend the contract with TESRS to authorize the issuance of a “13th Check”.
As of 11/13/2024; TESRS Contract Administrator will be submitting the proposed amendment upon returning to work after an unexpected absence. FY2023-2024 amendment is attached for reference.
Fiscal/Budgetary Impact:
FY2024-2025 adopted budget includes the issuance of the “13th Check” to TESRS recipients; estimated not to exceed $26,000.
Recommended action
Amend the contract to allow for a “13th Check” to be issued to retired first responders for FY2024-2025.