Title
Discussion of issues relating to two (2) contract amendments between the City of Deer Park and the Texas Emergency Services Retirement System (TESRS).
Body
Summary:
The City of Deer Park participates in the Texas Emergency Services Retirement System for volunteer firefighters and EMS personnel. The retirement system is a defined benefit system in which the pension benefit is calculated based on a monthly contribution during the member’s active service. The current monthly contribution is $120 per member, per month. This contract amendment will increase the monthly contribution to $132 per member, per month. This increase brings our Department up to the level that is consistent with other departments in our area who also participate in this retirement system for their volunteer firefighters. The second amendment also establishes a “13th check” to be issued to retirees of the pension system. The TESRS system is a defined benefit program that does not have any form of COLA or other increase post-retirement, so the 13th check is a mechanism to give the retirees an increase in the form of one extra payment per year. The 13th check is issued to the retirees in December. This 13th check is a one-time payment, and will be authorized each year depending on the availability of funds.
Fiscal/Budgetary Impact:
The increased cost of monthly contributions and the 13th check is available within the adopted budget.
Recommended action
Staff recommends approval of this increase.