City of Deer Park - File #: CON 20-001

• File #: CON 20-001
• Version: 1
• Type: Contract
• Status: Agenda Ready
• File created: 1/10/2020
• In control: City Council
• On agenda: 1/21/2020
• 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).

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).

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 amendment establishes a “13^th 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 13^th check is a mechanism to give the retirees an increase in the form of one extra payment per year.  The 13^th check is issued to the retirees normally in December.  The 2019 “13^th Check” will be issued in March 2020.  This would be the second year for a 13^th check to be issued.  This 13^th check is a one-time payment, and will be authorized each year depending on the availability of funds.

Fiscal/Budgetary Impact: 

The issuance of the 13^th check is available within the adopted budget.

Recommended action

Staff recommends approval of this increase.