HomeMy WebLinkAboutResolution No. 06-21 FRRF
RESOLUTION NO. 06-21
RESOLUTION REGARDING CITY PARTICIPATION
IN UNDERFUNDING REMEDY FOR UNIVERSITY PARK
FIREFIGHTERS' RELIEF AND RETIREMENT FUND
WHEREAS, the University Park Firefighters' Relief and Retirement Fund (FRRF or
"Fund") has existed since 1941 to provide retirement and disability benefits to the City's fire
personnel; and
WHEREAS, the City currently contributes the same percentage of payroll to the FRRF
as it does to the Texas Municipal Retirement System; and
WHEREAS, the 2002 and 2004 FRRF actuarial valuations indicate that the current
financing structure is not adequate to amortize the Fund's obligations within 30 years; and
WHEREAS, action must be taken by FRRF stakeholders to prevent the Fund's ultimate
insolvency; and
WHEREAS, the FRRF Board of Trustees, Fire Department personnel, Finance Advisory
Committee, and City officials have discussed the problem and studied many alternative
solutions; and
WHEREAS, the City Council desires that all City employees participate in a reliable and
cost-effective retirement system;
NOW THEREFORE BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY OF
UNIVERSITY PARK, TEXAS:
THAT, the City Council is willing to take action to assist conversion of the active FRRF
members to TMRS by agreeing to ensure that current FRRF pensioners receive their promised
benefits; and
THAT, should conversion to TMRS not occur, the City Council agrees to contribute to
the FRRF on an equal basis with the Fund's active membership. The combined contribution rate
needed to amortize the Fund's liabilities within 30 years shall be shared equally by the City and
the active members, provided that the FRRF adopts Plan language requiring an automatic change
in the contribution rate whenever recommended by the regular actuarial study
PASSED AND APPROVED by the City Council of the City of University, Texas on the 5th
day of December, 2006.
~(M~
CITY ATTORNEY