SUBJECT
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An Ordinance amending ordinance 2024-O-196 to recognize continuous service for former United Water employees in accordance with the Texas Municipal Retirement System (TMRS) Restricted Prior Service Agreement; To re-open the Voluntary Retiree Incentive Program (VRIP) for 30 days for these employees; To extend the VRIP benefit to those who retired during the original VRIP window; And providing for an effective date.
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VIVA LAREDO PLAN ALIGNMENT
Alignment Rating: Moderate
Supporting goal(s)/policy(ies):
Policy 7.2.1
“Support healthy living through programs and policies that promote well-being and dignity for all residents, including the aging population.”
(Page 7.23, Viva Laredo City of Laredo Comprehensive Plan)
Goal 7.2
“Provide access to services and programs that improve quality of life and support vulnerable populations.”
(Page 7.22, Viva Laredo City of Laredo Comprehensive Plan)
Policy 12.2.1
“Establish systems that ensure consistency, transparency, and fairness in implementation.”
(Page 12.5, Viva Laredo City of Laredo Comprehensive Plan)
Summary of alignment: This ordinance indirectly aligns with the Viva Laredo Comprehensive Plan by supporting policies that promote equity, health, and well-being for aging employees. By recognizing continuous service for United Water employees and reopening the VRIP window, the City demonstrates a commitment to treating former employees with fairness and dignity-principles consistent with Goal 7.2 and Policy 7.2.1. Furthermore, extending VRIP eligibility and benefits to those previously excluded upholds Policy 12.2.1, reinforcing transparency and fairness in policy implementation. While the ordinance does not directly address infrastructure, land use, or economic development, it supports key public health and equity themes identified in the plan.
PREVIOUS COUNCIL ACTION
Ordinance 2024-O-196 “establishing a Voluntary Employee Retiree Incentive Program for employees who retire between October 1, 2024 through January 31, 2025 with the exception of employees subject to any Collective Bargaining Agreement providing for a repealing clause, severability clause, and an effective date of October 1, 2024.” was approved by council on September 16, 2024.
BACKGROUND
On September 30, 2002, the City of Laredo transferred certain water utility employees to United Water through privatization. These employees were later reinstated as City employees on May 6, 2005. In coordination with the Texas Municipal Retirement System (TMRS), the City of Laredo granted a Restricted Prior Service credit upon their return, allowing the United Water employment period to count as continuous service for retirement eligibility purposes.
Under Ordinance 2024-0-196, employees must complete 20 years of continuous full-time service with the City to qualify for the Voluntary Retiree Incentive Program (VRIP). The City Council has determined that, for consistency with the TMRS Restricted Prior Service credit, the time spent working at United Water should also be recognized as continuous City service when determining eligibility for the VRIP and associated retiree health insurance benefits.
Additionally, the City Council has decided to reopen the VRIP enrollment period for 30 days and to extend eligibility to individuals who previously retired during the original VRIP window, ensuring fairness and equitable access to the program’s benefits.
COMMITTEE RECOMMENDATION
N/A
STAFF RECOMMENDATION
recommendation
Staff recommends City Council approve this item as presented.
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Fiscal Impact
Fiscal Year: 2025
Budgeted Y/N?: N/A
Source of Funds: N/A
Account #: N/A
Change Order: Exceeds 25% Y/N: N/A
FINANCIAL IMPACT:
No Financial Impact