City-Approved Changes to the Retirement Ordinance
The Fort Worth Mayor and City Council approved changes to the definition of Regular Interest and Buy Back Interest. Changes were also made to the frequency of posting interest credit and the buyback payment period.
Regular Interest shall mean the two-year Treasury Bill rate on the last pay date of the calendar year. Interest will not be applied to any year in which the Member is not an active employee on the last pay date of the year and interest earned will be posted to Member accounts annually in January, beginning in 2019.
Buy Back Interest shall mean the Assumed Rate of Return as adopted by the Retirement Fund Board of Trustees and the repayment must be completed no later than three years after the starting date. The current Assumed Rate of Return for the Retirement Fund is 7.75%. This change will only impact re-hired employees who elect to buy back (purchase) prior service credits.
The Tier I and Tier II Retirement Handbooks are presently being modified to reflect these changes.