Pat Trevino | October 25, 2025
CUERO, TX — Cuero city employees will see strengthened retirement benefits beginning in 2026, following a unanimous vote by the City Council to adopt Ordinance No. 2025-16. The measure, approved during a special meeting on October 23, brings the city’s retirement policies in line with recent changes to the Texas Municipal Retirement System (TMRS) and mirrors benefit structures seen in similar-sized municipalities across the state.
The ordinance was introduced by Councilman Charles Tounlley and seconded by Councilman ShaNon Henson. It appeared for its second and final reading during the special meeting, where it passed unanimously with no opposition from the council.
Under the new plan, city employees who participate in TMRS will contribute 6% of their compensation to the retirement system starting January 1, 2026—a rate considered standard among small Texas cities. The ordinance also authorizes annual cost-of-living adjustments (COLAs) for retirees and their beneficiaries, calculated at 70% of the Consumer Price Index change. These non-retroactive increases will begin the January following the ordinance’s approval and continue annually, pending actuarial review.
In addition to COLAs, the ordinance introduces annually accruing Updated Service Credits (USCs), which recognize both prior and current service with the City. Employees who have worked in other TMRS-participating municipalities will also be eligible to transfer service credits, a move aimed at improving retirement equity for public servants with diverse career paths.
One of the more notable provisions removes the cap on the City’s contribution rate to TMRS. This means Cuero will now make payments based on actuarial calculations rather than fixed limits—a change designed to ensure the City can fully fund its retirement obligations over time.
The updates follow the passage of House Bill 2464 by the Texas Legislature in 2023, which gave cities new flexibility in how they structure retirement benefits. Cuero’s adoption of these provisions places it among a growing number of municipalities modernizing their TMRS plans to better serve employees and retirees.
The new retirement structure is set to take effect January 1, 2026.