Number
100502
Version
SUBSTITUTE 1
Reference
Sponsor
Ald. Murphy
Title
A substitute charter ordinance relating to the employers’ reserve fund.
Sections
36-08-8 am
Analysis
Current charter provisions require that voluntary employer contributions made by the city and city agencies for financing pension obligations be deposited into a fund designated as the employers’ reserve fund. This charter ordinance provides that the city’s funds in the employers’ reserve fund shall be invested in a manner consistent with guidelines approved by the common council and that the city shall bear any incremental costs associated with the administration or investment of the funds. The funds in this account shall be used solely to offset required employer-paid employe contributions or required city contributions to the Employes’ Retirement System. Currently, the charter provides that the funds on deposit in each employers’ reserve account be credited annually based on the earnings of the retirement system as a whole.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 36-08-8 of the city charter is amended to read:
36-08. Method of Financing.
8. EMPLOYERS’ RESERVE FUND.
Effective January 1, 2000 there shall be created a fund to be known as the employers’ reserve fund for the exclusive purpose of holding voluntary employer contributions made by the city and city agencies. The retirement system shall establish separate accounts within the fund for the city and each city agency. Earnings on funds on deposit in each account shall be credited annually as part of the annual valuation [[based on the earnings of the retirement system as a whole]]. >>The city’s funds in the employers’ reserve fund shall be invested in a manner consistent with guidelines approved by the common council. The administrative functions shall be the responsibility of the committee on finance and personnel. The city shall bear any incremental costs associated with the administration or investment of the city funds. Absent any investment guidelines approved by the common council, earnings shall be credited based on the earnings of the retirement system as a whole.<< The reserve shall be funded by voluntary contributions from the city and city agencies and also by the amount transferred from the firemen and policemen’s survivorship fund. The reserve shall be used to offset against contributions required under subs. 6 and 7 in accordance with directives contained within a formal resolution adopted by the city or city agencies >>and for no other purposes<<. No funds may be transferred from the combined fund or the retirement fund to the employers’ reserve fund.
Part 2. This is a charter ordinance and shall take effect 60 days after its passage and publication, unless within such 60 days a referendum petition is filed as provided in s. 66.0101(5), Wis. Stats., in which event this ordinance shall not take effect until submitted to a referendum and approved by a majority of the electors voting thereon.
LRB
APPROVED AS TO FORM
____________________________
Legislative Reference Bureau
Date: ______________________
Attorney
IT IS OUR OPINION THAT THE ORDINANCE
IS LEGAL AND ENFORCEABLE
____________________________
Office of the City Attorney
Date: ______________________
Requestor
Drafter
LRB121187-2
MET
9/15/2010
1127-2010-2327:161344