NUMB:
970130
VERS:
SUBSTITUTE 1
REF:
XXBY:
ALD. PRATT AND MURPHY
TITL:
Substitute resolution authorizing an appropriation from the Common Council Contingent Fund for the Common Council to engage an actuary to review certain issues relating to the Employes' Retirement System.
ANLS:
- Analysis -
This resolution appropriates $50,000 from the Common Council Contingent Fund to engage an actuary to review certain issues relating to the Employes' Retirement System for purposes of the Common Council's long range financial planning and a perspective on potential future costs.
Funds for the actuary will be placed in a special purpose account under the control of the City Clerk's Office. The Common Council's Finance and Personnel Committee will approve the awarding of the contract for actuarial services and monitor and review the work of the actuary.
BODY:
Whereas, The need exists for the Common Council to engage an actuary to review certain issues relating to the Employes' Retirement System (ERS) to improve the Council's long range financial planning and perspective on potential future costs due to a number of circumstances, including but not limited to various lawsuits relating to benefits; the establishment of the projected unit credit actuarial cost method for the ERS, combined with potential developments which could affect the average age of the system's membership; and the impact of potential volatility in system investment return on funding status and contributions; and
Whereas, The engagement of an actuary by the Common Council to review such issues would not duplicate existing services, since ERS actuary services are designed to provide an annual valuation of the ERS system which includes the recommended employer contribution and the status of the system as of the end of the preceding year; and it is the intent of the Common Council in engaging an actuary to plan for contingencies as well as to understand the long-term financial co...
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