Number
121417
Version
SUBSTITUTE 3
Reference
991585, 091274
Sponsor
THE CHAIR
Title
A charter ordinance relating to employer contributions to the combined fund of the employes’ retirement system.
Sections
36-02-2.5 cr
36-02-10.5 cr
36-02-14.5 cr
36-02-22.5 cr
36-02-26.5 cr
36-08-6-h rc
36-08-9-a am
Analysis
This charter ordinance revises the method used to determine employer contributions to the combined fund of the employes’ retirement system and repeals the full-funding limit.
Current charter provisions require that employers pay annually into the combined fund: (1) the normal contribution, which is the actuarial accrued liability expected for the current year of service for members, reduced by the amount of the member contributions; and (2) the amount required to amortize the accrued unfunded liability. Employers might not be required to make these contributions, or might be required to make smaller contributions because the full-funding limit phases out employer contributions when the combined fund attains 100% funded status.
This charter ordinance requires employers to pay an amount that is the product of the actuarial contribution rate applied to the sum of covered compensation. The actuarial contribution rate is defined as the percentage of covered compensation that determines the amount of the annual contribution from the city and city agencies to the combined fund beginning with the contribution due on January 31, 2014. Covered compensation is defined as the compensation earned for which membership service is credited. This charter ordinance requires the actuarial contribution rate set by the actuary to be applicable for 5 years and to be reset every 5 years and requires annual employer contributions regardless of whether the combined fund reaches 100% funding status.
Body
Whereas, Under s. 36-14 of the City Charter the City is vested with home rule authority over the Employes’ Retirement System (ERS); and
Whereas, The c...
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