Number
170935
Version
SUBSTITUTE 1
Reference
Sponsor
ALD. KOVAC
Title
A substitute charter ordinance relating to annual valuations of assets and liabilities of the employes’ retirement system.
Sections
36-15-15 am
Analysis
This charter ordinance amends provisions relating to annual valuations of assets and liabilities of the employes’ retirement system as follows:
1. For purposes of annual valuations, the retirement system’s actuary shall employ the individual entry-age normal actuarial cost method rather than the current projected unit credit actuarial cost method.
2. The actuary shall apply a closed layered amortization method with amortization payments for each base increasing by 2% per year. The outstanding balance of the unfunded actuarial accrued liability as of January 1, 2018, shall be amortized over a 25-year period. At each subsequent valuation date, any changes to the unfunded actuarial accrued liability arising from actuarial gains or losses shall be amortized over a fixed 15-year period, and any changes to the unfunded actuarial accrued liability arising from changes in assumptions, methods or plan provisions shall be amortized over a fixed 25-year period.
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:
Part 1. Section 35-15-a and be of the charter is amended to read:
36-15. Administration.
15. ANNUAL VALUATIONS. a. On the basis of such tables as the board shall adopt, the actuary shall make an annual valuation of the assets and liabilities of the funds of the retirement system. This annual valuation shall comply with Actuarial Standards of Practice and shall contain a certification from the board's actuary to that effect. For the purposes of the annual valuation, the actuary shall employ the [[projected unit credit]] >>individual entry-age normal<< actuarial cost method.
b. Beginning with the valuation that determines employer contributions due and payable January 31, 2011, the actuary s...
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