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File #: 091274    Version:
Type: Charter Ordinance Status: Passed
File created: 1/20/2010 In control: FINANCE & PERSONNEL COMMITTEE
On agenda: Final action: 3/2/2010
Effective date: 5/18/2010    
Title: A substitute charter ordinance relating to annual valuations of the assets and liabilities of the employes’ retirement system.
Sponsors: THE CHAIR
Indexes: ANNUITY AND BENEFIT FUND, CHARTER ORDINANCES, EMPLOYES RETIREMENT SYSTEM
Attachments: 1. 2/23/10 City Attorney opinion, 2. Fiscal note, 3. Proposed Substitute A, 4. Letter to Buck Consultants from Budget Office re funding policy, 5. Letter from Buck Consultants to Budget Office Director, 6. Memo from Budget & Management Div., 7. Letter from Milw Retiree Association, 8. Letter from Milw Retired Police Association, 9. Memo from Legislative Reference Bureau, 10. Letter from Mayor Barrett, 11. Hearing Notice List, 12. Letter from William C Carey, 13. Statement of Reasons, 14. Notice Published on 3-18-10
Date Ver.Action ByActionResultTallyAction DetailsMeeting DetailsVideo
3/18/20102 CITY CLERK PUBLISHED   Action details Meeting details Not available
3/9/20102 MAYOR SIGNED   Action details Meeting details Not available
3/2/20102 CITY CLERK DRAFT SUBMITTED   Action details Meeting details Not available
3/2/20101 COMMON COUNCIL AMENDED

Minutes note: Ald. Murphy moved for suspension of the rules for the purpose of considering this matter out of order. There was no objection. Ald. Bohl moved to amend the last sentence in the pargarph under Part 4 of the charter ordinance to read as follows: "No changes shall be made to this paragraph without >>an affirmative vote fo the board of at least 5 of its members, and<< written certification from the board's actuary that such changes comply with Actuarial Standards of Practice."
Pass14:0 Action details Meeting details Not available
3/2/20102 COMMON COUNCIL PASSEDPass10:5 Action details Meeting details Not available
2/25/20101 CITY CLERK DRAFT SUBMITTED   Action details Meeting details Not available
2/25/20100 FINANCE & PERSONNEL COMMITTEE SUBSTITUTED

Minutes note: Individuals present: Patick Curley, Mayor's Chief Staff Mark Nicolini, Budget & Management Director Rudy Konrad, Deputy City Attorney Patty Yunk, Dist. Council 48 Carol Graham, President, Milw. Retiree Association Jerry Allen, Executive Director, Employes Retirement System Tom Hayes, Vice President, Milw. Retiree Association John Barmore, Fire Fighter and Annuity & Pension Board member Gust Petropoulos, Annuity & Pension Board member Russell Hershey, 1983 N. Summitt Ave., Retiree Bill Carey, Annuity & Pension Board member, Vice Chairman Wray Young, President, Milw. Retired Police Association Ald. Murphy offered a proposed substitute B. Ald. Bauman made the petition submitted by Ms. Graham and letter to City Attorney from Mr. Carey a part of the file. There were no objections.
Pass5:0 Action details Meeting details Not available
2/25/20101 FINANCE & PERSONNEL COMMITTEE HELD TO CALL OF THE CHAIRFail2:3 Action details Meeting details Not available
2/25/20101 FINANCE & PERSONNEL COMMITTEE RECOMMENDED FOR PASSAGEPass4:1 Action details Meeting details Not available
2/19/20100 FINANCE & PERSONNEL COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
2/19/20100 FINANCE & PERSONNEL COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
2/19/20100 FINANCE & PERSONNEL COMMITTEE HEARING NOTICES SENT   Action details Meeting details Not available
1/20/20100 COMMON COUNCIL ASSIGNED TO   Action details Meeting details Not available
Number
091274
Version
SUBSTITUTE 3
Reference

Sponsor
THE CHAIR
Title
A substitute charter ordinance relating to annual valuations of the assets and liabilities of the employes’ retirement system.
Sections
36-02-3.2 cr
36-02-3.5 cr
36-02-3.7 cr
36-02-8.2 cr
36-02-17.5 cr
36-08-6-h-2 am
36-15-15 ra
36-15-15-b cr
Analysis
This charter ordinance provides that, beginning with the valuation of the assets and liabilities of the employes’ retirement system that determines employer contributions due and payable January 31, 2011, the system’s actuary shall employ a 5-year asset smoothing period and an asset valuation corridor that allows for a variation between the market value and actuarial value of assets of 20%. The actuary shall calculate amortization of the unfunded liability based on a level percent of payroll amortization. The actuary shall apply a closed amortization method to a 24-year amortization period until the amortization period is reduced to the expected future working lifetime of the active system’s population, calculated separately for police, fire and general city members.

The charter ordinance also provides that no changes will be made to the amortization and smoothing methods described in the preceding paragraph without an affirmative vote of the annuity and pension board of at least 5 of its members and written certification from the annuity and pension board’s actuary “that any such changes comply with Actuarial Standards of Practice.”
Body
The Mayor and Common Council of the City of Milwaukee do ordain as follows:

Part 1. Section 36-02-3.2, 3.5, 3.7, 8.2 and 17.5 of the city charter is created to read:
36.02 Definitions.
3.2. AMORTIZATION PERIOD shall mean the period of time over which unfunded liability, if any, is amortized.
3.5 ASSET SMOOTHING PERIOD shall mean the length of time over which changes in the market value of assets are converted to actuarial values.
3.7 ASSET VALUATION CORRIDOR shall mean the maximum va...

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