A.Â
The plan's actuary shall perform an actuarial valuation
at least biennially unless the employer is applying or has applied
for supplemental state assistance pursuant to Section 603 of the Act,[1] whereupon actuarial valuation reports shall be made annually.
[1]
Editor's Note: See 53 P.S. § 895.603.
B.Â
Such biennial actuarial valuation report shall be
made as of the beginning of each plan year occurring in an odd-numbered
calendar year, beginning with the year 1985.
C.Â
Such actuarial valuation shall be prepared and certified
by an approved actuary, as such term is defined in the Act.
D.Â
The expenses attributable to the preparation of any
actuarial valuation report or experience investigation required by
the Act or any other expense which is permissible under the terms
of the Act and which is directly associated with administering the
plan shall be an allowable administrative expense payable from the
assets of the pension fund. Such allowable expenses shall include,
but not be limited to, the following:
(1)Â
Investment costs associated with obtaining authorized
investments and investment management fees.
(2)Â
Accounting expenses.
(3)Â
Premiums for insurance coverage on fund assets.
(4)Â
Reasonable and necessary counsel fees incurred for
advice or to defend the fund.
(5)Â
Legitimate travel and education expenses for pension
plan officials; provided, however, that the municipal officials of
the employer, in their fiduciary role, shall monitor the services
provided to the plan to ensure that the expenses are necessary, reasonable
and benefit the plan, and further provided that the plan administrator
shall document all such expenses item by item and, where necessary,
hour by hour.
Such actuarial reports shall be prepared and
filed under the supervision of the Chief Administrative Officer of
the municipality. The Chief Administrative Officer of the plan shall
determine the financial requirements of the plan on the basis of the
most recent actuarial report and shall determine the minimum obligation
of the employer with respect to funding the plan for any given plan
year. The Chief Administrative Officer shall submit the financial
requirements of the plan and the minimum obligation of the employer
to the governing body of the employer annually and shall certify the
accuracy of such calculations and their conformance with the Act.
Prior to the adoption of any benefit plan modification
by the employer, the Chief Administrative Officer of the plan shall
provide to the employer a cost estimate of the proposed benefit plan
modification. Such estimate shall be prepared by an approved actuary,
which estimate shall disclose to the employer the impact of the proposed
benefit plan modification on the future financial requirements of
the plan and the future minimum obligation of the employer with respect
to the plan.