City of Harrisburg, PA Part VII Provisions To Comply With Municipal Pension Plan Funding Standard and Recovery Act of 1984 [1]

[1] Editor's Note: See 53 P.S. § 895.101 et seq.

§ 2-707.63 Actuarial valuations.

A. The plan's actuary shall perform an actuarial valuation at least biennially unless the City 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. 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 1999.

C. Such actuarial valuation shall be prepared and certified by an approved actuary, as such term is defined in the Act.[2]

[2] Editor's Note: See 53 P.S. § 895.102, Definitions.

D. 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 fund. Such allowable expenses shall include but not be limited to the following:

(1) Investment costs associated with obtaining authorized investments and investment management fees;

(2) Accounting expenses;

(3) Premiums for insurance coverage on fund assets;

(4) Reasonable and necessary counsel fees incurred for advice or to defend the fund; and

(5) Legitimate travel and education expense for plan officials; provided, however, that the municipal officials of the Board shall monitor the services provided to the plan to ensure that the expenses are necessary, reasonable and benefit the pension plan, and further provided that the Board shall document all such expenses item by item and, where necessary, hour by hour.

§ 2-707.64 Reporting requirements.

A. Such actuarial reports shall be prepared and filed under the supervision of the Pension Board.

B. The Board 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 City with respect to funding the plan for any given plan year. The Board shall submit the financial requirements of the plan and the minimum obligation of the City to the governing body of the City annually and shall certify the accuracy of such calculations and their conformance with the Act.

§ 2-707.65 Benefit modifications.

Prior to the adoption of any benefit plan modification by the City, the Pension Board shall provide to the City a cost estimate of the proposed benefit plan modification. Such estimate shall be prepared by the plan's actuary, which estimate shall disclose to the City the impact of the proposed benefit plan modification on the future financial requirements of the plan and the future minimum obligation of the City with respect to the plan.