Town of West Hartford, CT Article V General Obligation Pension Bonds Reserve Fund

[Adopted 1-26-2021][1]

[1] Editor's Note: Former Art. V, Investment Advisory Committee, adopted 1-26-1993, was repealed 6-13-2006.

§ 18-57 Establishment.

There is hereby established the General Obligation Pension Bonds Reserve Fund. The purpose of the General Obligation Pension Bonds Reserve Fund shall be to mitigate potential increases in the annual appropriation required by § 30-29 to the Pension Plan (the "actuarially determined employer contribution") due to less-than-expected asset growth. Earnings on the investment of funds in the General Obligation Pension Bonds Reserve Fund shall be credited and retained in such fund.

§ 18-58 Expenditures.

The Town Council may only authorize an appropriation from the General Obligation Pension Bonds Reserve Fund for the following purposes:

A. To offset any actuarially determined employer contribution amount above a year-over-year increase of 5%.

B. In the fiscal year following the issuance of general obligation pension bonds, to offset any pension liability amount above a year-over-year increase of 2 1/2%. For the purposes of this subsection, "pension liability" shall mean the sum in any given fiscal year of the debt service for any outstanding general obligation pension bonds and the actuarially determined employer contribution.

C. To pay debt service on any outstanding general obligation pension bonds if stochastic analysis conducted by the actuary appointed by the Pension Board shows that, following such appropriation from the General Obligation Pension Bonds Reserve Fund to pay debt service on the bonds, there is less than a five-percent chance that the funded ratio of the Pension Plan will be less than 100% at any time during the term of such bonds. The funded ratio of the Pension Plan shall be measured based on the actuarial methods and assumptions used for purposes of determining the actuarially determined employer contribution for the fiscal year in which the appropriation from said General Obligation Pension Bonds Reserve Fund occurs.

§ 18-59 Appropriation of surplus funds upon retirement of debt.

Whenever there are no general obligation pension bonds or any bond refunding such bonds authorized or outstanding, the Town Council may make appropriations from the General Obligation Pension Bonds Reserve Fund for any purpose.