[Ord. No. 1014, 6/8/2020]
1. The actuary to the plan shall perform an actuarial valuation at least
biennially (unless the Borough is applying or has applied for supplemental
state assistance pursuant to Act 205, for purposes of this Subpart
whereupon actuarial valuation reports must be made annually.)
2. Each 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.
3. Such actuarial valuation shall be prepared and certified by an approved
actuary, as such term is defined in Act 205.
4. The expenses attributable to the preparation of any actuarial valuation
report or investigation required by Act 205 or any other expense which
is permissible under the terms of Act 205 and which are 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 shall not be limited to, the following:
A. Investment costs associated with obtaining authorized investments
and investment management fees;
C. Premiums for insurance coverage on fund assets;
D. Reasonable and necessary counsel fees incurred for advice or to defend
the fund; and
E. Legitimate travel and education expenses for officials of the plan.
5. Council, in its 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 Administrator
shall document all such expenses item by item, and where necessary,
hour by hour.
[Ord. No. 1014, 6/8/2020]
1. The actuarial reports described above shall be prepared and filed
under the supervision of the Chief Administrative Officer.
2. 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
Borough with respect to funding the plan for a given plan year. The
Chief Administrative Officer shall submit the financial requirements
of the plan and the minimum obligation of the Borough to Council annually
and shall certify the accuracy of such calculations and their conformance
with Act 205.
[Ord. No. 1014, 6/8/2020]
Prior to the adoption of any provision that modifies a benefit
provided hereunder the Chief Administrative Officer shall provide
to Council a cost estimate of the proposed modification. Such estimate
shall be prepared by an approved actuary, which estimate shall disclose
to Council the impact of the proposed modification on the future financial
requirements of the plan and the future minimum obligation of the
Borough with respect to the plan.
[Ord. No. 1014, 6/8/2020]
1. Payments of general municipal state aid, or any other amount of state
aid received pursuant to Act 205 from the Commonwealth of Pennsylvania
which are received by the Borough and deposited into the fund shall
be used as follows:
A. To reduce the amortization of the unfunded liability, or after such
liability has been funded;
B. To apply against the annual obligation of the Borough for future
service costs, or to the extent that the payments may be in excess
of such obligation;
C. To reduce member contributions hereunder.
[Ord. No. 1014, 6/8/2020]
See Subpart E.
[Ord. No. 1014, 6/8/2020]
The remainder of the annual contributions required under provisions
of Act 205, as determined by the actuary to the plan in accordance
with Act 205, shall become the obligation of the Borough and shall
be paid into the fund by annual appropriations.