[Adopted 1-26-2021][1]
[1]
Editor's Note: Former Art. V, Investment Advisory Committee, adopted 1-26-1993, was repealed 6-13-2006.
[Amended 1-9-2024]
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 actuarially determined employer contribution required by § 30-29 to the Pension Plan (the "ADEC") 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.
[Amended 1-9-2024]
The Town Council may only authorize an appropriation from the General Obligation Pension Bonds Reserve Fund for the following purposes:
A. 
To offset any Town Operating Funds contribution amount above a year-over-year increase of eight percent. Should the portion of the annual ADEC payable from Town Operating Funds increase by more than eight percent from the prior year, the ADEC will be funded as follows: the first eight-percent increase shall be funded by Town Operating Funds, and any increase over and above the eight percent will be funded by a contribution from the General Obligation Pension Bonds Reserve Fund. "Town Operating Funds" is defined as any Town funding source other than the General Obligation Pension Bonds Reserve Fund.
B. 
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 one hundred percent 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 ADEC for the fiscal year in which the appropriation from said General Obligation Pension Bonds Reserve Fund occurs.
[Added 1-9-2024]
In such years where the a) contribution of Town Operating Funds to the Pension Trust decreases from the prior year and b) the Pension Plan's funded ratio is less than one hundred fifty percent, the Town will transfer to the General Obligation Pension Bonds Reserve Fund the difference between the prior year contribution of Town Operating Funds and the contribution of Town Operating Funds required for the current year. For this purpose, the funded ratio is measured as of the valuation of the ADEC for the fiscal year in question.