§ 62-102. Pension reserve fund.

(a)

The pension reserve fund shall be the fund in which shall be accumulated reserves for the payment of all pensions payable by the retirement system. Upon the basis of such mortality and other tables of experience, and regular interest, as the board shall from time to time adopt, the actuary shall annually compute the annuity and pension reserves:

(1)

For annuities and pensions being paid retirants and beneficiaries; and

(2)

Covering service rendered and to be rendered by members.

(b)

The pension reserves shall be financed by annual appropriations, to be made by the council, determined according to subsections (b)(1), (2) and (3) of this section, subject to subsection (b)(4) of this section.

(1)

The appropriation for members' current service shall be a percent of their annual compensation which will produce an amount which if paid annually by the city during their future service will be sufficient to provide the reserves at the time of their retirements, for the portions of the pensions to be paid them based upon their future service; and

(2)

The appropriation for members' accrued service shall be a percent of their annual compensation which will produce an amount which if paid annually by the city over a period of years, to be determined by the board, will amortize, at regular interest, the unfunded pension reserves for the accrued service portions of the pensions to be paid them upon their retirement.

(3)

The appropriation for retirement allowances being paid retirants and beneficiaries shall be a percent of the annual compensation of members which will produce an amount which if paid annually by the city over a period of years, to be determined by the board, will amortize, at regular interest, the unfunded annuity and pension reserves for retirement allowances being paid retirants and beneficiaries.

(4)

Each year following receipt of the report of the annual actuarial valuation the excess, if any, of the reported value of pensions being paid and likely to be paid retirants and beneficiaries over the balance in the retirement reserve fund shall be transferred to the retirement reserve fund.

(Code 1971, § 24-62; Ord. No. 11-417, § 1.B, 1-3-2012)