CITY OF WARWICK
ORDINANCE NO. 0-13-16
APPROVED SCOTT AVEDISIAN
October 18, 2013 MAYOR
AN ORDINANCE REGARDING AMENDING THE
MUNICIPAL PENSION FUND
Be it ordained by the City of Warwick:
SECTION I. Chapter 60 of the Code of Ordinances of the City of Warwick is hereby amended by adding thereto the following section:
Sec. 60-442. - Employer contributions.
(a) The amount of the city’s annual contribution to the fund shall be the annual contribution amount determined by the actuary as provided in subsections (b) and (c) of this section.
(b) Effective July 1, 1992 with the June 30, 2014 actuarial valuation, and at least biennially annually thereafter, the actuary shall perform an actuarial valuation of the fund. The actuarial valuation shall be received by the board by the February 1st following the valuation date. Upon the request of the City Council, the actuary shall appear and present the results of the annual actuarial valuation at a regular meeting of the City Council. In the valuation, the actuary will determine an annual contribution amount equal to the sum of the following three components:
(1) Normal cost, net of employee contributions;
(2) An amount determined by the actuary which, with annual increases equal to the actuary’s assumed rate of increase in base pay, will amortize the unfunded actuarial accrued liability. as of February 1, 1988, over a period ending June 30, 2008; and
(3) An amount determined by the actuary which, with annual increases equal to the actuary’s assumed rate of increase in base pay, will amortize over a period no longer than 25 years the increase or decrease in the actuarial accrued liability after February 1, 1988, attributable to plan amendments, changes in actuarial assumptions and actuarial experience gains and losses affecting members.
(c) The normal cost and actuarial accrued liability shall be determined using the entry age normal actuarial cost method and such actuarial assumptions as recommended by the actuary. Assets used by the actuary for valuation purposes shall be the lesser of the market value of assets and the asset value before adjustment (as these terms are defined in section 60-399). Actuarial valuations will be performed by the actuary in accordance with generally accepted actuarial principles on an annual biennial basis with valuations performed as of July 1, 1992, July 1, 1994, etc. The results of the July 1, 1992, valuation will be used to determine the annual contribution amount for the 1993-94 and 1994-95 fiscal years, while the July 1, 1994, valuation will determine the annual contribution amount for 1995-96 and 1996-97, etc. The annual contribution amounts for the two fiscal years following the year of each the annual valuation will be indexed at the actuary’s assumed rate of increase in base pay.
(d) City contributions will be paid by February 1 June 30 of the following fiscal year on a semi-monthly basis or on a quarterly basis.
SECTION II. This Ordinance shall take effect upon passage and publication as prescribed by law.
ON BEHALF OF MAYOR AVEDISIAN