(a) It is the intent of the Legislature that the additional benefits provided by this subpart shall be payable solely from the fund established by Section 45-37A-51.05, and that in no event shall any such additional benefit be payable from the fund established under Act 929.
(b)(1) As used in this subsection and subsection (c), these terms have the meanings here given them.
a. THE FUND. The fund that Section 45-37A-51.05 establishes, including all assets and resources in the fund or to be received by the fund in the future, and all income in the fund or to be received by the fund in the future.
b. OBLIGATIONS OF THE SYSTEM. All existing, future, or contingent obligations and liabilities of the system, including every pension, allowance, or benefit which is payable, or which may become payable, out of the fund to any member of the system, or to any other person on account of such other person’s relation to a member of the system, and also including the matching payments which this subpart requires the city to make to the pension system established by Act 929.
c. SECTION 45-37A-51.05 PAYMENTS. The deductions from the members' salaries and the matching payments by the city which Section 45-37A-51.05 now requires to be made monthly to the fund.
d. SUPPLEMENTAL PAYMENT. The supplemental payment subsection (c) provides the governing body may require to be made monthly to the fund if the governing body determines that the fund and the anticipated Section 45-37A-51.05 payments are not adequate to pay all obligations of the system.
e. SYSTEM. The pension system this subpart establishes.
(2) Within 60 days from May 2, 1978, the board of managers, established by Section 45-37A-51.03, shall employ a competent actuary by a contract providing for the actuary to submit to the board a written opinion on this question: Will the fund, with the Section 45-37A-51.05 payments being made thereto, be adequate to pay all obligations of the system?
(3) Such contract shall provide, in substance, that in the event the actuary's opinion answers the foregoing question in the negative, or indicates doubt as to whether such question should be answered affirmatively or negatively, then in such event the actuary will advise the board the amount of the supplemental payment required to result in the fund sustained by the Section 45-37A-51.05 payments and the supplemental payments being adequate to pay all obligations of the system. Upon receiving the actuary’s opinion the board shall promptly send copies of the opinion to the mayor and the governing body of the city. If there is an organization or organizations comprised of policemen members or firefighter members, the board will promptly furnish a copy of the actuary’s opinion to every such organization. The actuary's opinion will be a public record, subject to inspection and copying by any member of the system or by any citizen.
(c)(1) After considering the actuary's opinion and any other information the governing body of the city deems pertinent, the governing body shall determine whether the fund, with the Section 45-37A-51.05 payments being made thereto, is adequate to pay all obligations of the system. If the governing body determines that the fund with the Section 45-37A-51.05 payments being made thereto is inadequate to pay all obligations of the system, the governing body will determine the minimum monthly supplemental payment which would result in the fund, with the Section 45-37A-51.05 payments and the supplemental payments being made thereto, becoming adequate to pay all obligations of the fund. Upon making such determination, the governing body shall adopt a resolution providing that beginning in the next calendar month subsequent to the adoption of such resolution the city shall pay monthly to the fund a supplemental payment in the amount which the governing body determines would result in the fund becoming adequate to meet all obligations of the system. One-half of the supplemental payment the governing body determines would be sufficient to render the fund adequate, as aforesaid shall consist of salary deductions and the other half thereof shall consist of city matching payments. The city will pay such salary deductions and the city’s matching payments comprising the supplemental payment to the fund at the same time the city pays to the fund the Section 45-37A-51.05 payments.
(2) The city governing body shall be authorized to decrease or discontinue the supplemental payments at any time the city governing body determines, after considering actuarial advice, that the supplemental payments can be reduced or discontinued without impairing the ability of the fund to pay all obligations of the system. The governing body may effect such reduction or discontinuance of the supplemental payments by adopting a resolution providing for such discontinuance or reduction.
(d) This subsection shall not apply if before May 28, 1980, the governing body of the city and the board of managers shall have taken all actions which subsection (b) and subsection (c) required the governing body and the board to take. If, before May 28, 1980, the governing body or the board has failed to perform any act which either subsection (b) or subsection (c) required the governing body or the board to perform, then as soon as practicable after May 28, 1980, the governing body of the city or the board, as the case may be, shall perform all acts which either subsection (b) or subsection (c) required the governing body or board to perform and which the governing body or board failed to perform before May 28, 1980.
Last modified: May 3, 2021