(a) Upon approval of the governing body of the municipality primarily served by the system and upon approval of the board of managers, an increase in the amount of benefits, including improvements in the terms of benefits: (1) for future retirees, benefits or improvements such as earlier vesting, decreased retirement age, increase in multiplier used in calculating monthly benefit, or other like improvements may be granted; and (2) for current retirees cost of living increases may be granted, subject to the requirements of the United States Internal Revenue Code and regulations therewith. Such increases shall apply to participants or retirees of the board of health.
(b) Prior to approving an increase in the above described benefits, the board shall obtain the actuarial evaluation of the fund. Such evaluation shall project the actuarial cost of benefits for the succeeding plan year and shall combine therewith the applicable payment required under the current and any future plan for amortizing unfunded accrued liability. This total amount shall be deducted from the total of participant’s and city contributions. The remaining balance shall become the total available for benefit increases. Upon approval of the board and the municipal governing body, this amount may be used to pay the cost, as determined by the board’s actuary, of benefit increases, improved vesting provisions, cost of living increases for past retirees, a reserve, and other benefits which may be adopted. Such benefit increases may be discontinued or reduced in the event participant and city contributions are not sufficient to pay all cost thereof determined by the actuary. Such increases shall apply to participants or retirees of the board of health.
Last modified: May 3, 2021